Auto Loan Strategy -
Retail Banking 2011 Auto Loan Strategy and Action Plan
Building BANK auto loan portfolio while keeping risk under control as an action priority for 2011, we planning start auto business with more controls and to target limited segments.
- 25th Jan revolution negatively affecting growth temporarily - Inflation rates between 11%-13% - Stock market crash - Increase in cost of risk by xx% as of Jan 2011 and xx% as of end of May 2011
As a result the strategy for building BANK auto loans portfolio need to be set in order to allow BANK to pass this critical situations. For this we propose the below four convictions in order to meet the BANK retail banking income forecast for 2011.
Conviction 1: Growing BANK Assets portfolio
o Restructuring our existing Auto Loan consumer lending sales unit. o Setting up clear targets in term of numbers and volumes o Change acquisition approach to concentrate on sourcing from selective potential for growth dealers o Motivate our existing car dealers by setting a decent incentive plan o Conduct in-depth training to sales team on the new product program to avoid sourcing the wrong segment o Coordinate with marketing department to focus on the product advertising
Conviction 2: Keeping risk under control
o Adopt risk base pricing mechanism o Conduct external verification for all showrooms o Monitor portfolio performance. o Keep close eye in monitoring macro environments o Applying Tighter and more controlled loan granting processes and procedures, o Increase loan documentations requirements , o Be more selective in geographic regions where auto loan will take place.
Conviction 3: Offer the full range of auto loan product
o Revising product parameter documents o Implementing the revised product and new workflow o Lunch new financing schemes in order to increase the
Building BANK auto loan portfolio while keeping risk under control as an action priority for 2011, we planning start auto business with more controls and to target limited segments.
- 25th Jan revolution negatively affecting growth temporarily - Inflation rates between 11%-13% - Stock market crash - Increase in cost of risk by xx% as of Jan 2011 and xx% as of end of May 2011
As a result the strategy for building BANK auto loans portfolio need to be set in order to allow BANK to pass this critical situations. For this we propose the below four convictions in order to meet the BANK retail banking income forecast for 2011.
Conviction 1: Growing BANK Assets portfolio
o Restructuring our existing Auto Loan consumer lending sales unit. o Setting up clear targets in term of numbers and volumes o Change acquisition approach to concentrate on sourcing from selective potential for growth dealers o Motivate our existing car dealers by setting a decent incentive plan o Conduct in-depth training to sales team on the new product program to avoid sourcing the wrong segment o Coordinate with marketing department to focus on the product advertising
Conviction 2: Keeping risk under control
o Adopt risk base pricing mechanism o Conduct external verification for all showrooms o Monitor portfolio performance. o Keep close eye in monitoring macro environments o Applying Tighter and more controlled loan granting processes and procedures, o Increase loan documentations requirements , o Be more selective in geographic regions where auto loan will take place.
Conviction 3: Offer the full range of auto loan product
o Revising product parameter documents o Implementing the revised product and new workflow o Lunch new financing schemes in order to increase the