Ideas for the Mambu Banking Engine

Custom repayments allocation option available from the UI for repayment and transfer transactions

What: Extend the custom allocation feature in order to allow for defining custom allocation via UI, both for repayment transactions (implemented via APIs with APP-289), as well as transfer transactions from the deposit/ settlement accounts (raised with ref. LNS-I-31).

Why: This feature is important from the perspective of organisations that do not use any integration layer or APIs, but rely mostly on the UI, yet still need to be able to post repayments or transfers according to internal business rules or logic that does not follow the default allocation order defined at the product level.

Under some local laws, lenders must allocate repayments in a different order depending on the account status (if payment is on time or in arrears). During normal operations, the order by which fees and penalties are taken first is ok, but it will present challenges for defaulting loans, for which principal should be taken first. All write offs are tax deductible, and therefore when funds are paid on defaulting accounts the finance office would require us to allocate all the funds to the principal due, minimizing the amount that we can write-off and deduct from our taxable income.

  • Kareem Barreto
  • May 13 2019
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