Mambu Banking Engine

Ideas aimed to improve the current experience provided by the Mambu Banking Engine.

Allow to multiply the spread to the indexed interest rate

What: Allow the ability to multiply the interest spread to the indexed rate source when creating a loan account with an indexed interest rate.

Why: Currently it is only possible to add the spread to the indexed interest rate source, however in markets such as Mexico it is common to create loans with multipliers of the national index.

For example: TIIE is a national index managed by the Central Bank of Mexico and updated daily. A use case could be to offer loan accounts at x2.5 that of the TIIE.
Day 1 TIIE: 5% + Spread: 7.5% ((5x2.5)-5) = 12.5% (5x2.5)
Day 2 TIIE: 5.2% + Spread: 7.8% ((5.2x2.5)-5.2) = 13% (5.2x2.5)

For our tenants that would mean they would need to update the Index Rate Source on a daily basis and also update the product's spread to match that of the multiplier (after a calculation is done outside of Mambu). This can be prone to error.

  • Gerardo Cabral
  • Jun 18 2020
  • Attach files