Transcript A Virtual Institute for Talent Management:

Indian Institute of Banking & Finance ®
Vision
To be the premier Institute for developing and nurturing competent
professionals in banking and finance field
R.Bhaskaran
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Established in 1928 (section 25 Company)- offering professional
banking qualification / certification for bank/FI employees.
Supported by the industry. Governed by Banks, RBI, F.I’s &
Academicians.
Examinations, twice a year- nearly 300 centers in the country.
Own and accredited class rooms across the country.
Early 80’s handled huge physical load of descriptive answer papers
each half year
Exams – till 2004 were in descriptive in nature
Profile of Candidates : Heterogeneous
Now the exams are mostly in multiple choice mode and distance
learning is made possible by use of technology.
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Knowledge and skill inputs for the new recruits
Specialized Knowledge in new areas of business
(verticals)
and regular updates for existing employees
Specific process knowledge for service providers such as Soft
ware companies, Debt Collection agents, Mortgage advisors,
financial advisors, Business correspondents.
Domain knowledge for marketing and other agencies
Courses and Exams in multiple languages
Leadership in different geographies and levels
Existing training capacity with banks and FI’s may not be sufficient
to meet all the needs. Colleges do not provide vertical specific
knowledge. Training efficiency can be improved if education and
training go hand in glove. IIBF will focus on areas where education
can supplement training
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Personnel
Requirements
Front line staff
Basic knowledge, Product delivery
skills and Customer Acquisition and
Service
Back-office- Service
Basic Knowledge- procedural skills
Delivery Channel Employees
Product knowledge-Process skillsSpeaking skills- Selling skills- Dos
and Don’ts
Officers
Financial Advising- Credit appraisalMarketing
Specialist officers
High skill levels in the vertical
Management
Product knowledge,
Specialist knowledge and
Stake holder management
Boards
Big picture
Governance- Policy making
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◦ IIBF’s focus is on designing, developing and offering
courses which give common denominator knowledge in
the given subject/vertical to the employees of the bank/FI
such that employers can save on cost and time in training
the staff.
◦ This will enable banks/Financial Institutions to focus on
their products and customers, in their in house training
efforts.
◦ IIBF avoids duplication of efforts/courses and competition
with other Institutes and training institutions so that the
sector gets relevant courses from the Institute.
◦ Offer relevant courses as value addition in a cost effective
manner.
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Need Analysis:
Based on views/suggestions/feedback from banks
in formal and informal meeting the needs are
identified and concept papers prepared
Conceptualization:: Concept note
and contents
improved by discussion with SME, Department
heads , HR heads to arrive at course outline and
syllabus. The focus on being relevant to banks.
Approvals: From SME : HR departments.
Approval from Education
Governing Council
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Examination
and
Content development:
Based on the syllabus/ modules courseware is
prepared by SMEs. The contents are vetted by
practitioners ( two levels)
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Pedagogy
Book
Courseware
Updates
Study
portal
Support
IIBF
Mock
Vision
Test
Work
Book
Contact
Classes
Web
Classes
Course
Delivery
Lectures
E-Learning
JAIIB
DTIRM
Testing
AML/KYC
Customer
Service
Online
Project
Paper &
Finance
Pencil
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More than
an open
University.
The need
for
physical
intervention
is over
come
and cost
can be
contained
On-line testing
USP
Each and
every
Candidate
to get
access to
all
offerings
Web-Virtual Classesassessments on-line
E-learning
PortalOnline services
CoursewareE-Book
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23 courses – 46 subjects. Diplomas and certificates have recorded 50K
number.
IIBF offers customized
Nearly 230000 candidates in 2010-11
exams in Sri Lanka
E- Learning for Core Banking
Zambia. TBA in Nepal &
PNG
E-learning for JAIIB 65000 candidates
E-Course for employees of RBI on Treasury Management- 500 candidates.
E-Learning for Treasury 400 candidates per half year
Simulation for customer service
E-course for induction training of bank employees.
Web Classes for the major examinations
On-line payments- candidate services
On-line proctored tests for majority of exams
80% of courses covered by e-learning, web classes and on-line testing by
end of 2011.
Most exams in multiple choice- objective mode
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Courses are offered to the employees of
Banks
Reserve Bank of India
Financial Institutions
And Graduate students
Mutual Funds
IT/BPO companies
Business Correspondents ( financial inclusion)
Micro Finance Institutions
Financial Advisors/Wealth Managers
Debt Recovery Agencies
Home Loan Companies
Non Bank Finance Companies
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&
C
e
r
t
i
f
i
c
a
t
e
180
5
160
4.5
Thousands
a
s
s
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c
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a
t
e
Thousands
Performance
Candidates enrolled for various examinations
D
i
p
3.5 l
o
m
3
a
4
140
120
JAIIB/CAI
IB
Certificate
s
AMP
100
2.5
80
a
n
d
DB&F
2
60
1.5
40
D
B
&
F
Diplomas
1
20
0.5
0
0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Year
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Courses
Flagship
Diplomas
Certificate
Certificate
others
Management
JAIIB
Treasury
Trade
Finance
DRA
AMP
CAIIB
Internationa
l Banking
AML/KYC
BCBF
Project
DB&F
Banking
Tech
Credit
Cards
IT/BFS
MBA by
IGNOU
Urban
Banks
SME
BPO/IT
Commodity
Derivatives
Information
System
Micro
Finance
QT
Financial
Advising
Customer
Service
E-Course for
induction
•ALM
•Compliance
•RRB
•Forensic for
banks
Home
loans
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Home loan is possibly most important financial decisions taken during the
lifetime of a consumer.
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Rapid economic growth has accelerated demand for huge infrastructure
and housing projects.
The Home loans are on the increase
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Adequate and effective measures needed to -
 guide the consumer;
 safeguard consumers’ interest and
 sustain growth of the sector on healthy and sound lines.
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This has necessitated demand for home loan advisors who are expected
to have knowledge about legal, regulatory and other aspects of home
finance.
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Able to access information which is simple, clear and
understandable and not ambiguous or misleading.
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The details of requirements for taking loans and their
interpretations clearly explained by lenders and understood by
consumers / borrowers.
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Fair treatment: post disbursement: being kept informed of
relevant changes to their loan terms and conditions, where
applicable.
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Consumers, however, need to take decisions on their own and
are responsible for their decisions.
Lenders can do the above but their resources
are better used for appraisal and lending. The
advising can be outsourced
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Present Status
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Presently,
prospective
house/flat buyers take the
services of Direct Sales
Agents of banks/ HFCs or
other agents who provide
advice which is often
limited
and
possibly
biased.
No standard or uniformity
in the quality of their
advice.
What can be done
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World over there is the
machinery of mortgage
advisors (mandatory) to
help/advise the borrowers
If
implemented
with
controls this would not only
enhance
fairness
and
transparency in housing
finance but would also be a
good service to the
borrowers & mortgage
originators as well.
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Consumers’ interest will be best served as he / she
will have an unbiased opinion.
Big picture regarding terms & conditions of all
institutions will be available. Can make well thought
of and informed decisions.
Will become more aware about credit underwriting
process and debt management.
CIMCs can also guide consumers on other aspects like
the need for making a will / home loan insurance /
RML (senior citizens)
Concerns: CIMCs may push some products for their
benefit- there is a need for an Industry driven SRO
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CIMCs can be a one point stop for consumers if
documentation / search reports etc can be facilitated
by the counsellor.
Post sanction, if issues arise, consumer can continue
to get guidance and advice from the CIMCs. This is
particularly true now as interest rates have been
rising. Due to this, either the loan period goes up or
the EMI or both in certain cases. Debt management
therefore becomes crucial.
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Banks / HLCs will encourage the use of the
services of professionals who have acquired the
necessary qualifications / experience in the field.
The CIMC will be the link between bank / HLC and
consumer. This will reduce the Transaction Costs
of banks / HLCs in the long run.
Process time can be reduced.
Miss selling will come down.
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CIMCs will get an advising fee.
They can have additional sources of income by
taking up other advising business as well.
If mandated, will attract more CIMCs to take this
up as an independent avocation.
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The suggestion for a course on home loan came
from banks
In consultation with NHB, introduced a diploma
course in Home Loan and Home Loan Advising.
Developed specially designed courseware for the
diploma.
Courseware vetted by officers of NHB + LIC
Housing Finance.
Introduced the course in 2007-08.
So far, around 400 candidates have cleared the
examination.
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The course has two papers:
Paper I – Essentials of Home Loan – Practice &
Procedure
Paper II – Home Loan Counseling.
Specific books have been published.
Paper I has 10 units and Paper II has 12 units covering all
essential aspects of home loan advising including AML,
KYC, legal aspects, tax planning, types of mortgages etc.
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While introducing the course, in consultation with
NHB, it was mentioned that successful candidates
will be eligible for award of “Certified Independent
Mortgage Counselor / Advisor”.
The CIMC will be awarded by an SRO of lenders and
CIMCs. Alternatively IIBF can be authorized to issue
the certification.
Either way, candidates must not only pass but has
to fulfill some legibility criteria.
This presentation, will hopefully lead to the
formation of SRO
HLC and Banks must encourage the CIMC concept.
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The Debt Recovery Agent (DRA) course by IIBF was designed based
on advice of RBI/IBA.
This is a 100 hour training cum certification for recovery agents.
Banks / NBFCs have to employ only those DRAs who have
undergone the requisite training from institutions accredited by IIBF
and have obtained certificate from IIBF.
DRA course started by IIBF in 2008 and being conducted in 11
languages
As on date, 53,912 candidates have passed this exam.
It has impacted the sector positively. At the same time there is the
expense on getting the agents certified.
Suggest the same for Home Loan sector also
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Thanks
R.Bhaskaran
26th August
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