An Analysis of the Turn-Around Time in Processing of Simple and Complex Auto Loans of Bank Xyz
An Analysis of the Turn-around Time in Processing of Simple and Complex Auto Loans of BANK XYZ
A Paper in Management Statistics
Presented by:
Jeffrey Tabangcura
Diana Grace Taruc
Flor Melodie Suyat
Elaine Sunit
Presented to:
Prof. Marian Angeli Reyes
TABLE OF CONTENTS Page Introduction 3
Problem Definition 4 Methodology 7
Survey Results-Data Presentation 10
Statistical Analysis 16
Recommendation 25
INTRODUCTION
A bank, being in the business of lending, evaluates its performance in the market based on feedback and evaluation. Bank XYZ, in particular, monitors its Turnaround Time (TAT) or the amount of time within which a specific process is completed. The Auto Loans Department, in particular, monitors its TAT through the AIMS which is a system devised to track the movement of an account from the time the application comes in to the time it is submitted for credit evaluation until a credit decision is made (approval or disapproval). This study is an analysis of the turn-around time of Bank XYZ in processing auto loan accounts which may be classified either into simple or complex accounts. Simple accounts are those which can be decided upon based on the available data or information submitted by the client and on simple credit verification such as employee verification over the phone and personal data confirmation from the client over the phone. Complex accounts on the other hand are those that will need further credit investigation such as field investigation where in a field credit investigator conducts field verification of business, employer, or residence. Standard TAT for simple accounts is set by the bank at 3 hours while TAT for complex accounts is at 7 hours. It is the purpose of this study to analyze the January data on turnaround time of Bank XYZ in relation to other factors such as the credit analysts’ productivity, total number of approved and disapproved accounts, total number of simple and complex accounts, and credit decisions
A Paper in Management Statistics
Presented by:
Jeffrey Tabangcura
Diana Grace Taruc
Flor Melodie Suyat
Elaine Sunit
Presented to:
Prof. Marian Angeli Reyes
TABLE OF CONTENTS Page Introduction 3
Problem Definition 4 Methodology 7
Survey Results-Data Presentation 10
Statistical Analysis 16
Recommendation 25
INTRODUCTION
A bank, being in the business of lending, evaluates its performance in the market based on feedback and evaluation. Bank XYZ, in particular, monitors its Turnaround Time (TAT) or the amount of time within which a specific process is completed. The Auto Loans Department, in particular, monitors its TAT through the AIMS which is a system devised to track the movement of an account from the time the application comes in to the time it is submitted for credit evaluation until a credit decision is made (approval or disapproval). This study is an analysis of the turn-around time of Bank XYZ in processing auto loan accounts which may be classified either into simple or complex accounts. Simple accounts are those which can be decided upon based on the available data or information submitted by the client and on simple credit verification such as employee verification over the phone and personal data confirmation from the client over the phone. Complex accounts on the other hand are those that will need further credit investigation such as field investigation where in a field credit investigator conducts field verification of business, employer, or residence. Standard TAT for simple accounts is set by the bank at 3 hours while TAT for complex accounts is at 7 hours. It is the purpose of this study to analyze the January data on turnaround time of Bank XYZ in relation to other factors such as the credit analysts’ productivity, total number of approved and disapproved accounts, total number of simple and complex accounts, and credit decisions