BANKSETA ACCREDITED LEARNERSHIP NATIONAL CERTIFICATE IN BANK CREDIT AND RISK ASSESSMENT. Core Objectives of Learnership (131 Credits):

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1 BANKSETA ACCREDITED LEARNERSHIP NATIONAL CERTIFICATE IN BANK CREDIT AND RISK ASSESSMENT The BankSeta has been involved in running Learnerships for previously disadvantaged school leavers a In 2009, the industry requested scarce that skills a Learnership in be the developed banking sector, address and credit the was de The BankSeta then called upon external providers to propose a programme to deal with this issue. The b The Learnership began in February 2010 and the learners are due to graduate at the beginning of March Unlike many credit programmes that tend to be rather superficial and therefore have little effect on produ While no prior knowledge is required, we believe that learners who have some understanding of account Core Objectives of Learnership (131 Credits): - Assess the viability of a business banking opportunity - Determine the banking related needs of a business - Prepare, assess and finalise a business credit proposal - Provide sales related services within the banking sector Content of Credit and Risk Assessment Learnership 1 / 14

2 It is not always possible to obtain a full understanding of the course content from an outline. Below is a b Please greg@culhanecon.co.za who would be happy to expand and motivate any elem MODULE ONE LEGAL ASPECTS OF BANK SECURITY [5 DAYS] Objective: Having a solid understanding of collateral and under what circumstances banks take collateral from clien This programme deals with LEGAL the ISSUES relating to bank security, and thus combines an academ PLEASE NOTE THAT THIS PROGRAMME CAN BE ADAPTED TO THE SPECIFIC SECURITY DOCU Outcomes: 1. GENERAL - Define the meaning of Security - Define the role of security in a banking context - Explain the functions of security - List the characteristics of good security versus unacceptable security - Understand the problems associated with the realisation of securities - Explain how the bank calculates the value of security 2 / 14

3 1. SECURITY DOCUMENTS - Understand and describe CESSIONS all details with regard to - Understand and describe PLEDGES all details with regard to - Understand and describe SURETYSHIPS all details with regard to - Understand and describe BONDS all details with regard to - Continuing Covering Mortgage Bonds (CCMB) - Notarial Bonds General Notarial Bond and Special Notarial Bonds 1. INDIVIDUALS - Define the concept of contractual capacity for individuals - Explain the legalities around the different types of marriages - Explain the contractual capacity of married persons - Apply the principles with regard to contractual capacity of natural persons - Characteristics of different types of security that can be obtained from individuals - Discuss the factors that affect the legality of the security CASE STUDIES Case studies to be added to this module on individuals for the learners to complete in class to enable the 1. BUSINESS ENTITIES - Apply the principles with regard to contractual capacity of business entities - Different types of security that can be obtained from business entities - >Describe supporting documents required - Discuss the factors that affect the legality of the security CASE STUDY (7 in total) will be given to the students on each business entity during the progra MODULE TWO ACCOUNTING PRINCIPLES FOR CREDIT MANAGERS [5 DAYS] 3 / 14

4 Objective: This programme has been which carefully apply designed specifically to. focus to bank on elements credit of accounting While a number of the learners In this programme, accounting principles are examined with specific regard to lending money. There is a In many cases, credit managers know exactly WHERE to look for information, but they do not always kn This entails looking at the numbers with a totally different mindset! It requires one to consider qualitative and quantitative information and understand how to use historical t Outcomes: On completion of this programme, delegates will understand the following: - The Ten Commandments of Credit and why they cannot be broken - The importance of taking security for the right reasons - How to lend to the future using historical information - Their role as a decision maker rather than an information gatherer - Understanding the Statement of Comprehensive Income for risk analysis - How to understand PROFITABILITY rather than PROFIT - Understand the difference between profit and cash flow - Concept of sustainable growth vs. maximising profit - Fundamental accounting concepts MODULE THREE 4 / 14

5 ANALYSIS OF FINANCIAL BUSINESS RISK [5 DAYS] Objective: A marked difference in the quality of proposals, the relationship between cre Please note that this programme no other is like credit course offered in South Africa at present in that h Terminology will be explained in relation to bank credit rather than a basic understanding of what the term The objective of this programme is, therefore, to take the basic understanding of credit analysis and take Outcomes: - Understand Income Statement as regards lending to the future - Statement of Financial Position terminology in small to medium business - Fully understand the concept of Reserves and how they should be analysed for credit purposes - Basic understanding of cash flow statement - Understanding the business using Business Flow Analysis - Learn how to use liquidity ratios to understand cash flows - Analysing financial risk in business through comprehensive ratio analysis Liquidity and Cash Flow, MODULE FOUR ADVANCED CREDIT ASSESSMENT IN PRACTICE [5 DAYS] Objective: 5 / 14

6 Most risk managers have never run a business. Consequently, they never have had the opportunity to u Working in the bank, it is often difficult to be empathetic to the day to day problems experienced by busin The objective of this programme is to expose the credit managers to the day to day issues that cause bu Outcomes: - Be able to analyse the cash flows of the business and fully understand each element of the cash fl - Perform a non-financial risk analysis focusing on all the internal and external risks of the business - The objectives of business and why sustainable growth, and not profitability, should be the focus o - Why do companies borrow money and what factors should businessmen consider when deciding o - The cost of financing and why equity financing is so much more expensive than debt financing - How a business develops a budget and the link between budgets and cash flow forecasts. How sh - Looking at the problems facing businesses in trying to reach an ideal level of working capital will be - Consider the motives as to why companies window dress financial information. - Linking all above to financial risk analysis MODULE 5 WINNING BUSINESS AND CLOSING DEALS [5 DAYS] Objective: In the move from transactional to relationship banking, many managers have attempted to build relations Consider the concept Customer is King. While this concept is still widely used in transactional marketin 6 / 14

7 This programme will assist all bankers involved in relationship building to reassess the way in which they The most important outcome of this programme is to guide bankers on how to close deals and w Many bankers do not understand that selling financial services is THE MOST DIFFICULT of all goods an This programme focuses on these issues to give your staff member an absolute advantage when closing Outcomes: - Understanding the need to move from transactional selling to relationship banking - Basic differences between transactional and relationship selling - Concept of converting prospects to customers,customers to clients, clients to promoters and promo - Understanding customer behavior - Developing A1 behaviour in the relationship manager through attentiveness and assertiveness - Linking product features to client's needs - Managing objections - Probing techniques - Mastering the opening of a sales interview - Mastering the art of presenting a product or service using need-feature links - Closing the deal with confidence - Using the sale to build on the relationship - Managing behavior - Relationship marketing - Customer retention - Developing a practical Customer Retention Plan - Linking customer service to relationship profitability - The importance of Internal Marketing - Delivering client satisfaction - Determinants of service quality - A conceptual model of service quality QUALIFICATION AND UNIT STANDARDS ACHIEVED 7 / 14

8 Qualification This Learnership falls under the umbrella of SAQA Qualification ID No National Certificate in Bank Having completed all five modules as listed above, learners will achieve the qualification "National Certificate in Bank Credit and Risk Assessment" This qualification will cover Unit Standards registered on the National Qualifications Framework as follow Qualification Title NQF Level Credits Qual ID US Rating 8 / 14

9 Determine the banking related financial needs of a business Fundamental Provide Sales related services within the Banking Sector Fundamental Assess the viability of a business banking opportunity 9 / 14

10 Core Prepare a banking related business credit proposal for the relevant authority Core Assess and finalise the credit application for a corporate, club, association or trust in a banking environm 5 10 / 14

11 Elective Total Credits 131 Assessment Criteria Assessments will be done in terms of prior knowledge (pre-course assessment), understanding of concepts covered in workshops (on-course assessment and post-course examination), ability to apply concepts in practice (post-course assignments). - Pre-Course Assessment 11 / 14

12 Learners will be required to write a pre-course questionnaire (multiple choice) covering the various aspects that will be discussed on the workshop. This questionnaire will be handed back to the facilitator as the same questions will be included in the examination. In this way we can test the knowledge gained on the programme by comparing the two scores. - On Course Assessment All workshops will be restricted to 25 learners per workshop in order to ensure that individual needs can be attended to. This is particularly important with regard to handicapped learners and learners with little background experience. Facilitators are trained to identify the slower learners and provide additional assistance. Where classes are larger than 25, the personal attention to individual learners is lost. - Post-Course Assessment Learners will be required to write a three hour examination at the end of every module. This examination will consist of three parts : - Multiple choice questionnaire (identical to pre-course questionnaire) (30%) - Essay type questions to check the level of understanding of the material covered (30%-35%) - A section requiring calculations and financial analysis (35%-40%) - Learners must achieve apass mark of 50%. If this is not achieved, the examination must be re-written. - Post-Course Assignment Learners will be required to apply the content of the workshop in the workplace by submitting a post- course assignment within three weeks of completing the workshop. This assignment will test the learner s ability to APPLY the principles in the workplace and should be signed off by the learner s superior before submission. Please note that for the Module on Closing Deals and Winning Business, no final examination or pre course test is undertaken. This module will be assessed on practical work, role plays and 12 / 14

13 a post course assignment Target Audience - All staff members who are involved in the credit process for small to medium sized business. These will include: - Business Analysts - Credit Officers - Credit Managers - Branch Managers - Business Bankers - Relationship Officers in a Business environment - Relationship Managers in a Business environment - Newly appointed graduates in Business Banking - Newly appointed Managers - Experienced credit managers who are looking for a refresher programme in credit Please Note: Ideally, it would be highly effective if staff from both the origination side and the credit risk assessment side could attend the programme together. The programme deals with the age old conflict between the credit originators and the credit approvers and we believe that the relationship between these two areas of the bank can be greatly enhanced after attending the programme. CONCLUSION While there may be certain elements of the Learnership that are covered on other internal programmes, we have found that our approach is unique and learners receive a fresh outlook on many issues they previously thought they understood. Generally we find that even though some learners feel they do not need certain parts of the programme, their pre-course assessments show otherwise. 13 / 14

14 We are happy to present in more detail to any business unit interested in implementing this Learnership to address any further queries they might have in this regard. We assure you of our very best service at all times. 14 / 14