An Action research on improving delinquency of real estate mortgage loan front end unit of XYZ Bank

Date of Publication


Document Type

Master's Thesis

Degree Name

Master of Business Administration


Ramon V. Del Rosario College of Business


Decision Sciences and Innovation Dept

Thesis Adviser

Jaime Cempron


This integrative action research aimed to address the recurring issue of XYZ Bank regarding the increasing number of delinquent clients with real estate mortgage loan due to insurance related concerns. This issue is preventing the bank in maintaining a good lending business and good customer relations. Collaboration with the collections department - real estate mortgage loan front-end (REM-FE) unit and key personnel from insurance and human resource training department through brainstorming, dialogues, meetings, email correspondences, and informal discussions were done in the four steps of the action research cycle namely constructing, planning action, taking action and evaluating action. The collaborative efforts resulted to finding out a gap in properly notifying the clients in terms of billed annual insurance premium and collecting the same. The team agreed that the cause is the failure of the insurance department to properly monitor the sending of insurance reminder letter (IRL) before the policys expiry and billing it without notifying the clients. However, upon checking with the concerned department, the problem lies with the clients for not updating their billing address when they transferred to their new collateral address. Since the REM-FE team has no control over the records of the clients, we agreed to focus on a resolution that the team can accomplish such as sending of IRL to clients email address and requesting for change of billing address. Also, we agreed to work on improving our negotiation skills starting with an orientation about insurance and a training activity about handling irate clients and anger management to enact better collections efforts using a win-win conflict management style and by considering the position of both the bank and the clients in the bargaining zone model of negotiation.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

computer optical disc.

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