DE LA SALLE UNIVERSITY Financial Management Department College of Business and Economics COURSE SYLLABUS ----------------------------------------------------------------------------------------------------------------COURSE CODE/TITLE Prerequisite Prerequisite

to Type of Course Faculty Term : : : : : : FINCOBO (CONSUMER BANKING OPERATION) FINBANK NONE ELECTIVE MR. RODOLFO I. GARGANERA 3rd Term SY 2010-11 Mon. & Wed.

COURSE DESCRIPTION The course shall cover various aspects of consumer banking business and to some degree those of non-bank business entities partly doing similar consumer banking products and services business. A comparison of their respective practices in terms of marketing, sales, promotion, products and services, credit policies and procedures, collection triggers and curing process, source of funds, and pricing shall be part of the study. Group research shall be an important part of the learning process wherein each group will present to the class a particular consumer product or service being assigned. Course lectures shall cover common practices in consumer credit, its policies, procedures, guidelines, standard , pre-credit initiation and evaluation process, credit control, documentation, collection trigger and curing process. Also, an overview of consumer finance past background starting in the 70s shall be taken up in class to give the students a good foundation on consumer finance business. Variations and similarities of other profit centers of the bank, such as the corporate banking, specialized lending, branch lending, foreign desks, investment banking, treasury and trust banking, among others shall also be discussed to aid the students in understanding the true context of consumer credit and finance in banking.

COURSE OBJECTIVES The aim of the course is to introduce and give the students the general knowledge and understanding of consumer finance in banking on: 1. Scope of consumer banking and its role in the banking arena in particular as well as in the economy in general. 2. Types of consumer credit product, especially those with risks inherent to the extension of credit. 3. Consumer credit policy and procedures commonly practiced in banking. 4. How to conduct pre-credit initiation and evaluation process. 5. Ways to condition a credit application based on credit deviations. 6. When and how to apply triggers and curing of delinquent accounts. 7. Marketing, sales, promotion and income generation from service based products. 9. Variations and similarities in the general practices in consumer finance of local banks, foreign banks and non-bank business entities. 10. Documentation and other operating aspects of consumer banking.

COURSE OUTLINE Sessions 1-28 : Introduction and Overview Brief History, Industry and Players Organizational Set-up Products Car Financing Direct Loan, Indirect Loan (Installment Paper Purchase), Dealer Floor stock with TR, Public Utility Real Estate- Housing Loans Direct Mortgage Loans, CTS Discounting, Socialized and Low Cost Housing under RA7279 of UDHA, Mid-Stream Financing Personal Loans Loan vs Placement, Clean or Secured loan, Small Business Loans. Credit Card Single Payment, Deferred, Installment Plan Leasing Direct Lease, Purchase Leaseback Services OTC Bills Payment: Utilities, Credit Cards, Loans, Insurance, Membership Dues ATM 24/7 Deposit, Withdrawal, Bills Payment, Transfer Funds, Balance Inquiry, Statement and Check Requisition, etc. Internet Banking Phone Banking Cash Management Credit Process Pre-Credit Initiation Process Residence and Neighborhood Checking, Employment Checking, Bank Checking, Trade Checking, Court Checking, Business Checking, and Inspection and Appraisal Approval & Booking Process Credit Evaluation, Conditioning and Documentation Post-Booking Process Credit Administration, Documentation Review, Monitoring and Compliance, Installment payments, insurance premiums, real estate taxes, renewal of registration, reappraisal, etc. Credit Control Post-delivery inspection Rationale and Timing TR Inspection Frequency, Rotation, Timing, Collection Credit Initiation Process Review Audit review on adherence to credit policy and guidelines Collection Triggers and Curing Reminders, Curing and Restructuring Non-starters, Perennial, Hardrock, Phantom, Skip Tracing Legal action

Foreclosure, Replevin, Sum-of-money, etc. Group Presentation of Assigned Research Work This is composed of a series of presentations which shall be broken down into segments based on the topics mentioned above. (A group member will be rated by all the members of the group based on contributed effort. The rating will form part of the grade on participation).

TEACHING METHODS 1. Lectures includes discussion on various topics, and feedback from the instructor every after the presentation of the researched topic to reinforce and enhance students knowledge and understanding of the subject. 2. Research Work the class will be divided into groups and will be required to do research on a particular consumer banking topic to be assigned. Presentation shall be on a per segment basis such as: industry and market data, products & services, sales and marketing promotions/gimmicks/blitz/campaigns, credit policy and procedures, collection trigger and curing process, control measures, pricing/discounts or rebates, and other allied matters such as known frauds in the market, SEC or BSP rules, regulations or laws. 3. Class Participation the students will be required to take part individually in presenting a portion of the groups research work. The whole class shall also be required to give their individual on-the-spot reactions, comments, criticisms on the topic presented.

COURSE REQUIREMENT AND GRADING METHOD MID TERM Written, Quizzes and Research Work Participation/Contribution to Group Attendance -------------40% 40% 20% FINAL TERM ---------------40% 40% 20%

REFERENCES 1. Hand-outs. 2. Business Publications. 3. Books and Other References (Circulars/Manuals)