Upon the request of Federated States of Micronesia Development Bank (FSMDB), ADFIAP, through its business unit, ADFIAP Consulting (AC), entered into an agreement with FSMDB for the re-establishment of its Credit Scoring Tool to be conducted within a three (3)-month period starting from January 22 to April 30, 2024, on a hybrid basis.
The objective of the consultancy project is to provide guidelines for the basic evaluation of all credit applications and proposals thus ensuring that all details of the borrower’s personal entrepreneurial profile and business operations are properly assessed evaluated and risk-rated. This will enhance and improve the predictability and probability of loan repayments thus ensuring the operational sustainability of the Bank in the long-term.
In preparation for the implementation of the project, an “On-line Introduction Session” was held on January 24, 2024, to present the objectives and work plan of the Credit Scoring project to the FSMDB Technical Working Group (TWG) headed by FSMDB President and CEO, Ms. Anna Mendiola. The Session was facilitated by Mr. Victor C. Abainza, AC Senior Consultant on Rural Finance, Climate Finance, and ESG, and Ms. Carmen Cintura, AC Consultant on Financial Management, Risk and Compliance who are both the AC designated consultants of the project. ADFIAP Secretary General, Mr. Enrique Florencio, warmly welcomed participants to the credit scoring project initiative, emphasizing the significance of the endeavor as a foundational step for FSM Development Bank. He also highlighted ADFIAP’s priorities in line with the initiative, focusing on fostering sustainable development and financial inclusion.
Participants in the introductory session were the members of the FSMDB TWG namely, Mr. Alik Alik-Senior Vice President and Chief Credit Officer, Mr. Rendy Abraham-Loan Manager, Mr. Augustine Loyola-Account Management Officer, Ms. Andriet Tilfas- Kosrae Branch Manager, Ms. Crystal Angela Sana Ekichy-Chuuk Branch Manager, Ms. Maria Laaw- Yap Branch Manager; and the other members of the ADFIAP Consulting Team namely Ms. Cora Conde, AC Group Head, Ms. Emy Chavez, Ms. Arlene Orencia, Ms. Cristy Aquino, and Ms. Cecile Ibarra.
The Introduction Session included a briefing on the various stages of the project from desk research on FSMDB’s Lending Policies and Operations, review of the efficacy of the old credit scoring system, loan portfolio and product segmentation, on-site visit and validation of initial outputs through interviews of key persons of the Banking Board and regulatory bodies up to the development and Management approval of the enhanced Credit Scoring Tool. An online orientation training will also be provided to FSMDB’s Head Office and Branch staff involved in lending activities on the proper implementation of the Credit Scoring Tool.
As part of ADFIAP’s unique value proposition, ADFIAP shall perform extended monitoring of the Credit Scoring System within 1 year from sign-off to ensure its efficiency and predictive capabilities and provide fine-tuning to the system.
For inquiries on the ADFIAP Consulting Credit Scoring Project and how ADFIAP can help through training and consulting services, please email [email protected]