
Introduction of the instructor and the course outline.
Consumer lending and its relationship with the consumer's daily life.
Consumer lending's role in the economy.
The balance changes of major consumer lending loans in the U.S. are reviewed.
Explanation of secured lending vs. unsecured lending.
Explanation of revolving credit vs. installment loan.
Explanation of Risk and Risk Management.
Major risk types in financial institutions:
- Credit Risk
- Market Risk
- Operational Risk
Other risk types in financial institutions:
- Strategy Risk
- Liquidity Risk
- Reputational Risk
- Climate Risk
Introduction of the Three Lines of Defense risk management framework.
Introduction of the 3 main business pillars within a full-service bank.
Explanation of where the consumer lending business fits in the bank.
Explanation of why risk management is important in consumer lending.
Main stakeholders of first-line risk team - part 1.
Main stakeholders of first-line risk team - part 2.
Overview of the credit life cycle - part 1:
- Origination
- Authorization
- Credit line increase
Overview of the credit life cycle - part 2:
- Credit line decrease
- Collections
- Recovery
Main institutions within the consumer lending ecosystem.
Introduction of credit bureaus:
- Three major credit bureaus
- Alternative credit bureaus
- Roles of credit bureaus
- Products of credit bureaus
Introduction of credit score.
Explanation of score-to-odds relationship chart.
Credit score ranges.
Different tiers of credit scores.
Main factors behind a credit score.
Different types of credit scores and their usages.
Please first download the case study worksheet from the "Resources" folder.
The instructor will walk you through the first task in the Fintech loan case study.
The instructor will walk you through the second task in the Fintech loan case study.
The instructor will walk you through the third task in the Fintech loan case study.
The case study solution can be found in the spreadsheet "Fintech Loan Case Study Solution.xlsx".
The spreadsheet can be downloaded from the "Resources" folder.
You can download a copy of the slides for this course, which include all lectures and the Fintech case study.
You also can view two chapters from the author's book, Unsecured Lending Risk Management, as additional reading materials:
- Chapter 2: Retail Risk Management
- Chapter 3: Risk Scores
Have you wondered what a consumer lending risk management professional does on a daily basis? Do you want to explore the world of consumer lending, which is closely tied with millions of people's lives?
This introductory course, Consumer Lending Risk Management Fundamentals - A Beginner's Guide, will walk you through:
Consumer lending products and ecosystem
Risk management types and framework
Risk management practices in consumer lending
Risk management throughout credit life cycle
This course is designed to help you establish an overview of the consumer lending industry and risk management fuction with 2 hours. It is suitable for the following audience:
Who just started the career in consumer lending, whether in risk management or other function such as business, marketing, customer service, collections, and underwriting.
Anyone with a curious mind about consumer lending risk management.
Who wants to quickly develop a bird-eye overview of the consumer lending industry.
Who is willing to work through the quiz questions and the case study.
Please note that this course is Not designed for people who are already experienced in consumer lending risk management.
The compact course covers important concepts through the following sections:
Introduction
Consumer Lending
Risk Management
Risk Management in Banking
Risk Management in Practice
Credit Bureau and Credit Score
There are quiz questions at the end of each section to help you go over important concepts.
Last but not the least, there is a case study of a Fintech loan company. As the risk analyst working for the Fintech company, you will be asked to complete 3 tasks, which are designed to help you better understand the risk management framework and practices.