case study
Case study one: You are an account officer in a retail branch of your bank. This afternoon you met Mr.Refaay. aged 68 Retired is retired banker who ceased full-time employment seven years ago. Mr. Refaay is married with children. Who are over the age of 30 and financially independent. He said that he was looking to move his banking business to your bank after having experienced poor customer service from a competitor bank. He also explained that he is currently a homeowner with a house he estimates is worth USD 1.75m with no mortgage. He is interested in mortgages to acquire a USD 650,000 apartment as a rental investment. Mr. Refaay informed you about his financial assets which are USD 750,000 in a savings account and money market fund and personal pension fund with assets of USD 1.50m. His income consists of a pension of USD 60,000 annually plus income from investment in equity further USD 25,000. He has no debt. He also discussed his attitude to financial risk and agreed that he is concerned about any potential for significant capital loss. For the investment proport, which type of mortgages would allow Mr. Refaay to minimize debt servicing cost? a. Fixed-rate amortizing mortgage. b. Fixed-rate interest only mortgage. c. Variable-rate partially amortizing mortgagee. d. Variables-rate amortizing mortgage. 2. What is Mr. Refaay most important financial resource? 69 a. Debt free status. b. Existing financial assets. C. Household possessions. d. Interest income. 68 For the bank, what aspect of Mr. Refaay's current financial situation is most likely to make him an attractive potential customer for the long-term? a. He has no debt. b. He children are financially independent adults. c. The potential to take over his deposit and provide a mortgagee for his investment property purchase. d. The potential to switch his equity fund investment into cash deposit with the Bank. 78 Which of the following products that the bank might offer Mr. Refaay is least likely to be of relevance to him? a. Credit cards b. Mortgages on his home. c. Saving products. d. Wealth management. 5. Before you can do any business with Mr. Refaay you will have to complete the onboarding process for new accounts. Which of the following would not be required? a. Details of financially related person - family members and business partners. b. Details of his patterns of financial monthly outgoings and commitments. c. Verification of financial status - employment status, income, existing debts, credit references. d. Verification of identity - passport or similar checks, proof of address. Case study one: You are an account officer in a retail branch of your bank. This afternoon you met Mr.Refaay. aged 68 Retired is retired banker who ceased full-time employment seven years ago. Mr. Refaay is married with children. Who are over the age of 30 and financially independent. He said that he was looking to move his banking business to your bank after having experienced poor customer service from a competitor bank. He also explained that he is currently a homeowner with a house he estimates is worth USD 1.75m with no mortgage. He is interested in mortgages to acquire a USD 650,000 apartment as a rental investment. Mr. Refaay informed you about his financial assets which are USD 750,000 in a savings account and money market fund and personal pension fund with assets of USD 1.50m. His income consists of a pension of USD 60,000 annually plus income from investment in equity further USD 25,000. He has no debt. He also discussed his attitude to financial risk and agreed that he is concerned about any potential for significant capital loss. For the investment proport, which type of mortgages would allow Mr. Refaay to minimize debt servicing cost? a. Fixed-rate amortizing mortgage. b. Fixed-rate interest only mortgage. c. Variable-rate partially amortizing mortgagee. d. Variables-rate amortizing mortgage. 2. What is Mr. Refaay most important financial resource? 69 a. Debt free status. b. Existing financial assets. C. Household possessions. d. Interest income. 68 For the bank, what aspect of Mr. Refaay's current financial situation is most likely to make him an attractive potential customer for the long-term? a. He has no debt. b. He children are financially independent adults. c. The potential to take over his deposit and provide a mortgagee for his investment property purchase. d. The potential to switch his equity fund investment into cash deposit with the Bank. 78 Which of the following products that the bank might offer Mr. Refaay is least likely to be of relevance to him? a. Credit cards b. Mortgages on his home. c. Saving products. d. Wealth management. 5. Before you can do any business with Mr. Refaay you will have to complete the onboarding process for new accounts. Which of the following would not be required? a. Details of financially related person - family members and business partners. b. Details of his patterns of financial monthly outgoings and commitments. c. Verification of financial status - employment status, income, existing debts, credit references. d. Verification of identity - passport or similar checks, proof of address
