Personal Loans Request. Bizagi Suite

Transcription

1 Personal Loans Request Bizagi Suite

2 Personal Loans Request 2 Table of Contents Personal Loans Request... 9 Process Elements Applicants Prefilter Parallel Gateway Applicants Analysis Verify Result Application Approved in Analysis? Register Request Information Verify Applicants Information Previously rejected by employee policies Register Products and Collaterals Add new applicant? Medical Tests? Request Medical Tests Receive Medical Tests Verify Information Verify Information and Documentation Approved Request? Update Applicant Information Request Exception? Analysis Result...27 Products Scoring...27 Approved Scoring... 28

3 Personal Loans Request 3 Credit Factory Synchronization Approved Request in scoring/factory? Verify Collaterals and Products Delivery Delivery and Collaterals Collaterals Products Require Delivery Delivery Update Process State Reject Request Timer Control and Decline Maximum Request Duration Decline Request Update the state of the process Applicant analysis Process Elements...37 Comes from Customer orientation?...37 Load Customer...37 Include Initial Information...37 Request in Course? Verify Applicants in Black List Applicant Reported in Lists? Import Personal Information... 39

4 Personal Loans Request 4 Borrowing Capacity Rejected due to payment capacity? Credit Bureau Bureau Ok? Verify Analysis Add new applicant? Verify Information and Documentation Process Elements Parallel Gateway Documentation Validate Applicant Information Validate Satisfactory Information Cancel Sub process Credit Factory Process Elements Request Evaluation At least one Product postponed? Notify New Collaterals Event Based Gateway Register Collateral Type Required Collateral Type Applicants Analysis At least one applicant approved? Verify Information... 55

5 Personal Loans Request 5 Register Collaterals Verify Documentation and Information...57 Calculate Payment Capacity Waiting Time Expired? Review Result Amortization At least one approved product? Update Process State to Rejected Notify Request Rejection Requires Approval? Update Process State to Approved Notify Request Result Factory Committee Rejected Request? Wait Office Management Collaterals Process Elements Mortgage Collateral Legal procedure...67 Title Study Ok?...67 Collateral Documentation...67 Requires Authorization? Authorize Documentation... 69

6 Personal Loans Request 6 Authorized? Verify Collateral Registration...70 Authorize Collateral registration? Register Collateral Register collateral documents Legal procedure...72 Process Elements...72 Payment and Documentation...72 Payments...72 Request Documentation...73 Receive Documentation...75 Title Study Result...75 Title Study Ok?...76 Send Title Deed to Notary...77 Title Deed Reception...78 Comments on the Title Deed...79 Delivery Process Elements Product Type Account Registration Credit Card Debt Purchase? Define Disbursement Associated Insurance?... 85

7 Personal Loans Request 7 Recalculate Insurance Register Insurance Debt Purchase?...87 Register Product...87 Disbursements...87 Update product state Credit Card Process Elements Increase Limit Credit Card Registration Increase Limit Disbursement Process Elements Disbursement Date Disbursement Method Notify Disbursement by Check Notify Disbursement by Transfer Customer Orientation Process Elements Register Applicant Information Orientation in progress? Payment Capacity...97 Negative Payment Capacity...97 Offer Products Continue Request... 99

8 Personal Loans Request 8 Event Based Gateway Continue Request Personal Loans Request Update process state Waiting Time Performers...102

9 Personal Loans Request 9 Personal Loans Request Version: 1.0 Author: Bizagi Through the Personal Loans Request process, applications for credit products are created for individuals, via the channels of banking entities. Each request can include one or more products, among which are: Consumer Credit, Car Loans, Mortgages, Credit Cards, Credit Card limit increases and Credit Card balance transfers. In addition, each product can have one or more collaterals and one or more applicants in the role of coborrower or guarantor depending on what the requirements of each product are. The applications are analyzed at different stages. These include a study of the profile of the applicant, their payment capacity and credit history in relation to the requested products. The approval stages are defined according to each case and include automatic approvals, partial approvals and total negotiations. If one or more products are approved the Delivery phase starts. In it, the collaterals are evaluated and constituted. Finally the Delivery activities are carried out, to deliver a product, in the case of a credit card, or program the disbursements. The Personal Loans Request process has maximum time controls and cancellation of the process, if necessary.

10 Personal Loans Request 10 Objective To create applications for credit products that an individual makes through the channels of banking entities, so that they can be analyzed and either an approved or declined to be delivered as a finished product, or create the disbursement schedule for each of the requested products. Scope The user enters each of the applicants and their corresponding role in the application, to check their existence in the customer database. With the knowledge of being in the customer database or not, the process continues with verification of the policies and viability of the request to arrive at a definitive Product Approval with the conditions that the Applicant requires. Once the Application has been completed, the Information is checked, so that afterwards the application can be approved under the business conditions and, if approval is given, then it continues to the Delivery or Authentication of the product. This process includes the loading of digital documents, printing of supporting documents (Letters and Forms), as required in the different phases of the process. This process is functional for Personal Credit: Car Loans, Consumer Credit, Increase Credit Card limits, Mortgages. Concepts under which the business model is designed The reception and data entry of the applications of Customer Orientation are decentralized, from any office of the entity. If any of the applicants are not existing customers of the entity, the application provides the possibility to create one by giving the user a link to the module that handles customers in the entity. It is possible to identify the personal and financial Information of the applicant that should be updated/changed in the module that handles customers in the entity.

11 Personal Loans Request 11 The reason for the decline of the application, and the person to whom it relates, will be shown at the time, so that formal notification can be given to the customer and within the entity. Many coborrowers can be entered and can be analyzed in the credit rating agencies. New coborrowers can be entered if the original ones were not viable for the business. Coborrowers are compulsory for certain products. Collaterals are considered at the application and product level, such that the relationship between the collateral and each of the products requested is established. However, the collaterals, from a business point of view, are linked to the customers. The application suggests to the customer a package of products according to their level of Income and Social status. Products may be selected in currencies different to that of the local currency, if the product can be offered as such, according to the policies of the entity. The remaining amount of each of the collaterals associated with the products of the application is calculated. In the Verification of Information activity, the result of References, personal Information, Addresses and Telephones, Documents, Financial Information of the applicant, is recorded manually. That is, the BackOffice should contact the customer and his/her referees to check the Information recorded, and then indicate this in the application. It is possible to associate, digitally, the documentation requested from the customer to the application, having the functionality to load digital documents. The task of data entry is the responsibility of each entity. The application has a time limit in which it should be analyzed and a response given to the customer, or that the customer should deliver necessary Information for the application, or that the handling of the approved applications should be completed (Establishment of Collaterals, Delivery). If these times expire, the application will be closed. This will avoid having applications open without any processes. Supporting documents of the process will be handled by means of letter sized documents under Bizagi's functionality.

12 Personal Loans Request 12 Parameterization of products Products are parameterized to make the handling of certain variables more flexible within the process flow. Some of these variables are: Maximum and minimum amounts, Interest Rates, Product Documentation, Collaterals, Assignment of Analyst from the Credit Factory, Assignment to Credit Factory, Request for Medical Examinations, Employee applications, Employees Connected, Decline Policies, etc. For Information about parameterization of new products and of the general application, refer to the Parameter Guide for Personal Loans Request process. Assumptions and considerations The process can integrate all the areas that intervene in the process and communicate at the right moment with those who are responsible, to show them the process. s can be sent through Bizagi's native function that is through SMTP. There will be 7 stages in handling the process: Approval, Decline, In Progress, Validate Documentation/Information, Analysis, Post approval, Closed. It is estimated that 100% of the integrations via Bizagi towards the Clients systems will be performed via Web Services. The project has two Query forms which are: Query of the Personal Loans Request process and Query of Products. These will pass data for analysis when the database has cases for consultation and analysis of Information.

13 Personal Loans Request 13 Summary Form

14 Personal Loans Request 14 Applicants tab

15 Personal Loans Request 15 Query Form

16 Personal Loans Request 16 Process Elements Applicants Prefilter An analysis of all applicants (Borrower/Coborrower) related to the application is carried out with the aim of determining if they are viable or not according to the risk policies of the entity. The commercial consultant receives the necessary Information of the borrower and has the possibility to add further customers related to the application (coborrowers). With this Information it is possible to begin a process of validation as follows: Check if the applicant is an existing customer of the Entity: The application makes sure that all applicants are customers of the financial entity. If not, it provides the possibility to create them in the Customer Administration system of the entity and then invokes again the interface until ALL applicants are Customers. Check Credit Applications in progress: Check if the applicant with a role of borrower has another credit application in progress. If there is, it will not be possible to continue with the current process. Check the Negative/Internal Lists: Check the existence of the customers related to this application on the Negative/Internal lists of the entity. Credit Bureau: Check the applicants with the Credit Bureau. Based on the results obtained, from these validations it is possible to add a new applicant, remove current applicants, and continue with the current applicants or request exceptions for any of the applicants.

17 Personal Loans Request 17 Parallel Gateway Parallel gateway that at the beginning of the process, enables two paths, one of them contains the activities of the general process. The other path enables the cancellation of the case for two reasons: Firstly, it enables the user to cancel the application. In such a case the Decline Request event will be executed. Secondly, because the timescale parameter that controls the maximum duration of the Application expires finalizing the process. Applicants Analysis In this process, a pre-filter of the applicants is performed in order to identify if they are viable for the application process. For this, it is necessary to check the completeness/update of the Information of the applicants recorded in the Core Banking system and that is required by the process. This way, the business advisor is able to know at the time of entry which details of the client are missing and then continue with the process. In the first instance, the existence of the applicants is checked, also whether there are existing applications in progress and a check of the negative lists. If all the filters were evaluated without anomalies, it proceeds with the importation of personal and financial Information of each of the applicants. Verify Result This gateway evaluates the result of the Analysis of the Applicants.

18 Personal Loans Request 18 Conditions associated with the gateway Back to Analysis: If the applicants are declined or if the case needs a new applicant, the case returns to the Analysis of Applicants sub-process. Continue: If the result of Analysis of the applicants is satisfactory, the case follows the normal flow of the process. Application Approved in Analysis? This gateway evaluates if the application was approved in the Analysis of Applicants sub-process. Conditions associated with the gateway Yes: If the application was approved in the Analysis of the applicants, the case follows the normal flow of the process. No: If the application was not approved in the Analysis of the applicants, the process ends. Register Request Information With the aim of achieving greater commercialization of the products of the entity as well as the possibility to offer preferential conditions for products to the applicant (borrower), a package of products is generated according to the level of income and social status that the entity offers to the customer together with the requested products. In addition, it proceeds to add one or more products for the same application as well as the required collaterals to support the products. Once the products and collaterals have been recorded, some validation is performed, such as: Calculate Repayment Tables for each Product, Sufficient Payment Capacity, Maximum Amount of Application, Product Policies, Collateral Policies, and Percentage of Coverage for Collateral.

19 Personal Loans Request 19 In this phase, it is also possible to request medical examinations of the borrower of the application, whenever the parameters defined in the Policies of Medical Examinations are satisfied, these are related to the age of the applicant and with applications for mortgages. The result of the medical examinations is used by the insurance companies to determine the amount of insurance coverage and premiums associated with certain sub-types of product (e.g. Mortgages apply Life Insurance for the Borrower and Fire and earthquake insurance). Verify Applicants Information All the Information of the Applicants recorded in the previous stages is checked. The system shows financial Information as well as general Information. Performers Business Advisor Form Duration 10 Minutes

20 Personal Loans Request 20 Previously rejected by employee policies This gateway evaluates if the request was rejected by employee policies. The Employees Policy can be parameterized according to the necessities of the business for an applicant to be rejected or allowed to continue the process. Conditions associated with the gateway Yes: If the request was rejected by employee policies, the case continues to the Reject Request activity. No: If the request was not rejected by employee policies, the case continues its normal flow. Register Products and Collaterals The system suggests various products for the Business Advisor to offer to the customer in addition to the main product. The business advisor records all the products that the customer accepts and are within his/her payment capacity, as well as the related collaterals that are needed. As previously mentioned, the Personal Loans Request Application process supports multiple products and collaterals, simultaneously. In this activity, it ensures that the additional products have greater possibility to be approved: all those products that require collaterals should have them related, the requested products should be within the payment capacity of the applicant, should not include repeated products and the collaterals should cover the total amount of the products. Performers Business Advisor

21 Personal Loans Request 21 Form Duration 2 Hours

22 Personal Loans Request 22 Add new applicant? This gateway evaluates If in the Register Products and Collaterals activity, the option Add New Applicant was selected. Conditions associated with the gateway Yes: If Add New Applicant was selected, the process will return to the Analysis of Applicants sub-process. No: If Add New Applicant was not selected, the process will continue its normal flow. Medical Tests? By means of this gateway, the path to Request Medical Examinations is enabled, based on the defined policy, whether the applicant requires them or not. The Verify Information and Documentation will always be enabled. Conditions associated with the gateway Require Medical Tests: Only enabled if the need is seen to request medical examinations as a requisite to approve the application. Always: Goes to Verify Information and Documentation. Request Medical Tests An application can require medical examinations, according to the policy that determines, in accordance with the requested products and age, if they are necessary for the approval. Due to this, the controls that require medical examinations or not, can vary according to the business needs.

23 Personal Loans Request 23 Similarly, the list of medical examinations required, can also be parameterized. During the Request for Medical Tests activity, the assigned user prints the list and delivers it to the customer. Performers Business Advisor Form Duration 30 Minutes Receive Medical Tests This event waits for the customer to return with the medical examinations requested.

24 Personal Loans Request 24 Form Verify Information For the requested products, it is necessary to deliver certain documentation to continue with the application process, these can be required or optional and the user should inform the customer of the requirements for the application. It takes into account: Type of Product, Type of Customer to generate the list of documents for the case. The request for documents and checking of Information is compulsory for each applicant. However, it is stipulated in this stage the possibility to include the concept of "Expiration of documentation" which is the timescale within which each customer should deliver only the documentation required that is NOT valid (It is the responsibility of the entity to define, conceptually and operationally, the validity of documents to be used in the process). The documents are necessary in support of the Information that related customers deliver to the entity, these are used by the Credit Factory to perform the analysis of the application. Before arriving at the next stage of Automatic Approval by means of Credit Scoring, it is necessary to check the Information supplied by the applicants that is another analytical variable. From here, it is possible to decline the application if ALL the results in the previously mentioned areas are not satisfactory. For this reason, in this stage the personal and financial Information that the related customers have delivered to the entity, is checked

25 Personal Loans Request 25 and validated, to give a result to determine if the application should continue to the next stage of the process. This checking and validation of Information is carried out evaluating the following areas: Information of the Applicant, Documents Delivered, Address and Telephone Information, Reference and Financial Information. A result for each should be issued (Satisfactory or not satisfactory). If any of the results is Not Satisfactory, then the Checking and Validation of Information stage was not satisfactory. It is also possible to update the references and financial Information of the applicant. For this reason, it is necessary to update the Core banking with the modified Information of the applicant as well as re-calculating the payment capacity. Verify Information and Documentation Sub-process in which the Information and documentation of each applicant is checked. An independent process is opened for each of the approved applicants of the application. Here, the supporting documentation is requested from the borrower and/or coborrowers, surety or guarantor of the credit that is being analyzed. Once this documentation is received, the process continues with the validation and verification of it. Process Verify Information and Documentation Type Multi-Instance: One case for each approved applicant

26 Personal Loans Request 26 Approved Request? This gateway evaluates the result of the verification of documents and information of the applicants. Conditions associated with the gateway Yes: If the result is satisfactory, the process continues its normal flow. No: If the result is unsatisfactory, the process changes its state to Declined and is directed to the Reject Request activity. Update Applicant Information Update Information about References, Income and Expenditure of the applicants and recalculate the payment capacity. It is necessary to do this because in the Verify Documentation and Information sub-process it is possible that changes could have been made to the Information of References, Income and Expenditure of the applicant. Request Exception? This gateways evaluates if an exception was requested depending on the selection in the Register Products and Collaterals activity. Conditions associated with the gateway Yes: If an exception was requested, the process continues directly to the Credit Factory. No: If an exception was not requested, the process continues to the Products Scoring.

27 Personal Loans Request 27 Analysis Result In this stage, a check is made if any exception has been requested for the application or any of the applicants. This is to decide if the application is to be analyzed by the Credit Factory or automatically by Credit Scoring. To speed up the approval of products process and take advantage of the forecasting capacity of the Credit Scoring, an Acceptance Type of Credit Scoring is used to improve the risk evaluation of credit applications. Through this, the financial entity can apply their own definitions of good and bad credit operations, with the objective of identifying and qualifying credit applicants. The application will be analyzed by the Credit Factory only if the result of the Credit Scoring for any product is Requires Revision or Not Applicable (It is possible that the entity has not defined a Scoring model for all the credit products of its portfolio). If the application has been approved, the Resolution of the Credit stage will begin. This has an "Application Result" activity in which the possibility to review the suitability of the collateral(s) associated with the application, before passing to the setting-up of them. In this activity it is possible to eliminate, add and modify the associated collaterals. Following this revision, the processes begin for Setting-up Collateral and Personal Collaterals and finishes with the Delivery of the products. This last stage will be available in a second installment of the project. Products Scoring Integrates with the External Product Scoring system to obtain a decision for each product requested: to approve, reject or request further analysis. The Web Service associated with this interface handles the following logic for testing purposes: If the number of documents of the application is odd, then all the suggested products will be approved, as well as the products not suggested, only when the quantity of them is odd, otherwise, the products not suggested will be rejected.

28 Personal Loans Request 28 On the other hand, if the number of the document of the applicant is even, then all the suggested products, when the quantity is odd, will be approved, and all the suggested products, when the quantity is even, will be rejected. All products whose quantity is odd and not suggested will require revision, and all products not suggested whose quantity is even will not be applied. Implementation Web Service Approved Scoring This gateway evaluates the result of the products scoring. Conditions associated with the gateway Approved: If the result of the Scoring is satisfactory, the case continues its normal flow. Review is needed: If the result of the Scoring is unsatisfactory, the case is directed to the Credit Factory. Credit Factory Sub-process where applications that have Exception requested or Review is required are analyzed. The result can be approved partially or in Total, or the application rejected in general. Process Credit Factory

29 Personal Loans Request 29 Synchronization Synchronization gateway Approved Request in scoring/factory? This gateway evaluates If the application was approved following the analysis of the products scoring or in the Credit Factory. Conditions associated with the gateway Yes: If the application was approved following the analysis of the products scoring or in the Credit Factory, the case continues normally. No: If the application was declined following the analysis of the products scoring or in the Credit Factory, the case continues to the Reject Request activity. Verify Collaterals and Products This activity shows the summary of the entire application with the amounts requested, amounts approved and collaterals. You can print this document that appears as a report to have it signed by the client. Additionally, it is possible to add, delete or modify the associated collaterals, always considering policy guarantees provided by the institution Performers Business Advisor

30 Personal Loans Request 30 Form Duration 1 hour Delivery This phase consists of the following: Re-calculating the amount of coverage and insurances This action applies only if the applicant meets the conditions set out in the policy of Medical Examinations. If so, this stage is to use the results to re-calculate the coverage for the product subtype and the amount of premium.

31 Personal Loans Request 31 Collaterals Given the event that the product requested has required collaterals that need to be constituted, it is necessary to establish some basic Information. The process requests the required documents and then registers the collaterals through an interface on the Core system. Delivery - Disbursement Define Payment: You can specify multiple disbursements for the approved amount by transfer to accounts or checks. Charge Fees: Define type of commission and fee for each approved product subtype. This Information is recorded in the Core System of the financial entity. Delivery and Collaterals Gate that enables the roads to the paths for Collaterals and Delivery. The process handles multiple products and collaterals, so it is possible to open several paths at once. The gateway evaluates if guarantees are not yet constituted and if products should be delivered. Conditions associated with the gateway Collaterals to be constituted: If the application has products with Associated Guarantees and have not been constituted, the process enables this path. Products that require delivery: If the application has no collaterals associated with the products approved, or if there are any approved products for which collaterals associated are constituted already, the process enables this path. Other: If no collaterals has to be constituted and no products require delivery, the process ends.

32 Personal Loans Request 32 Collaterals This multiple sub process handles each collateral case. At the end of the process, if the collateral was not constituted, the product should be marked as Finished. This with the objective not perform the Delivery of the product. Process Collaterals Type Multi-Instance: One process for each collateral that requires constitution. Products Require Delivery This gateway evaluates whether the collaterals have been constituted and the products can be delivered. Conditions associated with the gateway Yes: The product related to the collateral can be delivered. No: The product related to the collateral does not require to be delivered. Delivery This multiple sub process is generated by each approved product that has no collaterals associated, or they are already constituted. All tasks are executed to perform legalization for delivering the product or disbursed. Process Delivery

33 Personal Loans Request 33 Type Multi-Instance: one process for each product that requires Delivery Update Process State Updates the process state. This way when the case is closed, the applicants and the case have the correct status and do not interfere with new created cases. Reject Request If the application is rejected, the cause will be displayed to the assigned user. Performers Business Advisor Form Duration 30 Minutes

34 Personal Loans Request 34 Timer Control and Decline Gateway based on events that enables two different paths. The first of these paths that is executed will automatically annul the other. If a user decides to decline the Application, the timer of maximum duration of the application will be disabled automatically. Similarly, if the case does not progress before the maximum duration of the application expires, the timer will execute, disabling the Decline Application event and the normal flow of the process. Maximum Request Duration The timer controls the maximum duration of the application. This duration can be configured by the user in a vocabulary, according to the needs of the business. The timer will be available until the case is approved by Scoring or Credit Factory. From that point on, neither the timer nor the Decline Request event will be available. Decline Request This event is available so that the applicant or his/her creator can decline the application at any time. The reason for rejection should be recorded. The event will be available until the case arrives at the Update Process State activity.

35 Personal Loans Request 35 Form Update the state of the process Updates the state of the process so that when the case is closed, the applicants and the case have the correct status and do not interfere with new created cases.

36 Personal Loans Request 36 Applicant analysis In this process, a pre-filter of the applicants is performed in order to identify if they are viable for the application process. For this, it is necessary to check the completeness/update of the Information of the applicants recorded in the Core Banking system and that is required by the process. In this way, the business advisor is able to know at the time of entry which details of the client are missing and then continue with the process. In the first instance, the existence of the applicants is checked, also whether there are existing applications in progress and a check of the negative lists. If all the filters were evaluated without anomalies, it proceeds with the importation of personal and financial Information of each of the applicants.

37 Personal Loans Request 37 Process Elements Comes from Customer orientation? Because the Personal Loans Request process can be initialized as a sub-process of Customer Orientation, or as a normal process, the Analysis of Applicants sub-process controls the two options by means of this gateway. Conditions associated with the gateway Yes: If the case was originated from the Customer Orientation process, the case continues to the automatic activity of load customer. No: If the case was called directly, the case continues to the Include initial information activity. Load Customer When this process is called from Customer Orientation, the applicant s Information is loaded and associated to the case. Include Initial Information In this stage, the analysis of each of the applicants, including the borrower and all the different roles, is carried out with the aim of identifying if they are viable according to the level of risk policies of the entity. Performers Business Advisor

38 Personal Loans Request 38 Form Duration 20 Minutes Request in Course? This gateway evaluates if the applicant already has an application in progress Conditions associated with the gateway Yes: If the applicant already has an application in progress, the process continues to the Verify Analysis activity. No: If the applicant has not a request in progress, the applicant will be verified in the black list. Verify Applicants in Black List The existence of the applicants in the Negative Lists and Internal Lists of the Entity is checked to obtain the Type and Cause for Rejection, if so. For testing purposes, the Web Service has the following logic: if the number of the document of the main applicant is an odd number, then all the applicants will be approved. Otherwise, if the number is even, and its length is odd, the applicants will be

39 Personal Loans Request 39 rejected with an Internal List Type rejection and Customer Penalized (code 10) description. If the number of the applicant's document and its length are even, the applicants will be rejected with a Black List Type rejection and a Terrorism (code 5) description. Implementation Web Service Applicant Reported in Lists? This gateway evaluates the result of the applicant s verification in the black list. Conditions associated with the gateway Yes: If the applicant is reported in the Black List, the case continues to Verify Analysis. No: If the applicant is not reported in the Black List, the case proceeds to import personal information. Import Personal Information Because the applicant's Information is found outside Bizagi, it has to be imported. Bizagi will connect with an external system to import all the Information available for each of the applicants. Calculation of payment capacity will be included for each applicant. For testing purposes, in this interface, all the complete Information will be returned of all the applicants. The Information can be variable or constant. The variable Information depends on the number of the document of each applicant.

40 Personal Loans Request 40 Implementation Web Service Borrowing Capacity The system checks the payment capacity of the applicant to ensure it is not negative or zero, if it is, the process cannot continue. This is carried out by invoking an external system asynchronically. That is, the task is retried the number of times that has been defined and can be retried by the administrator in case of error. For testing purposes, the dummy Web Service consumed by this credit process, returns the value of payment capacity corresponding to the difference between the values of monthly income and expenditure. Implementation Web Service Rejected due to payment capacity? This gateway evaluates the result of the payment capacity analysis. Conditions associated with the gateway Yes: If the applicant is rejected following the calculation of payment capacity, the case is closed. No: If the applicant in not rejected following the calculation of payment capacity, the case continues to consult the credit bureau.

41 Personal Loans Request 41 Credit Bureau An external system is invoked to verify the Information of the Credit Bureau for each applicant. Then, the result of the Credit Scoring is checked against a defined policy to approve or reject the application. To speed up the approval of products process and take advantage of the forecasting capacity of the Credit Scoring, an Acceptance Type of Credit Scoring is used to improve the risk evaluation of credit applications. Through this, the financial entity can apply their own definitions of good and bad credit operations, with the objective of identifying and qualifying credit applicants. For testing purposes, the system will return a random score between 100 and 900 for all the applicants. Implementation Web Service Bureau Ok? This gateway evaluates if the score obtained in the Credit Bureau is less than desired. Conditions associated with the gateway Yes: If the score obtained in the Credit Bureau is less than desired, the case will go to Verify Analysis where the user can decide to add a new applicant. No: If the score obtained in the Credit Bureau is satisfactory, the sub-process ends.

42 Personal Loans Request 42 Verify Analysis If any of the applicants has an unsatisfactory result following the verification of the black list, the user will decide whether to change the applicants or finalize the application. The possibility is included, to request reconsideration of applications when the products that have been declined by the Credit Factory or by Credit Scoring meet certain parametric conditions. When a new applicant is added, the rejected ones are deleted. Performers Business Advisor Form Duration 20 Minutes

43 Personal Loans Request 43 Add new applicant? This gateway evaluates if the user decided to add a new applicant. Conditions associated with the gateway Yes: If a new applicant is added the analysis of the Information and verification in the black list of this applicant will be carried out, to be able to continue with the application. No: If a new applicant is not added, the case is rejected and closed.

44 Personal Loans Request 44 Verify Information and Documentation Version: 1.0 Author: Bizagi Limited The objective of the Check Information and Documentation process is to track the loading of the necessary documentation of the applicants and to confirm that the Information delivered is valid for the process. For this, validation of the applicant's Information should be carried out considering as the cause for returning the application, the non-satisfaction of one of the following conditions: Information of the Applicant, Documents Delivered, Address and Telephone Information, Reference and Financial Information.

45 Personal Loans Request 45 Summary Form Process Elements Parallel Gateway By means of this gateway, two paths are enabled towards: the Documentation activity and the Cancel Sub-process event.

46 Personal Loans Request 46 Documentation In this activity, a verification of the Information of the documents requested in support of the application is carried out. All the required documents must be provided in order to continue. The user may load the digital images of the required documentation. Performers Business Advisor Form Duration 1 Hour

47 Personal Loans Request 47 Validate Applicant Information The Information filled out by the applicant in the application form is checked so it corresponds completely with the Information of the customer in the Core Banking system. Performers Information Verifier Form

48 Personal Loans Request 48 Duration 3 Hours

49 Personal Loans Request 49 Validate Satisfactory Information This gateway evaluates the result of the information validation. Conditions associated with the gateway Yes: If the result of the validation is satisfactory, the process continues normally by this path. No: If the Information does not correspond then the process continues with a notification of rejection. Cancel Sub process Enables the cancellation of the process of Verification of Information and Documentation when an applicant does not meet the requirements, of the other applicants related to the application under study.

50 Personal Loans Request 50 Credit Factory Version: 1.0 Author: Bizagi Limited The application will be analyzed by the Credit Factory only if the result of the Credit Scoring for any product is Requires Revision or Not Applicable (It is possible that the entity has not defined a Scoring model for all the credit products of its portfolio). In this process the application for products made by customers or prospects, is analyzed, with the aim of being able to deliver a result of approved or declined. Covers the analysis of the application with all the variables necessary to look at the viability of approving the product.

51 Personal Loans Request 51 Summary Form Process Elements Request Evaluation Each product of the application is evaluated separately, resulting in approval, rejection or deferred (postponed). Depending on this result, the process considers two alternatives: to include more collaterals, in case there is at least one Postponed product. Or evaluate if there is at least one approved product in the application. In every case, the evaluation will be performed by a Factory Analyst, however, the Requested Amount in local currency determines the analyst role that is considered in the assignment of the activity. Performers Factory Analyst

52 Personal Loans Request 52 Form Duration 30 Minutes At least one Product postponed? A check is made to see if at least one of the products has a deferred decision from the Request Evaluation activity.

53 Personal Loans Request 53 Conditions associated with the gateway Yes: If at least one product has a deferred decision, the case continues to the Notify New Collaterals Activity. No: If at least no product has a deferred decision, the case continues normally. Notify New Collaterals The user who created the application is notified of the need to add new collaterals: Script Request collaterals from the Borrower By means of this letter you are requested to provide collaterals for the application <RequestNumber>. The following shows the Information requested (the Observations of the Application should be sent). Yours sincerely Event Based Gateway Gateway that enables the Add Collateral activity, but at the same time enables the Office Waiting Timer. This way, if the maximum waiting time parameterized for the setup of collaterals is exceeded, the case closes. Register Collateral Type Required In this activity, the user selects the type of collateral that is to be associated.

54 Personal Loans Request 54 Performers Business Advisor Form Duration 1 Hour Collateral Type This gateway evaluates the type of associated collateral for the application.

55 Personal Loans Request 55 Conditions associated with the gateway Personal Collateral: If the collateral related to the postponed product is a personal collateral, the process continues to the applicants analysis. Real Collateral: If the collateral related to the postponed product is a real surety, the process proceeds to the Register Products and Collaterals activity. No collaterals: If no collaterals are related to the postponed product, the case continues with Review Result. Applicants Analysis Sub-process that contains the necessary activities to validate the Information of the applicants. At least one applicant approved? This gateway evaluates if at least one new applicant has been approved. Conditions associated with the gateway Yes: If at least one of the applicants has the decision approved following the analysis, it proceeds to Verify Information. No: If no applicants has the decision approved following the analysis, it proceeds to register a new collateral. Verify Information This is the same activity as used in the Personal Loans Request process. Here the Information of the new applicants is reviewed.

56 Personal Loans Request 56 Performers Business Advisor Form Duration 15 Minutes Register Collaterals According to the same activity carried out in the parent process, the new collaterals are associated with the products. Performers Business Advisor

57 Personal Loans Request 57 Form Duration 1 hour Verify Documentation and Information Sub-process in which the Information and documentation of each applicant is checked. An independent process is opened for each of the approved applicants of the application. Here, the supporting documentation is requested from the borrower and/or coborrowers, surety or guarantor of the credit that is being analyzed. Once this

58 Personal Loans Request 58 documentation is received, the process continues with the validation and verification of it. Process Verify Information and Documentation Type Multi-Instance: One case for each approved applicant Calculate Payment Capacity The Payment Capacity is calculated via an interface. Implementation Web Service Waiting Time Expired? This gateway evaluates if the maximum waiting time has expired. Conditions associated with the gateway Yes: If the maximum waiting period defined for the Office Waiting Time has expired, the case is closed. No: If the maximum waiting period defined for the Office Waiting Time has no expired, the case will continue normally.

59 Personal Loans Request 59 Review Result The new Information is again reviewed in the Credit Factory. The Factory provides a new opinion based on the new Information. Performers Factory Analyst Form Duration 30 Minutes

60 Personal Loans Request 60 Amortization The interface that calculates the amortization is executed. Implementation Web Service At least one approved product? This gateway evaluates if at least one product has been approved. Conditions associated with the gateway Yes: If at least one product has been approved, Bizagi updates the process states and continues. No: If no products have been approved, the request rejection is notified. Update Process State to Rejected Automatic task that updates the request status with the rejected request status. Notify Request Rejection A notification of rejection is sent to the user who created the case.

61 Personal Loans Request 61 Script Reference: Rejection of Application. We wish to inform you that application no. (Number of Application), was rejected, consult the case for more details. Regards, Bizagi Template Bank Requires Approval? This gateway evaluates if the request requires Approval by the Credit Factory. Conditions associated with the gateway Yes: If the request requires approval, the request is sent in order to be evaluated by the Factory Committee. No: If approval is not necessary, the request approval is notified. Update Process State to Approved Automatic task that updates the request status with the approved request status. Notify Request Result A rejection notification is sent to the user who created the case.

62 Personal Loans Request 62 Script Reference: Approval of Application We wish to inform you that the application no. (Number of Application), was approved, see case for further details. Yours sincerely Factory Committee The Factory Analyst can request the evaluation of the Application by the Committee. In this case, the Committee approves or rejects the whole case, not its products individually. According to the Requested Amount, the activity will be assigned according to the corresponding role. A higher amount will require a Committee with higher approving power. Performers Factory Analyst Form

63 Personal Loans Request 63 Duration 30 Minutes Rejected Request? This gateway evaluates the result of the factory committee. Conditions associated with the gateway Yes: If the factory committee rejected the request, the case is directed to notify the Rejection.

64 Personal Loans Request 64 No: If the factory committee approved the request, the case is directed to notify the approval. Wait Office Management Maximum waiting time to add collaterals. This time is defined by parameter.

65 Personal Loans Request 65 Collaterals Version: 1.0 Author: Bizagi Limited The purpose of the process is to record in the Core systems of the company the collateral that was included in the process and associated with each product. This will ensure success in the Delivery of approved products, minimizing the risk of any associated collateral that cannot be established. In the process, confirms the viability of the collateral associated with the approved products. It gives the possibility to modify existing collateral and associate new ones, as well as adding or deleting them.

66 Personal Loans Request 66 Summary Form Process Elements Mortgage Collateral Evaluates if the collateral is a Mortgage or not.

67 Personal Loans Request 67 Conditions associated with the gateway Yes: If the collateral is a mortgage, the case continues to the legal procedure sub-process. No: If the collateral is not a mortgage, the cases continues to the Collateral documentation activity. Legal procedure Sub process that performs the necessary tasks for the mortgage collateral. It provides for the activities for receiving documentation regarding the property and registering the mortgage that secures the debt. Title Study Ok? Validates if the titles study was satisfactory Conditions associated with the gateway Yes: If the titles study was satisfactory, the case continues to verify collateral registration. No: If the titles study was unsatisfactory, the sub-process finishes. Collateral Documentation In this activity, all the documents required to validate the collateral are shown and the user must enter if they are delivered and need authorization. Performers Business Advisor

68 Personal Loans Request 68 Form Duration 2 hours Requires Authorization? Validates whether one or more of the requested documents require authorization. Conditions associated with the gateway Yes: If at least one document requires authorization, the case continues to the Authorize documentation activity. No: If no documents require authorization, the case continues to the Verify collateral registration activity.

69 Personal Loans Request 69 Authorize Documentation The documentation that requires authorization is reviewed and a decision is given. If any document is not authorized the user should record their observations. Performers Document Authorizer Form Duration 2 hours Authorized? Validates if the documents were authorized.

70 Personal Loans Request 70 Conditions associated with the gateway Yes: If the documents were authorized, the process continues normally. No: If the documents were not authorized, the process returns to the Authorize documentation activity. Verify Collateral Registration As a final step of the process, the collateral registration is verified, resulting in authorization or cancellation. Performers Collateral Manager Form Duration 4 hours

71 Personal Loans Request 71 Authorize Collateral registration? Evaluates if the legal area authorized the registration or constitution of the collateral in the Core Banking system. Conditions associated with the gateway Yes: If the collateral was authorized, the sub-process ends. No: If the collateral was not authorized, the sub-process informs this situation and then ends. Register Collateral The collateral Information is sent to the core system via interface to make the official record and its constitution. Implementation Web Service Register collateral documents Associated documents to the collateral are recorded to verify that they have been submitted and approved, if necessary.

72 Personal Loans Request 72 Legal procedure Sub process that performs the necessary tasks for the mortgage collateral. It provides for the activities for receiving documentation regarding the property and registering the mortgage that secures the debt. Process Elements Payment and Documentation Opens two independent parallel paths to allow receiving payments and documentation. Payments Payment of the appraisal and review of titles are recorded.

73 Personal Loans Request 73 Form Request Documentation In this activity, the user requests the documents needed for the study of the title to the costumer. Performers Lawyer

74 Personal Loans Request 74 Form Duration 4 hours

75 Personal Loans Request 75 Receive Documentation The documentation provided by the client is reviewed and a decision is given as to their completeness and that they correspond to the request. Form Title Study Result In this activity the results of the study analysis of property titles are recorded.

76 Personal Loans Request 76 Performers Lawyer Form Duration 4 hours Title Study Ok? Validates if the Title study is satisfactory

77 Personal Loans Request 77 Conditions associated with the gateway Yes: If the study is satisfactory, the sub-process continues to send the title indeed to notary. No: If the study is unsatisfactory, the sub-process ends. Send Title Deed to Notary The title deed signed by the client and reviewed by the lawyer assigned to the case, is included to give an approval or comments to be adjusted. Performers Lawyer Form

78 Personal Loans Request 78 Duration 4 hours Title Deed Reception This event records the arrival of the Title Deed with the registration Information.

79 Personal Loans Request 79 Form Comments on the Title Deed Validates whether the title deed needs correction or is complete, to continue with the process.

80 Personal Loans Request 80 Conditions associated with the gateway Yes: If the lawyer included comments to correct the Title Deed, the case title must be reviewed and sent to notary again. No: If the lawyer did not include comments to correct the Title Deed, the sub-process ends.

81 Personal Loans Request 81 Delivery Version: 1.0 Author: Bizagi Limited The Delivery process handles the disbursement of the approved amount for each product, including the following items: Define Payment: Specifies when the disbursement will be made or whether to make several payments at different times. Final Disbursement: This can be done through a transfer to an account or a cashier's check. Charge Fees: Define the type of commissions and fee amounts approved for each product subtype. This Information should be recorded in the system that handles the products of the bank. The process interacts with the Core Banking system to register the product (s) requested.

82 Personal Loans Request 82 Summary Form Process Elements Product Type Depending on the Product Type, the process will continue with the corresponding activity. Conditions associated with the gateway Credit Card, Increased Limit: The product is a Credit Card or Increased limit.

83 Personal Loans Request 83 Loans: The product is a Loan. Accounts: The product is an Account. Account Registration If the product type is an account, the Information is sent to the Core System via interface. Implementation Web Service Credit Card Opens the process of Credit Card registration and Increased Limit in the system handling the products. Process Credit Card Debt Purchase? Evaluates if debt purchase was selected Conditions associated with the gateway Yes: If debt purchase was selected, the sub-process continues to the Define disbursement activity.

84 Personal Loans Request 84 No: If debt purchase was not selected, the sub-process updates the status of the products and then ends. Define Disbursement In this activity, the user defines the disbursement method of the approved amount, as well as the dates of disbursement. The process supports multiple disbursements for each product. Performers Business Advisor Form

85 Personal Loans Request 85 Duration 4 hours Associated Insurance? Evaluates if the product has associated Insurance Conditions associated with the gateway Yes: If the product has associated Insurance, the sub-process continues to the Recalculate insurance activity. No: If the product has not associated Insurance, the sub-process continues normally. Recalculate Insurance If the products have associated insurance, they should be recalculated in this activity. Performers Insurance Manager

86 Personal Loans Request 86 Form Duration 2 hours Register Insurance The associated insurance is sent to the core system, via interface. Implementation Web Service

87 Personal Loans Request 87 Debt Purchase? Evaluates if debt purchase was selected Conditions associated with the gateway Yes: If debt purchase was selected, the sub-process continues to disburse the requested amount. No: If debt purchase was not selected, the sub-process registers the product and then disburses the requested amount. Register Product Once the product has been approved and the disbursements have been defined, the product Information is sent to the Core System of the entity. Implementation Web Service Disbursements This Sub process is made to implement the disbursement defined and scheduled on the dates indicated. It creates an independent process for each scheduled disbursement. Process Disbursement Type Multi-Instance: One case for each disbursement

88 Personal Loans Request 88 Update product state The Product Information is updated according to whether it was disbursed correctly or not. With this Information, the Personal Loans Request process defines the path to follow.

89 Personal Loans Request 89 Credit Card Version: 1.0 Author: Bizagi Limited The process allows the creation of new Credit Cards or the Increase of limits in the Core Banking system. Registration does not include the actual delivery of the plastic to the client.

90 Personal Loans Request 90 Process Elements Increase Limit Evaluates if the Credit card is a new one or if it is for an Increase in the Limit of an existing one. Conditions associated with the gateway Yes: The product is Increase Limit. No: The product is a new credit card. Credit Card Registration This interface is to send the Information to create the credit card on behalf of the Borrower. Implementation Web Service Increase Limit This interface is made to send the Information to increase the limit of the selected credit card on behalf of the Borrower. Implementation Web Service

91 Personal Loans Request 91 Disbursement Version: 1.0 Author: Bizagi Limited The objective of the process is to inform the relevant area of regarding the disbursement of the approved amount for the product. The disbursements can be made by check or wire transfer. Process Elements Disbursement Date The timer waits until the date of disbursement selected by the user, is reached.

92 Personal Loans Request 92 Disbursement Method Validates the selected disbursement method. Conditions associated with the gateway Check: The disbursement is made by check. Transfer: The disbursement is made by Transfer. Notify Disbursement by Check Bizagi sends a notification alerting the disbursement by check to the user that defined the disbursement. Script Kindly prepare the product disbursement according to the following Information: Request number: Product type: Approved amount: Disbursement date: Regards, Bizagi Template Bank Notify Disbursement by Transfer Bizagi sends a notification alerting the disbursement by transfer to the user that defined the disbursement.

93 Personal Loans Request 93 Script Kindly prepare the product disbursement according to the following Information: Request number: Product type: Approved amount: Account type: Account number: Disbursement date: Regards, Bizagi Template Bank

94 Personal Loans Request 94 Customer Orientation Version: 1.0 Author: Bizagi Limited The Personal Loans Request process covers two possible scenarios: one focused on the commercial side, where each application commences by means of the sales force oriented towards a customer, in their decision to acquire credit products. In this case, it begins through Customer Orientation. The other scenario does not consider the commercial stage but a case is created directly through the Personal Loans Request process to create the application for products. The purpose of the Customer Orientation process is to determine if the current payment capacity of the customer will enable the payments for the credit products requested to be covered. In accordance with the record of the initial Information of the customer (Marital status, Source of Income and Expenditure), it proceeds to check if this has any other application of Customer Orientation in progress and to the calculation of Payment Capacity.

95 Personal Loans Request 95 If the Payment Capacity value calculated is different from Zero or a negative number, it proceeds to record the products in which the applicant is interested. In parallel, it controls that the payment capacity calculated is sufficient to cover the related products. If the applicant wishes to continue with the application, he/she is informed by means of a letter, of the documents required to commence with the corresponding process. This waiting period is handled by a parameter set to wait for this documentation. If the timescale expires and the documents have not been received, the current Customer Orientation case will be closed. Otherwise, according to the social segment that the applicant belongs, a sub-process of Credit Application is originated. Default Form Process Elements Register Applicant Information The commercial consultant records the basic Information of the applicant, including financial Information.

96 Personal Loans Request 96 Performers Business Advisor Form Duration 1 Hour Orientation in progress? This gateways evaluates if the applicant has already an orientation in progress Conditions associated with the gateway Yes: If the applicant already has an orientation in progress, the case closes.

97 Personal Loans Request 97 No: If the applicant already has not an orientation in progress, the case continues normally. Payment Capacity The system checks the payment capacity of the applicant to ensure it is not negative or zero, if it is, the process cannot continue. This is carried out by invoking an external system asynchronically. That is, the task is retried the number of times that has been defined and can be retried by the administrator in case of error. For testing purposes, the Web Service consumed by this credit process, returns the value of payment capacity corresponding to the difference between the values of monthly income and expenditure. Implementation Web Service Negative Payment Capacity This gateway evaluates the result of the payment capacity analysis. Conditions associated with the gateway Yes: If the payment capacity is negative, the case ends. No: If the payment capacity is not negative, the case continues to the Offer Products activity.

98 Personal Loans Request 98 Offer Products The business advisor offers a package of products to the applicant. The applicant has the possibility of selecting one or more of the products. A list of the documents required is generated in order to approve the product request. Furthermore, a repayment table is calculated depending on how the repayments are to be made for the requested credit. Performers Business Advisor Form Duration 2 Hours

99 Personal Loans Request 99 Continue Request This gateway evaluates the selection made by the applicant in the Offer Products activity. Conditions associated with the gateway Yes: If the applicant decided to continue with the request, the process continues normally. No: If the applicant decided not to continue with the request, the case closes. Event Based Gateway In this gateway the system waits for an assigned user to execute and progress the Continue Request event or that the waiting period expires. The event that is executed first annuls the other, such that if the waiting period expires, the case is closed, but if the decision is to continue with the application, the case will go to the Personal Loans Request process. Continue Request The applicant accepts the conditions of the application and delivers the required documentation to be able to continue with the process.

100 Personal Loans Request 100 Form Personal Loans Request Main process where applications for credit products are created for individuals, via the channels of banking entities. Each request can include one or more products, among which are: Consumer Credit, Car Loans, Mortgages, Credit Cards, Credit Card limit increases and Credit Card balance transfers. For more Information please refer to paragraph 1 in this document. Process Personal Loans Request Update process state Updates the process state so if the case must be closed, applicants don't have requests in process and the case state is Closed.