Mambu Banking Engine

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

Option to calculate withholding tax if the daily interest accrued/paid is equal to or greater than a threshold


Currently Mambu calculates the withholding tax based only on the total amount of interest income that was accrued and paid to the client. However, Colombian’s regulation demands that the withholding tax should be calculated and applied, only if the daily returns (interest accrued/paid) are equal to or greater than a threshold, otherwise, the withholding tax should not be applied to the client. This functionality should offer the possibility to activate/deactivate the withholding tax at the moment of account creation and after it, because the regulation indicates client’s exemptions and this can change over the time(Please see attached document for further details)

Example of withholding tax applicable

  • If the daily interest accrued was equal to $2,000, the withholding tax of 7% must be calculated and discounted from the yields.

Full Yield

Withholding tax rate

Value Withholding tax

Value Net Returns



- 140


In the client's account statement, the value of the Full Yield must be shown as $ 2,000 and subsequently the withholding tax amount $ -140

Example of withholding not applicable

  • If the daily interest accrued was $1,850 the withholding tax of 7% Should NOT be calculated nor discounted


Retention at the Source

Value Retention at the Source

Value Net Yields





The value of the Full Yield must be shown in the client's account statement as $ 1,850


  • Mambu should be compliant with the regulations around the world.

  • The dev-less solution is very cumbersome as it implies recalculating the daily accrued interest and comparing the result with the threshold for each day of the month, in order to calculate the withholding tax. This process is very error-prone. Additionally if the client has big volumes of deposit accounts, the process can take too long, which impacts the organization’s EOD processes and can lead to performance issues.

Note: Please include this idea in the Initiatives:

  • Alejandra Bennett
  • Oct 28 2020
  • Attach files