Principles of consumer finance

The Principles of consumer finance Program aims to equip participants with the knowledge and methods necessary to perform their assigned tasks, as well as a comprehensive understanding of the concept of consumer finance, its legal principles, and elements. It also covers the various methods of practicing consumer finance activities in light of the regulations governing it, in addition to the credit risks for borrowers and the formation of loan provisions to mitigate credit risks.

The main objectives of the Principles of consumer finance
Program

• Explaining and simplifying the concept of consumer finance.
• The size of the consumer finance activity in Egypt and growth opportunities.
• The legal framework and regulations governing consumer finance activities in Egypt.
• The risks associated with consumer finance activities (market risks / operational risks / legal and regulatory risks / credit risks).
• Credit risks related to consumer financing and methods to mitigate them.

Target groups of the program

Those working in the field of consumer finance across various departments (operations / internal control and auditing / financial management / credit analysis / risk management departments / collection and follow-up departments / marketing and sales).

The main topics of the Principles of consumer finance program

Part One: Introduction to the Concept of Consumer Financing

• What is consumer financing?
• The size of consumer finance activity in Egypt and growth opportunities
• Definition of consumer finance companies
• Definition of consumer finance service providers
• Definition of consumer goods
• Consumer financing contract: its elements and conditions
• Principles of granting consumer financing (inquiry / customer identification and anti-money laundering and counter-terrorism financing procedures / purpose verification / customer rights protection).

Part Two: The Legal and Regulatory Framework for Consumer Finance Activities

• Law No. 18 of 2020 to regulate consumer finance activities.
• Decisions of the Board of Directors of the Financial Regulatory Authority regarding the rules for granting consumer financing:
  Decision No. 101 of 2020.
  Decision No. 81 and Decision No. 82 of 2023.
  Decision No. 94 of 2023.
  Decision No. 160 of 2023.

Part Three: Creditworthiness of Customers and Consumer Financing Risks

• Factors affecting the determination of creditworthiness.
• The importance of credit inquiry.
• Guaranties and their types.
• Principles of credit monitoring.
• Market risk, liquidity risk, operational risk, and credit risk.
• Stages of the risk management process: credit strategies and credit ceilings.
• Means of mitigating credit risk.
• The level of credit risk and the formation of loan provisions.

Part Four: The Future of Consumer Finance and Growth Opportunities

Program duration

12 hours _ two days