I.

TITLE OF THE CASE: Vifel

Cooperative Bank
II. TIME CONTEXT: November 2019
III. PERSPECTIVE: Bank manager of Vifel
Cooperative Bank
IV. CENTRAL ISSUE: Failure/ default of
members in paying their loans that
may result to cash flow problems
V. STATEMENT OF OBJECTIVES:

 To find out the factors that affects

the debt collection of the bank
 To make recommendations for the
improvement of debt collection of
customers
STRENGTH
 Managed by an aggressive and
dynamic bank manager
 Employees who are knowledgeable in
banking , trusted , responsible and
committed to their work.
 Continuous increase of members
OPPORTUNITIES
 Increase of members and wide range of
banking services provides opportunity
for future expansions.
 Build relationships with influencers that
can increase the number of members in
the coop
 Economic growth that leads to members
not defaulting in their loans and an
increase in debit balance of members
WEAKNESSES
 Lack of knowledge of members in
handling finances
 Non-paying members
 No pre-screening of members on their
ability to pay the loan
 Excessive outflow of cash due to no
credit limit
THREATS
 A decline on the economy may result to
an increase of members who will
default their payments of their loans
 Entry of new competitor ( like kapq)
which provides higher returns than the
bank
 Faces threat in running out of capital
due to non-paying members
1. Pre- screen of members on their ability to pay before availing a
specific loan
2. Conduct seminars in handling finances
3. Make a policy on a credit limit of every member, the more the
member is a consistent payer, the higher his/her credit limit.
And a member who has an outstanding loan will not be able
to avail another loan unless he/she pays his/her outstanding
loan
4. Make a contact team which sets a friendly reminder to
customers in the payment of their loans.
5. Evaluate the aging of receivables and pay attention to the
customers whose loan payments are already past due
6. Increase interest rates on loans that are way past due
7. Offer discount loans to customers who pay early
8. Create an online payment processing for easy payments.
CRITERIA WEIGH Pre-screen of Conduct Make a policy Make a
T customers seminars in on the credit contact
before taking handling limit of every team which
a specific finances member sets a
loan friendly
reminder of
payments

Rating Total Rati Total Rating Total Ratin Total

ng g
1. 4 5 20 3 12 4 16 3 12
Implementation
2. Risk 4 5 20 5 20 4 16 3 12

3. Cost 4 4 16 3 12 4 16 3 12

4. Benefit 4 5 20 5 20 5 20 5 20

5. Affectivity 4 5 20 5 20 5 20 4 16

Grand Total 20 24 96 21 84 22 88 16 72
CRITERIA WEIGHT Evaluate the Increase Offer discount Create an
aging of interest rates loans to online
receivables on loans that customers payment
are way past who pay processing for
due early early
payments

Rating Total Ratin Total Rating Total Rating total

g
1. 4 4 16 3 12 3 12 3 12
Implementation
2. Risk 4 4 16 2 8 3 12 4 16

3. Cost 4 4 16 4 12 3 12 3 12

4. Benefit 4 4 16 4 12 4 16 4 16

5. Effectivity 4 3 12 3 12 4 16 4 16

Grand Total 20 19 76 15 56 17 68 18 72
In implementation, 1 being the hardest to implement
and 5 as the easiest to implement

In risk, 1 being the most risky, and 5 as the least risky

In cost, 1 is the most costly, and 5 is the least costly

For benefit derived, 1 is least beneficial and 5 as the

most beneficial

For Effectivity , 1 for least effective, and 5 with highest

effectivity
 The main problem of Vifel
Cooperative Bank is the default payments
of members .This may be due to the fact
that the members were not pre screened
before taking a specific loan Thus, some
members availed the loan with less
capacity to pay. And finally members has
not been trained in handling their finances.
These issues might be the reasons why
members default on their loan payments
 Currently, Vifel Cooperative has a problem with its
debt collection, customers are defaulting their payments
and their reason is the lack of income and knowledge in
handling finances , and with that, we made an
alternative course of action and picked the best one,
and we think that Pre-screening of members before
taking a specific loan is the first thing the manager
should do, then the manager should set a credit limit
depending on the customers credit rating, conduct
seminars in handling finances, evaluate existing
customer credit accounts, establish a contact team,
create an online payment processing, offer discount
loans on those who pay early, increase interest rate on
loans that are way past the credit period, and periodic
evaluation of the chosen actions.
 ACTIVITIES OBJECTIVES DIVISION PERSON COST TIME

Pre screen of To check the capacity Information Information Estimate 1

customers of the customers in manageme manager d xxx week
paying the specific nt
loan
Make a policy To limit the amount of Loan Loan officers Estimate 1
on credit limits money the customer servicing d xxx month
can borrow department
depending on its
credit rating
Conduct To educate the Wealth Wealth Estimate 1
seminars in members in handling manageme manageme d xxx month
handling their finances nt nt
finances department professionals
Evaluate To determine the Accounting Chief Estimate 3
existing customers who’s department financing d xxx weeks
customer credit payables are already officer
accounts past due
Establish a To remind the Customer Customer Estimate 3
contact team customers of their service service d xxx month
payables department manager s
ACTIVITIES OBJECTIVES DIVISION PERSON COST TIME
Create an For easy Electronic It specialist Estimated 6 months
online payment of Banking xxx
payment loans Department
processing
Offer To encourage Loan servicing Loan officers Estimated 3 months
discount the members department xxx
loans on to pay their
those who payables early
pay early

Increase To encourage Loan Loan Officers Estimated 3 months

interest rates the members Servicing xxx
on loans that to pay their Department
are past the payables early
credit period
stipulated

Periodic To assess if the Executive Bank Manager Estimated Every year

evaluation of chosen department xxx
the chosen actions are
actions effective