Bajaj FinServ Hiring for Head – Risk at Pune, Maharashtra Full Time

• JR00102739

Job Summary

• Head – Risk

Job Purpose

“This position is open with Bajaj Finance ltd.” Creating policy framework for New cars, Used car, Cars24, Urban Two wheeler and Tractor loan portfolio for facilitating effective underwriting of creditworthy customers. Working towards creating detailed policy document for all Wheels products for identifying different customer segments and creating and enhancing offer efficiency for them. Creation of offer SOP for filtering and identifying creditworthy customers and offering finance options according to customer segments and asset segments. Working towards maintaining a healthy portfolio, managing bounces and other delinquency parameters within defined threshold, and taking proactive actions to minimize losses for Tractor loans, New car, UCF, Cars24 and TW business (Urban). Increase business volumes by identifying new customer segments for ETB, PTB as well as NTB customer. Putting efforts towards providing seamless customer underwriting journey by benchmarking best market practices.

Job Duties & Key Responsibilities

• Duties and Responsibilities – 1. Acquisition policies design and maintenance – UCF Cars 24 and Urban TW New Car Tractor Loan  Direct team to constantly monitor customer quality to identify bad customers and accordingly refine acquisition policies to minimize inclusions of such customers in future  Formulation of policy for acquiring New to Bajaj customers and monitoring the same on monthly basis.  Conduct analysis on monthly basis for identification of bounces and delinquencies propose changes in acquisition policies and roll them out to reduce delinquencies and resulting losses.  Studying best market practices and implementing them through combinations of process innovation and effective credit buying. 2. PDD and RC limit monitoring – (Urban – TW Tractor loan New car loan and UCF )  Creating detailed policy document on identification and allocation of RC limits to be given to channel partners for facilitating PDD completion.  Creating PDD staircase for effective monitoring of PDD completion process and raising early warning signals for appropriate actions to be taken by business.  Creating provisions in the policy for managing ad-hoc RC limit requirements  Frequent monitoring of RC limit performance including RC limit threshold breach and suggesting appropriate actions to be taken by business to regularize the same.  Keeping constant watch on RTO rules with respect to ownership of Two and Four Wheel automobiles and related developments on Hypothecation endorsement vehicle transfer and various other RTO related activities.  Performing random checks to confirm the Hypothecation on vehicles funded by BFL and taking appropriate actions wherever discrepancy is found 3. Offer Efficiency management – (New car Urban – TW UCF Tractor loan and Cars24)  Review offer waterfall from BIU on monthly/ quarterly basis to identify the gaps and obtain insights on where offers are targeted to increase offer efficiency  Monitor offers in compliance with risk rules (separate for all the products) on a continuous basis  Conduct root cause analysis of high number of exclusions in offers monitor their trendline test out from the current sample and provide recommendations to CROs and businesses for tackling the exclusions  Review and analyze multiple rules leading to offer pool generation propose suggestions to CRO to enhance their efficiency and put up to business stakeholders for review 4. Stakeholders management/ interaction  Conduct discussions with BIU teams to understand issues faced and resolve the same  Interact with credit underwriting team to ensure compliance of policies to be rolled out with underwriting/ regulatory guidelines  Engage with product teams OEM teams at HO business teams sales teams and zonal managers to understand challenges seek clarity on cases of delinquencies resolve those and obtain feedback on location specific requirements  Visit Stock yards to study and review repossession processes and finding gap
• Duties and Responsibilities – 5. Portfolio management  Analyze customer segments to identify good & bad customers and take necessary actions for managing bounces frequency within threshold making sure losses are within limit  Track and manage risk matrices (such as current bucket bounces FEMI loss to AR Loss severity on repossessions etc.) and provide overview of risk status to MD on monthly basis  Anticipate future problems / issues with portfolio and take actions to mitigate problems and drive a healthy portfolio 6. Team development  Participate in in recruitment process to identify the right talent for various positions within the team  Establish individual performance expectations and regularly review individual performance of the team  Identify and create development opportunities for team members to enhance functional knowledge  Conducting COPR activities to identify team members with frequent processing errors and engaging them through L & D teams and at personal levels to improve overall performance.  Providing opportunities and platforms to teams to acquire additional skills in the areas of underwriting and risk to enable them perform better and become more effective managers. 7 Compliance • Execution of special projects to implement RBI directives like Covid 19 Resolution plans 1 & 2 • Overseeing compliance on these projects from planning to execution on the ground • Engaging with internal stakeholders for designing end to end processes creation of special product programs terms and conditions journeys stamping of offers and data clean up. • Managing escalations with the help of other stakeholders and providing mutually acceptable solutions to customers and other stakeholders 8 RF/TA • Creating policy around Retail Finance and Trade Advance to new used and Two Wheeler dealers for helping extract maximum retail business • Constant monitoring of utilization limits policy breaches and suggesting appropriate actions. • Development of dedicated systems as per the product nuance to manage tranche disbursement monitoring and OEM access • Liaising with OEMs of TW and new car for devising limited sales promotion schemes around Retail Finance products
• Major Challenges –  Constant review of portfolio and TTD metrics and control charts on daily basis.  External competition and dynamic product offering by different financiers and putting efforts towards matching the same with out diluting risk.  Lengthy turnaround time in implementing changes in LOS and LMS systems with respect to customer acquisition policies control parameters BRE rules etc  Systems and technologies need to be continuously evolved/ changed (currently takes 1.5-2 months) within minimum time to manage growing business volumes  Constant training to underwriters and risk managers for optimum results and error free outcome.  Constant monitoring at transactional level from file login to disbursement to identify gaps and implementing corrective measures.
• Key Decisions / Dimensions – Following decisions are taken by the role:  Recommendations on offer efficiency  Customer acquisition policies  Decision on critical deviations for UW proposals 7. DIMENSIONS (Key numerical data which will reflect the scope and scale of activities concerning this job) Financial Dimensions (These should be quantifiable numerical amounts)  Loan Loss: less than 1.75% of loss to AR for UCF 0.35% for new car and 3.0% of loss to AR for TW.  TW – 90+ PDD at less than 0.50% and UCF 90+ PDD at less than 0.75%  Repossession Loss severity for UCF at less than 40% for BT 25% for SP and LAC and 45% for TW and 25% for new car Other Dimensions (Significant volume dimensions associated with the job)  Total Team Size: 14  Number of Direct Reports: 3  Number of Indirect Reports: 11  Number of UCF locations: 48  Number of proposed TW locations: 500 phase wise  Number of proposed new car locations – 90

Required Qualifications and Experience

• a) Qualifications  MBA finance/Chartered Accountant b) Work Experience  18 years of experience  Experience of team management and stakeholders management  Knowledge of finance industry and experience in risk and underwriting function