Exception Process Flow Version: 1.

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High Level Design Document

DigiCore

Exception Process Flow

High Level Design

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Document Control

Amendment History
Version Prepared By Date Description
1.0 Cheryl 05-Apr-2023 Initial release
-

Approvals

Document Approvals
Name Date
Credit Team
Risk Team

Table of Contents

1. Introduction........................................................................................................................3
1.1. Project Overview........................................................................................................................
1.2. Document Purpose.....................................................................................................................
1.3. Context Diagram........................................................................................................................
2. Requirement Overview...........................................................................................................5
2.1 Exception Flow......................................................................................................................................
2.2. Notification Requirement.....................................................................................................................
2.3 Report Requirement..............................................................................................................................

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1. Introduction
1.1.Project Overview
Al Rajhi Bank is a Saudi Arabian Bank and the world’s largest Islamic Bank by capital base. With an
established base in Riyadh, Al Rajhi Bank has a vast network of 600+ branches, more than 4000+ ATM’s
and 290000+ POS terminals with merchants across the region. It provides wholesale, retail and
commercial banking and investment services.
LTI has partnered with Al Rajhi Bank as Solution Implementor for its stellar DigiCore Program. Our role is
to leverage our core technological skills and provide unmatched strategic solution for the Bank while
they transform their overall business into the Digital sphere of Banking.

1.2.Document Purpose
The purpose of the document is to explain the new exception workflow to be followed in case of any
exceptions or deviations.
Flow will be applicable for all Ijarah, Murabaha products under PF, Auto, Mortgage, MRCC in the Bank.

1.3.Context Diagram

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2. Requirement Overview

2.1 Exception Flow

Post Auto review of the application, there can be 3 conditions.
 Instant Approval – Existing flow – No Change
 Application having Exception or Deviations – Revised Flow
 No Instant Approval and No Exception/Deviation (Manual credit underwriting) -
Existing flow – No Change

Application having Exception or Deviations – Revised Flow

Any application in the origination process can encounter exception or deviation (Soft Reject).
In such case:
1. Application will first move to Exception pool team managed by the retail exception
unit in the Bank.

EXCEPTION POOL TEAM

2. Exception pool team will evaluate the application and will take the decision as:
a. APPROVE:
 Application will move to credit team for their review.
b. REJECT
 Reject the application directly.

Work Step Decision taken in iBPS Exception Flag Next Work Step
Approve Yes Credit Underwriter
Exception Pool Reject Yes Discard
Send Back Yes Rework

CREDIT TEAM EVALUATION

3. Once credit team receives the applications from exception pool team, credit will
evaluate and take decision as:
a. APPROVE

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i. Pass the application.

b. REJECT
 Credit team will also have authority to reject the application.
 Reject the application directly.
c. EXCEPTION
i. In case of exceptions, credit team will move the application to
Exception/Risk Team.

Decision taken in Exception

Work Step Experian Status Next Work Step
iBPS Flag
Limit not Risk Pool (Deviation
Approve Yes
Exceeded Levels)
Approve Yes Limit Exceeded Limit Authority (LA)
Credit
Risk Pool (Deviation
Underwriter Risk Review Yes
  Levels)
Send Back Yes/No   Rework
Reject Yes/No   Discard

EXCEPTION/RISK TEAM EVALUATION

4. Once exception/risk team receives the application form, credit team,
exception/risk team will evaluate the application.
5. Application in exception/risk bucket will pass through different risk levels L1, L2,
L3, L4 and L5 sequentially.
a. APPROVE
 Again, the application will be moved to Credit team for Final
approval.
b. REJECT
 Reject the application directly.

Experian
Work Step Decision taken in iBPS Exception Flag Next Work Step
Status
Risk Pool (Deviation Approve No Credit Team
Levels)  
(L1, L2, L3, L4, L5) Reject Yes/No   Discard

Below is the list of Deviation approval levels,

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Authority Level
Authority Holders Credit Exception Risk Rating
(Policy)
All Beyond Not defined in Policy Within
A CRO
SAMA Regulations
B AGM Retail Risk High & Other Exceptions
C Director of Credit Policy Medium
Head of Credit Op/Head of Ladies Branches
D Control & Operations
Low and Non Critical
E Credit Manager Low and Non Critical

CREDIT TEAM EVALUATION (Post Deviation Approval)

6. Post review of exception/risk team, Credit team will receive the application for
Final approval.
a. APPROVE
 Move application to customer acceptance stage.
 If limit exceeds, it will move through Limit approval authority.
Followed by customer acceptance stage.
b. REJECT
 Reject the application directly.
c. RISK RECOMMENDATION
 Credit can also send the application back to Risk for Risk
recommendation.
 Risk will again evaluate the application and will send back to
credit team for approval.
 Post credit approval, move application to Customer acceptance
stage.

Experian
Work Step Decision taken in iBPS Exception Flag Next Work Step
Status
As per each drop’s next
work step
Approve Yes
So, for PF – Customer
Credit   acceptance
Underwriter Risk Recommendation Yes Risk Assessment
 
Send Back Yes   Rework
Reject Yes   Discard

7. Above flow will be applicable for all Ijarah, Murabaha products under PF, Auto,
Mortgage, MRCC in the Bank

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.
2.2. Notification Requirement
1. When Exception pool team passes the application to credit team, Credit team will
evaluate the application and act.
2. Credit team action on the application need to be notified to the exception team.
3. In case of application is Approved or Reject, Notification will be sent to Exception Team
mentioning that the status of the application as approved or rejected.

2.3 Report Requirement

1. An extract will be generated for all the PF application for X days (parameterized) with its
corresponding status.
<List of fields to be present in report to be specified by Business>

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