Credit assessment practices in retail loan products: a study on the consumer credit risk management department of Prime Bank PLC

Abstract

This report entails a detailed discussion of the consumer credit assessment practices of the Prime Bank PLC with special reference to Consumer Credit Risk Management (CCRM) Department. It is a research project founded on a three-month internship experience and explores the end-to-end operational process of retail loan and credit card processing, such as documentation, verification, credit analysis, approval and post approval operations. This paper mixes practical observation, learned academic framework and available annual and public reports of Prime Bank as well as regulatory policies. Evaluation methods of credit risk, operational efficiency, use of information systems and current manual process limitations are some of the notable areas of analysis for this report. The findings of this report reveals that despite having multiple risk control procedures, Prime Bank faces multiple operational inefficiencies, delays in processing and operational risks that reduces overall experience for customers. The report ends with a recommendation of further automation, system integration and improvement of digital workflow to assist in enhancing operational efficiency, risk governance and customer experience. Practical recommendations are provided to facilitate optimization of the processes without going against regulations.