Term Paper: Business Process and System

Pages: 8 (3432 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Economics  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] In this case, he should be taken off from the main stream of clients with good credit rating. The client's with bad credit rating will be charged a different rate of interest and have to be looked at more carefully. Some experts among the credit appraisers may be designated for this purpose. This will speed up the processing of the client's with good rating and also not lead to complaints for delays from them. For the client's with bad credit rating, there are likely to be difficulties in terms of servicing, and they will not be able to jump from bank to bank, as all the banks will not be extending loans to them. At present all the clients are together, and this is the problem as we are not really able to find out the reasons for delay. The shifting of clients with bad credit histories can be done at any time, but has to be done to protect the interests of the bank.

When questions about truthfulness come in, the questions have to be sorted out before the progress of the application further. This may be sorted out directly by the appraiser instead of the application going back and forth to the credit person. This would help the customer to clearly know what the bank is talking about and would also let the appraiser know the position of the client. It is better that the matter is sorted out directly. If the dealing has been done through the computer in some cases it may be sorted out through an e-mail if it is possible that the matter is a case of misunderstanding. If it is not possible to use e-mail, then a letter has to be sent asking for the answer and one has to wait for the reply. It is also possible to tell the client at this stage that his application has been held up because of this discrepancy, and will get delayed. If it is confirmed that there are some shortcomings from the client's side, then the interest rate will definitely rise. This also can be directly informed to the client - again through letters or e-mail. After the sorting out by the appraiser, the file can be sent to the credit section with due approval and fixation of interest rates. The approval and the interest rates have now been sent to the client, and the copy received by the client service person. In the case of booth computers and physical letters this is a relatively simple process.

Then the client has to come and sign the necessary papers. The next question is of dealing with the client's attorney. This is a process which is only leading to delays. The necessary inspections and certifications can be obtained at the same time as the other matters have been dealt with by the appraiser. The costs if they are to be recovered from the client can be done, and the attorney can be asked to do it if it has to be done by him. The client has to be ready to pay some processing fees if he wants to get the loan. If this process is left to be done later, then it can only lead to avoidable delays. This section should be definitely shortened in procedure. Other methods are also possible and this can be reviewed by the management in the operations side. The fees, payoff amounts and payment schedules can also be reviewed directly by the approval authorities with the client's attorney and the other people involved. In certain cases, the bank also will have its own policies and these have to be observed strictly for the grant of the loan.

In the normal practice of business, the client service people are judge on the basis of the business they can collect for the bank and the approval section individuals will be evaluated based on the success in terms of the return on investment they have earned for the company. Any procedure which involves a lot of discussion between these two groups will lead to delays, as the two individuals involved will be working with different objectives. One will try to ensure that the loan is guaranteed and the other will try to ensure that the returns from the loan are adequate. To solve these conflicts, the bank should fix the interest rates that it will charge its clients. If the principles are fixed, then these can even be printed out and given to the different people who are involved to reduce the conflicts. In the case of computerized information, the necessary files can be updated regularly and as and when required.

The other details of working that are given are essentially operational details and should be handled by a bank easily. The repayment of the previous loan can be directly related to the approval of the new loan and the receipt of the signed documents from the client. This is easily related to the issue of the loan to the client. As a practice, the two checks to the client and his previous creditor can be made simultaneously. The total amount to be paid will be related to the loan sanctioned, and that will also be related to the installments charged. This makes it fairly easy to cross check. When a file is kept for the client, the physical or the computer file can be referred to for determining the correctness of the figures.

This is again showing up the necessity of maintaining the file. In the physical form, the movement of the file will lead to security questions and delays. That is the reason why a computer file will be preferred. Even the full file need not be moved around, but only the required essentials can be moved in a document. Nowadays it is fairly easy to design secure documents which can be viewed by a lot of people, but the entries in the document can be made only by certain selected people with codes that are known only to them. This sort of a method can be thought of. If it has to be a physical document, then the signatures of the executives will take the place of certification and the storage of Xerox copies will have to take the place of records at the different levels. The bank certainly has a department for systems and they can be given the responsibility of setting up a suitable system. Anyway, the present system is not suited to speeding up the operations and suitable systems have to be adopted.

It is clearly seen that the re-engineered system cannot meet the demands on the system put by the clients. Having an excess of buyers is thought to be the dream of all marketing persons, and the bank is getting it without much effort. This is certainly a good reflection on the marketing capabilities of the organization. The failure of the systems department is in preparing a system to convert this potential demand into sales and the resultant profits. This is also reflected in the questions that are being raised by the comments received. The first complaint was from an existing customer regarding he two months extra delay that he had to face. This is almost unpardonable as most of the related information for him was already with the company. The sanctioning of the additional loan was only a question of updating the existing information. This also should have happened almost automatically except for the revaluation of the property and the certification from a possible other bank which was holding the original mortgage on the property. Both these activities are fairly easy to obtain. His credit history and other relevant data are already with the bank.

A look at the checking account from which he is paying the installments should give the payment history for him. The delay is totally unpardonable and the system seems to be operating mechanically and without thinking. The second question confirms that in this bank the right hand does not know what the left is doing. The mortgages section should be easily able to check whether their records were correct or not by checking the checking account of the client. In the case of a computerized system, it is probably a question of a couple of clicks with the mouse. In the case of non-computerized systems, it may be the question of sending a note to the person in charge of the checking accounts for cross verification.

The third question is an effort to replace the forms with questions. Well some questions have to be asked and the only way to be sure that all answers have been obtained is to put all the information in a form. The form can be directly filled up by the client or filled up by the client service after asking questions from the client. The choice between the two depends to some extent on the staff availability. Since… [END OF PREVIEW]

Four Different Ordering Options:

?
Which Option Should I Choose?

1.  Buy the full, 8-page paper:  $26.88

or

2.  Buy & remove for 30 days:  $38.47

or

3.  Access all 175,000+ papers:  $41.97/mo

(Already a member?  Click to download the paper!)

or

4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

Business Process Analysis and Technology Solution Proposal Case Study


Business Plan for Organic Fertilizer Business Plan


Enterprise Saas ERP System for Workforce Dynamics Business Proposal


Business Information Systems the Three Most Critical Essay


Comparing Business Processes Essay


View 999 other related papers  >>

Cite This Term Paper:

APA Format

Business Process and System.  (2003, December 16).  Retrieved March 23, 2019, from https://www.essaytown.com/subjects/paper/business-process-system/8554115

MLA Format

"Business Process and System."  16 December 2003.  Web.  23 March 2019. <https://www.essaytown.com/subjects/paper/business-process-system/8554115>.

Chicago Format

"Business Process and System."  Essaytown.com.  December 16, 2003.  Accessed March 23, 2019.
https://www.essaytown.com/subjects/paper/business-process-system/8554115.