Risk Refresher Training

CONFIDENTIAL
 Why is Risk important?
What is our product?
Our product is the loan, not the gadgets and appliances that we finance.

A loan is not a physical commodity, but a service based on a promise that the
client will pay us back. We earn only when the client pays for this service.

There is no point in signing many contracts

with clients who will not pay.
WHAT HAPPENS WHEN WE
DON’T MINIMIZE RISK?
Initial approval
rate

Lower SA’s
Low quality
bonuses due to
risk and sales sales

RISK MAGIC CIRCLE

Lower Poor
approval rate collections

High defaults
 High loss
 What parts of the business does risk affect?

Approval New
Profitability
rate products

Training Application Approval UWI

materials form process Strategy

RISK SA/DSM Time to

Anti-fraud
prevention Collections
bonuses decision

Pre- New
Eligibility
employment partners/ New areas
checks criteria
shops
IMPROVE SALES QUALITY
 DIRECT DEBIT

! Remember to complete &

submit the ADA Form! Common reasons why ADA
application does not get
approved by the bank:
 Signature of client is different from
signature from the bank application
 Wrong or invalid account number
 Name does not match name on
account, or name is incomplete
 ADA form is not submitted or filled
up correctly

When the ADA Form is not submitted or not filled up

correctly, the Direct Debit does not get enrolled. 
 SA will have to pay in cash, and the value proposition of ADA is not met
Higher ADA
= Lower Risk
Risk will be as HIGHER THAN Without ADA.
 DOCUMENT COLLECTION

Properly collecting client’s data is the first

step in knowing a good client.
► A good client has nothing to hide during client interview
► Is cooperative when asked, and is willing to offer
information
ALWAYS:
 Double-check the details of each document
 Use the UV Lamp
 Make sure ID version is still acceptable and not expired

Ask for SSS, TIN Numbers even if ID was

not submitted
 anyone with a job should have one; since minimum 3mos employment is
eligibility criteria, clients are expected to have SSS/TIN Number
Make the extra effort 1.8%
1.7%
76.5%

Ask for More Documents 1.6% 76.0%

1.5% 75.5%
1.4%
Clients who are willing and 1.3% 75.0%
1.2%
ready to present more valid 1.1%
74.5%
1.0% 74.0%
documents have better FPD30
approval and lower risk 2 3 4 5+
APPROVAL
 F I N G E R P R I N T D E L AY

We’re trying to make verification faster.

If you wait 2-3 minutes or more before you send the
fingerprints, verification would be almost done. But don’t panic!
Panicking will only lead you to do drastic
things, like manipulating fingerprints.
Don’t do it! This is a terminable offense!
 Data Manipulation is A L W A Y S
. worse than having late or no
... fingerprint.
 If your computer is failing, send a
Send contract Verification on-going Verification will take longer, request to Sales HelpDesk. Keep the
for evaluation but FP still not sent More checking needs to be done IT HelpDesk Ticket Number for
documentation.
SENT ON TIME SENT LATE  Can’t capture fingerprints? Inform us
via email to Fraud Mailbox.
APPROVAL
RATE 74% 48%
AVG DECISION 12 mins. 1 hr & 16 mins.

CLIENT
Reasons: Client-side concerns affecting FP Quality
 Injured Fingers  Amputated Hand
 Dry Skin
SEND TO: fraud@homecredit.ph
credit-expert@homecredit.ph
Required Information:
 Contract Number
 Photo of Client w/ Hands
 Screenshots of 3rd Skip
 Brief Description of Reason
2 SKIPPED FINGERS
+ 1 RED BAR
HOW TO REPORT
FINGERPRINT ISSUES?
TECHNICAL
Reasons: Delayed or No FP due to Internet/PC Problems
 Slow Internet  Computer Failure
 Corrupted Quality  Broken FP Scanner
SEND TO: Sales Helpdesk
Required Information:
 Contract Number(s) involved
 Employee Number
 Date & Time of issue
 Screenshot of Error (if applicable)
 Brief description of issue
REMEMBER: Secure your IT Ticket Number
 LENDDO
Why Lenddo? Always Do
Faster, More accurate, Costs Less Lenddo
WITHOUT LENDDO
LENDDO NO LENDDO
Verification will have to manually
check for the client’s basic info APPROVAL RATE
from outside sources, which
takes time and manpower
77% 74%
WITH LENDDO
AVG DECISION TIME
Automating these basic checks using available
information that the client already declared
on their public profile allows us to process 8.8 mins. 10.7 mins.
faster, allowing you to process more clients!

 Lenddo is a required part of process, and SA must discuss this with client
 Only skip Lenddo if client really refuses to agree even with proper explanation
 Lenddo is imperative to a faster and more accurate verification process
 D O W N PAY M E N T N E G O T I AT I O N

Why does DP All our clients are different, so they should have different
Negotiation Matter? down payments:
 Clients will have the appropriate Monthly Installment
 To know client’s paying capacity and based on their capacity to pay
saving/spending behavior  This makes better suited loans for each client
 Verification looks at this to differentiate:  Easy to pay means it’s lower defaults
 good client (cooperative; wants lower  Lower risk, and of course, lower risk malus
monthly installments)
 bad payer or fraudster (only wants minimum 30%
30%
payment, has no intention to pay the loan) 30% 30%
30% 30%
30%
30% 30%
30%
Never communicate “minimum” 30%
DP to client
 They will tell other friends that they can pay a
minimum DP when they recommend HC
 Too many clients with low DP will have high
monthly installment, and will be likelier to
default on a payment
 C R I T I C A L / N O N - C R I T I C A L M I S TA K E S

We don’t want you to receive deductions for something so simple, like:

 Typo in name, address, other details
 Blurry photocopy of documents
 Missing signatures
 Parts of contract not included in package
So please be very careful and avoid these mistakes!! They’re very common!
The easiest way to avoid mistakes is just to
double check for correctness.

Worst performing SA’s have around 20%+ of contracts with at

least 1 critical mistake, 40%+ non-critical mistake.

When a contract has a mistake, especially critical

mistakes, the contract may not be registered properly,
and won’t be activated.
 DOCUMENT POLICY REMINDERS

Minimum Requirement: 2 Documents


Check for the following:
NBI
TIN Clearance
 At least 1 Primary ID with Birthday
 At least 1 Primary ID with full middle name
 At least 1 ID with Address
1 Primary + 1 Secondary  Name is the same for all documents

OR  Not nickname used

2 Primary ID’s  Not expired, tampered, or unacceptable versions

TIN  SSS
 DOCUMENT POLICY REMINDERS

What If
…No single ID has all the requirements?
P R I M A R Y P R I M A R Y

This is acceptable.
 1 Primary ID has full middle name
First Middle Last  1 ID has address
First M. Last  1 Primary ID with Birthday
+ Birthday + Address
 Names are consistent

…the addresses differ on the ID’s?

It’s okay.
You only need at least 1 ID
Address 1 Address 2 with Address
 Married Single
No ID with Address? Name
» Ask for Barangay Clearance Name
PRIMARY SECONDARY

ID’s with Single & Married Name

» Ask if Another ID is Available
No Other ID?
» Ask for a Marriage Certificate
Single
Name Marriage
PRIMARY
Certificate
Use either the Single or Married
No ID with Birthday? name, as long as you have:
 at least 2 ID’s with same name
Full Middle Name?  at least 1 is primary
» Ask for Birth Certificate
 THANK YOU!
H O M E C R E D I T R I S K D E PA R T M E N T