The Caribbean Development Bank United Nations Economic Commission for Latin America and the Caribbean (UN ECLAC) Turks and Caicos Islands Investment Agency
“Development Banking in the Caribbean: Towards a Regional Approach� Providenciales, Turks and Caicos Islands November 23-24, 2006
Investigaci贸n y An谩lisis Financiero SRL
Revised Issue April 2014
Loan Product Development in Financial Development Institutions – FDI’s
Aurelio R. Susano ALIDE
Agenda • Loan Product Development Concept • Latin American FDI’s: Actual Practices on LPD • Latin American FDI’s: Loan Products • Overview on LPD
Loan Product Development LPD provides programs for customizing, improving sales of actual loan portfolio and also, work out the innovative process in creating and launching loan products in the FDI’s markets.
Latin American FDI’s: Actual Practices on LPD • Two Models: 1st and 2nd floor banking • Socio - Cultural Environment on FDI’s • A new perspective on LPD management • FDI’s performance: Loan Products
Latin American FDI’s Loan Products • • • • • • •
Sector Business Loans Personal Loans Micro and Small Loans Educational Loans Infrastructure Loans Home Loans E-Loans
Overview Roles and responsibilities from: • Board of Directors • LPD Management • Best Practices on Commercial Work
Board of Directors (1) • Corporate values • Corporate Product Policies • Market-Product Strategies • Achieve Supervisory and Regulatory Compliance
Board of Directors (2) • Corporate values • These are the ethical principles that lead the corporate development for having good business practices • Corporate Product Policies • It outlines the guidelines for each of the products, qualities and the respective innovations offer on the market to the satisfaction of the customers
Board of Directors (3) • Market-Product Strategies • Modalities of how approach the product through the market to customers for your satisfaction • Achieve Supervisory and Regulatory Compliance • Get with the products on offer respect for the regulations and supervision of financial institutions
LPD Management (1) • Corporate Product system • Front Office as sales-force • Middle and Back Office Participation • Performance and Control
LPD Management (2) • Corporate Product system • This system establishes the design and modalities of production of each of the products of the entity offers on the market • Front Office as sales-force • Area of the financial institution dedicated to the commercialization of products in order to meet the needs of the customer
LPD Management (3) • Middle and Back Office Participation • Administrative and technical support areas to facilitate the arrival of the products offers to customers by the front office. • Performance and Control • A set of management tools that administrative executives uses to the monitoring and achievement of goals on the part of the front office.
Best Practices on Commercial Work (1) Objectives and Strategies Demand Market and Quality Innovation and Product Engineering Budgeting and Product Promotions
Best Practices on Commercial Work (2) • Objectives and Strategies • Set of purposes and methods of approach of the product to customers to achieve your satisfaction • Demand Market and Quality • Usual and potential customers for the products and their respective quality on the financial institution to be purchased and to obtain so your satisfaction
Best Practices on Commercial Work (3) • Innovation and Product Engineering • The design and construction of products features are due to the requirements of the market for the satisfaction of customers • Budgeting and Product Promotions • All launch and promotion of the products is subject to necessary resources required in the market.