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NFCU Recognised for Customer Experience

Navy Federal Credit Union (NFCU) is a global credit union headquartered in Vienna, Virginia, chartered and regulated under the authority of the National Credit Union Administration.

Navy Federal remains the industry leader for a second consecutive year, ranking #1 among United States companies in KPMG’s 2019 United States Customer Experience Excellence Report. The credit union is being recognised for delivering the best customer experience.

KPMG ranked brands across Six Pillars of Customer Experience Excellence to identify the leaders in each country: Personalisation; Integrity; Expectations; Resolution; Time and Effort and Empathy. Navy Federal is one of only five brands to receive a score 8.5 or more.

The research for this year’s United States report was conducted via an online survey and was completed in May 2019. A total of 7,552 United States consumers who had interacted with a brand in the last six months were interviewed. Each brand needed a minimum of 100 consumer responses to be considered.

Year after year, Navy Federal is recognised for its dedication to creating a satisfying work environment and an exceptional member experience. Earlier this year, Navy Federal celebrated its 9th year on the FORTUNE 100 Best Companies to Work For® List, ranking 29th, the highest in its history.

Other notable accolades include being the Industry Leader for Banks / Credit Unions in Customer Experience in Forrester’s 2019 CX Index™ and No. 7 in Best Workplaces™ in Financial Services & Insurance 2019.

Established in 1933 with only seven members, Navy Federal now has the distinct honour of serving over 8 million members globally and is the world’s largest credit union. As a member-owned and not-for-profit organisation, Navy Federal always puts the financial needs of its members first.

Membership is open to all Department of Defence and Coast Guard Active Duty, veterans, civilian and contractor personnel, and their families. Dedicated to its mission of service, Navy Federal employs a workforce of over 18,000 and has a global network of 336 branches.

Protecting borrowers under a loan and collateral agreement in Nigeria

In order to execute large projects or for businesses to expand, there is usually a need to apply for loan facility from Banks (“the Bank”). Though, Banks are likely to grant loan to Borrowers if they have the requisite collateral, most times Borrowers end up in trouble with the Banks either because they cannot pay back the repayment instalments as at when due; or the interest rate on the loan facility is too high; or they breached an important covenant of the Loan and Collateral Agreement (“the Agreement”) or they simply did not understand the risks and obligations under the Agreement. Therefore, Borrowers must take the following provisions in the Agreement seriously.

The Collateral Provision;

The Borrower must ensure that it has the collateral stated in the Agreement and the evaluation of the collateral must be as envisaged in the Agreement. If the collateral is to be provided by a third party, the Borrower must ensure that the third party provides the specified collateral timeously. The Borrower must ensure the third party binds himself to provide additional collateral upon the Bank’s request.

If the collateral provision provides that the Bank may demand for additional collateral upon some conditions or the happening of an event, the Borrower must ensure that such conditions or event are clearly spelt out in the Agreement.

The Interest Rate Provision;

The current Central Bank of Nigeria’s lending rate is 14 percent while that of commercial Banks is 18 percent. The Borrower must ascertain whether it will be able to pay the interest rate on the loan sum. If the Bank reserves the right to review the interest rate to a higher margin, the Borrower must know the circumstances in which the Bank will increase the interest rate.

The Borrower must take into account all provision on additional interest rates such as interest rate on sums drawn more than the loan sum or unpaid instalments to the Bank upon expiration of the loan period before it makes a decision on whether to take the loan or not.

Repayment Provision;

There are different repayment schedule towards liquidation of the loan sum. Some of which include; equal payments, equal instalments, fixed equal instalment, bullet repayment and instalment free period. The Borrower must ascertain whether the repayment schedule proposed by the Bank is convenient to it and its line of business.

Commencement Date Provision;

The Borrower must ensure that the date of disbursement of the loan sum is in line with the purpose for which it requires the loan. This will prevent it from incurring interest payment for the period it did not do business with the loan sum.

Conditions of Loan Provision;

In some Agreements, the Bank may withhold, recall or even cancel the loan facility if the Borrower fails to use the loan for the purpose it was granted; diverts repayment instalments to other ventures; breaches obligations under the Agreement; fails to repay the agreed instalments for a period of time; makes material misrepresentation regarding facts which induced the Bank to grant the loan or the value of the collateral depreciates.

Again, the Bank may have the right to convert loan facility to overdraft, advances, commercial papers and other market instruments or vary the terms of the loan to reflect the prevailing conditions in the financial markets or monetary regulations. Disbursement of the loan sum may be subject to the availability of funds and ability of the Bank to accommodate the loan sum.

In such a circumstance, the Borrower must ensure that it uses the loan for the purpose it was granted, avoid misrepresentation of facts on its eligibility to be granted the loan and repay the instalments as at when due. The Borrower must determine whether it agrees with the right of the Bank to convert the loan to other financial instruments or the conditions in which the Bank may withhold, recall or cancel the facility.

The Borrower’s business is premised on the Bank disbursing the entire loan sum in accordance with the Agreement. Hence, the Borrower must be certain that the Bank will disburse the entire loan sum. This will prevent the Borrower from being frustrated and stranded.

Events of Default Provision;

Some Agreements provides that if the Borrower is unable to pay its debts; admits in writing to its inability to discharge its financial obligations; or makes legal authorization to the Bank to postpone repayment of the instalments, all the monies outstanding to the Bank as principal sum and interest will become immediately due and payable.

This may also extends to circumstances where the Bank perceives that there is an extra ordinary situation which will make it impossible for the Borrower to discharge its obligations under the Agreement; inability of the Borrower to execute a distress levied on its property within 7 days; a call by the Central Bank of Nigeria for the Bank to recall the loan; material adverse change in financial condition of the Borrower and the unenforceability of the Agreement under Nigerian law.

The Borrower must consider whether it can cope with the wide premise in which the Bank may recall disbursed sums or make them immediately due and payable.

Covenants Provisions;

The Agreement may provide for the Borrower to fund its account with the Bank with a monthly turnover of a specific amount to pay interest, commission and other charges. The Borrower must ensure that it can provide such monthly amount in order to prevent itself from being overwhelmed by unpaid instalments and interests.

Insurance Provision;

The Borrower may be obligated to pay the premium and maintain a comprehensive insurance as the Bank may approve in the joint name of both the Bank and the Borrower and the Bank’s interest will be first protected in the insurance policy in case of the occurrence of the insured risk.

The Borrower must determine whether its business interest will be protected if it maintains a comprehensive insurance in its name and that of the Bank and ensure the Bank’s interest is first protected in the insurance policy.

From the foregoing, it is important for Borrowers to understand and evaluate the risks in the Agreement before signing the dotted lines to bind themselves. A stich in time saves nine.

Swiss Private Bank Recognised for Advisory Excellence

A Swiss private bank has been recognised for advisory excellence. In light of increasing standards within private banking, a clear definition of the services delivered to clients is necessary.

An efficient delivery of these services requires an optimisation of the processes and organisational adaptations as well as state-of-the-art information technology systems.

The world of private banking is changing. Increasing expectations of clients, changing regulatory requirements in applicable jurisdictions, as well as innovation among competitors all force private banks to precisely specify their market positioning.

A clear definition of client services is an essential first element in providing advisory services of consistently good quality. Well-organised and standardised advisory processes come next, followed by a well-thought-out delivery model for the monitoring of client portfolios.

The project scope included analysis of client needs and specification of new service packages in the area of non-discretionary mandates.

To enable an efficient delivery of client services, the processes within mid- and front-office were optimised and supporting information technology systems engaged. These measures took active account of both global and local regulatory requirements, thereby promoting excellence not only on the client side but also on the legal and regulatory side.

Finalix AG Overview:

Finalix develops and supports projects for companies in the finance and insurance industry. Finalix clients include universal banks, private banks, asset managers, private equity companies and insurance companies.

Finalix are passionate doers with character and live a flat hierarchy. Finalix share our knowledge and actively exchange ideas with each other. Work-life balance is no empty phrase for us –Finalix promote part-time models. With us, you will accompany and develop value-creating projects with banks and insurance companies.