A Virtual Institute for Talent Management:

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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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IIBF- The travel

• Established in 1928 (section 25 Company)-
  offering professional banking qualification /
  certification for bank/FI employees.
• Supported by the industry. Governed by Banks,
  RBI, F.Is Academicians.
• Examinations, twice a year- nearly 300 centers in
  the country.
• Own and accredited class rooms across the
  country.
• Early 80s 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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Education/Training Needs of the sector

• 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 FIs
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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T N A
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 skills- Speaking skills- Selling skills- Dos and Donts
Officers Financial Advising- Credit appraisal- Marketing
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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IIBFs Approach to courses

• IIBFs 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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The Process Design development
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Pedagogy
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Delivery Virtual Institute
More than an open University. The need for
physical intervention is over come and cost
can be contained
USP Each and every Candidate to get access to
all offerings
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To-day IIBF largest of its kind

• 23 courses 46 subjects. Diplomas and
  certificates have recorded 50K number.
• Nearly 230000 candidates in 2010-11
• E- Learning for Core Banking
• 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

IIBF offers customized exams in Sri
Lanka Zambia. TBA in Nepal PNG
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Courses are offered to the employees of
Banks
Reserve Bank of India
Financial Institutions
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
And Graduate students
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• ALM
• Compliance
• RRB
• Forensic for banks

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Certified Independent Mortgage Counselors
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• Home loan is possibly most important financial
  decisions taken during the lifetime of a
  consumer.
• Rapid economic growth has accelerated demand for
  huge infrastructure and housing projects.
• The Home loans are on the increase
• Adequate and effective measures needed to -
• guide the consumer
• safeguard consumers interest and
• sustain growth of the sector on healthy and
  sound lines.
• 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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What is important for home loan borrowers?

• Able to access information which is simple, clear
  and understandable and not ambiguous or
  misleading.
• The details of requirements for taking loans and
  their interpretations clearly explained by
  lenders and understood by consumers / borrowers.
• Fair treatment post disbursement being kept
  informed of relevant changes to their loan terms
  and conditions, where applicable.
• 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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• What can be done

• Present Status

• 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.

• 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.

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CIMCs How consumers will benefit?

• 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 How consumers will benefit?

• 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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CIMCs How banks / HLCs will benefit?

• 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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Will CIMCs find value?

• 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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Home Loans -- Steps taken by IIBF

• 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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Diploma in Home Loan Advising

• 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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Diploma in Home Loan Advising

• 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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Debt Recovery AgentsTraining and Certification
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Debt Recovery Agents

• 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