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The Product Definition module allows the creation and maintenance of the ‘Products’ that financial institutions offer their clients. It enables a financial institution to design, review, test and make the Product operational in the shortest possible time.
Parameter driven definition allows for complete flexibility in Product design yet complete control over Product behavior such as:
Arrears Categories :
The administrator is able to define the arrears behavior of accounts for the Product. Each Arrears Category represents an arrears status into which an account will automatically fall after being in arrears for the defined number of days. The generation of correspondence and any other user required action are automatically triggered by movement between categories. A parallel ‘non-financial’ sequence of Arrears Categories can be defined for breaches of contract (e.g. failure to insure). Arrears category definition at the Product level results in completely automated arrears processing
Automatic Settlement :
The process of Settling (closing) an account when paid off can be completely automated. Product level parameters allow for automated write-offs and refunds for overpayment. Refunds are direct credited to the client’s bank account where possible. No manual intervention is required.
Fees :
Fees are defined globally and are then enabled for each appropriate product. Parameter driven definition allows for complete flexibility in Fee design, yet with complete control over Fee behavior. The calculation and allocation of Fee commissions to any number of parties is configurable to be completely automated.
Interest Rates :
Multiple Interest Rate Schedules can accrue simultaneously, meaning you can have different rate structures for Debit Interest, Penalty Interest, Unused Facility Interest, etc. Sovereign allows for the use of Base Rates plus Margins, Carded or negotiated, tiered or single rate options for even greater flexibility. Loyalty Rates allow predefined groups of clients to automatically receive interest rate benefits. Historical Rates are recorded, allowing for accurate interest accrual for back dated transactions.
Impact analysis reports analyse the effect of a rate change before it is enabled.
Payment methods :
Define payment methods available for clients to repay their loan.
Client Roles :
The administrator defines a list of valid roles that clients can play on accounts for the product. Roles are ‘user defined’. Any number of roles can be associated to the Product meaning that every client associated to an account can be recorded. E.g. Borrower, Co-borrowers, Guarantors, Solicitors etc.
Statement Definition :
Define the statement format and frequency that statements will be generated for accounts belonging to that product. E.g. monthly ‘Balance’ statement on the 20th of the month, yearly ‘Tax’ statement on the 31st of March. The statement used would be previously designed in the correspondence module. |
