Ideas for the Mambu Banking Engine

Add a tolerance amount to define if an installment is considered as “Partially Paid” or ”Late”

What: A possibility to define a minimum amount due required to consider an instalment as “Late” and change the status of an account to “In Arrears”. For example, if this tolerance amount is set to 1.00 EUR:

  • if the unpaid amount due on an account is > 1 EUR - the instalment would be marked as “Late" and account “In Arrears” state (current behaviour)

  • if the unpaid amount due on an account is < 1 EUR - the instalment should be marked as “Partially Paid”, the account stays in the “Active” state (new behaviour)

Why: It is a common scenario that clients pay back a rounded amount, instead of the full amount of the instalment due. For example, a client expected to repay 250.25 makes a payment only for 250, leaving 0.25 due. These situations can lead to either:

  1. a small overpayment - which is ok because it will be allocated automatically to the next instalment’s principal

  2. a small underpayment - which will cause the account to go into arrears and late repayment fees or penalties to be charged

If the amount left due on the account is small and considered insignificant, organisations do not want to communicate it to the client to re-initiate another payment for it (since the cost of triggering the payment or processing the communication might be higher than the amount left due). At the same time, however, they don't want that account to be set to "In Arrears”, i.e. they would want to consider the instalment as not Late and still expect that amount to be paid with the next installment. Note: this should apply to all the installments, except for the last one which needs to be paid back in full in order to close the account.

  • Dorota Nosal
  • Dec 28 2016
  • Planned
  • Attach files
  • Olaf Haase commented
    22 Jan 17:46

    Would also be great to have the possibility to set/unset the Arrears state manually via api in case of more complex scenarios.