Collection Officer

Collection Officer

1) Job Purpose: Write the purpose for which the job exists (in 2-3 lines) (Max 1325 Characters)

• To manage the collections process for a set of delinquent accounts within a location, working with non-performing defaulting borrowers to create optimum recovery solutions.

2) Dimensions:

• Mention quantitative or qualitative parameters that are relevant for the job and provide a better understanding of the scope and scale of the job.
• Other Quantitative and Important Parameters for the job: Budgets/ Volumes/No. of Products/Geography/ Markets/ Customers or any other parameter
• Collections Resolutions – Ensure recovery of overdue monies in various buckets as per targets and expectations rolled out by Central Strategy Team
• Negotiation skills – Direct interaction with Overdue Customers and maximize collections basis underlying bucket-level collections philosophy

3) Job Context & Major Challenges:

Write the specific aspects of the job that provide a challenge (internal and external) to the jobholder in the context of the Business/Unit/Function/Department/Section ((Max 3975 Characters)

Organization Context

• Aditya Birla Finance Limited (ABFL) is a lending subsidiary of Aditya Birla Capital Limited. ABFL is registered with RBI as a Systematically Important Non-Deposit accepting Non-Banking Finance Company (NBFC). ABFL is one of the top private diversified NBFCs in India. As of 31-Dec’20, ABFL has a pan-India presence with 91 branches and a lending book of Rs. 45,560 Crores.
• ABFL offers end-to-end lending solutions to a diverse set of customers - Retail, HNI, MSMEs, and Mid & Large Corporates through secured as well as unsecured loan products. The diverse range of lending products includes Retail Small Ticket Secured and Unsecured Loans, Unsecured Personal Loans, Unsecured Business Loans, Health & Education Loans, Digital B2B2C and B2B2B Small Ticket Loans, Small Business Secured Loans, Loans Against Property (LAP), Lease Rental Discounting (LRD), Construction Finance (to Real Estate Developers), SME Loans, Capital Markets Loans (Loan Against Shares), Supply Chain Finance, Mid and Large Corporate Loans, and Infrastructure Finance loans. ABFL also has a Wealth Management division.
• ABFL is rated “AAA” by India Ratings, ICRA and CARE (reaffirmed in 2020). ABFL secured the ABG Business Excellence Award in 2017 (Silver), and 2015 (Bronze), and multiple other Awards on forums like CII

Business context:

• The Risk & Compliance is engaged in formulating credit risk policies for all ABFL businesses, carries out risk assessment of credit proposals, obtains credit decisions from Credit Committees, monitors credit exposure and carries out recovery of over dues. It formulates risk policies in association with Central Risk, ABFSG for overall risk management in ABFL.
• Credit / Loan proposals prepared by Business Credit team are critically analyzed from credit risk perspective and the proposals along with Risk Assessment Sheet are put upto to Credit Committee for approval. While carrying out critical evaluation of the credit proposal the function also carries out evaluation of the risk mitigants in the credit proposal like the nature and the quality of the collateral, adequacy of the collateral, acceptability of the collateral given the regulatory and the compliance needs.

3) Job Context & Major Challenges:

• Write the specific aspects of the job that provide a challenge (internal and external) to the jobholder in the context of the Business/Unit/Function/Department/Section ((Max 3975 Characters)
• The Risk & Compliance function carries out monitoring of client wise exposure and portfolio exposure to identify ‘early warning signals’ of stress and to minimize NPAs. Currently monitoring is done in association with Business Teams as RMG does not have presence at Branch level. It carries out over due loan recovery from defaulting clients in coordination with Business Teams.

Job Context:

• To enable enhanced business profitability through the effective management of the delinquent portfolio of Retail Lending Loans in the City / Cities managed
• To achieve the desired collections efficiencies across products managed
• Ensure that adequate Collections Intensity of follow up is executed for all Delinquent accounts
• Continuously review the location portfolio and report Early Stress Accounts / Potential Delinquent customers to ACM/ RCM / Head – Collections & RISK team.
• Ensure that all Collections Activities are properly documented in the form of Collections Trails
• Ensure that all Collections Processes & Risk Governance Mandates rolled out are completely adhered to at each location.
• Negotiate on critical delinquent accounts and obtain repayments to minimize losses.
• Liaison with Legal / law enforcement agencies for speedy recovery of delinquent/write off cases.
• Provide feedback on the effectiveness of Collections Strategies formulated and implemented.
• Coordination with legal team for all collection’s legal cases.

4) Key Result Areas: Write the key results expected from the job and the supporting actions for each of these key result areas (For a majority of jobs typically there could be 4- 7 key result areas)- Maximum 10 KRAs can be updated

Key Result Areas (Max 1325 Characters)/ Supporting Actions (Max 1325 Characters)

• Manage the collections process at a Location / City level, streamlining operations and working to minimize the costs of default and bad debt
• Achievement of desired Collections Efficiency
• Monitor customer accounts delinquent in the city / cities managed, identifying and flagging likely cases of default or delayed payment
• Work with non-performing\delinquent borrowers to create optimum recovery solutions.
• Ensure that all documentation related to the collections process is maintained in accordance with internal norms and regulatory requirements.
• Respond to customer complaints regarding the collections process, taking steps to ensure a satisfactory outcome for both ABFL as well as its customers.

Trail Updates

• Ensure that all collections attempts are recorded as Feedback Trails on the Collections Management System.

Utilization of Collections Tools

• Thorough understanding of Collections philosophy in each Delinquency stage / bucket and usage of appropriate collections tools including not limited to legal actions, settlements, restructuring etc

Audit

• 100% compliance to Collections Process detailed in the SoP.

5) Job Purpose of Direct Reports: Describe the job purpose of the direct report/s to the job (in 2-3 lines for each report)

N/A

6) Relationships: Describe the nature and purpose of most important contacts or relationship (except superior/team members) with individuals, departments, organizations inside and outside of the organization, that job is required to interact with in order to deliver the job objectives

Relationship Type

Internal

• Area Manager Collections/ Regional Manager – Collections / Head Collections
• Team members in other Risk functions
• Operations Team / Underwriting
• Legal

Frequency

• Fortnightly & Monthly
• Monthly
• Weekly
• Need Based

Nature

• Portfolio & Mkt update / Review
• Early Mortality Case feedback and review
• Discussion on system updation of Collections Cases, MIS, Bounce details etc.
• Discussion on Legal triggers/ status updates on Delinquent accounts

External

• Clients, Channel partners
• Corporate CRC teams
• Legal experts, consultants
• Peers in Industry

Frequency

• Daily / Weekly
• Need Based
• Need Based
• Need based

Nature

• Visits / discussions on portfolio.
• Reviews, case updates, exception reporting, etc
• Discussion on legal matters, recovery mechanism and updates, etc.
• Market intelligence, networking, etc

3) Job Context & Major Challenges: Write the specific aspects of the job that provide a challenge (internal and external) to the jobholder in the context of the Business/Unit/Function/Department/Section ((Max 3975 Characters)

6) Relationships: Describe the nature and purpose of most important contacts or relationship (except superior/team members) with individuals, departments, organizations inside and outside of the organization, that job is required to interact with in order to deliver the job objectives

4. Peers in Industry

4. Need based

7) Organizational Relationships: Provide the structure for a level above and below the position for which this job description is written. Use position titles in the structured and indicate all the reports of the position.

SIGN-OFF: Provide the name of the Manager and the jobholder. Signature needed for the hard copy of the JD. Hard copy to be maintained in the organizational record.

Job Holder

Reports to – Manager

Name

Date of Entry / Approval