Addressing the issues on technical past dues, delays in loan releases, and inoperative account status through the establishment and implementation of standard policies and procedures in account monitoring

• Main Author: Lopez, Mary Anelle B.
• Format: text
• Language: English
• Published: Animo Repository 2020
• Subjects: Loan servicing—Quality control; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6193; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/13271/viewcontent/Lopez_MaryAnelleBermejo_11790687_1Edited.pdf
• Institution: De La Salle University

This action research focused on addressing the issues on daily transactions in one of the teams under the Institutional Banking Group (IBG) of Red Bank, which includes having a high level of technical past dues, delays in loan releases, and a high number of inoperative accounts. If not immediately addressed, these issues can pose a significant threat to the team’s performance, and of the Bank, in general. The marketing assistants (MAs) serve as the primary support of a team in terms of processing the “daily transactions,” which include releasing loans, collecting interests and principal payments, and following-up documentary requirements from borrowing clients. The researcher collaborated with all the members of the subject team to identify the root problem behind the occurrences of the said issues on daily transactions. Upon assessing the situation, it was determined that the MAs do not have a clear set of standard policies and procedures to follow in processing their daily transactions. This specific issue made them do things according to their own “strategies” without a clear understanding if they are correct or not; thus, exposing the Bank to risks associated with their errors. Taking a step back, the action researcher and co-officers in the team, studied how the MAs currently process their daily work transactions, to understand better the challenges they encounter. Guided by the MARS Framework of Organizational Behavior, the action researcher and collaborators were able to understand and simplify the connection between the presented issues on daily transactions and the root problem, which is the lack of standard policies and procedures on daily transactions. In the end, the interventions were proven to be effective in addressing the issues, which contributed to the improvement of each team member’s rating on job performance.