Consumer credit classifies small, short-term loans that are mostly given to private persons for the purpose of financing consumer goods, e.g. cars, TV’s and furniture. Individual companies map these loans differently, using product types and products. Other current labels for this type of credit are: private credit or loan, all-purpose loan, or personal credit.
As a rule, there are two ways to offer consumer credit: as an overdraft facility of a current account, or as an installment loan on a loan account. The latter is offered as its own Product Type (340) in SAP-CML.
Our employees make use of a great pool of experience gained in numerous projects in the consumer credit environment, especially at Germany’s two Big Banks. At both of those institutions, consumer credit from SAP-CML was a completely new implementation. It was adapted to customer-specific requirements through individual customizing and corresponding modifications, then data from the legacy system was transferred using suitable migration programs to ensure the smooth transition to the new SAP CML processing.
It is not without pride that we have seen how – with our help – consumer credit has become an incredibly successful product for the Big Banks.