Student Loan

CUSTOMER ACQUISITION

Group 2 Nakul Vaibhav Roy Naldo Nandipa Shreeya

Nakul K.

PRODUCT OVERVIEW

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The Product Student / Education Loan

Unsecured line of credit Variable re-payment schedule High Systematic Risk

A student loan is designed to help students pay for university tuition, books, and living expenses. Because student loans are frequently subsidized by government, interest rates tend to be lower than other unsecured loans such as credit cards and the repayment schedule may be flexible.
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Huge market in a global education hub

Acquiring a valuable customer base Excellent cross-sell opportunities

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Target Customers and Stakeholders

Applicants
Pre-University
Secondary Post-Secondary

Guarantor
Relation
Parents Spouse

Partner Institutions
University Pre-University
Junior Colleges Centralized Institute Institute of Technical Edu Polytechnics Nanyang Academy of Fine Arts LASALLE College of the Arts

University
Undergraduate Graduate Doctorate
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Non-relation
Local Guardian Employer

Lifecycle Implementation of Banking Products - Group X

Product Features
Online quick-application* Multiple disbursements

No Collateral required, only Guarantor's information

Flexible re-payment periods tenure up to 8 years Standard, Interest servicing, partial repayment schemes Fixed or floating interest rates

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Customer Acquisition Process Overview (L0)

TRANSACTION PROCESSING
Invoice Issued Request for Disbursement Account Creation and Maintenance Initial Account Creation disbursement, Progressive disbursements

APPLICATION PROCESS

RISK PROFILING

UNIVERSITY CUSTOMER / APPLICANT CHANNEL

Extend Offer to Candidate Applies for Education loan through various channels

BANK

Initial Processing and document verification, leading to preliminary checks, approval or rejection

Risk Profiling of customer based on various attributes, KYC checks, Calculating banks exposure relevant to the candidate

Creditworthiness, Previous engagements, AML, Black-lists, OFAC, Riskbased pricing, Perform Underwriting

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CREDIT SCORING

Vaibhav K. G.

APPLICATION SUBMISSION

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Customer Acquisition Process Application (L1)

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Roy N. J.

KYC & RISK PROFILING

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Customer Risk Profile and KYC

Risk profile around banking customers who takes education loan is centred around the loan owner or Students ability to complete the education and his/her ability to make start earning to repay the loan. There are various factors that can impact the loan owners ability to complete their education and repay the loan to the bank. They can be divided into internal and external factors. Internal risk factors:
Degrading health condition Fail to keep up with the study pace and depth of education materials Fail to handle the stress from Education demands

External risk factors:

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Distraction from friends or neighbourhood Family issues Educational Institution failed to sustain its operation Unable to get jobs after finishing the education
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Customer Acquisition Process Customer Risk Profile and KYC (L1)

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Nandipa S.

CREDIT SCORING & PRICING

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Customer Acquisition Process Credit Rating and Pricing (L1)

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Shreeya C.

TRANSACTION PROCESSING

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Transaction Processing
Transaction processing is the process which takes care of disbursement and update/ retrieval of information from the loan account upon its approval. The process flow: Once loan is approved the applicant and university are notified about the loan status Applicant then sends the university invoice and the request for disbursement specifying the amount and the date of submission Bank checks the loan account and verifies the request If the request is as per the contract, the amount is disbursed to the university and the loan account is updated In case of an exception the disbursement of the loan is kept on hold till the dispute is settled through several interaction with the bank and the customer
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Customer Acquisition Process Transaction Processing (L1)

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THANK YOU.

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