Ideas for the Mambu Banking Engine

What: An option to decide if penalties should be calculated:

(a) from the scheduled repayment due date, i.e. including the arrears tolerance period, which is how the ‘Overdue Principal’ and ‘(Overdue Principal + Overdue Interest)’ penalty calculation methods currently behave
(b) from the moment the account goes into arrears, i.e. excluding the arrears tolerance period, which is how the ‘Outstanding Principal’ penalty calculation method currently behaves

In both cases, the penalty tolerance period should be considered (if longer than the arrears tolerance period), i.e. the penalties should be applied after the penalty tolerance period passes. However, there should be an option to determine the number of days used to calculate the amount of penalties, as described above.

Why: To provide more flexibility in supporting various use cases, e.g.

• option (a) would typically be chosen if a client is given a couple of days (1-3 days) after the due date because the payment takes a bit longer to process. However, if the payment has not been received, penalties would be applied from the missed due date.
• option (b) would typically be chosen in if a client is invoiced on the due date. For example, they have 2 weeks to pay the invoice, in which case the penalty should be charged from the expected invoice payment date (i.e. end of the tolerance period)