Credit Masterclass

This course takes a closer look at the retail, SME and mid corporate sectors – reviewing a typical credit risk process for each type of business and how each of them might be best financed.

Suitability

This course is suitable for anyone new to Credit.

Learning Outcomes

  • What KYC means in the retail banking environment today
  • The sources of client information – financial and non-financial
  • The benefits of a face-to-face meeting vs. ‘remote’ retail lending
  • An overview of the types of client and counterparties that the bank serves
  • The key drivers of risk in retail lending
  • Retail credit risk
  • The bank revenue model
  • Gather and assess KYC information
  • The history of credit scoring
  • Examine the drivers and mechanics of credit scoring
  • Describe the objectives of a credit scorecard
  • Build a credit scorecard
  • Determine and weight the parameters for the scorecard
  • Explore a credit product
  • Describe unsecured and secured personal loans
  • Evaluate collateral to support personal lending
  • Examine how a mortgage loan operates
  • Explore the mechanics of Loan-to-Value ratios
  • Understand the mechanics of retail credit products
  • Examine overdrafts and credit cards: product mechanics
  • Explore alternative sources of consumer finance
  • Describe the SME credit risk process
  • Identify sources of financial and non-financial information for SMEs
  • Sift and prioritise financial and non-financial information
  • Analyse non-financial information for SMEs – using local data sources
  • Explore the importance of site visits and meeting the SME client
  • Examine the types of financial information that SMEs produce
  • Examine the basic financial information produced by SMEs – balance sheet and profit & loss account
  • Analyse other sources of financial information e.g., tax returns
  • Examine the credit process in SMEs – using the CAMPARI and 5 Cs models
  • Determining the SME’s lending requirements
  • The requirement for short- or long-term finance
  • Seasonal vs. permanent financing
  • Understanding why SMEs need short term financing
  • Understanding the assets conversion cycle and the funding gap
  • Funding working capital using an overdraft; an introduction to export factoring
  • An overview of long-term funding solutions for SMEs: bank loans
  • The merits of secured vs. unsecured lending
  • Objectives of a credit scorecard
  • How to build a credit scorecard
  • Determining & weighting the parameters for the scorecard
  • Types and sources of financial and non-financial information 2
  • Information overload – how to sift and prioritise financial and non-financial information
  • An overview of the credit risk process
  • How to analyse macro risk – using the PESTLE model
  • Analysing industry risk – a closer look at Porter’s 5 forces model
  • How to analyse the product life cycle of a mid-corporate – using the BCG matrix
  • Interpret the Profit & Loss account
  • Interpret the balance sheet
  • Interpret the cash flow statement
  • Examine the cash flow statement
  • Explore various financial metrics
  • Calculate profitability, solvency and coverage metrics
  • Calculate liquidity and efficiency metrics
  • An overview of the credit risk process
  • Completing the credit risk assessment
  • Understanding the credit decision/ the post-approval process
  • Describe the stages in the financing cycle
  • Examine short-term financing products
  • Examine long-term financing products
  • Explore short-term financing solutions
  • Examine working capital – seasonal, temporary and permanent
  • Compare the benefits of the overdraft, factoring and invoice discounting services from the perspective of the mid-corporate
  • Explore long-term funding solutions for mid-corporates
  • Examine long-term loans, private placements and leasing solutions
  • Build a credit scorecard
  • Determine and weight the parameters for the scorecard

Course Content

The Retail Credit Risk Process

Unit 1 – Knowing Your Customer

Unit 2 – Drivers Of Retail Credit Risk

Unit 3 – Introduction To A Retail Credit Scorecard

Unit 4 – Building A Retail Credit Scorecard

Retail Credit Products

Unit 5 – Credit Cards & Overdrafts

Unit 6 – Secured and Unsecured Loans And Mortgages

The SME Credit Risk Process

Unit 7 – An Overview Of The SME Credit Risk Process.

Unit 8 – Evaluating Non-financial Risk In SMEs

Unit 9 – Evaluating Financial Risk In SMEs

Unit 10 – Completing A Credit Risk Assessment of an SME

SME Credit Products

Unit 11 – SME’s Credit Requirements

Unit 12 – Short Term SME Credit Products

Unit 13 – Long Term SME Credit Products

Unit 14 – SME Debt Contract

The Mid-corporate Credit Risk Process

Unit 15 – An Overview Of The Mid-corporate Credit Risk Process

Unit 16 – Evaluating Non-financial Risk

Unit 17 – Evaluating Financial Risk I

Unit 18 – Evaluating Financial Risk II

Unit 19 – Evaluating Financial Risk III

Unit 20 – Completing A Credit Risk Assessment Of A Mid-corporate

Mid-corporate Credit Products

Unit 21 – An Overview Of A Mid-corporate’s Credit Requirements.

Unit 22 – Short Term Mid-corporate Credit Products

Unit 23 – Long Term SME Credit Products

Unit 24 – Mid-corporate Debt Contract

This Course Includes

  • Learn: 24 micro-learning on-demand videos
  • Check: 24 knowledge checks to validate understanding
  • Apply: 24 hands-on practical exercises and projects
  • Requirements: Access to a computer with an internet connection
  • Accessibility: Access on PC, mobile or TV
  • Certification: Certificate of completion with CPD record

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of our clients would recommend Alpha to a colleague or peer

90%

of a cohort was promoted within 2 years after participating in an Alpha course.

96%

of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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