Collection and Settlement of Retail Banking Loans

Course details

The program provides participants with all methods used in the collection and settlement of retail banking products, determine the methods of classifying retail banking portfolio arrears and the importance of and how to deal with insolvent clients. In addition to determining the professional ways to deal with external collection offices and the most important tips to be followed to improve the employees and department performance

Course Objectives:

• Classify all retail banking portfolio arrears
• Explain the procedures of retail banking debts’ collection
• Explain the procedures of retail banking debts’ settlement
• Identify the importance and steps of making agreement with external collection offices
• Explain how to improve performance level of collection and settlement of retail debts
• Explain how to benefit from issued reports used in the processes of collection and settlement

Course Outline:

Module 1: Classification of Retail Banking Portfolio Arrears

• Retail banking products cycle
• The effect of collection and settlement of debts in the product cycle
• Products which are followed through collection and debts’ settlement department
• How to classify non-performing loans portfolio
• Definitions and assigning provisions
• The importance and criteria of retail loans write off

Module 2: The Procedures of Collecting Retail Debts

• Tools and procedures of collection
• SMS
• E-mail
• Phone calls
• Reminding Letters
• Non-Starter account

Module 3: The Procedures of Retail Debts settlement

• Tools and procedures of debts settlement
• Phone calls
• Letters of warning
• Field visits
• Transfer to collection offices
• Legal warnings
• Re-tabulation
• Adjustments
• Judicial proceedings
• Acquisition
• Products’ insurance
• Initiatives

Module 4: Dealing with External Collection Offices

• Define external collection offices
• The need to contract with collection offices or not
• How to draft the contract articles between the bank and the collection office
• Transfer cases to an external office
• Follow up and performance assessment

Module 5: Raise the Level of Employees’ and the Department Performance

• Determine the number of employees in the department – Capacity Plan
• Support the automatic system used in the bank
• Measure the department employees’ performance
• How to determine the time and place of following up the client
• The use of communication skills in the processes of retail debts’ collection and settlement

Module 6: How to Benefit from the Issued Reports

• The used reports
• Classification of facilities portfolio
• Well-known overdue rates
• Evaluate the quality of retail banking products

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises.