Business Analysis: Sundaram Finance Limited Essay

Analysis and evaluation stage is a single channel, interest rate multi channel, loan terms single channel, and final issuing a multichannel. (Exhibit A)The current structure of the analysis and evaluation stage does not maximize staff time effectively and as a consequence creates a bottleneck in the process. With the single channel structure loan applications are unevenly distributed among teams and create higher idle time for teams with less volume of loan applications to process. Utilization among regions varies greatly between 73% - 95%. The following observation of the current structure was achieved using the MMK model (See exhibit B):

Fair and correct application of appraisal rules 2. Consistency between appraised and market values. In the new QC model all submitted appraisals were reviewed to detect errors or inconsistencies that identify riskier appraisals. When anomalies were detected, appraisals were sent to the next control stage for a more thorough and sophisticated analysis. At the end of each stage, appraisals were scored based on the number and severity of the anomalies detected. The overall score allowed the lender to develop an appraiser-specific risk profile that was then aso leveraged to make grounded decisions about future appraisals submitted by the same appraiser. The system introduced relied on an enterprise document management solution (EDM) to further improve the efficiency of the QC process. By leveraging the EDM’s queue management functionalities the lender implemented a system that allowed QC managers to coordinate the workload balancing activities among multiple locations. Furthermore, providing QC analysts from different offices with the ability to access appraisal files helped the client improve the quality of the analysis by taking advantage of reviewers’ experience and/or specific geographical market knowledge. Key features of the new operating model: • Improving level of integration between QC and production activities. Screening activities were mostly automated by leveraging the existing loan origination system (LOS). The first level of

In business affairs, in a nation’s economy, and in the international scene, money has made its permanent imprint thus credit has been clearly indicated and pertinently stressed. Credit’s advent has brought about numerous benefits to its users and misfortunes to others who get caught in the web of its unwise use. According to Fajardo (2011), credit is the ability to acquire something of value, such as goods, services, securities or money. Moreover, he added that credit transaction usually involves either to pay a definite sum of money. Whenever credit is mentioned, risk on the creditor’s part becomes apparent, thus businesses find best credit risk management.

London Biscuits Bhd which is the borrower of Asia Bank Bhd is looking for a new term loan. Mr Daniel Lei, the Chief Executive Officer (CEO) of London Biscuits Bhd (LBB). LBB is going to purchase the property which is a factory in Glenmarie Hicom Industrial Park. The purpose of purchase a new property is to set up a new factory to cater expected increase in sales of the products and to expand business. We as the credit officers of Asia Bank Bhd have decided to use 5Cs of credit framework to evaluate this application of the term loan. Furthermore, the 5Cs of credit are character, capacity, capital, condition and collateral.

John Culbert is given the difficult task of selecting the best approach that will capitalize on opportunities to increase the performance efficiency of the credit function without disrupting its current customer-oriented culture. His main challenge is the lack of a comprehensive system to evaluate the gains from centralization and the problems it could potentially create vis-à-vis the current status quo. Hence, we suggest a basic framework for him to evaluate the costs and benefits associated with changing the structure of the credit function. Given that the change is mandated by his managers, there are high potential cost-savings, and low risks associated with

The credit bureaus have made a very profitable business out of helping lenders like banks, mortgage banks, credit card companies and auto loan lenders assess “credit worthiness” or in laymen’s terms a consumers ability to pay back a loan. The credit-scoring model is a risk assessment in the form of a score. This assessment or credit score is one of the leading decision makers of interest rates and other terms of a loan. Consumers with poor or low credit scores will pay a higher annual interest rate than consumers with high credit scores.

So it is also attractive for Jules Kroll to take this opportunity to enter the credit rating industry. In addition, the “issuer pays” model, which used by the big three rating agencies, lets companies shop around for the best ratings, putting pressure on the agencies to inflate their grades. As a result, it is very difficult to argue that they can adequately represent the users’ side. Therefore, Jules Kroll wants to use another model that can assign unbiased and reliable ratings.

Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?

Strategy management is the key to success in any organization. However, without the proper strategy and implementation, it is difficult for any business to survive regardless of the industry or the size of the company. The largest retail company in the world is Walmart. The success of Walmart is because of its sound strategic management decisions and it ability to implement its strategic decision. A major factor in the continued growth is the rapid growth strategy. The future for Walmart looks bright. Increasing profits and recognizing social and ethical responsibilities will provide Walmart with a comfortable

b) The ratings methodologies employed by these various bond rating agencies are a mixture of financial performance, information and subjective objectives and management quality information. All of this information is synthesized for the purpose of using it to predict the creditworthiness of the bond issuer, which is inversely related to the risk of default. Based on the above bond rating methodology,

Truck owners’ personal credit is equally important as their business credit to future lenders. Careful and thorough planning effectively means that these business owners will require receiving their personal credit reports and business credit reports to ensure that there are no goof-ups on them that may contribute to lowering their credit scores. If such mistakes appear on credit reports, business owners can have them eliminated before a lender checks these reports. It is vital that

Lending evaluations by Santander are based on credit background of the person (or company) who wants borrow. Through the development of a credit-approval system, Santander Consumer Finance increased an understanding into these clients on an online database which allowed for the use of real time analysis in determining interest rates for the business interactions.

The basic performance gap identified when it comes to the credit functioning at Ferguson is one of inefficiency. The executives at the company are concerned that they are experiencing unnecessary expenditures due to the lack of a coherent, comprehensive, and consistent system for this function; it is believed that developing such a system would lead to greater efficiency in the actual operations of the credit function and would also increase the level of knowledge sharing and expertise available throughout the company's credit managers. This goes to the heart of another problem identified in this case,

Business Analysis Introduction: - Barilla has encountered many areas of their manufacturing and distribution processes that, for many reasons, could be vastly improved. To try to improve these areas, top logistics management decided to try to implement a JITD (just in time distribution) system, similar to VMI (vendor managed inventory). The management felt that they could cut back on problems such as wild demand swings and stock outs by using this method. Their distributors also felt a great deal of pressure to increase their inventory to prevent these stock outs while also ADDING items that they did not already carry, which would lead to even more inventory. Many employees in the logistics

Knowing what other outlying debts customers have could be helpful in determining high-risk customers. Along with past credit history this could be helpful in determining customers to reject.