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CMS (Credit Management System) - Hierarchy

CMS (Credit Management System): First let us see the Credit management system which is the core system of Vision Plus application.

From here on all the systems details has been based on the Mainframe System.

First let us see the Credit card hierarchy in Vision Plus system,

System ==> Organization ==> Logo ==> Account ==> Card ==> Credit Plans

System: Before we begin the Credit card processing we need to setup system basicall a single system for 1 bank with the following parameters,
1. Holiday tables - Indicates when the system should run for processing. For Eg: Only on weekdays or Working days or any specific dates for the month
2. Direct Debit options - Enable the Direct debt for te customer options
3. Batch Processing Options

Organization: This indicates which Bank unit or Bank that we are going to with the help of below items,
1. Portfolio
2. Bank unit details
3. Currency
4. General Ledger details
5. Billing Cycle schedule
6. Card number generation scheme

There could be multiple Organization levels for single bank that all depends on the business decisions.

Logo: Logo level is nothing but the type of cards that bank is offering to the customer. There could be multiple logo levels for single Organization like Bank cards, Private label cards, diners cards etc., Logo level controls the following parameters. Here is the place where most of the control parameters have be driven.

1. Card type
2. Reporting Structures
3. Payment decisions/hierarchy
4. Block code Parameters
5. Write off/ Charge off parameters
6. Loyality program controls
7. Collection criteria
8. Fraud parameters
9. Number Generation scheme
10. Smart Card setup

Still Logo level holds the major setup schema. However please not that there are few parameters that has been maintained across System level, Org level, Logo Level and account level. Always the first priority will be from system level through till card level.

Account: Account is nothing but a relation ship creation basically for the customer for the Bank. The account level parameters are
1. Credit limit
2. Billing Cycle
3. Customer Number
4. Relationship number
5. Card
6. Credit Plans

Card: Then finally the card generation process for the customer. There could be multiple cards that can be generate for single customer like Add on cards, Different card types.

Systems in Vision Plus

In continues with overview of the Vision Plus summary let us see the different modules involved in it.

1. CDM (Credit Decision Management) System: Basically the account origination system
2. CMS ( Credit Management System): This is the heart of Vision Plus Cards system where all the monetary and non monetary transactions will happened here. Also all other systems will talk to this system to perform their own operations.
3. TRAMS (Transaction Management System): All the monetary Transactions will be processed here
4. FAS ( Card Authorizations System): This system will approve all the customers transactions after confirming the balance availability from Bank and respective associations (VISA, Master Card, AMEX etc)
5. MBS ( Merchant Banking System): This system will be processed all the transactions that happens from merchant end basically all POS transactions
6. ITS (Interchange tracking System): This system closely work with TRAMS system for any disputes and other monetary stuff
7. CTA (Collection Tracking System): This system will track the customers who has not made the payments on time and follow till the customer moves into write off
8. RMS (Recovery Management System): This system will have all the write off customer records by then the bank call sell these accounts to 3rd party agency to collect the pending amount from the customer even the account closed from the bank.
9. ASM (Customer Service): This system will talks with the customer for any queries or complaints. (Both inward and outward calls)

By knowing all the above systems you will be able to understand the complete Credit card systems that work in Visionplus system. The each of the above mentioned system has their own functionality and behavior. In the coming blogs we will see each systems in details.

If you have any queries please contact me, will try to answer all your queries at my best.

About vision plus

VisionPLUS is a processing solution that handles retail, bankcard and consumer loans/credits all in one system. This integrated system handles all types of consumer lending products.

The key features of VisionPLUS are:

· Processes receivables quickly and efficiently.

· Retains customers through improved customer service and value-added programs.

· Processes authorizations more effectively by automating decision making and providing faster, more accurate responses.

· Helps track and prevent fraud.

· Targets and prioritizes collectable accounts.

Background

VisionPLUS was introduced in late 1995 by ‘Paysys International’ (Paysys has recently been bought over by a company called ‘First Data Corp’) incorporating the main features of 2 products called ‘CardPac’ and ‘Vision21’.

The first version to be released was Version 2.5. Since then several versions have been released and the latest version to be released is Version 8.14.

Technical Details of VisionPLUS

VisionPLUS is available on the following 3 platforms:

· AS 400

· UNIX

· Mainframes

ü Language – COBOL (Common Business Oriented Language), JCL (Job Control Language)

ü Database – VSAM (Virtual Storage Access Method)

ü Front End Interface – CICS (Customer Information Control System)

Various phases in the Consumer Credit process flow

Every organization that deals in consumer credit invariably follows a process flow in introducing and maintaining a product in the market. There are five major phases in any credit product lifecycle, viz., Product Planning, Credit Initiation, Account Maintenance, Collections and Write Offs.

Product Planning: This phase involves studying the target market and local conditions and deciding on the type of the product and the terms and conditions under which it will be offered to consumers.

Credit Initiation: This involves designing the application forms which will be used to screen consumers, and processing the filled-in forms received from the consumers. Decisions regarding which customers to accept/reject and the credit limit to be extended to individual consumers is taken in this phase.

Account Maintenance: This is the phase where the customer makes transactions using his credit product and activities like transaction authorization, transaction posting, billing and payment handling are undertaken. This is also the phase where the organization tries to maximize its relationship with the customer in terms of the additional products offered.

Collections: When a customer fails to make a payment, the account details are handed to the collections division to follow up with the customers for the outstanding balance. Collectors use different methods to contact customers depending on the amount and extent of delinquency.

Write-Offs: When a delinquent account can no longer be collected, due to reasons like non-payment by customer despite all efforts, death of the customer etc, the account is closed and the outstanding amount is written off as bad debts.