Agency Banking Solution
Grid Data Solutions offers an end-to-end agency banking service that enables financial institutions to grow their loan book targeting non-bank customers without growing their cost. Our service includes our loan origination and processing system, CENTRIQO LMS and a closed loop Agent Management service.
The target market for this scheme are Civil servant employees and private companies willing to facilitate repayments from payroll, who may or may not be banked with the lending bank, giving the lending bank an opportunity to provide loan services to other bank customers.
CENTRIQO LMS is a bespoke scalable bulk processing system which is comprised of a frontend mobile application for loan origination and digital KYC & signature collection for both agents and individuals, feeding into a web-based loan management portal for bulk processing and reconciliation. The system can process both cash loans and product loans offering a retail element.
The individual loan accounts are hosted and managed on the CENTRIQO Loan Management System and the pool accounts are managed in the bank’s core-banking system either through file transfer or an API.
GDS has the capacity to work with multiple agents which will be contracted directly with the bank but fully managed by us, ensuring Agents comply with standards in line with the bank and regulatory requirements. This service will be provided at cost effective fees, mostly paid by the Agents and customers. Fees and costs will be negotiated in line with the Banks preferred services.
Frequently Asked Questions
Regarding the clients loan documentation, confirm that the system has capacity to produce an offer letter as an indication of accepting an offer after applying digitally.
Yes, our system immediately sends out the offer letter and TY30 for SSB to the client email provided, upon syncing the digital application which is signed electronically on the mobile device.
How does the system work for non SSB or non civil servants?
For private sector employees, the bank does an assessment on an organization to ensure that it’s has capacity to sustain its payroll for the duration of the staff scheme. These can be existing bank customers or customers identified by Grid Data Solutions. Once this is done, a contract is entered with the company and we can assist with conditions of the contract. On a monthly basis Grid Data Solutions will generate a payroll input file for the company, with individual repayments to be deducted. The company deducts from payroll then transmits the funds to the bank.
How do you cater for organizations who are not on Ndasenda.
If the bank has a code is processed manually, when internal processes are done up to CRB, we will extract the file onto a flash drive and submit to the institution on guided dates
Regarding liquidations, How does the system handle early liquidations and cancellations?
Our system is programmable to mirror banks policy. We jointly work on a policy depending on circumstances surrounding the cancellation. If agent is at fault, they meet processing costs and if customer changes their mind they meet processing costs. For agent this will be part of their contract and for customer they complete a cancellation form agreeing to conditions of cancelling.
Regarding repayments, is the system able to take over existing manual files in terms of repayments and arrears management
Yes the system is able to. We can covert your file data into a format we can upload into our system
Regarding query handling, how best can we ensure that queries are handled effectively using the system and ensure they are resolved given that the bank has a duty to protect its name?
As part of compliance with Agency prudential standards, an electronic complaints register is kept that will have the banks oversight and is part of our monthly SLA reviews and the bank can supervise the resolution of queries as it will have access to queries logged. As Grid Data Solutions, we are customer centric and will ensure queries are handled within time
Is the system capable of catering for 2% tax and RTGS transfer charges. This means deducting from the borrower?
The system is capable of effecting all charges on the app and the customer will sign for all applicable charges which will be included in their offer letter in line with treating customers fairly framework.
What is the max number of agents that the system can take?
We have not set a limit to agents and we scale up system capacity as we grow but, for good governance we recommend not to exceed 10 companies (thus about 500 foot soldiers).
As part of managing liquidity or allocating liquidity, is the the system is also capable of setting limits and communicating the same to the mobile app so that in the case the limits reached then agents will not be able to sell?
Our recommendation is the limits be set to a scheme and not agents, because sales vary per agent every month and it is best to effectively utilize monthly limits. Having said that, yes the system is able to configure limits per agent if desired. With private sector assessments, each company is given a limit depending on its payroll size, which is the same process if implemented per agent.