Micro Enterprise Credit Officer

OFO: 552201002

Occupational Curriculum

Curriculum Elements / PAGE
A.Curriculum Scope
B.Occupational Profile
C.Knowledge Subjects
D.Practical Skills Modules
E.Work Experience Modules
F.Work Experience Record
G.Assessment Specification / 2
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Curriculum Scope

1. Background
2. Alignment with the OFO
3.1 Alignment with the NOPF
3.2 Curriculum coverage in terms of progression
4.1 Curriculum Structure
4.2 Occupational Qualification
5. Development Quality Partner
6. Learning programs / Qualifications that will replaced
7. Entry Requirements
8. Assessment Quality Partner
9. External Assessment Strategy

1. Background to the Curriculum:
Who initiated the curriculum development process and what is the industry need for this Curriculum?
2. Alignment with the OFO
This curriculum includes the following Occupations as indicated on the OFO
552200002 / Micro Enterprise Credit Officer
Micro Enterprise Credit Officers: Obtain, capture, analyse and assess credit application and supporting information and recommend the approval of credit for Micro Enterprises in order to manage the quality of the loan book, build and maintain the credit portfolio, through a relationship building platform.

3.1. Alignment with the NOPF
3.2. Curriculum coverage in terms of progression

4.1. Occupational Qualifications
Title: National Skills Certificate : Micro Enterprise Credit Officer
Comments:
This qualification is aimed at current and new entrants into the Micro Finance Industry. It will equip them with the theory, practical skills and work experience required to become competent Credit Officers. The learning assumes that the learner have successfully completed the National Foundational Learning examination. The learning in this programme will provide learners access to the integrated final assessment and could lead to the allocation of a National Qualification at NQF level 4.
Knowledge and Theory Standards / Practical Skills Standards / Work Experience Standards
NQF LEVEL 4
552200002-KS-1 / Credit Management / 6 / 552200002-PM-1 / Assessing and evaluating micro credit applications within a designated community or area in order to grow a credit portfolio. / 12 / 552200002-WM-1 / Credit portfolio maintained and grown / 50
552200002-KS-2 / Legislation and Compliance / 6 / 552200002-PM-3 / Promoting micro credit products in order to grow quality credit portfolios. / 7 / 552200002-WM-2 / Portfolio quality maintained / 0
552200002-KS-3 / Micro Finance Business Dynamics / 10 / 552200002-WM-3 / Micro credit products promoted / 0
552200002-KS-4 / Relationship Management / 6
Total Credits / 28 / Total Credits / 19 / Total Credits / 50
Total Knowledge Credits / 28 / Total Practical Credits / 19 / Total Workplace Credits / 50
Knowledge Credits: 29% / Practical Credits: 20% / Workplace Credits: 51%
TOTAL CREDITS FOR QUALIFICATION: 97
Exemptions
The following qualifications or learning programs will exempt you from the indicated curriculum components
Knowledge and Theory Standards
Practical Skills Standards
Work Experience Standards
5. Development Quality Partner
Name
BANKSETA / E-mail / Phone / Description
6. Learning programs / Qualifications that will replaced
The following qualification / Learning programs will be replaced by these curriculum components as described
Number / Title / Type / NQF Level
7.1. Educational - Entry Requirements
Math’s or math’s literacy and/or Accounting at Gr12
7.2. Physical - Entry Requirements
7.3. Legal - Entry Requirements
Clear criminal and credit record. Must not be on the record of employee dismissal.
8. Assessment Quality Partner
Name / E-mail / Phone / Description
Micro Finance South Africa / / 012 348 0809 / This is an industry representative institution. Other bodies in the industry are not interested in playing this role. The MFSA has the experience and infrastructure.
9. External Assessment Strategy
The key focus must be on measuring integrated learning. The core of the assessment will be the evaluation of an assignment covering a fully completed credit application. The assignment will be completed under invigilated assessment conditions. The relevant acts and/or policies will be available (Open book). There will be a number of assessment sites in the various regions that are registered by the Assessment Quality partner. The responses to the assignment will be inputted into an electronic system where appropriate but if needed it can also be done manually. The estimated duration of the exercise will be five hours.
The evaluation of the assignment will be done by assessors drawn from pool of occupational practitioners.

Occupational Profile

552200002 - Micro Enterprise Credit Officer

Occupational Purpose:

Micro Enterprise Credit Officers: Obtain, capture, analyse and assess credit application and supporting information and recommend the approval of credit for Micro Enterprises in order to manage the quality of the loan book, build and maintain the credit portfolio, through a relationship building platform.

Occupational Tasks:

Assessing and evaluating micro credit applications within a designated community or area in order to grow a credit portfolio.
Managing the quality of a micro finance credit portfolio.
Promoting micro credit products in order to grow quality credit portfolios.

1. Assessing and evaluating micro credit applications within a designated community or area in order to grow a credit portfolio. (NQF Level:4)

Unique Product or Service

Credit portfolio maintained and grown

Knowledge Focus

Purpose structure and application of the national credit act (Basic)
Concepts and consequences of money laundering within the micro financing industry. (Basic)
Purpose and application of the code of banking practice. (Advanced)
Criteria for compliance with FAIS (Basic)
Principles and legal requirements of contractual capacity (Intermediate)
The history and evolution of micro finance and the informal sector (Advanced)
Principles and concepts of networking and stakeholder management within communities (Basic)
Definition and description of the various kinds of business entities (Basic)
Principles of credit and associated credit risk (Intermediate)
Concept and principles of affordability and willingness to repay (Intermediate)
Accounting and business terms and principles (Basic)
Purpose, structure and application of the Consumer Protection Act. (Intermediate)
Concepts and principles of client care (Intermediate)

Occupational Responsibility

Create awareness of the credit products. Understand credit needs from potential customers. Obtain the relevant information. Validate information. Analyse, evaluate/assess credit and client information. Compile a credit proposal. Approve credit at a mandated level. Manage and action non performing accounts.

Practical Skills

Translate evaluation information into basic financial statements
Calculate and interpret financial ratios to assess viability.
Interpret and action portfolio age analysis - Identify potential risk problems in a portfolio and initiate actions to reduce the portfolio risk.
Read, interpret and apply credit bureau information
Apply objective processes to evaluate credit information and make credit decisions.
Interview clients with the aim of identifying and obtaining relevant information for credit applications.

Occupational Context

Done through accessing a designated community/area in the field. Interface with clients and relevant stakeholders. Operate individually or in small teams. Follow organisation specific application and evaluation processes and systems.

Work Experience

Utilise the organisational systems to translate and interpret evaluation information.
Exposed to a range of credit applications (Approved, declined and referred as well different products)

Specific Workplace Knowledge

Features, benefits and value add of the organisation specific credit products.
Organisation specific pricing policies and procedures
Socio-economic dynamics of the specific communities
Organisation specific credit policy and procedures.
Organisation specific client care philosophy and processes.

2. Managing the quality of a micro finance credit portfolio. (NQF Level:4)

Unique Product or Service

Portfolio quality maintained

Knowledge Focus

Concept of portfolio at risk (Intermediate)
Concept of a non performing loan and the consequences of this for the portfolio. (Intermediate)
Concept of write-off's and the consequences of this for portfolio quality. (Intermediate)
Criteria and leading practices for quality credit portfolios. (Intermediate)
Small, medium and micro enterprise business concepts and principles. (Basic)

Occupational Responsibility

Contact clients regarding arrears. Build relationships with clients to manage payments and identify new opportunities. Deliver late payment notifications. Assist clients to make payments or arrange for arrear payments. Identify opportunities for migration into formal banking. Provide feedback to the organisation on the status of the clients business. Meet portfolio delinquency targets.

Practical Skills

Identify potential risk problems in a portfolio and initiate actions to reduce the portfolio risk.
Interpret and action portfolio age analysis - Identify potential risk problems in a portfolio and initiate actions to reduce the portfolio risk.
Analyse the credit trends for a portfolio and recommend focus areas to improve the quality of the portfolio.

Occupational Context

Done for a designated portfolio of accounts and relationships. Interface with clients and internal stakeholders.

Work Experience

Exposure to the identification and management of potential non performing accounts
Exposure to non performing accounts.

Specific Workplace Knowledge

Organisational delinquency and bad debt policy.
Organisation specific collections policy.

3. Promoting micro credit products in order to grow quality credit portfolios. (NQF Level:4)

Unique Product or Service

Micro credit products promoted

Knowledge Focus

Concepts and principles of selling micro credit products. (Intermediate)
Purpose, structure and application of the consumer protection act (Intermediate)
Concepts and principles of ethical behaviour and avoiding bribes. (Intermediate)

Occupational Responsibility

Understand the market segmentation and identify potential clients. Make face to face contact with potential clients and offer suitable credit products. Fill in application forms, collect supporting information and submit for credit checks. Manage post application relationship. Manage delinquency.

Practical Skills

Apply a range of sales tactics and techniques to promote credit products to individuals and groups.
Make presentations of credit products to small groups.
Utilise repayment tables and schedules to explain total cost to customers.
Manage personal time to meet set targets.

Occupational Context

Done within a pre-determined market segmentation using existing products and marketing material. Interface with individual clients or stakeholder groups. Work with internal administration functions. Work as independent individuals exhibiting attributes of resilience and self motivation.

Work Experience

Engage with community structures
Exposure to the achieving of targets

Specific Workplace Knowledge

Organisational code of ethics and value principles.

Knowledge Subjects

1 / 552200002-KS-1 / Credit Management
2 / 552200002-KS-2 / Legislation and Compliance
3 / 552200002-KS-3 / Micro Finance Business Dynamics
4 / 552200002-KS-4 / Relationship Management
552200002-KS-1: Credit Management
The focus of the learning in this subject is on building an understanding of credit assessment and portfolio management. The learning includes the key concepts, principles and application of specific methodologies related to performing and non performing portfolios.
1. Principles of credit and associated credit risk (Intermediate) (Credits: 2.5)
Learning Activity Guidelines:

1. The fundamentals of lending (Description of the the various role players and their functions)
2. The generic lending products (Loans, overdrafts, bonds etc.)
3. Definition of risk and the different types of risk. (finance, reputational, business, credit etc.)
4. Basic techniques for controlling and mitigating credit risk.
5. Various micro finance lending methodologies

2. Concept and principles of affordability and willingness to repay (Intermediate) (Credits: 1.5)
Learning Activity Guidelines:

1. Definitions and components of affordability
2. Methodology for calculating affordability
3. Quantitative and qualitative indicators for willingness to pay. (Payment history etc.)
4. Documents required to indicate affordability and willingness to pay.
5. Identification of appropriate sources of information to determine affordability and willingness to pay.
6. Processes and criteria for validating documents and information.

3. Concept of portfolio at risk (Intermediate) (Credits: 1)
Learning Activity Guidelines:

1. Description of a credit portfolio.
2. Key indicators for an "at risk" portfolio and methods of establishing the status of a credit portfolio. (Age analysis)
3. External factors that could impact on the risk profile of a credit portfolio.
4. Key indicators for a performing portfolio
5. Management tools relating to a credit portfolio. (performing and non performing)
6. Collection methodologies and processes.

4. Concept of a non performing loan and the consequences of this for the portfolio. (Intermediate) (Credits: 1)
5. Concept of write-off's and the consequences of this for portfolio quality. (Intermediate) (Credits: 0.5)
Learning Activity Guidelines:

1. Description of a write off and definition of the applicable terms.
2. Application of legislation to write off's
3. Consequences of "write off's" to the business and clients.

6. Criteria and leading practices for quality credit portfolios. (Intermediate) (Credits: 0.5)
Learning Activity Guidelines:

1. Practices to build and maintain quality portfolios.
2. Description of a quality portfolio

The fundamentals of lending (Description of the the various role players and their functions)
Basic techniques for controlling and mitigating credit risk.
Methodology for calculating affordability
Quantitative and qualitative indicators for willingness to pay. (Payment history etc.)
Identification of appropriate sources of information to determine affordability and willingness to pay.
Processes and criteria for validating documents and information.
Key indicators for an "at risk" portfolio and methods of establishing the status of a credit portfolio. (Age analysis)
Key indicators for a performing portfolio
Application of legislation to write off's
Practices to build and maintain quality portfolios.

552200002-KS-2: Legislation and Compliance
The focus of the learning in this subject is on building understanding of the regulatory requirements impacting on the industry. The learning includes the essential aspects relating to the consequences of non compliance with the legislation.
1. Purpose structure and application of the national credit act (Basic) (Credits: 2)
Learning Activity Guidelines:

1. Structure of the act and definition of the terms
2. The scope of application of the act
3. Roles and responsibilities of all stakeholders. (Including lender, customer and institutions)
4. Impact of the act on the micro finance lender and borrower.
5. Micro finance transactions that fall within and outside the scope of the act.
6. Consequences of non compliance with the act.

2. Concepts and consequences of money laundering within the micro financing industry. (Basic) (Credits: 1)
Learning Activity Guidelines:

1. Concept of money laundering and the related terminology
2. Consequences of money laundering on the lender, borrower and the country.
3. Indicators of potential money laundering activities.
4. Scope and application of FICA in the Micro Finance industry.
5. Leading practices relating to knowing your client (Positive identification etc.)
6. Purpose of other related legislation (RICA, POCA, POCDATARA etc.)

3. Purpose and application of the code of banking practice. (Advanced) (Credits: 0.5)
Learning Activity Guidelines:

1. Background and purpose of the code of banking practice.
2. Scope and application of the code of banking practice
3. Role and responsibilities of stakeholders (Do not forget the ombudsman)

4. Criteria for compliance with FAIS (Basic) (Credits: 0.5)
Learning Activity Guidelines:

1. Purpose and scope of FAIS
2. Application of FAIS in the micro finance environment.
3. Concept of advice and intermediary services.

5. Principles and legal requirements of contractual capacity (Intermediate) (Credits: 0.5)
Learning Activity Guidelines:

1. Concept of contractual capacity
2. Legal requirements regulating contractual capacity of business and individual clients.
3. Essential elements of contracts
4. Consequences of contracts signed by people without contractual capacity.

6. Definition and description of the various kinds of business entities (Basic) (Credits: 0.5)
Learning Activity Guidelines:

1. Type, structure, and features of the various legal entities.

7. Purpose, structure and application of the Consumer Protection Act. (Intermediate) (Credits: 1)
Learning Activity Guidelines:

1. Purpose and scope of the Consumer Protection Act
2. Application and impact of the Consumer Protection Act
3. Consequences of non compliance with the Consumer Protection Act.

Total Credits: 6
Exemptions
Qualification or Learning programs that can give you exemption for this Module:
Number / Title / Institution / NQF Level
Critical Knowledge Areas:
The areas of knowledge that must be fully understood to be deemed competent
552200002-KS-3: Micro Finance Business Dynamics
The focus of the learning in this subject is on building understanding of the micro finance industry. The learning includes the basic accounting and business principles required for working in the micro finance industry.
1. The history and evolution of micro finance and the informal sector (Advanced) (Credits: 2)
Learning Activity Guidelines:

1. Definition of micro finance (including micro credit) and the terms used in the industry.
2. Origin and evolution of micro finance, internationally and locally
3. Industry structure and role players within the micro finance environment.(Supply and demand sides, including formal and informal micro finance providers)
4. Difference between traditional banking and micro banking
5. Purpose of micro finance and the role that it plays in the economy.

2. Accounting and business terms and principles (Basic) (Credits: 5)
Learning Activity Guidelines:

1. Fundamental accounting principles and terminologies (Income, expenses, assets, liabilities, equity, debits and credits, profits versus cash, depreciation)
2. Structure and purpose of financial statements (focus on the relationship between income statement - financial performance and balance sheet - financial position)
3. Purpose and calculation of financial ratios. (PROFITABILITY: net and gross profit, LIQUIDITY: current and quick, STABILITY: debt and equity)
4. Basic analysis and interpretation of the financial statements using ratios
5. Preparation of income statement and balance sheet specifically in the micro finance environment. (Distinguish between the capital accounts of the various business entities)
6. Basic budgeting and cash flow forecasting

3. Small, medium and micro enterprise business concepts and principles. (Basic) (Credits: 3)