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Submitted To :

Prof Rajesh Jain

Submitted by :

Shalin Shah

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Established in 1937 to encourage overseas

banking and foreign exchange operations.

Based in Chennai

Over 1,400 domestic branches and 6 branchesabroad.

About 500 ATMs all over India

International VISA Debit Card accepted at all

ATMs belonging to the Cash Tree and NFSnetworks

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Started with CANCARD-Visa - now beendiscontinued

In 2006 introduced its own internationalcredit card in association with Visa

Two types of cards IOB Gold

IOB Classic

Interest charged is 16% per annum

The minimum card limit is Rs 10,000 and themaximum credit limit is fixed at Rs 5 lakhs

Penetration low : 50000-100000 cardscurrently

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Holistic understanding in terms of applyingbusiness process management in a real-lifescenario

Study (AS IS ) model of providing creditcards to the various customers of IOB

Analyze existing bottlenecks

Suggest methods to improve upon the samewith the help of a To-Be process flow model

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Data Sources

Direct observation at the Indian Overseas Bank

Hinjewadi branch

Interviews with the employees handling the

process

Interview with the Branch Manager

Meeting with a few customers who were present

at the bank at the time of visit.

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QuickProcessing of

the Application

Setting CreditLimits based on

needs of thecustomer

Regular Updateson the status of

Application

Making theprocess hassle-free in terms oflesser trips tothe banks and

efficientverification

system

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STEP 1: Submitting Application form and other

supporting documents

Personal Particulars

Employment Details Property Details

Bank Details

Financial Details

Other Supporting Documents Required

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STEP 2: Checking the completeness of the

application form and other documents

STEP 3: Entering applicant details in

Centralized repository

STEP 4: Sending forms and documents for KYC

Compliance Check

STEP 5: KNOW YOUR CUSTOMER Compliance

Check

STEP 6: Credit Scoring Procedure

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STEP 7: Printing Cards and Generating Identity

codes by Vendor

STEP 8: Dispatching credit cards and PIN codes

by vendor

STEP 9: Receipt of the sealed letter containingPIN code

STEP 10: Receipt of credit card by applicant

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Terms and Conditions attached along with the applicationform

Applicant has to agree to these terms before processingcan start.

Key points covered:

Card Validity and Cardholders Obligation ATM Usage

Usage at Merchant Establishments

Payment of Dues

Loss/Damage of Card

Hot Listing of Cards

Jurisdiction Termination of Card Facility

Disclosure of Information

Conditions with respect to Monthly Bills, communications fromthe bank, information about the applicant etc.

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Credit card applicant :

To submit a completed application along with all the necessary

documents as mentioned by the bank.

To submit the pin and collect the credit card when an intimation is

sent by the bank.

Sales Representative: Checks for the completeness of the application form and availability of

all the necessary documents.

Creates a record for a new customer in the central repository which

contains all the personal, financial and business details of the

customers. For an existing customer he/she updates the existing

records.

Updates the customer on the status of the credit card issuance

process.

Intimates the customer on receipt of the credit card and issues the

credit card to the customer

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Clerk:

Sends the application form and the relevant documents to the

Regional Office located in Mumbai.

Back Office Employee:

Performs a systematic KYC compliance check. Assigns a credit score to the customer by performing a credit

history check on the customer.

Mails the result of the credit scoring (type of card to be

issued/rejection) to the concerned authority.

Credit card manufacturer/Vendor: Manufactures the credit card, sticks a magnetic strip to the

card for unique identification and generates a ten digit unique

pin code.

Mails the pin to the customer and the card to the bank.

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The time taken by the applicant to submit thecompleted form Depends on the clear transfer of information to the

customer.

No. of visits made by the applicant to the branch office

The time taken and accuracy of verification of theapplication.

Time taken for KYC compliance check.

Accuracy of the KYC check. Could be measured by number of defaulters

Turnaround time for card delivery. Increase in Sales of Credit cards.(not in scope) Depends on satisfaction of existing customers

Sales strategies adopted by sales representatives

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No check list in place at the branch office resulting in

inconvenience for applicants

Form checking by sales representatives not done properly

Excessive manual processing resulting in high probability oferror occurrence and higher processing time

Chance of subjectivity - influencing the score given since

it is a manual process

Lack of transparency The customer currently is not well

informed of the status of credit card issuance process

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Automating the credit scoring process

Outsourcing the credit sourcing process

Maintaining and updating the status of the

credit card applicationMaintaining a checklist of important

documents

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Introducing a new column in the customer

database called

credit_card_issuance_status which would

be updated by the bank officials so that the

customer can know the status of the card at

any point of time

Introducing a MIS which would automate the

credit scoring process Introducing a rules engine for accurate and

faster decision making

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Faster Turn Around Time in processing of card

applications

Ensuring better transparency in the entire

process Reducing inefficiencies and scope of manual

errors in the process through MIS

implementation

Efficient Verification System through rulesengine

Increased Customer Satisfaction

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Aggressive Marketing Strategies for making

the employees as well as the customers more

aware of the benefits of credit cards

Introducing the rewards points system Tie-ups with leading retailers for better

promotion

Customization of cards

Recovery agents need to be put in place forcredit defaults

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