Subject: Proposal to establish a loan collection office to improve the efficiency of the credit department at ICBC. Proposal With ICBC’s(Industrial and Commercial Bank of China) dramatic growth in loan business,the total amount of overdue payments has risen sharply. Customer managers are responsible for payment collection in the current situation. They call their borrowers or have a face-to-face communication asking for repayment. However,this traditional way is inefficient.
The customer managers’ responsibility is searching for potential customers and selling credit products not calling for repayment. In fact, selling loans is one of the main sources of the bank’s profit. When customer managers need to collect overdue payment, they may not have time to sell new loans. Thus,the profit of bank will be influenced. I’d like to propose a loan collection office to help the credit department improve. The collection office is focused on overdue prevention and overdue collection.
The purpose is to garner recommendations from the credit department and push through the plan. Rationale
Because the collection office would reduce the customer managers’ extra work, they could do better in their own fields. For example,managers could provide higher quality of service and sell more credit products. Also,with the prevention of overdue payment, bad debts rate would go down. Project Plan
I envision four stages to this project: (1)I will do some market research and quantitative analysis to find out the proper scale of collection office and then, make a budget, which will include three aspects: a. labor cost, such as wages, employee benefits, etc.
b. facility cost, such as office space, computers, software,etc. c. other expenses, such as telephone charges, electric chareges, etc. (2)The HR department would be arranged to recruit new employees or select employees from other departments and arrange new office space. (3)
The IT department is responsible for designing software which can isolate these high-risk credit contracts, nearly-overdue loans and overdue loans from all of the clients’ credit documents so that these special contracts can be transferred to the loan collection office. (4)I will train the new employees to become eligible loan collecters and get familiar with the newly designed software. Resources and Budget
To complete the project, I will need the HR department to offer approximately 40 hours labor and the IT department to offer 20 hours of support. I believe I can make time in my schedule to go through the project. Conclusion
A new loan collection office would greatly benefit the credit department and ICBC. Not only because it would improve the working effeciency, but also because it would help preventing overdue payments. This project will improve the profit ability and competitive power of ICBC.