Moneykart Internship Report: Activities, Analysis, and Recommendations

This report details an internship experience at Moneykart, a financial services firm in New Zealand. The report begins with an introduction to Moneykart, outlining its mission, vision, core values, and the services it offers, including mortgages, insurance, and financial advisory. It then moves on to an analysis of the activities undertaken during the internship, such as understanding lending operations, studying financial regulations, and reviewing loan applications. The report also includes a case study of a laundry business seeking a commercial loan, highlighting the financial analysis and decision-making processes involved. The report discusses the application of digital marketing and quality assurance. The report connects the internship experiences with the student's MBA modules, including Financial and Management Accounting, Quality Management, and others, demonstrating the practical application of theoretical knowledge. The report concludes with recommendations for both the student's personal development and areas for improvement within the company, offering insights into the benefits of the internship and suggestions for future enhancements. References are provided to support the information presented.

INTERNSHIP
Presentation
Presented by:
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Outline of
presentation
1. Introduction
 Place of internship
 Company overview
2. Discussion and analysis of activities done
 Operating a financial company in New Zealand
 Loan Review System
 Ratio Analysis
 Service Marketing and Digital Marketing
 Culture and lending
 E-business
 Quality assurance
3. Conclusion and recommendation
4. References

Introduction
Place of Internship
Period: 19th August - 10th October,
2019 (32 days) Company:
Moneykart, New Lynn.
Director: Rajesh Krishnamurthy
Year founded: May, 2017
Contacts:
Telephone: [phone]
Fax: [phone]
E-mail: [e-mail]
Website: www.moneykart.biz

Introduction
• Mission: Moneykart is on a mission to make the complicated world of
finance simple and easy to understand
• Vision: Moneykart’s vision is to be recognized as the premier financial
services advisory firm specializing in Mortgages, Risk Management and
KiwiSaver.
• Core Values:
Trust,
 Transparency,
 Integrity
 Ethics.
Company Overview

Introduction
Mortgages
• Refers to as a claim on property
• It is a debt instrument with a collateral which is used in a particular real estate
property where the borrower agrees and signs a commitment to return the
predetermined amount over the specified period of time.
• Insurance
• Protection against a peril or a loss at a cost
• The company covers both life and non-life insurance
• This include include life, family, assets, trauma, total permanent disability, income
protection, mortgage protection, health insurance and liabilities among other
things
Company’s Field of Specialization

IntroductionCompany organization Flow chart

Discussion and Analysis of
Activities done
 Manage and grow client portfolio across a range of industries.
 Track and project financial performance and factors affecting
expenses/profitability on a functional or other bases.
 Learning how to actively manage a portfolio through proactive
service, and retained portfolios.
 Focus on maintaining client and portfolio profitability.
 Maintain professional knowledge and skills on legislative and
compliance on products and technical issues.
Summary of activities assigned

Discussion and Analysis of
Activities done
Understanding the basic operations of lending, mortgage and insurance.
Studying and understanding financial party rights, monetary policies and relevant regulations like the Service Level
Agreement, SLA.
Understanding the role of key players in the industry like lenders, banks, participants such as aggregators and
franchisors
Emerging issues in lending as practiced by typical lending companies like Peer to Peer which is practiced by Zagga
Company. Calculations and considerations involving interest on different types of mortgages like home loans, equity
release, financial ratios and reverse annuity mortgages.
Lending principles.
Lending securities and collaterals.
Using businesses’ financial statements to check for cash flow and determine the loan status.
Statement of movements in equity as provided by the New Zealand Mortgage Broking Association.
Strategic market services and digital marketing.
Mortgage risks and their management.
Quality assurance and a zero defect target.
Specific activities done

Discussion and Analysis of
Activities done
• Register with the Financial Markets Authority (FMA) which is the regulatory body (New Zealand Now, 2019).
This requirement applies to:
Banks,
Non-bank deposit takers,
Fund managers,
Insurers and
Derivatives issuers
• They must also be registered in the Financial Service Providers Register maintained by the agency.
• Insurers like Moneykart, they must be registered with the Reserve Bank.
• The license requires that the companies should:
 Have an appointed actuary.
 Comply with the set policies.
 Maintaining solvency and disclosing solvency and credit rating information through regularly published
statements.
Specific activities done

Discussion and Analysis of
Activities doneLoan Review System

Discussion and Analysis of
Activities done
• Ibrahim: operates a laundry business and is seeking for a commercial
loan in order to expand his business. He presents his financial
statement to check his loan eligibility.
Case Study: Ibrahim’s Case

Discussion and Analysis of
Activities done
• The case of Ibrahim Laundry business is a typical scenario where the profitability ratio of more 40 %
showed a promising business and hence wanted a boost in terms of finance to improve his business.
However, there was I consistence decrement of the profit margins for the past three years enlisted in the
financial statement as shown in the table below. This also raised a concern and when I asked Ibrahim
about the issue he justified that the position which the business was in terms of assets and stocks was very
disabled and the only way to change the trend, from his experience, is to put more investment. A typical
financial statement used is attached in the appendix with a short extract indicated in the table below.
• However, this alone could not be enough to decide on Ibrahim’s case. Another factors like the internal and
external considerations discussed in the Loan Review System were scrutinized before making the final
decision.
• Fixed asset turnover ratio of more than 4 infers that the capital invested has been rotated for an average of
4 times. The consistency of the ratios also indicates the business is not likely to improve significantly not
unless more capital is invested. Interestingly, the inventory turnover is making a remarkable decrease
which means that the cost of sales are reducing relative to the average stock.
• Verdict: Approved to be given the loan
Case Study: Interpretation

Digital Marketing

Quality Assurance
The Australian Quality Control Manual defines quality control as a
system of policies and procedures that that help ensure a firm is
complying with professional standards
Code Description
APES Accounting Professional and Ethical Standards
ASQC Australian Standard on Quality Control
ISQC International Standard on Quality Control

Quality Assurance
These elements include ethical requirements, building a strong
relationship between the company and the clients, promoting efficient
communication among other things.
Every time I attended a customer I could request the customer to fill a
customer’s satisfaction form and make any suggestions concerning the
quality of services and note any area of improvement that he has
noted. A few of the clients complained about waiting for long at the
waiting bay. This enabled the company to identify this weakness and
deployed more advisers to increase the number of staff that can be
handled at a time. This has solved this problem and the clients are no
longer complaining about the waiting time. A suggestion box was also
fitted at the reception where customers are requested to drop
comments, suggestions, complains or any relevant notes

Conclusion
I can confidently say that it had laid a concrete
foundation towards my future career. Indeed, I am now
conversant with fundamental skills in the insurance,
mortgage and other forms of lending. These skills
cements the information learnt in the accounting and
finance modules.

Recommendation
The company should open up branches across the country to reach more
customers physically than on an online basis. An online business should be
aid of improving the number of people who can be reached but should not
be relied fully basing on the nature of the business. The use of automated
computer systems in computing and analysis to inform decision making
has made things even simpler. However, the student should still
understand how this system operates before making use of them so that
the student knows what he needs to enter as an input and what to expect
as an output to avoid the garbage-in-garbage-out scenario. The company
should have an automated system with programmed software for
calculating financing ratios and generating financial statements for clients.

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