Mambu Banking Engine

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

Penalty after Maturity - Daily Posting Frequency (Dynamic Loans)

What: Allow for daily penalty accrual application after a loan account reaches maturity (i.e. after the last installment).

Why: Currently, penalty accruing after maturity cannot be recognised (applied) on an account, unless a repayment is posted paying the amount of the penalty accrued. This causes issues because:

  • penalty is not recognised in accounting (i.e. there's no income/ receivable posted for the penalty accrual)
  • the amount of the penalty accrual needs to be manually added to the repayment amount (since it's not applied, it's not a portion of the due balance indicated by default in the repayment) 
  • in order to present to a client their currently outstanding balances: total balance/ total due amount needs to be corrected by the penalty accrual

Note: this is currently only applicable to the penalty calculated on the outstanding principal balance (since penalties calculated on the overdue balance are applied daily in any case).

  • Dorota Nosal
  • Jan 21 2019
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