Core Banking 3.

User Guide

Copyright © FintechOS 2022. All rights reserved.

CORE BANKING USER GUIDE

TOC
Overview 10
Banking Product Factory 11
Single Customer View 11
Operational Ledger 11
Installing Core Banking 12
Dependencies 12
Installation Steps 14
Post-Installation Setup 18
Changes within the App-Settings JSON Files within Vault 18
Dependencies 19
Installation Steps 19
Dependencies 22
Installation Steps 22
Configurations for Core Banking 25
Getting Started with Core Banking 26
Holiday 32
Creating Holiday Records 33
Allocation Method 34
Creating Allocation Methods 35
Exchange Rate 37
Creating Exchange Rates 38
Exchange Rate Type 39
Creating Exchange Rates Types 40
Loan Classification 40

TABLE OF CONTENTS 2
CORE BANKING USER GUIDE

Creating Loan Classification Records 42

Loan Periodicity 43
Creating Loan Periodicity Records 44
Operation Item 45
Creating Operation Item Records 47
Core Banking System Parameters 49
Managing Core Banking System Parameters 65
Transaction Types Used in Core Banking 68
Bank Account Transaction Queue 77
Bank Account Transaction Configurations 79
Transaction Types Covered Through Bank Account Transaction
Operation Types in Core Banking 80
Transaction Operation Type 83
Creating Bank Account Transaction Operation Types 84
Transaction Fee 87
Creating Transaction Fee Records 87
Transaction Fee List 89
Creating Transaction Fee List Records 90
Jobs 91
Security Roles for Core Banking 99
Predefined Core Banking Security Roles 100
Banks 134
Creating Bank Records 135
Creating External Bank Accounts 136
Sales Channels 138
Creating Sales Channel Records 138
Reconciliation Accounts 139
Creating Reconciliation Accounts 141

TABLE OF CONTENTS 3
CORE BANKING USER GUIDE

Reconciliation Account Settings 144

Creating Reconciliation Account Settings 145

Customers, Groups and Limits 147

Customers 148
Creating Customers 149
Groups 158
Limits 160
Group Exposure Types 160
Customer Exposure Types 161
Validations 162
Calculation of Available Limit Amount 165
Limit Statuses 166
Limit Versioning 167
Changing Limit Statuses 168
Managing Limits 170
Role-Based Limits 171
Role-Based Limits Validations 173
Managing Limit Types 174
Creating Limit Types 175
Creating Limits 176
Creating New Versions of Existing Limits 181
Collaterals 183
Managing Collaterals 184
Contracts 192
Contract Implementation Notes 192
Managing Contracts 192
Loans 194
Loan Contract Life Cycle and States 195

TABLE OF CONTENTS 4
CORE BANKING USER GUIDE

Contract Versioning 197

Changing Contract Statuses 197
Creating A New Unsecured Loan 199
Creating A New Secured Loan 216
Approving a Loan 220
Automated Actions After Contract Approval 222
Rejecting a Loan 226
Disbursing a Loan 228
Processing Loan Repayments 234
Working with Overdue Loans 263
Applying Payment Holiday to a Loan 266
Working with Grace 270
Working with Participants 272
Adding Participants 273
Blocking Participants 274
Working with Tranches 274
Adding Tranches to a Contract 275
Working with Covenants 276
Adding & Activating Covenants 277
Reviewing Covenants 278
Working with Contract Classification 280
Adding Classifications to a Contract 281
Working with Returns 281
Applying Fees and Commissions 290
Adding Fees 292
Closing a Loan With All Obligations Met 293
Rescheduling and Refinancing Loans 296
Changing the Interest Rate 306
Editing and Customizing Repayment Schedules 309
Manually Capture Notifications 331

TABLE OF CONTENTS 5
CORE BANKING USER GUIDE

Adding Repayment Notifications 331

Adding Repayment Notification Details 334
Approving Manual Repayment Notifications 335
Working with Documents 336
Adding Contract Documents 337
Treatment of Non Working Days for Schedule 339
Working with Limits 340
Creating New Versions of Existing Loan Contracts 343
Possible Changes on New Loan Contract Versions 345
Viewing a Contract's History 345
Viewing a Contract's Accounting Entries 346
Deposits 349
Deposit Contract Life Cycle and States 350
Contract Versioning 351
Changing Contract Statuses 352
Creating a Deposit Contract 354
Approving a Deposit 365
Automated Actions After Contract Approval 367
Rejecting a Deposit 369
Working with Covenants 371
Adding & Activating Covenants 371
Reviewing Covenants 373
Working with Participants 375
Adding Participants 376
Blocking Participants 377
Working with Contract Classification 377
Adding Classifications to a Contract 378
Applying Fees and Commissions 378
Adding Fees 381
Working with Documents 381

TABLE OF CONTENTS 6
CORE BANKING USER GUIDE

Adding Contract Documents 383

Deposits, Withdrawals and Transfers 385
Changing Interest Rates on Active Deposit Contracts 396
Processing Interest Capitalization and Payment 398
Liquidating a Deposit 402
Closing a Deposit Contract 410
Creating New Versions of Existing Deposit Contracts 412
Viewing a Contract's History 413
Viewing a Contract's Accounting Entries 414
Current Accounts 418
Current Account Contract Life Cycle and States 419
Contract Versioning 420
Changing Contract Statuses 420
Creating a Current Account 422
Approving a Current Account 440
Automated Actions After Contract Approval 441
Rejecting a Current Account 442
Working with Covenants 444
Adding & Activating Covenants 444
Reviewing Covenants 446
Working with Participants 448
Adding Participants 449
Blocking Participants 450
Working with Contract Classification 450
Adding Classifications to a Contract 451
Applying Fees and Commissions 451
Adding Fees 454
Working with Documents 454
Adding Contract Documents 456
Performing Transactions on Current Accounts 458

TABLE OF CONTENTS 7
CORE BANKING USER GUIDE

Processing Overdraft Repayments 470

Manually Capture Notifications 491
Adding Repayment Notifications 491
Adding Repayment Notification Details 494
Approving Manual Repayment Notifications 495
Closing a Current Account 496
Creating New Versions of Existing Current Account
Contracts 501
Possible Changes on New Current Account with Overdraft Contract
Versions 503
Viewing a Contract's History 503
Viewing a Contract's Accounting Entries 504
Credit Facilities 508
Credit Facility Implementation Notes 508
Business Logic 508
Managing Credit Facilities 509
Credit Facility Life Cycle and States 510
Credit Facility Versioning 511
Credit Facility Life Cycle 512
Changing Credit Facility Statuses 513
Creating Credit Facilities 514
Sending Credit Facilities for Approval 524
Approving Credit Facilities 525
Adding Utilizations to Credit Facilities 526
Approving Utilization Requests 529
Managing Credit Facility Utilization Details 531
Creating New Versions of Existing Credit Facilities 536
Viewing a Credit Facility's History 537

TABLE OF CONTENTS 8
CORE BANKING USER GUIDE

Third-Party Management 538

Business Logic 538
Managing Third-Party Agreements 539
Third-Party Configurations 540
Third-Party Commission Schema 540
Creating Third-Party Commission Schemas 541
Third-Party Commission Type 542
Creating Third-Party Commission Types 543
Third-Party Commission 544
Creating Third-Party Commissions 545
Third-Party Agreements Life Cycle and States 549
Third-Party Agreements Versioning 550
Changing Third-Party Agreement Statuses 550
Creating Agreements For Third-Parties 552
Approving a Third-Party Agreement 559
Rejecting a Third-Party Agreement 561
Creating New Versions Of Third-Party Agreements 562
Viewing a Third-Party Agreement's History 563
Working with Third-Party Invoices 563
Managing Invoices For Third-Parties 564
Third-Party Invoices Life Cycle and States 565
Changing Third-Party Invoice Statuses 565
Creating Third-Party Invoices 566
Managing Automatic Invoice Payments 580
Dashboards and Reports 584

TABLE OF CONTENTS 9
CORE BANKING USER GUIDE

Overview
FintechOS Core Banking aims to help banks and/ or financial institutions with the
management of records and processes during the life of the business relation with a
customer, may it be on lending with underlying limits and collaterals, deposits,
minimum current accounts capabilities, third-party management, or credit facilities.
Its automated processes scheduled to happen during close of day or start of day
calculate cost elements and keep up the correct figures driven by the contracts
inserted.
All the features in Core Banking are built using the capabilities of Innovation Studio,
and you can access its menus and dashboards when logged in FintechOS Portal.
The diagram below exhibits the main features of Core Banking, along with a series of
configurations and dictionaries used to automate the complex banking processes
performed by the system. Core Banking uses the banking products records defined
within Banking Product Factory, and the customer records managed by Single
Customer View. Core Banking records are further used by Operational Ledger to
generate ledger entries.

OVERVIEW 10
CORE BANKING USER GUIDE

Banking Product Factory

This is a powerful automation processor accessible in the Innovation Studio that
builds the products to be used in a digital journey, configures the interest,
commissions and the life cycle of a product. Those products are later introduced into
a customer journey or, when used in conjunction with Core Banking, they associate
the products with transaction types. For more information, see Banking Product
Factory.

Single Customer View

Single Customer View is the central hub for collecting, aggregating, and processing
banking customers’ data for customers representing legal entities or individuals.

Operational Ledger
Based on the transactions performed in Core Banking, Operational Ledger logs, along
with a company’s financial transactions, details that enable the system to build ledger
entries. For more information, see Operational Ledger.

OVERVIEW 11
CORE BANKING USER GUIDE

Installing Core Banking

Core Banking comes with the following installation packages: Core Banking,
containing main features and functionality, Core Banking Corporate, containing credit
facility management features which are complementary to the Core Banking package,
and Third-Party Management, containing third-party entities related features. This
page displays step by step instructions for installing these packages.

IMPORTANT!
The Core Banking Corporate and Third-Party Management packages must be
installed only after installing the Core Banking package with the same version!

Installing Core Banking v3.3

Follow the steps described below to perform an automatic installation of the
Core Banking v3.3. This is a process of running a script, the install_
SysPack.bat file, on your environment. The script automatically imports
the content of the Core Banking v3.3 into your Innovation Studio.

IMPORTANT!
You must run the script on the machine where Innovation Studio is
installed.
Make sure you have access rights to Studio's database.

NOTE
For information about installing the Core Banking Corporate v3.3 package
on top of your Core Banking v3.3 installation, please read the Installing
Core Banking Corporate section.

Dependencies
To install Core Banking v3.3, first you need to install the following:

INSTALLING CORE BANKING 12

CORE BANKING USER GUIDE

l Innovation Studio minimum version 22.1.1

l SySDigitalSolutionPackages v22.1.1000

l Banking Product Factory v3.3.

NOTE
A JobServer must be running on your High Productivity Fintech
Infrastructure in order to process any asynchronous, batch, end of day and
start of day jobs.

IMPORTANT!
After performing the installation steps, make sure you complete the post-
installation setup within the web.config files.

NOTE
If there are no settings to be backed up at the Banking Product level, but
there are settings to be saved at the Core Banking level, then you must
import the Backup Restore Settings v3.3 project. Decide whether you
should import it or not!

The Backup Restore Settings v3.3 Project

This project comes with the FTOS_Config_bak entity. The purpose

of its script is to save the old values of the system parameters
(EbsMetadata.SystemParameter and Ebs.SystemParameter).
The project has a matching script at the end of the Core Banking
package, which restores the old values saved by this first script.

INSTALLING CORE BANKING 13

CORE BANKING USER GUIDE

Installation Steps
1. Unzip your CoreBanking_3.3.zip archive file.

2. Locate the FtosSysPkgDeployer folder in the FintechOS

installation kit (the path is <unzipped_install_
archive>\Tools\FtosSysPkgDeployer). You need it to install the
SySDigitalSolutionPackages.

3. Select and copy the FtosSysPkgDeployer folder.

4. Navigate to the location where you have unzipped the CoreBanking_

3.3.zip (let’s call this location <pckg_deployer_dir>), then paste the
FtosSysPkgDeployer folder there, within each and every zip file that
comes with the package.

INSTALLING CORE BANKING 14

CORE BANKING USER GUIDE

IMPORTANT!
Each zip file within the CoreBanking_v3.3.zip must be extracted
and installed separately, in the given order!
If you decide not to use the default security roles that come with
the package, simply skip the Core Banking Security Roles zip file.

5. Create a new or edit a previous install_Syspack.bat file. Replace

the parameters described in the "install_SysPack.bat Parameters
Explanation" on page 17 section with your own values. Save and close
the file.

6. Right-click install_SysPack.bat » Run, for each package.

The script starts running in your Windows console. Wait for it to finish. If
your parameter values were correct, the FintechOS Portal has two new
menus, visible after a refresh, the Admin Configurations and the Core
Banking Operational menus:

INSTALLING CORE BANKING 15

CORE BANKING USER GUIDE

The install_SysPack.bat file allows you to import the data model:

install_SysPack.bat syntax for Data Model import

FtosSysPkgDeployer.exe -i -s "<StudioLink>" -u
<AdminStudioUser> -p <user_password> -z <DataBaseServer> -v
<DB_user> -k <DB_user_password> -d "<TheNameOfTheDataBase>"
-r "<syspack_path>\*.zip"

NOTE
The syntax presented here is for information purposes only. Please run the
actual install_SysPack.bat file.

INSTALLING CORE BANKING 16

CORE BANKING USER GUIDE

install_SysPack.bat Parameters Explanation

l <StudioLink> - The web URL of the Innovation Studio

installation, for example http://localhost/ftos_studio.
l <AdminStudioUser> - The username of the Innovation
Studio user under which this import is executed. The user has
to exist in Innovation Studio prior to this operation.
l <user_password> - The password for the Innovation Studio
user.
l <DataBaseServer> - The name of the database server
where the FintechOS installation database was created.
l <DB_user> - The username of the SQL Server user with
administration rights on the FintechOS installation database.
l <DB_user_password> - The password for the above
mentioned SQL user.
l <TheNameOfTheDataBase> - The name of the database
where the CoreBanking_3.2 is deployed.
l <syspack_path> - The physical path to the unzipped
CoreBanking_3.2 previously downloaded.

HINT
For more information about the script, please run
FtosSysPackageDeployer.exe without any arguments to
see the built-in help.

IMPORTANT!
If you're using SQL Server Integrated Authentication, make sure that the
Windows user used for running the script has access to the FTOS
database, with read/ write rights. Run the command without the SQL
username/ password parameters.
If you're using SQL Server Build In Authentication, make sure that the SQL
Server user has read/ write access to the FTOS database. Run the
command with the SQL username/ password parameters.

INSTALLING CORE BANKING 17

CORE BANKING USER GUIDE

Post-Installation Setup
Changes within the App-Settings JSON Files within Vault
After performing the installation steps, make sure you complete the
following changes to the application keys within each of the app-settings
json files within Vault, which come with the Core Banking package:

CoreBankingInstall Application Key

The CoreBankingInstall application key setting has to be

configured in the Vault's app-settings json files.
This application key should be set as below:

app key setting in Vault

<add key="CoreBankingInstall" value="0" />

This setting performs a context switch between

EbsMetadata.SystemParameter (0) and
ebs.SystemParameter (1). An entity was created to group
multiple setups performed for the System Parameter by module,
and where you can check the correctness of the values that are
being set up by value type (Boolean, number, text, option set).

NOTE
If this key is not set up in Vault, it is treated as 0.

Installing Core Banking Corporate v3.3

Follow the steps described below to perform an automatic installation of the
Core Banking Corporate v3.3 package. This is a process of running a script,
the install_SysPack.bat file, on your environment. The script
automatically imports the content of the Core Banking Corporate v3.3 into

INSTALLING CORE BANKING 18

CORE BANKING USER GUIDE

your Innovation Studio, on top of your Core Banking v3.3 installation.

Dependencies
To install Core Banking Corporate v3.3, first you need to install the following:
l Core Banking v3.3 package.

NOTE
If there are no settings to be backed up at the Banking Product level, but
there are settings to be saved at the Core Banking Corporate level, then
you must import the Backup Restore Settings v3.3 project. Decide
whether you should import it or not!

Installation Steps
1. Unzip your CoreBankingCorporate 3.3.zip archive file.

2. Locate the FtosSysPkgDeployer folder in the FintechOS

installation kit (the path is <unzipped_install_
archive>\Tools\FtosSysPkgDeployer). You need it to install the SysPack.

3. Select and copy the FtosSysPkgDeployer folder.

4. Navigate to the location where you have unzipped the

CoreBankingCorporate_3.3.zip (let’s call this location <pckg_
deployer_dir>), then paste the FtosSysPkgDeployer folder there, within

INSTALLING CORE BANKING 19

CORE BANKING USER GUIDE

each and every zip file that comes with the package.

IMPORTANT!
Each zip file within the CoreBankingCorporate_v3.3.zip must be
extracted and installed separately, in the given order!
If you decide not to use the default security roles that come with
the package, simply skip the Core Banking Security Roles zip file.

INSTALLING CORE BANKING 20

CORE BANKING USER GUIDE

5. Create a new or edit a previous install_Syspack.bat file. Replace

the parameters described in the "install_SysPack.bat Parameters
Explanation" on page 17 section with your own values. Save and close
the file.

6. Right-click install_SysPack.bat » Run, for each package.

The script starts running in your Windows console. Wait for it to finish. If
your parameter values were correct, the FintechOS Portal has one new
menu, visible after refresh, the Core Banking Operational > Credit Facility
menu:

Installing Third-Party Management v3.3

Follow the steps described below to perform an automatic installation of the
Third-Party Management v3.3 package. This is a process of running a script,
the install_SysPack.bat file, on your environment. The script
automatically imports the content of the Third-Party Management v3.3 into
your Innovation Studio, on top of your Core Banking v3.3 installation.

INSTALLING CORE BANKING 21

CORE BANKING USER GUIDE

Dependencies
To install Third-Party Management v3.3, first you need to install the
following:
l Core Banking v3.3 package.

HINT
If there are no settings to be backed up at the Banking Product level, but
there are settings to be saved at the Core Banking Corporate level, then
you must import the Backup Restore Settings v3.3 project. Decide
whether you should import it or not!

Installation Steps
1. Unzip your ThirdPartyManagement 3.3.zip archive file.

2. Locate the FtosSysPkgDeployer folder in the FintechOS

installation kit (the path is <unzipped_install_
archive>\Tools\FtosSysPkgDeployer). You need it to install the SysPack.

3. Select and copy the FtosSysPkgDeployer folder.

4. Navigate to the location where you have unzipped the

ThirdPartyManagement_3.3.zip (let’s call this location <pckg_
deployer_dir>), then paste the FtosSysPkgDeployer folder there, within
each and every zip file that comes with the package.

INSTALLING CORE BANKING 22

CORE BANKING USER GUIDE

IMPORTANT!
Each zip file within the ThirdPartyManagement_v3.3.zip must
be extracted and installed separately, in the given order!

5. Create a new or edit a previous install_Syspack.bat file. Replace

the parameters described in the "install_SysPack.bat Parameters
Explanation" on page 17 section with your own values. Save and close
the file.

6. Right-click install_SysPack.bat » Run, for each package.

INSTALLING CORE BANKING 23

CORE BANKING USER GUIDE

The script starts running in your Windows console. Wait for it to finish. If
your parameter values were correct, the FintechOS Portal has a new menu,
visible after refresh, the Core Banking Operational > Third Party Agreements
menu:

INSTALLING CORE BANKING 24

CORE BANKING USER GUIDE

Configurations for Core

Banking
This page contains a series of topics that explain how Core Banking is configured to
work and topics that assist you in configuring your Core Banking system:

Get t ing St art ed wit h Core Banking 26

Holiday 32
Creating Holiday Records 33
Allocat ion M et hod 34
Creating Allocation Methods 35
Exchange Rat e 37
Creating Exchange Rates 38
Exchange Rat e Type 39
Creating Exchange Rates Types 40
Loan Classificat ion 40
Creating Loan Classification Records 42
Loan Periodicit y 43
Creating Loan Periodicity Records 44
Operat ion It em 45
Creating Operation Item Records 47
Core Banking Syst em Param et ers 49
Transact ion Types Used in Core Banking 68
Bank Account Transact ion Queue 77
Bank Account Transact ion Configurat ions 79
Transaction Operation Type 83
Transaction Fee 87
Transaction Fee List 89

CONFIGURATIONS FOR CORE BANKING 25

CORE BANKING USER GUIDE

Jobs 91
Securit y Roles for Core Banking 99
Predefined Core Banking Security Roles 100
Banks 134
Creating Bank Records 135
Creating External Bank Accounts 136
Sales Channels 138
Creating Sales Channel Records 138
Reconciliat ion Account s 139
Creating Reconciliation Accounts 141
Reconciliation Account Settings 144

Getting Started with Core Banking

After performing the installation process, Core Banking needs a series of
configurations to be put in place before being ready for production. For example, it
needs records for the main bank that uses the system, reconciliation accounts to be
used for transactions, exchange rates information, holidays to be declared, specific
settings for the Core Banking system parameters that indicate how the system should
handle different situations or perform specific calculations, and so on.
This page is a step-by-step guide about what you have to set up, with links to detailed
instructional pages related to each specific step. Follow through these steps after
installing Core Banking and before declaring it ready for production.

CONFIGURATIONS FOR CORE BANKING 26

CORE BANKING USER GUIDE

Step 1. Configure Core Banking settings

Follow these steps to configure the settings needed by Core Banking:

1. Log into FintechOS Portal using a user with administrator rights.

The user credentials for an administrator user are received from your
FintechOS contact person. Insert the user name and the password
associated with it to log into the FintechOS Portal.

2. Define your main bank.

You must create a bank record to be used by Core Banking as the main
financial institution. Use the Core Banking Operational > Bank menu
and make sure the record has the Main Bank checkbox selected.

3. Manage your Core Banking system parameters.

The system parameters used by Core Banking determine the behavior
of all the contracts, transactions, limits, and other parts that make up
your Core Banking system. See here the list of system parameters used
by Core Banking, along with their descriptions.

4. Manage allocation methods.

Core Banking uses allocation methods to determine the order in which
credit items are prioritized when repaying loans, credit accounts, etc.
Read here how to create and manage allocation methods, using the

CONFIGURATIONS FOR CORE BANKING 27

CORE BANKING USER GUIDE

Allocation Method menu.

5. Enter holidays for the desired countries.

Public holidays for each country are used in the product definition for
the calendar years over which your financial institution's current
business is spread. Use the Holiday menu to create holiday records
specific to your financial institution's needs, as described here.

6. Define exchange rate types and enter exchange rate records.

Exchange rates represent the value between the currencies of two
countries on a given date. These rates are free-floating or fixed. Add
exchange rate types using the Exchange Rate Type menu if you need to
differentiate between exchange rates based on the currency market or
business area. Read more information about creating exchange rate
records and managing exchange rate types.

7. Define your loan classification.

Financial institutions classify their existing loan contracts based upon
the days past due (DPD), the number of days passed since repayment
due date without fully repaying the due amount. Since the provisions
have an impact on the financial results of the bank, this is again driven
by regulations and may vary in time or depending on country or region.
Create loan classification records as described here.

8. Manage operation items specific for your business.

Operation items are those items that relate to a bank's core business,
such as all types of fees, commissions, principals, interests, advances,
or penalty calculations. They can also be considered as balance types
that add up to a certain deal or used in tracing what happened on a
particular deal. Find here examples and information on creating
operation item records.

9. Manage transaction types.

Any transfer of funds between two bank accounts is recorded as a
transaction. The transaction types are predefined for usage within Core
Banking processes. Read here about different types of transactions
used in Core Banking.

10. Define other banks or financial institutions with whom your main bank
has business relations and add external accounts.
Create bank records for the banking institutions with whom your main

CONFIGURATIONS FOR CORE BANKING 28

CORE BANKING USER GUIDE

bank collaborates, using the Core Banking Operational > Bank menu.
Add external bank accounts within these banks.

11. Define reconciliation accounts and default settings for the

reconciliation accounts.
Reconciliation is an accounting process that compares two sets of
records to check that figures are correct and in agreement. Learn here
how to manage the reconciliation accounts records. Read about setting
up which reconciliation account for a specified currency should be used
by Core Banking within a given period.

12. Manage transaction fees and lists.

You can define different fees to be applied to bank account
transactions. Using fee lists, you can attach fees with specified values
to each bank account transaction operation type. When a transaction
operation type is selected on a bank account transaction, Core Banking
identifies the fee list and fee values and applies them considering the
current date of the transaction.

13. Define sales channels for your contracts.

You can create contracts through different channels:, such as the
dedicated Core Banking menus in FintechOS Portal, API integration
calls, or various digital journeys implemented within FintechOS
accelerators. Manage the sales channels records, so that you can apply
different pricing or to allow the selling a product on a specific channel.

14. Manage limit types for role-based limits.

You can create new limit types that are based on roles associated to
contract participants specific to your business, and use them
throughout Core Banking with all the functionality of any other default
limit type.

15. Make sure a JobServer is up and running.

To perform the processes within Core Banking, a JobServer must be up
and running. Manage server jobs as described here. Learn here about
Core Banking's scheduled jobs.

16. Create users and allocate them appropriate security roles.

For appropriate access and rights within Core Banking, create users and
allocate them appropriate Core Banking security roles. The following

CONFIGURATIONS FOR CORE BANKING 29

CORE BANKING USER GUIDE

pages contain information related to this topic: Adding Users, Editing

Users, and Security Roles.

17. Configure Operational Ledger. The Operational Ledger add-on,

installed over the Core Banking package, manages the accounting
information needed for ledger reports and other financial statements.
Access the Configurations page for information about the settings you
need to perform.

18. Perform third-party configurations.

If you installed the Third-Party Management package on top of the
Core Banking package, you should configure the schemas, types and
commissions that Core Banking should apply to the agreements
recorded for third-party entities.

Step 2. Create banking products

Use Banking Product Factory to create the banking products that your
financial institution wants to offer to their customers via contracts. Core
Banking integrates directly with Banking Product Factory, thus all the banking
products with Active status are automatically available for you to use in
Core Banking, when you create contracts. Before actually creating the
banking products, you should perform a series of configurations within
Banking Product Factory.

Step 3. Use Core Banking features

After configuring the Core Banking settings and creating banking products,
you are ready to use the main features available in Core Banking, as
described in the following steps:

1. Log into FintechOS Portal using a user with an associated Core

Banking security role.
Insert the user name and the password associated with it to log into
the FintechOS Portal.

CONFIGURATIONS FOR CORE BANKING 30

CORE BANKING USER GUIDE

2. Add customers and groups, then set customer limits.

Financial institutions deal with customers, either individuals or legal
entities. Customers may be part of groups. In Core Banking, create
customer records and attach them to groups. Monitor your financial
institution's exposure for credit related activities by setting up limits
for your customers. You can manage limits through a series of menus
and reports available in Core Banking.

3. Register collaterals.
Collateral management is the method of granting, verifying and
managing collateral transactions in order to reduce credit risk in
unsecured financial transactions. It is an essential and integral part of
any financial institution's risk and regulatory compliance framework.
Manage collateral records in Core Banking, as described here.

4. Manage contracts.
Any agreement between a financial institution and a customer
regarding the usage of a banking product is documented legally with a
contract. In Core Banking, you can create contracts for your financial
institution's customers based on approvals. Read about contracts in the
Banking Contracts pages.

5. Manage credit facilities.

Credit facilities are groupings of multiple credit products that a
customer has arranged with a bank under a single credit limit. Read
here how to manage credit facility records.
The credit facility management features are available only if the Core
Banking Corporate package was installed.

6. Manage third-party agreements & invoices.

In Core Banking, you can register third-party entities (agents, brokers,
insurers, etc.) with the financial institution to intermediate the selling
of various banking products to customers. For their work, the third-
party entities are compensated with fees payable for each new
contract, based on a pricing agreement with the financial institution.
Read here how to manage records related to third-party entities.
The third-party management features are available only if the Third-
Party Management package was installed.

CONFIGURATIONS FOR CORE BANKING 31

CORE BANKING USER GUIDE

Holiday
Financial institutions are usually closed and do not process payments or repayments
for loans during holidays, hence the repayment schedules may be adapted to take the
into consideration. In Core Banking, you can indicate the public holidays for the
country used in the product definition, for the calendar years over which the financial
institution's current business is spread.
Core Banking uses two methods for loan repayment processing when the holidays are
taken into consideration in the schedule projections:
l Shift forward: the payment date is shifted to the first working day after the
usual scheduled execution date.
l Shift backward: the payment date is shifted to the previous working day
before the usual scheduled execution date.
In order to set up specific days when payments are not processed, follow these steps:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configuration menu.

2. Click the Holiday menu item to open the Holidays List page.

On the Holidays List page, you can add new holiday records or search, edit, and delete
existing ones.

CONFIGURATIONS FOR CORE BANKING 32

CORE BANKING USER GUIDE

Creating Holiday Records

Follow these steps to create holiday records specific to your financial institution's
country or organization:

1. Click the Insert button on the top right side of the Holiday List page. The Add Holiday
page is displayed.

2. Fill in the following fields:

l Name - Enter the name of the holiday.

l Code - Enter he code of the holiday.

l Country - Select the country in which the holiday rule applies to.

l Week Day - For repetitive holidays, select the weekday on which the holidays falls on.

l Day and Month - For holidays with a fixed date, enter the day and month, in the dd.mm
format.

3. Click the Save and Reload button at the top right corner of the page. Core Banking
populates the Calendar Holidays section with the exact dates of the holidays.

CONFIGURATIONS FOR CORE BANKING 33

CORE BANKING USER GUIDE

You can insert, delete, or export the calendar holiday data.

Allocation Method
Allocation methods represent the order in which a financial institution proportionally
allocates a portion of the payment to either fees, commissions, interest, and other
credit items associated with the account, with the aim of closing the loan principal.
FintechOS uses allocation methods to determine the order in which credit items are
prioritized when repaying loans, credit accounts, and so on.
You can manage allocation methods though the Allocation Method menu, which
stores information about the details and the banking products using those specific
definitions in their setup. Follow these steps to manage such records:

1. In the FintechOS Portal, click the main menu icon and expand the Admin
Configuration menu.

2. Click the Allocation Method menu item to open the Allocation Method page.

CONFIGURATIONS FOR CORE BANKING 34

CORE BANKING USER GUIDE

On the Add Allocation Method page, you can add new allocation methods or search,
edit, and delete existing ones.

NOTE
The default allocation method used by Core Banking for manual repayment
notifications that aren't linked to a contract is stored in the
ManualAllocationMethod system parameter.

Creating Allocation Methods

To create a new allocation method, follow these steps:

1. Click Insert on the Allocation Method page to ope the Add Allocation Method
page.

2. Enter a name for the allocation method.

3. Click the Save and Reload button. The Allocation Method Details and the
Banking Products sections are displayed.

4. In the newly displayed Allocation Method Details section, click Insert to open
the Add Allocation Method Details.

5. Fill in the following fields:

CONFIGURATIONS FOR CORE BANKING 35

CORE BANKING USER GUIDE

l Credit Item - Select the credit item of the allocation method.

l Minimum Overdue Days - Enter the minimum number of overdue days for
the credit item.
l Maximum Overdue Days - Enter the maximum number of overdue days
for the credit item.

NOTE
The maximum and minimum number of overdue days is relevant when
creating allocation methods as an account can have one or more loan
principals. If, for example, there are two loan principals, the allocation
method is applied based on the oldest one. Thus, depending on the date,
the installment is allocated to the oldest loan principal and then moved to
the other credit items.

IMPORTANT!
When editing credit items, the IncludeInPenaltyCalculation checkbox is
available. If selected, the penalty amount is taken out of the account first.
For more details, see Operation Item.

CONFIGURATIONS FOR CORE BANKING 36

CORE BANKING USER GUIDE

6. Click the Save and Close button at the top right corner of the page.

7. Back on the Edit Allocation Method page, view the banking products associated
with the allocation method previously created in the Banking Products section.

Exchange Rate
Exchange rates represent the value between the currencies of two countries on a
given date. These rates are free-floating or fixed. In most cases, exchange rates are
free-floating and the value can rise or fall based on market supply and demand. Fixed
exchange rates have more restrictions and their value is set by the government.
Core Banking uses exchange rates in limit, collateral, credit facility, and third-party
invoices calculations, when the contract and the attached limit/ collateral, the credit
facility and its attached contracts, or the third-party invoice and its details are
expressed in different currencies. Operational Ledger also uses exchange rates to
calculate all amounts using the accounting reference currency.
To manage exchange rates needed in financial operations, follow these steps:

CONFIGURATIONS FOR CORE BANKING 37

CORE BANKING USER GUIDE

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configuration menu.

2. Click the Exchange Rate menu item to open the Exchange Rate page.

On the Exchange Rate page, you can add new exchange rates or search, edit, and
delete existing ones.

Creating Exchange Rates

Follow these steps to create a new exchange rate:

1. Click the Insert button on the Exchange Rate page to open the Create and Save
page.

2. Fill in the following fields:

l Exchange Type - Select the exchange type rate, if more than one was
created in Core Banking.
l Exchange Date - Select the date of the exchange rate.

CONFIGURATIONS FOR CORE BANKING 38

CORE BANKING USER GUIDE

l From Currency - Select the currency from which the exchange rate is
made.
l To Currency - Select the currency into which the exchange is performed.

l Exchange Rate - Enter the exact rate for the exchange to be applied on
the exchange date.
l Multiplicator - You can multiply the exchange rate value with the whole
number that you insert here. The default value is 1.
l Calculated Exchange Rate - Automatically completed with the exchange
rate calculated based on the following formula: ExchangeRate *
Multiplicator. You can edit the field.

3. Click the Save and Close button. Core Banking saves the exchange rate record.

Exchange Rate Type

Although Core Banking uses only the BER (Bank Exchange Rate) is used when defining
exchange rates, if there is a need to differentiate between exchange rates based on
currency market or business areayou can create exchange rate types.
To manage exchange rate types, follow these steps:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configuration menu.

2. Click the Exchange Rate Type menu item to open the Exchange Rate Types List
page.

On the Exchange Rate Type page, you can add new exchange rates types or search,
edit, and delete existing ones.

CONFIGURATIONS FOR CORE BANKING 39

CORE BANKING USER GUIDE

Creating Exchange Rates Types

Follow these steps to create a new exchange rate:

1. Click the Insert button on the top right side of the Exchange Rate Types List
page. The Add Exchange Rate Type page is displayed.

2. Fill in the following fields:

l Name - Enter the name of the exchange rate type.

l Code - Enter the code of the exchange rate type.

3. Click Finish at the bottom right corner of the page.

Loan Classification
Financial institutions classify their existing loan contracts based upon the days past
due (DPD), the number of days passed since repayment due date without fully
repaying the due amount for the oldest unpaid repayment notification. In order to
comply with the risk method calculation, the DPD (days past due) value is calculated
as the number of days between the contract's due date and the current system date
of Core Banking.
Banking being a highly regulated sector such requirements are usually enforced either
with regional or local rules. The financial institutions can apply different provision
percentages for principal or for interest for each contract, based on this classification:
the higher the delay period, the higher the provision percentage applicable and the

CONFIGURATIONS FOR CORE BANKING 40

CORE BANKING USER GUIDE

risk classification. Since the provisions have an impact on the financial results of the
institution, this is again driven by regulations and may vary in time or depending on
country or region.

IMPORTANT!
Loan classification works by risk contamination at the customer and the group levels.
This means that if a loan contract belonging to a customer is classified as one of a
higher risk due to delays in the repayment process, all the other loans of the
customer and of the group where the customer is a member are further classified
into that high-risk classification.

The UseContaminationForDPDCategory Core Banking system parameter

specifies whether Core Banking should use the risk contamination for loan
classification or not.

The risk classification of loan contracts is automatically performed by the Update

Loan Classification (CB) scheduled job based on the loan classification
records' definition.

To manage loan classification records:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click Loan Classification menu item to open the Loan Classifications List page.

On the Loan Classifications List page, you can add new classification records or
search, edit, and delete existing ones. You can also:

CONFIGURATIONS FOR CORE BANKING 41

CORE BANKING USER GUIDE

l Stop the accrual process for contracts that fall under a specific classification.
Select the Stop Accrual Process checkbox next to a record to except all
contracts within that category from the accrual calculation processes. All the
following categories are automatically excepted from the accrual calculation
processes.
l Include the contracts within a loan category into the accrual processes
calculation by deselecting the Stop Accrual Process checkbox next to a record.
You can do this only after deselecting the Stop Accrual Process checkboxes next
to each of the lower categories.

IMPORTANT!
You must have the Loan Admin Officer security role to select or deselect the Stop
Accrual Process checkboxes.

Creating Loan Classification Records

Follow these steps to create new loan risk classification records:

1. Click Insert button on the Loan Classifications List page to display the Add Loan
Classification page.

2. Fill in the following fields:

l Name - Enter the name of the risk classification record.

l MinDelay/ MaxDelay- Enter the minimum/ maximum number of days

past since a repayment due date without performing the repayment for a
loan contract in order for the contract to be classified in this risk
classification.

CONFIGURATIONS FOR CORE BANKING 42

CORE BANKING USER GUIDE

l ClassCode - Enter a code for this risk classification. This code is used in
automatic calculations for contracts classified in one of the risk categories.
l Provision Principal Percent/ Provision Interest Percent - Enter the
provision percentage applicable to the principal/ interest amount of
contracts falling into this loan risk classification.
l Stop Accrual Process - If you select the checkbox, then the contracts that
fall within this loan classification delay category are excluded from the
accrual calculation processes. If a category is marked as true, all the
following categories are automatically marked as true and excepted from
the accrual calculation processes.
You can include the contracts within a loan category into the accrual
processes calculation by deselecting the Stop Accrual Process checkbox
next to a record, within the Loan Classifications List page. You can do this
only after deselecting the Stop Accrual Process checkboxes next to each
of the lower categories.

3. Click the Save and Close button.

Loan Periodicity
Core Banking uses the loan periodicity dictionary used to define the regularity of
payments. For example, payments related to loan contracts, commissions, or
installments can be performed once, daily, monthly, yearly, and so on.
To manage loan periodicity records:

1. In FintechOS Portal, click the main menu icon and expand the Admin Configurations
menu.

CONFIGURATIONS FOR CORE BANKING 43

CORE BANKING USER GUIDE

2. Click the Loan Periodicity menu item to open the Loan Periodicity page.

On the Loan Periodicity page, you can add new loan periodicity records or search,
edit, and delete existing ones.

Creating Loan Periodicity Records

Follow these steps to create new loan periodicity records:

1. Click Insert on the Loan Periodicity page. The Add Loan Periodicity page is
displayed.

2. Fill in the following fields:

l Name - Enter the name of the periodicity.

l Periodicity - Enter the number of measurement units for the periodicity.

l Measurement Unit - Select the measurement unit applicable for the periodicity
from the drop-down. Possible values: Days, Weeks, Months, Years, and
Once.

CONFIGURATIONS FOR CORE BANKING 44

CORE BANKING USER GUIDE

3. Click the Save and Reload button. The new loan periodicity is created and ready
to be used.

Operation Item
Operation items are those items that relate to a bank's core business, such as all types
of fees, commissions, principals, interests, advances or penalty calculations. You can
also consider them as balance types that add up to a certain deal or used in tracing
what happened on a particular deal. For instance, on the first day of using a new loan,
there is only the Loan Principal (LP) on that deal, or it can also have an Advance (ADV)
in some particular cases or even a Frond-End Fee (FEF). As the deal progresses,
depending on the definition and costs, as well as on repayments, the loan principal
can become Paid Principal (PP) or Overdue Principal (OVP) if due amounts are not
paid.
Core Banking uses operation items in the calculation processes of payment and
repayment notifications, due amounts, accounting entries, and others.

NOTE
If a repayment notification is not linked to a contract, then Core Banking takes the
operation item value from the allocation method configured within the
ManualAllocationMethod system parameter.
If a repayment notification is created for a contract with Closed status, then Core
Banking takes the operation item value from the allocation method selected at the
banking product level.

Examples of Using Operation Items

Example of using an operation item within a commission type definition:

CONFIGURATIONS FOR CORE BANKING 45

CORE BANKING USER GUIDE

Example of using an operation item within an interest definition:

Example of using an operation item within a repayment notification's details:

CONFIGURATIONS FOR CORE BANKING 46

CORE BANKING USER GUIDE

To manage operation item records:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click the Operation Item menu to open the Operation Item page.

On the Operation Item page, you can add new operation item records or search, edit,
and delete existing ones.

Creating Operation Item Records

Follow these steps to create new operation item records:

CONFIGURATIONS FOR CORE BANKING 47

CORE BANKING USER GUIDE

1. In the FintechOS Portal, click the Insert button on the top right side of the
Operation Item page. The Add Operation Item page is displayed.

2. Fill in the following fields:

l Code - Enter the unique code of the operation item.

l Name - Enter the name of the operation item.

l Include In Penalty Calculation - Select the checkbox to mark this new item
as an operation item used for penalty calculation.

NOTE
If a banking product has in its attached interests list an interest with
Is General = True, then at the contract level the penalty percent is
applied to all operation items that are overdue and are marked with
Include In Penalty Calculation = True. Read more information about
interests and how to define them on the Interests page within the
Banking Product User Guide.

l Penalty Item (for Repayment Notification) - If Include In Penalty

Calculation = True, select from the list an existing operation item in
whose penalty calculation this new item must participate.

3. Click the Save and Close button.

CONFIGURATIONS FOR CORE BANKING 48

CORE BANKING USER GUIDE

Core Banking System Parameters

The system parameters used by Core Banking determine the behavior of all the
contracts, transactions, limits and other parts that make up your Core Banking system.

NOTE
Do not confuse the Core Banking system parameters with the FintechOS system
parameters, stored in the systemparameter and
systemParameterOnPortalProfile entities!

Predefined Core Banking System Parameters

Here's the list of system parameters used by Core Banking, along with their
description:

AccountingAnalyticChar
It represents the analytic character used when displaying decimal
numbers.
Module that uses the system parameter: Loan Admin
Parameter type: Text
Default value: .

AccountingRealTime
It specifies if all accounting entries are generated real-time (for
True value) or on demand (for False value).
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False

AdvanceNotification

CONFIGURATIONS FOR CORE BANKING 49

CORE BANKING USER GUIDE

It specifies if the advance to be paid in a contract is displayed in a

new repayment notification record (for False value) or included in
the front-end fee repayment notification (for True value).
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False

BankAccountTransactionFeeMarkDown
This parameter instructs the system how to process bank account
transaction operations. Possible values:

l Total - the system creates 4 operations – 2 for debit and 2 for

credit for the transaction value and sum(fees)

l Individual - the system creates 2 * (1+NoFees) operations –

debit and credit for the transaction value and each fee.

Module that uses the system parameter: Loan Admin

Parameter type: Text
Default value: Total

CalculateAccrualEarlyRepayment
It specifies whether the accrual and provision should be calculated
for early repayments with the event value equal to a part of
contract's unpaid amount (partial early repayments) or only for full
early repayments.
l For True value, the accrual and provision is calculated for any
early repayment event value.
l For False value, the accrual and provision is calculated only
for full early repayment event value.

CONFIGURATIONS FOR CORE BANKING 50

CORE BANKING USER GUIDE

For each early repayment event, the accrual and provision is

calculated only if it was not calculated before for the current system
date.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: Set it according to the bank's policy.

CalendarYearEnd
The maximum year in the calendar to be used when generating
holidays for calendars. Format: YYYY.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 2100.

CalendarYearStart
The minimum year in the calendar to be used when generating
holidays for calendars. Format: YYYY
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 2019.

CreditFacilityLimitPercent
It represents the default limit of credit facility records.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 30.

CONFIGURATIONS FOR CORE BANKING 51

CORE BANKING USER GUIDE

CurrentAccount_WithOverdraft_
DaysBeforeExpire
It represents the number of days before the overdraft feature's
expiration date of a current account when the contract based on
that banking product gets displayed in the Soon to Expire Ovedrafts
dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 30.

CustomerToContractDirectDebitSettlementAcc
It handles the change on a customer's contracts once the Direct
Debit Settlement Account attribute at the customer level is
switched to true or false.
l If CustomerToContractDirectDebitSettlementAcc =
False, the changes from the customer level for direct debit
settlement do not impact existing contracts, and only the
manual repayment notifications of the affected customer
change their status accordigly.
l If CustomerToContractDirectDebitSettlementAcc =
True, the changes at the customer level for direct debit
settlement impact current contracts. All the customer's
existing contracts' Direct Debit Settlement Account settings
are changed according to the setting at the customer level,
and all the repayment notifications associated to the customer
change their status accordingly.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: Set it according to the bank's policy.

DaysBeforePurge

CONFIGURATIONS FOR CORE BANKING 52

CORE BANKING USER GUIDE

It represents the default number of calendar days that a record will

be kept in Draft status before it is purged. The records that are due
to be purged on the current day and have their transaction type's To
Be Purged field marked as True are displayed in the Records To Be
Purged Dashboard, within the section specific to the record's
transaction type. The job performing the deletion is Delete
Purged Entries and it should be scheduled at the bank's level.
The custom job error records are also purged at the interval given
by this parameter.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: Set it according to the bank's policy.

DaysFutureInstallmentsReport
It represents the default number of days before an installment's due
date in order for that installment to be included in the Future
Installments report within the Reports Dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 15.

DaysPastDueInstallmentsReport
It represents the default number of days after an unpaid
installment's due date in order for that installment to be included in
the Past Due Installments report within the Reports Dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 25.

DefaultIntervalLimitsReport
CONFIGURATIONS FOR CORE BANKING 53
CORE BANKING USER GUIDE

It represents the default number of months considered when

running the reports within the Limit Report dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 12

DefaultSalesChannelAPI
It represents the default sales channel for contracts defined via API
integration.
Module that uses the system parameter: Loan Admin
Parameter type: Lookup. To entity SalesChannel
Default value: Set it according to the bank's policy.

DefaultSalesChannelBackOffice
It represents the default sales channel for contracts defined through
the Core Banking user interface.
Module that uses the system parameter: Loan Admin
Parameter type: Lookup. To entity SalesChannel
Default value: Set it according to the bank's policy.

DelayDaysForBlockNewContractApproval
It represents the default number of delay days for blocking the
approval of new loan contracts for customers who have overdue
payments. New contract approval is blocked by Core Banking if the
customer has overdue days >= the value of the
DelayDaysForBlockNewContractApproval parameter.
Module that uses the system parameter: Collection
Parameter type: Whole Number

CONFIGURATIONS FOR CORE BANKING 54

CORE BANKING USER GUIDE

Default value: 0

DepositAggregateItemValues
It specifies if the deposit interest is split in two lines or displayed in
one line.

l For False value, the system splits the Deposit interest to recover
in two lines (- paid interest -> recover all; sight interest to pay, pay
all).

l For True value, the system displays the Deposit interest to recover
in one line with the aggregate value.

Module that uses the system parameter: Loan Admin

Parameter type: Boolean
Default value: False.

EarlyRepaymentFee_IndividualNotification
It specifies whether to generate a separate repayment notification
for the early repayment fee of a contract (for True value) or include
the fee into the repayment notification containing the actual early
repayment amount (for False value).
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False.

FrontEndFee
It specifies the commission type used for automatic notification on
contract approval (Inclusion)/ or notification daily process
(Exclusion).

CONFIGURATIONS FOR CORE BANKING 55

CORE BANKING USER GUIDE

Module that uses the system parameter: Loan Admin

Parameter type: Lookup. To entity CommissionType
Default value: Front-end Fee.

CalculatedProvisions
It specifies whether Core Banking should calculate (for True value)
or not (for False value) the provisions in the accruals and
provisions processes.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False.

DashboardCurrency
It specifies the currency in which all the amounts are displayed
within the Contracts Overview section of the Loan Admin Officer
Dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Lookup. To entity: Currency
Default value: EUR

DashboardDefaultLastXDays
It represents the default number of days considered when running
the reports within the Loan Admin Officer Dashboard.
Module that uses the system parameter: Loan Admin
Parameter type: Numeric
Default value: 365

ExchangeRate_UseLatest

CONFIGURATIONS FOR CORE BANKING 56

CORE BANKING USER GUIDE

It specifies whether Core Banking should use the latest available

exchange rates for calculations or not.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: True.

IncludeDAEIntoScheduleCalculation
It specifies whether Core Banking should include APRC (annual
percentage rate of charge) for repayment schedule calculations or
not.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: True.

LimitMandatoryForIndividuals
It specifies whether Core Banking should validate the limits for
individual customers or only validate them for legal entity
customers.

l For False value, Core Banking does not validate any limits for the
individual customers.

l For True value, Core Banking validates all the limits for the
individual customers the same way it does for legal entity
customers.

Module that uses the system parameter: Loan Admin

Parameter type: Boolean
Default value: True.

CONFIGURATIONS FOR CORE BANKING 57

CORE BANKING USER GUIDE

LogScheduleJobError
It specifies whether job errors should be logged (for True value) as
custom job error records or not (for False value). The custom job
error records are purged at the interval given by the
DaysBeforePurge parameter.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False.

ManualAllocationMethod
The default allocation method used by Core Banking for manual
repayment notifications that aren't linked to a contract.
Module that uses the system parameter: Collection
Parameter type: Lookup. To entity: AllocationMethod
Default value: CostOrder

ManualGraceRepayment
The parameter is used to set up the maturity date on manual
repayment notification, if the notification is not linked to a contract.
Module that uses the system parameter: Collection
Parameter type: Whole Number
Default value: Set it according to the bank's policy.

ManualPenaltyInterestList
The parameter holds the penalty interest list used for penalty
calculation for manual repayment notifications that are not linked to
a contract.
Module that uses the system parameter: Banking Product

CONFIGURATIONS FOR CORE BANKING 58

CORE BANKING USER GUIDE

Parameter type: Lookup. To entity: InterestList

Default value: ManualPenaltyInterestList

ManualRepaymentFee
It specifies whether a banking product can have only one
Repayment Fee type commission on its Commission List or more.
This parameter affects the Contract Event page.

l For False value, the banking product has only one Repayment Fee
commission type on its commission list.

l For True value, the banking product's commission list displays all
the commissions stored in the Commission entity with type
Repayment Fee.

Read more information about the effects of this parameter's value

in the Transaction Fees section.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: True.

PurgeScheduleJobLogDays
It specifies the number of days used to select the old data from the
schedule job log to be purged.
Module that uses the system parameter: Loan Admin
Parameter type: Whole Number
Default value: 1.

ReconciliationAccountTreatment

CONFIGURATIONS FOR CORE BANKING 59

CORE BANKING USER GUIDE

Specifies how Core Banking treats situations when the funds of the
reconciliation account associated with the banking product used in
the contract would go below zero if a disbursement event would be
approved.

l For NoMessage value, there is no error or warning message

displayed if the disbursement event that is being approved would
result in a negative balance of the associated reconciliation
account. The event can be approved and the balance can go below
zero.

l For Warning value, there is a warning message displayed if the

disbursement event that is being approved would result in a
negative balance of the associated reconciliation account. The
event can be approved and the balance can go below zero.

l For Error value, there is an error message displayed if the

disbursement event that is being approved would result in a
negative balance of the associated reconciliation account. The
event can't be approved and the balance can't go below zero.

This is a system-wide setting, applicable to events for contracts

based on all banking products without a specified Negative
balance treatment value. Core Banking also takes into
consideration the settings used at the banking product level (the
Negative balance treatment field's value next to
Reconciliation Account). Thus, if the value is specified at the
banking product level, then that value takes precedence over the
system parameter's setting.
Module that uses the system parameter: Banking Product
Parameter type: Option Set. Values from option set:
WarningErrorTreatment
Default value: Warning.

CONFIGURATIONS FOR CORE BANKING 60

CORE BANKING USER GUIDE

RepaymentFee
The commission type used for notification daily process (Exclusion).
Module that uses the system parameter: Loan Admin
Parameter type: Lookup. To entity: CommissionType
Default value: Repayment Fee

ThirdPartyPaymentIsNet
It specifies whether Core Banking should generate one or two bank
account transactions and payments for a third-party agreement
invoice when the invoice's status is changed from Approved to
Unpaid.
For False value, two bank account transactions are generated with
two payments:

l One transaction with source account = Settlement Account and

destination account = Reconciliation Account with the value
of Total Amount To Recover;

l Another transaction with source account = Reconciliation

Account and destination account = Settlement Account with
the value of Total Amount To Pay.

For True value, Core Banking calculates the difference between

Total Amount To Recover and Total Amount To Pay. Only
one bank account transaction is generated and only one payment,
representing the non-zero value between the Total Amount To
Recover and the Total Amount To Pay, as follows:

l If Total Amount To Recover - Total Amount To Pay > 0,

a new bank account transaction is generated with source account =
Settlement Account and destination account =

CONFIGURATIONS FOR CORE BANKING 61

CORE BANKING USER GUIDE

Reconciliation Account, and a payment is generated for the

invoice.

l If Total Amount To Recover - Total Amount To Pay = 0,

a bank account transaction is generated, and the transaction's
status changes to Paid.

l If Total Amount To Recover - Total Amount To Pay < 0,

a new bank account transaction is generated with source account =
Reconciliation Account and destination account =
Settlement Account, and a payment is generated for the
invoice.

When the payments are approved, the invoice's status becomes

Paid.
Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: False

ThirdPartyRole
It contains the list of allowed roles to choose from in the third-party
agreement form.
Module that uses the system parameter: Banking Product
Parameter type: Text
Default value: Merchant,Insurer,Broker,Agent

Unusage
It specifies the commission for not using the funds. The commission
type used for Credit Facility accrual daily process.
Module that uses the system parameter: Loan Admin

CONFIGURATIONS FOR CORE BANKING 62

CORE BANKING USER GUIDE

Parameter type: Lookup. To entity: CommissionType

Default value: Commission Unusage Monthly

Usage
It specifies the commission for usage of funds. The commission type
used for Credit Facility accrual daily process.
Module that uses the system parameter: Loan Admin
Parameter type: Lookup. To entity: CommissionType
Default value: Commission Usage Monthly

UseCF
It specifies whether your installation uses the Credit Facility module
for Core Banking Corporate or not.

l For True value, the Credit Facility module is used, the Credit
Facility menu item is displayed within the Core Banking Operational
menu, and the credit facility features are available in the Loan
Admin Officer Dashboard.

l For False value, the Credit Facility module isn't used, the Credit
Facility menu item is not displayed within the Core Banking
Operational menu, and the credit facility features are not available
in the Loan Admin Officer Dashboard.

Module that uses the system parameter: Loan Admin

Parameter type: Boolean
Default value: True

UseContaminationForDPDCategory

CONFIGURATIONS FOR CORE BANKING 63

CORE BANKING USER GUIDE

Loan classification works by risk contamination at the customer and

the group levels. This means that if a loan contract belonging to a
customer is classified as one of a higher risk due to delays in the
repayment process, all the other loans of the customer and of the
group where the customer is a member are further classified into
that high-risk classification. Read more about loan classification in
this dedicated page.
This parameter specifies whether Core Banking should use the risk
contamination for loan classification or not.

l For True value, risk contamination is used for loan classification,

thus one unpaid contract affecting all the loan contracts of that
customer.

l For False value, risk contamination is not used for loan

classification, thus unpaid contracts don't affect other loan
contracts of the same customer.

The parameter affects only the EOD and SOD jobs.

Module that uses the system parameter: Loan Admin
Parameter type: Boolean
Default value: True

UseGLModule
It specifies whether your installation uses the Operational Ledger
module or not. The Operational Ledger module comes within a
different digital asset than Core Banking, thus its use is optional.

l For True value, the GL module is used and the GL Settings tab is
displayed at banking product level.

CONFIGURATIONS FOR CORE BANKING 64

CORE BANKING USER GUIDE

l For False value, the GL module is not used and the GL Settings tab
does not display at banking product level.

Module that uses the system parameter: Loan Admin

Parameter type: Boolean
Default value: True

UseTPM
It specifies whether your installation uses the Third-Party
Management package for Core Banking or not.

l For True value, the third-party management related features are

available in the Loan Admin Officer Dashboard.

l For False value, the third-party management related features are

not available in the Loan Admin Officer Dashboard.

Module that uses the system parameter: Loan Admin

Parameter type: Boolean
Default value: True

Managing Core Banking System Parameters

IMPORTANT!
You must have the system administrator user right to view and manage the
Core Banking system parameters.

In order to manage the system parameters used by your FintechOS Core Banking
installation, follow these steps:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

CONFIGURATIONS FOR CORE BANKING 65

CORE BANKING USER GUIDE

2. Click Core Banking System Parameter menu item to open the Core Banking
System Parameters List page.

On the Core Banking System Parameters List page, you can add new system
parameters or search, edit, and delete existing ones.

IMPORTANT!
You can't delete parameters marked as Is System or edit anything else except their
value.

Creating Core Banking System Parameters

Follow these steps to create new system parameters to be used with Core
Banking:

1. Click Insert button on the Core Banking System Parameters List page
to display the System Parameter page.

CONFIGURATIONS FOR CORE BANKING 66

CORE BANKING USER GUIDE

2. Fill in the following fields:

l Name - Enter a suggestive name for the parameter.

l Is System - Select the checkbox to specify that the parameter

cannot deleted or edited, except its value. Leave the checkbox
empty if this parameter can be changed or deleted.
l Module - Select the Core Banking module that uses the system
parameter.
l General Description - Enter a detailed description for the system
parameter.
l Parameter Type - Select the data type of the parameter. Possible
values: Text, Date, Date Time, Invariant Date,
Whole Number, Numeric, Option Set and Entity.

3. Fill in the rest of the fields, depending on the selected data type:
l Entity - For Lookup parameter type, select the entity from where
you need to pick a record as parameter value.
l Option Set - For Option Set parameter type, select the option set
from where you need to pick a value as parameter value.
l Parameter Value - Enter the value of the default parameter.
Depending on the selected parameter type, you can either enter
a value, select the checkbox or select record:

CONFIGURATIONS FOR CORE BANKING 67

CORE BANKING USER GUIDE

l For Text, Date, Date Time, Invariant Date,

Whole Number, Numeric parameter types, enter the
desired value taking in consideration the data type's
format.
l For Boolean parameter types, select the checkbox to
specify a True value, or deselect for a False value.
l For Lookup parameter type, select the desired record from
the previously selected entity that acts as parameter value.
l For Option Set parameter types, select the desired value
from the previously selected option set that acts as
parameter value.

4. Click the Save and Reload button.

Transaction Types Used in Core Banking

Any transfer of funds between two bank accounts is recorded as a transaction. There
are different types of transactions used in the financial world.
You can manage the transaction types in the FintechOS Portal's Admin Configurations
-> Transaction Type or General Ledger Configurations -> Transaction Type menu. See
more details about managing transaction types in the Operational LedgerUser Guide.
You can also manage transaction type records in the Innovation Studio's Product
Factory > Banking Product Dictionaries > Transaction Type menu.
Before being approved and used within contracts, each banking product must have its
allowed transaction types specified in the Associated Transaction tab. For more
information, see Banking Product Factory.

Predefined Transaction Types

You can use the following transaction types are predefined in Core Banking
processes:

CONFIGURATIONS FOR CORE BANKING 68

CORE BANKING USER GUIDE

l Accruals and Provisions - It represents the funds set aside to cover

future expenses. A provision is aimed at covering a probable future
expense, or reduction in the value of an asset. An accrual is a type of
provision where revenue or expenses are recorded when a transaction
occurs rather than when payment is received or made. Can't be
purged.
l Agreement - It represents a binding contract between the bank and a
third-party entity (agent, broker, insurer, etc.) to formalize an
agreement to financially compensate the third-party for the
intermediation of selling banking products or services to customers, or
compensate the bank for the intermediation of selling the third-party's
products or services to customers, and to compensate the bank for
managing the contract with the third-party. Can be purged.
l Deposit Liquidation - It represents the way of closing the deposit
account, so the entire amount is transferred in the current account and
the deposit account is closed. If the liquidation occurs at the maturity
date, the interest will also be paid. If the liquidation occurs on any
other day except the maturity date, the customer will receive the sight
interest (if a sight interest is configured). Can't be purged.
l Disbursement - It represents the actual delivery of funds from a bank
account to the customer. The repayment schedule gets calculated or
recalculated. Can be purged.
l Early Repayment - It represents the early return of funds previously
borrowed from a lender. The repayment schedule is updated. Can be
purged.
l Early Termination Deposit - It represents the way of closing the
deposit account applicable when the deposit is terminated before
schedule. Can be purged.
l Interest Capitalization - It represents the addition of the unpaid
interest value to the principal balance. Can't be purged.
l Loan Contract - It represents a binding contract between two or more
parties to formalize a loan process. Can be purged.

CONFIGURATIONS FOR CORE BANKING 69

CORE BANKING USER GUIDE

l Overdraft Payment - It represents an amount of money that a

customer with a bank account is temporarily allowed to owe to the
bank. Can't be purged.
l Payment Deposit - It represents an amount of money paid into an
account as part of a payment schedule. Can't be purged.
l Payment Holiday - It represents taking a break of any number of
installments for the generated schedule. Can be purged.
l Repayment - It represents the act of paying back money previously
borrowed from a lender by manually repaying an installment from the
schedule. Can't be purged.
l Repayment Notification - It represents a notification sent for when a
repayment is received. At the due date of every installment, an
automatic notification is generated by Core Banking. Can't be purged.
l Reschedule Overdues - It represents an operation where overdue
installments are merged to the following installments and they are no
longer collecting penalties. The repayments schedule gets updated. Can
be purged.
l Reschedule Debt - It represents an operation that updates the balance
with the amount rescheduled. Can't be purged.
l Returned Amount or Goods - It represents the transaction through
which a customer returns all or part of a loan or mortgage in a short
while after contract creation, if the banking product was defined to
allow such transactions, and the commissions already paid by the
customer as front-end fees marked as returnable are paid back. This
transaction type only accepts Return Fee commission types. Upon
transaction approval, a new contract version is automatically created.
Can be purged.
l Third-Party Invoice - It represents the invoice through which the
amounts automatically calculated based on an agreement are recorded
in Core Banking.
l Top-Up Account - It represents adding amounts to the account before
the value drains down to zero. Can be purged.

CONFIGURATIONS FOR CORE BANKING 70

CORE BANKING USER GUIDE

l Transfer between my bank accounts - It represents the process of

moving funds between the same customer's bank accounts. Can be
purged.
l Withdraw - It represents removing funds from a bank account. Can be
purged.

IMPORTANT!
If a transaction type is marked as an automatic transaction (Is
Automatic Transaction = True), then that transaction type cannot
be selected in the Events page when creating contract events. Check the
Operational LedgerUser Guide for more information about defining
transaction types.
The transaction types that cannot be purged cannot be deleted from the
system. Their To Be Purged field within the Transaction Type page is
marked as False, cannot be edited and is hidden.
For each transaction type that can be purged, Core Banking displays a tab
in the Records To Be Purged dashboard only if their To Be Purged field is
marked as True.

Read about which transaction types are typically used for each type of
banking products in the Banking Product Factory user guides, within each
banking product's Associated Transactions section.

Current Account Contracts-Specific

Transactions
When you add events for contracts created based on current
account banking products, the following transaction types can be
selected, assuming that they were added previously at banking
product level: Top-Up Account, Transfer between my bank
accounts, Withdraw.

NOTE
The transactions can be performed only in the same currency.

Term Loan Contracts-Specific Transactions

CONFIGURATIONS FOR CORE BANKING 71

CORE BANKING USER GUIDE

When you add events for contracts created based on term loan
banking products, the following transaction types can be selected,
assuming that they were added previously at banking product level:
Disbursement, Early Repayment, Payment Holiday, Repayment
Notification, Reschedule Overdues, Reschedule Debt.

Transaction Fees
Some transactions have a fee collected at the event validation for each
contract. For these transactions, repayment notifications for those fees are
automatically generated when an event gets to the Approved status. For
Early Repayment transaction there is a repayment fee, and for Payment
Holiday transactions there is a payment holiday fee. These fees are
automatically selected from the banking product.
When defining the transaction type, you can select the commission type for
the fee:

Let's say your contract uses a banking product that has this type of fee
attached to it:

CONFIGURATIONS FOR CORE BANKING 72

CORE BANKING USER GUIDE

Core Banking uses that fee for collection at the event level, for example 4%
out of 400 USD, thus the customer must pay 416 USD in order to make an
early repayment. This amount is notified at the approval of the event.

CONFIGURATIONS FOR CORE BANKING 73

CORE BANKING USER GUIDE

For a payment holiday that affects future installments, only the payment
holiday fee gets notified.
The transaction types used for loan contracts that collect a fee at event
approval are the following:
l Payment Holiday transactions, with an associated commission type of
Payment Holiday Fee.
l Reschedule Overdues transactions, with an associated commission
type of Repayment Fee.
l Early Repayment transactions, with an associated commission type of
Repayment Fee.

NOTE
Disbursements don't have this setup for collecting a fee at event approval.

The Core Banking system parameter ManualRepaymentFee, having a

default value False, is used mostly for early repayment.

CONFIGURATIONS FOR CORE BANKING 74

CORE BANKING USER GUIDE

IMPORTANT!
When the value of the ManualRepaymentFee parameter is False, the
early repayment fee is not negotiable, and the fee values are selected
exactly as they are defined in the banking product.

When the value of the ManualRepaymentFee parameter is True, the early

repayment fee is negotiable, and the credit officer that is operating the
contract event can change the default value that is coming out of the banking
product. If the fee is a percentage, then they can change the fee percentage
or the fee value. If the fee is not a percentage, then they can change only the
fee value. Other related values are automatically updated.
In the example below, having a ManualRepaymentFee parameter set on
True, Core Banking allows changing the default repayment fee percentage of
3.5% out of 500 USD to 10%, resulting in a fee for repayment amount of 50
USD.

CONFIGURATIONS FOR CORE BANKING 75

CORE BANKING USER GUIDE

Real-Time or Queued Transaction Processing

The transactions made on bank accounts can be processed in real-time, when
the transaction is approved, or at a later time, after being placed in a queue
and taken for processing by a specialized scheduled job. The real-time
processing depends on the Real Time Process checkbox being selected or not
at every transaction type's level:

Each time a transaction is performed on a bank account, the system verifies

its transaction type's Real Time Process field. If the value is True, then the
transaction is processed right away. If the value is False, then the
transaction is inserted as a record in the BankAccountTransactionQueue
entity, with the isProcessed attribute set to False and isWithError set
to False. The Bank Account Transaction Queue Processing
scheduled job runs every 1 minute, taking the top 10 records from the entity

CONFIGURATIONS FOR CORE BANKING 76

CORE BANKING USER GUIDE

with the attribute isProcessed = False, and processing the transactions.

Any errors encountered on processing are logged in the errorMessage
attribute. The Bank Account Transaction Queue Cleanup scheduled
job runs once each night and cleans up the already processed transaction
records with isWithError = False.
As a user with admin rights, you can view the transactions within the queue
in the Bank Account Transaction Queue menu:

Bank Account Transaction Queue

Core Banking processes transactions made on bank accounts in real-time, when the
transaction is approved, or at a later time, after placing the transactions in a queue
and being taken for processing by a specialized scheduled job. The real-time
processing depends on the Real Time Process checkbox being selected or not at every
transaction type's level:

CONFIGURATIONS FOR CORE BANKING 77

CORE BANKING USER GUIDE

Each time a transaction is performed on a bank account, the system verifies its
transaction type's Real Time Process field. If the value is True, then the transaction is
processed right away. If the value is False, then the transaction is inserted as a
record in the BankAccountTransactionQueue entity, with the isProcessed
attribute set to False and isWithError set to False. The Bank Account
Transaction Queue Processing scheduled job runs every 1 minute, taking the
top 10 records from the entity with the attribute isProcessed = False, and
processing the transactions. Any errors encountered on processing are logged in the
errorMessage attribute. The Bank Account Transaction Queue Cleanup
scheduled job runs once each night and cleans up the already processed transaction
records with isWithError = False.

NOTE
You can view the transactions within the queue if you have the Loan Admin Officer
security role.

To view the bank account transactions within the queue, follow these steps:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click the Bank Account Transaction Queue menu to open the Bank Account
Transaction Queue page.

Here you can view all the bank account level transactions that were placed in the
queue, no matter their processing status. The columns of the table contain the
following information:

CONFIGURATIONS FOR CORE BANKING 78

CORE BANKING USER GUIDE

l Contract No - The contract on which the transaction was performed.

l Customer Name - The name of the customer on whose contract the transaction
was performed.
l Event Date - The date when the transaction event occured.

l Event Type - The type of the transaction event.

l Event No - The number of the transaction event.

l Event Amount - The amount of the transaction event.

l Is Processed - The checkbox specifies whether the transaction was already

processed by the Bank Account Transaction Queue Processing scheduled job or
not.
l Is With Error -The checkbox specifies whether there was an error when
processing the transaction or not.
l Error Message - The text of the error encountered when processing the job if
such an error was encountered during processing.
On the Bank Account Transaction Queue page, you can search for a specific
transaction by filling in any or all the column headers of the displayed records list.

Bank Account Transaction Configurations

Transactions between bank accounts generate debit operations on a source bank
account and credit operations on a destination bank account. The bank accounts can
be reconciliation accounts (accounts defined at the banking product level serving as
source for disbursements or accounts defined at the transaction fee level for
collecting fees), user bank accounts (current, deposit or credit accounts), or external
bank accounts (accounts from other banks).
In Core Banking, the transactions between bank accounts are created in Draft status.
When you change a transaction's status changes to Approved, Core Banking
automatically generates bank account operations: Debit Operations for the Source

CONFIGURATIONS FOR CORE BANKING 79

CORE BANKING USER GUIDE

Account, and Credit Operations for the Destination Account. It also updates the
balance for the source or the destination accounts if they are bank accounts defined
within Core Banking.
You can define fees to be added to bank account transactions. Using fee lists, you can
attach fees with specified values to each bank account transaction type. The lists can
further be filtered. When you select a transaction operation type on a bank account
transaction, Core Banking identifies the fee list and fee values and applies them
considering the data of the transaction. Core Banking creates operations of debit and
credit for both transaction value and fees. The number of credit and debit operations
created by Core Banking is managed through the
BankAccountTransactionFeeMarkDown system parameter.
You can configure the bank account transaction operations and fees by managing the
records within FintechOS Portal's dedicated menu, Admin Configurations > Bank
Account Transactions.
This page contains a series of topics that assist you in configuring how Core Banking
manages transactions between bank accounts:

Transact ion Operat ion Type 83

Transact ion Fee 87
Transact ion Fee List 89

Transaction Types Covered Through Bank Account Transaction Operation

Types in Core Banking
Core Banking currently covers within its automated processes the following
transaction types through the bank account transaction operation types:
Ne
Gene Is Is Bank
w
rates Retur Syste Is Account
C Con
Transa Usa Acco n m Auto Source Transacti
o trac
ction ge untin Trans Trans mati Entity on
de t
g actio actio c Operatio
Ver
Entry n n n Type
sion
Loa
Disbur n Contr
D Disburse
semen Acc yes no no no no act
SB ment
t oun Event
t

CONFIGURATIONS FOR CORE BANKING 80

CORE BANKING USER GUIDE

Ne
Gene Is Is Bank
w
rates Retur Syste Is Account
C Con
Transa Usa Acco n m Auto Source Transacti
o trac
ction ge untin Trans Trans mati Entity on
de t
g actio actio c Operatio
Ver
Entry n n n Type
sion
Loa
Revert
R n Contr
Disbur Disburse
D Acc yes no no yes no act
semen ment
SB oun Event
t
t
Loa
n
Repay Payme PaymentI
RP Acc yes no no yes no
ment nt n
oun
t
Cur
Top-
TP rent Contr
Up PaymentI
C Acc yes no no no no act
Accou n
A oun Event
nt
t
Dep Payme
Payme
osit nt
nt P PaymentI
Acc yes no no yes no Notif
Deposi D n
oun icati
t
t on
Cur
ren
t/
Contr
Withd Dep Payment
W yes no no no no act
raw osit Out
Event
Acc
oun
t
Transf
er Cur
betwe rent
Payment
en my TR Acc no no no no no
Out
bank oun
accou t
nts

CONFIGURATIONS FOR CORE BANKING 81

CORE BANKING USER GUIDE

Ne
Gene Is Is Bank
w
rates Retur Syste Is Account
C Con
Transa Usa Acco n m Auto Source Transacti
o trac
ction ge untin Trans Trans mati Entity on
de t
g actio actio c Operatio
Ver
Entry n n n Type
sion
Early Dep Payme
Termi R osit nt
Payment
nation P Acc yes no no yes no Notif
Out
Deposi D oun icati
t t on
Revert
Transf
Cur
er
rent Contr
betwe R Payment
Acc yes no no yes no act
en my TR Out
oun Event
bank
t
accou
nts
Dep
Deposi
D osit Contr
t Payment
L Acc yes no no no no act
Liquid Out
Q oun Event
ation
t
Loa
Resch
n
edule R RecoverD
Acc no no no no yes
Overd O ebt
oun
ues
t
Loa Repay
Repay
n ment Repayme
ment R
Acc yes no no yes no Notif ntContrac
Notific N
oun icati t
ation
t on
Loa
Early n Contr Repayme
Repay ER Acc yes no no no yes act ntContrac
ment oun Event t
t
Loa
Overd
O n Contr Repayme
raft
D Acc yes no no no no act ntContrac
Payme
P oun Event t
nt
t

CONFIGURATIONS FOR CORE BANKING 82

CORE BANKING USER GUIDE

Usually, these transactions are operated behind the scenes, on the server-side, on a
higher-order entity like Contract (once a credit contract changes its state to
Approved for auto disbursement) or ContractEvent (when the initiated event of
transferring money from a current bank account to a deposit bank account of the
same user is approved and the selected Transaction Type = Transfer
between my bank accounts).

Transaction Operation Type

A bank account transaction is any amount that moves in or out of a bank account.
There are different types of operations that affect bank account transactions. Core
Banking uses the following types of bank account transaction operations:
l Payment – usual transaction operation for a bank account transaction;

l PaymentIn – transaction operated into a bank account;

l PaymentOut – transaction operated from a bank account;

l RepaymentContract – transaction operation type used when a contract

repayment is registered. In this case, Core Banking debits the current account of
the customer and credits the reconciliation account allocated to the banking
product. This is an internal type of bank account transactions operation.
l Disbursement – transaction operation type used when a credit contract
disbursement is registered. In this case, Core Banking debits the reconciliation
account allocated to the banking product and credits the current account of the
customer. This is an internal type of bank account transactions operation.
l RecoverDebt – transaction operation type used for direct debit in case of loan
credit. Core Banking automatically registers a debt for an installment for which
the amount in the current account associated to the loan credit doesn't cover
the debt amount. This is an internal type of bank account transactions
operation.
To manage bank account transaction operation types in Core Banking, follow these
steps:

CONFIGURATIONS FOR CORE BANKING 83

CORE BANKING USER GUIDE

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Expand Bank Account Transaction menu and click Bank Account Transaction
Operation menu item to open the Bank Account Transaction Operations List
page.

On the Bank Account Transaction Operations List page, you can add new bank
account transaction operation types or search, edit, and delete existing ones.

Creating Bank Account Transaction Operation Types

Follow these steps to create new bank account transaction operation type records:

1. Click Insert on the Bank Account Transaction Operations List page to display
the Transaction Operation Type page.

2. Fill in the following fields:

l Name - Enter the name of the bank account transaction operation record.

l Code - Enter a code for this transaction operation record.

l Is Payment - Select this checkbox if the bank account transaction

operation record represents a payment within Core Banking.

CONFIGURATIONS FOR CORE BANKING 84

CORE BANKING USER GUIDE

3. If you marked Is Payment as True, then fill in these newly displayed fields:
l Is Top-Up - Select this checkbox if the bank account transaction operation
record represents a top-up type payment. This field is displayed only if the
Is Payment field is selected.
l Allow Negative Bank Account Balance - Select this checkbox if the bank
account allows the existence of a negative balance. This field is displayed
only if the Is Payment field is selected.

4. Click the Save and Reload button.

In the Transaction Fee Items section displayed after saving the record, you can
attach multiple transaction fee items, each serving a different purpose through
filters (fees for payment to a specific country, fees made in a specific currency,
fees for transfers having a certain minimum or maximum amount). Note that
fees can also be combined in fee lists. You can add as many items as you need.

5. To add a new item, click the Insert button within the Transaction Fee Items
section.

6. On the displayed Add Transaction Fee Item page, fill in the following fields:

l Name - Enter the name of the transaction fee item record.

l Transaction Fee List - Select the transaction fee list associated to the
transaction fee item.
l Transaction Operation Type - Automatically completed with the bank
account transaction operation record being edited and it cannot be
changed.

7. Click the Save and Reload button.

In the Transaction Fee Item Filters section displayed after saving the record,
you can add filters for the transaction fee item. You can add as many item filters
as you need.

CONFIGURATIONS FOR CORE BANKING 85

CORE BANKING USER GUIDE

8. To add a new item filter, click the Insert button within the Transaction Fee Item
Filters section.

9. On the newly displayed Add Transaction Fee Item Filter, fill in the following
fields to specify the filtering criteria for the transaction fee item filter:

l Filter - Select the filter for the transaction fee item filter.

l Description - Enter a description for the transaction fee item filter.

10. Optionally, fill in the following fields:

l Text Value - Enter the text value of the filter, if applicable.

l Value/ Until Value - Enter the starting/ ending value of the interval for the filter
if applicable.

l Date/ Until Date - Enter the starting/ ending date for the filter if applicable.

l OptionSet - This field is automatically completed with the option set of the filter
previously selected in the Filter field if that filter is of option set type.

l Filter Entity - This field is automatically completed with the entity of the filter
previously selected in the Filter field if that filter is of entity type.

11. Click the Save and Close button.

CONFIGURATIONS FOR CORE BANKING 86

CORE BANKING USER GUIDE

Transaction Fee
You can define different fees to be applied to bank account transactions. Using fee
lists, you can attach fees with specified values to each bank account transaction
operation type. When you select a transaction operation type on a bank account
transaction, Core Banking identifies the fee list and fee values and applies them
considering the current date of the transaction.
To manage transaction fee records:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Expand Bank Account Transaction menu and click Transaction Fee menu item
to open the Transaction Fees List page.

On the Transaction Fees List page, you can add new transaction fee records or search,
edit, and delete existing ones.

Creating Transaction Fee Records

Follow these steps to create new transaction fee records:

1. Click Insert on the Transaction Fees List page to display the Add Transaction
Fee page.

CONFIGURATIONS FOR CORE BANKING 87

CORE BANKING USER GUIDE

2. Fill in the following fields:

l Code - Enter a code for this transaction fee record.

l Name - Enter the name of the transaction fee record.

l Currency - Select the currency of the fee.

l Bank Account for Fee Collection - Select the bank account for the fee
collection.

3. Click the Save and Reload button.

You can manage the values of the transaction fee within the newly displayed
Transaction Fee Values section.

4. Click Insert within the Transaction Fee Values section to add a new value for
the fee. The Add Transaction Fee Value page is displayed.

5. Fill in the following fields:

l Fee - Automatically completed with the transaction fee for which you are
inserting values.
l Start Date/ End Date - Select the interval when the value is active.

CONFIGURATIONS FOR CORE BANKING 88

CORE BANKING USER GUIDE

l Transaction Fee Percent - Enter the percent from the bank account
transaction applied as fee value if the value is defined as a percentage.
OR
l Transaction Fee Value - The value of the transaction fee, expressed in the
transaction fee currency if the value is not defined as percentage.

6. Click the Save and Close button. The new value for the transaction fee is saved.

NOTE
You can add as many values as needed, as long as the validity periods of
the value don't overlap. The fee values are identified and applied
considering the current date of the transaction.

Transaction Fee List

Core Banking uses lists to group previously defined transaction fees. The transaction
fee lists are attached to each bank account transaction type. The lists can further be
filtered. When you select a transaction operation type on a bank account transaction,
Core Banking identifies the fee list and fee values and applies them considering the
current date of the transaction.
To manage transaction fee list records:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Expand Bank Account Transaction menu and click Transaction Fee List menu
item to open the Transaction Fees Lists List page.

CONFIGURATIONS FOR CORE BANKING 89

CORE BANKING USER GUIDE

On the Transaction Fees Lists List page, you can add new transaction fee list records
or search, edit, and delete existing ones.

Creating Transaction Fee List Records

Follow these steps to create new transaction fee list records:

1. Click the Insert button on the Transaction Fees Lists List page to open the Add
Transaction Fee List page.

2. Fill in the name of the transaction fee list record.

3. Click the Save and Reload button.

A new section, Transaction Fees, is displayed after saving the record. You can
manage the actual transaction fees of the list within this section.

4. Click Insert existing in the Transaction Fees section to add a new transaction
fee to the list.

5. In the newly displayed pop-up window, select one or more transaction fees and

CONFIGURATIONS FOR CORE BANKING 90

CORE BANKING USER GUIDE

click OK to attach them to your list.

6. Click the Save and Close button. You can add as many transaction fees as
needed to your list.

Jobs
Jobs are automated procedures that perform certain tasks, running at a specific time
or on a recurring schedule. Read detailed information about scheduling jobs in the
Innovation Studio User Guide's dedicated page.
Core Banking comes with the following scheduled jobs that perform repetitive
banking procedures for the purpose of closing one day and opening the next one, or
for processing or cleaning up queued transactions:

Start Of Day (SOD) Job

The Core Banking Start Of Day job is made up of a series of services, which
are run one by one each day before the banking day is initiated.
The following services run as part of this job, in this order:

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

CONFIGURATIONS FOR CORE BANKING 91

CORE BANKING USER GUIDE

2. Disburse Contracts With Approved Tranches In Current Date

The service performs the disbursements of contract tranches approved
on the current date (the day that is about to be opened/ initiated).

3. Set Limit Available Amount Due To FX Change

The service recalculates the available amount on limits depending on
the currency's exchange rate on a specific day. The service does not
take into consideration past versions of the limit up to a given day. It
only takes into consideration the current limit version and uses those
results for calculating the limit available value.

4. Set Collateral Available Amount And Contract Collateral Value Due To

FX Change
The service recalculates the available amount on collaterals and the
collateral value on contracts depending on the currency's exchange
rate on a specific day.

5. Set Contract Amount (Overdraft) Due To Plan Due Date Reached

(Increase/ Decrease)
The service increases/ decreases the limit amount on overdraft
contracts that reached their reevaluation plan due date.

6. Set Credit Facility Amount Due To Plan DueDate Reached (Increase/

Decrease)
The service increases/ decreases the limit amount on credit facilities
that reached their reevaluation plan due date.

7. Set Credit Facility Available Amount Due To FX Change

The service recalculates the available amount on credit facilities
depending on the currency's exchange rate on a specific day.

8. Set Contract Covenant Status Due To Review Date Reached

The service changes the status of covenants on contracts that reached
their review date.

9. Set Contract Category Based on Overdue Days

The service changes the category of contracts based on overdue days.

10. Schedule versioning after stop accrual

The service creates new schedule versions for the contracts that were
marked for stopping the accrual process calculation. The new version

CONFIGURATIONS FOR CORE BANKING 92

CORE BANKING USER GUIDE

of the schedule has the Process of Loss reason and all the un-
notified installments are updated.

11. Calculate Accrual For Overdraft Contracts and Current Accounts With
Overdraft Contracts
The service recalculates the accrual for utilization and for unusage for
overdraft contracts and for current account with overdraft contracts.

12. Calculate Accrual For Credit Facility

The service recalculates the accrual for utilization and for unusage for
credit facilities.

13. Calculate Accrual And Provisions For Loan Contracts

The service recalculates the accrual and provisions for loan contracts.

14. Calculate Overdraft Debt to recover

The service recalculates the overdraft debt still to recover from
contracts.

15. Calculate Penalties for Contracts and Credit Facility

The service recalculates the penalties for contracts and for credit
facilities.

16. Calculate Interests For Deposit Contracts

The service recalculates the interests for deposit contracts.

17. End Job Log

The service updates the same record that the Start Job Log service
inserted within the ScheduleJobLog entity, writing information
about the job ending time.

End Of Day (EOD) Job

The Core Banking End Of Day job is made up of a series of services, which
are run one by one each day after the banking day is closed.
The following services run as part of this job, in this order:

CONFIGURATIONS FOR CORE BANKING 93

CORE BANKING USER GUIDE

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

2. Set Limit Expired

The service sets the limits which are about to expire in the current day
as Expired.

3. Set Accrual Amounts on Repayment Schedule for Overdraft Contract

and Current Account with Overdraft
The service recalculates the accrual for utilization on repayment
schedules for overdraft contracts and for current account with
overdraft contracts.

4. Run Recover Debts

The service performs the direct debit transactions to recover all debts
at that point in process.

5. Set Accrual Amounts Unusage Commission Values on Repayment

Schedule for Contracts
The service recalculates the accrual for unusage commissions on
repayment schedules for contracts.

6. Update Expiry Date for Overdraft installment

The service updates all the expiry dates for overdraft installments for
the current account with overdraft contracts.

7. Generate Repayment Notifications

The service generates the repayment notifications for all the contracts
with due amounts on schedule on that day.

8. Recover Debts After Generate Notification

The service performs the direct debit transactions to recover all debts
after generating the repayment notifications.

9. Run Payment Allocation

The service performs the payment allocation operations for
unallocated or partially allocated payments.

CONFIGURATIONS FOR CORE BANKING 94

CORE BANKING USER GUIDE

10. Generate Accounting Entries

The service generates the accounting entries for all transactions
performed on that day.

11. Set Limit Available Amount Due To FX Changes

The service sets the limit amounts available to all contracts due to
exchange rates changes.

12. End Job Log

The service updates the same record that the Start Job Log service
inserted within the ScheduleJobLog entity, writing information
about the job ending time.

Bank Account Transaction Queue Processing (CB) Job

The Bank Account Transaction Queue Processing scheduled job processes all
the bank account transactions that were placed in a queue instead of being
processed in real-time at transaction approval. Each time a transaction is
performed on a bank account, the system verifies its transaction type's Real
Time Process field. If the value is True, then the transaction is processed
right away. If the value is False, then the transaction is inserted as a record
in the BankAccountTransactionQueue entity, with the isProcessed
attribute set to False and isWithError set to False. The Bank Account
Transaction Queue Processing scheduled job runs every 1 minute, taking the
top 10 records from the entity with the attribute isProcessed = False,
and processing the transactions. Any errors encountered on processing are
logged in the errorMessage attribute.
The following service runs as part of this job, in this order:

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

2. BankAccountTransactionQueue_Process
The service takes the top 10 records from the bank account
transactions queue (the BankAccountTransactionQueue entity)

CONFIGURATIONS FOR CORE BANKING 95

CORE BANKING USER GUIDE

with the attribute isProcessed = False, and processes the

transactions. After each processing, the isProcessed, isWithError,
and errorMessage attributes are updated.

3. End Job Log

The service updates the same record that the Start Job Log service
inserted within the ScheduleJobLog entity, writing information
about the job ending time.

Bank Account Transaction Queue Cleanup (CB) Job

The Bank Account Transaction Queue Cleanup scheduled job runs once each
night and deletes the already processed transaction records with the
isWithError attribute value False.
The following service runs as part of this job:

1. BankAccountTransactionQueue_Cleanup
The service deletes the records from the bank account transactions
queue (the BankAccountTransactionQueue entity) with the
attribute isProcessed = True and isWithError = False.

Close Contracts (CB) Job

The Close Contracts scheduled job closes automatically all contracts with
Automatic Closure = True and Real Time Closure = False, with
zero available amount and with no further amounts to be recovered, that
have Balance Off Date filled in and Closure Date = Current Date.
The job runs by default at 11:00 PM system time.
The following services run as part of this job, in this order:

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

CONFIGURATIONS FOR CORE BANKING 96

CORE BANKING USER GUIDE

2. CloseContract
The service closes all contracts with Automatic Closure = True
and Real Time Closure = False, with zero available amount and
with no further amounts to be recovered, that have Balance Off
Date filled in and Closure Date = Current Date.

3. End Job Log

The service updates the same record that the Start Job Log service
inserted within the ScheduleJobLog entity, writing information
about the job ending time.

Close Contracts RealTime(CB) Job

The Close Contracts RealTime scheduled job closes automatically all
contracts with Automatic Closure = True and Real Time Closure =
True, with zero available amount and with no further amounts to be
recovered. The job runs by default every 5 seconds, between 06:00 AM and
07:59 PM system time.
The following services run as part of this job, in this order:

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

2. CloseContractRealTime
The service closes all contracts with Automatic Closure = True
and Real Time Closure = True, with zero available amount and
with no further amounts to be recovered.

3. End Job Log

The service updates the same record that the Start Job Log service
inserted within the ScheduleJobLog entity, writing information
about the job ending time.

Run Loan Payment Allocation (CB) Job

CONFIGURATIONS FOR CORE BANKING 97

CORE BANKING USER GUIDE

The Run Loan Payment Allocation scheduled job processes almost in real-
time the payment allocation operations for payments with Unallocated or
Partially Allocated statuses. The job runs by default every 5 seconds,
between 06:00 AM and 07:59 PM system time.
The following services run as part of this job, in this order:

1. Start Job Log

If another SOD or EOD job is not currently running within Core Banking,
the service inserts a record into the ScheduleJobLog entity,
containing information about the job starting time.

2. Debt_to_Payment
The service processes the payment allocation operations for
unallocated or partially allocated payments.

Auto Process Manual Repayment Notifications (CB)

The Auto Process Manual Repayment Notifications (CB) scheduled job
facilitates the automatic transition of manual repayment notifications from
the Approved status into Pending Recover or In Recovery statuses, thus
allowing manual notifications to be automatically processed for payment
allocation. The job runs by default at 7:00 PM system time.
The following service runs as part of this job:

1. Auto Process Manual Repayment Notifications

The service processes the manual repayment notification record in
Approved status created on the current date of the system, changing
their status depending on the direct debit setting at the customer level.
If the Direct Debit Settlement Account field at the contract
level = True, then the manual notification's status changes to In
Recovery, otherwise it changes to Pending Recover.

TPM Invoices (TPM) Job

The TPM Invoices (TPM) scheduled job runs once each night and creates
third-party invoices and payments, for the combination of third-party entity/
agreements currency, during the validity of the agreement, on the Payment

CONFIGURATIONS FOR CORE BANKING 98

CORE BANKING USER GUIDE

Day of each agreement, as defined in the third-party agreement's Payment

Periodicity (daily, monthly, or weekly).
The following services run as part of this job, in this order:

1. Generate Invoices Automatically

The service generates third-party invoices as mentioned above, for the
combination of third-party entity/ agreements currency, during the
validity of the agreement, on the Payment Day of each agreement, as
defined in the third-party agreement's Payment Periodicity (daily,
monthly, or weekly). If invoice details were already created on a
manual invoice, then these details are excluded from the automatic
process.

2. Charge Not Paid Invoices

The service creates the bank account transactions for the due
payments for invoices with Not Paid status.

Security Roles for Core Banking

A security role is a set of privileges and levels of access to various actions/ functions
within the High Productivity Fintech Infrastructure. Read the Security Roles topic for
detailed information.
Core Banking has a set of predefined security roles specific for banking-related
business needs. Financial institutions can use these security roles to grant their
employees access rights within its systems. Read the Users topic for information
about associating security roles to users in Innovation Studio.
You can also create new security roles to fit your financial institution's business needs.
Read the Creating Security Roles topic for information about creating new security
roles in Innovation Studio.

CONFIGURATIONS FOR CORE BANKING 99

CORE BANKING USER GUIDE

Predefined Core Banking Security Roles

Core Banking comes with the following predefined security roles that grant specific
access rights to the users associated with one or more of these roles to the High
Productivity Fintech Infrastructure's actions and functions:
l Loan Admin Officer - Users with this security role have read, write and
authorize access rights to the Loans and Accounting records in all modules of
Core Banking within their organization.
l Accounting Read - Users with this security role have read access rights to the
Accounting module of Core Banking within their organization.
l Corporate Credit Officer - Users with this security role have access rights to
read and write access rights to the Contract, Contract Version, Contract
Event, Limits, Collateral Register, Credit Facility and Credit Facility Version
records of Core Banking within their organization.
l Retail Credit Officer - Users with this security role have access rights to read
and write access rights to the Contract, Contract Version, Contract Event,
Collateral Type and Collateral Register records of Core Banking within their
organization.
l Accounting Officer - Users with this security role have read and write access
rights to the Accounting module of Core Banking within their organization.
l Supervisor Risk Officer - Users with this security role have read access rights to
the Contracts, Collateral Register and Credit Facility records of Core Banking
within their organization, and authorization rights to the Limits records, all
within their organization.
l Risk Officer - Users with this security role have read access rights to the
Contracts, Collateral Register and Credit Facility records, and write access
rights to the Limits records of Core Banking within their organization.

IMPORTANT!
If your user has more than one role, then your access rights are cumulative and you
are granted the highest access right.

Read the following sections for detailed information about each security role's access
rights to entities and endpoints within the High Productivity Fintech Infrastructure:

CONFIGURATIONS FOR CORE BANKING 100

CORE BANKING USER GUIDE

Loan Admin Officer

A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:

Entity Read Insert Update Delete

Account Yes No Yes Yes
AccountRelOwnership Yes No No Yes
Address Yes No No Yes
approvalTask Yes No No Yes
businessunit Yes Yes Yes Yes
BWstatus Yes Yes Yes Yes
entity Yes Yes Yes No
entitystatus Yes Yes Yes Yes
Division Yes No No Yes
GroupAccount Yes Yes Yes Yes
GroupMember Yes No No Yes
UnitType Yes No No Yes
BandedInterest Yes No No Yes
BankingProduct Yes No No Yes
BankingProductAgreement Yes No No Yes
BankingProductDiscount Yes No No Yes
BankingProductDocument Yes No No Yes
BankingProductMandatoryRoles Yes Yes Yes Yes
BankingProductType Yes No No No
ClassificationType Yes No No Yes
CollateralType Yes Yes Yes Yes
Commission Yes Yes Yes Yes
CommissionSchema Yes Yes Yes Yes
CommissionType Yes Yes Yes Yes
CommissionValue Yes Yes Yes Yes
Covenant Yes Yes Yes Yes
Feature Yes No No Yes
Formula Yes No No Yes
FormulaType Yes Yes Yes Yes
GLAccounts Yes Yes Yes Yes
InsuranceItem Yes No No Yes
Interest Yes No No Yes
InterestCommissionItem Yes Yes Yes Yes
InterestCommissionItemFilter Yes Yes Yes Yes

CONFIGURATIONS FOR CORE BANKING 101

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

InterestRateMatrix Yes No No Yes
InterestValue Yes No No Yes
PaymentScheduleType Yes No No Yes
ProductAvailabilityItemFilter Yes No No Yes
ProductClassification Yes No No Yes
ProductCovenant Yes No No Yes
ProductDestinationType Yes No No Yes
ProductDisbursement Yes No No Yes
ProductGuaranteeStructure Yes No No Yes
ProductQuestion Yes No No Yes
TestScenario Yes No No Yes
BankAccount Yes Yes Yes Yes
BankAccountOperation Yes Yes Yes Yes
CollateralRegister Yes Yes Yes Yes
CollateralRegister_BW No Yes Yes Yes
CollateralRegisterDocuments Yes Yes Yes Yes
CollateralRegisterOwner Yes Yes Yes Yes
CollateralRegisterParticipants Yes Yes Yes Yes
CollateralRegisterRank Yes Yes Yes Yes
Contract Yes Yes Yes Yes
Contract_BW Yes Yes Yes Yes
ContractAccrualAndProvision Yes Yes Yes Yes
ContractBorrowers Yes Yes Yes Yes
ContractClassification Yes Yes Yes Yes
ContractCollateral Yes Yes Yes Yes
ContractCorrectionEntry Yes Yes Yes Yes
ContractCorrectionEntry_BW No Yes Yes Yes
ContractCorrectionEntryDetail Yes Yes Yes Yes
ContractCovenant Yes Yes Yes Yes
ContractCovenant_BW Yes Yes Yes Yes
ContractDisbursement Yes Yes Yes Yes
ContractDisbursementTranche Yes Yes Yes Yes
ContractDisbursementTranche_
Yes Yes Yes Yes
BW
ContractDiscount Yes Yes Yes Yes
ContractDocument Yes Yes Yes Yes
ContractDocument_BW Yes Yes No Yes
ContractEvent Yes Yes Yes Yes

CONFIGURATIONS FOR CORE BANKING 102

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

ContractEvent_BW No Yes Yes Yes
ContractFee Yes Yes Yes Yes
ContractGuarantor Yes Yes Yes Yes
ContractParticipant Yes Yes Yes Yes
ContractParticipant_BW Yes Yes Yes Yes
ContractPenalty Yes Yes Yes Yes
ContractReevaluation Yes Yes Yes Yes
ContractRepaymentSchedule Yes Yes Yes Yes
ContractRepaymentScheduleDetail Yes Yes Yes Yes
ContractRepaymentScheduleDisb Yes Yes Yes Yes
ContractRepaymentScheduleDisbD
Yes Yes Yes Yes
et
ContractRepaymentScheduleVersi
Yes Yes Yes Yes
on
ControlPanel Yes No No No
CovenantResolution Yes Yes Yes Yes
CreditFacility Yes No No Yes
CreditFacilityAccrual Yes No No Yes
CreditFacilityDetail Yes Yes Yes Yes
CreditFacilityFee Yes No No Yes
CreditFacilityFeeValue Yes No No Yes
CreditFacilityParticipant Yes No No Yes
CreditFacilityPlan Yes No No Yes
CreditFacilityProduct Yes No No Yes
CustomerLimit Yes Yes Yes Yes
CustomerLimit_BW Yes Yes Yes Yes
CustomerLimitType Yes Yes Yes Yes
DailyContractInterest Yes Yes Yes Yes
DelayCategory Yes Yes Yes Yes
DepositValueCalculation Yes Yes Yes Yes
Holiday Yes Yes Yes Yes
OperationItem Yes No No Yes
Payment Yes Yes Yes Yes
PaymentAllocation Yes Yes Yes Yes
PaymentNotification Yes Yes Yes Yes
PeriodicityType Yes Yes Yes Yes
ReconciliationAccountSettings Yes Yes Yes Yes
RepaymentNotification Yes No No Yes

CONFIGURATIONS FOR CORE BANKING 103

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

RepaymentNotificationDetail Yes No No Yes
SystemParameter Yes Yes Yes Yes
TransactionOperationType Yes Yes Yes Yes
VersioningReason Yes No No No
WeekDay Yes Yes Yes Yes
AccountType Yes No No Yes
Action Yes No No Yes
Activity Yes No No Yes
Country Yes No No Yes
Currency Yes Yes Yes Yes
FTOS_EntityStatusSettings Yes Yes Yes Yes
AccountingChart Yes Yes Yes Yes
AccountingEntry Yes Yes Yes Yes
AccountingJournal Yes Yes Yes Yes
AccountingScope Yes Yes Yes Yes
AccountingSystem Yes Yes Yes Yes
Journal Yes Yes Yes Yes
LegalEntity Yes Yes Yes Yes
LegalEntitySystem Yes Yes Yes Yes
OperationTransaction Yes Yes Yes Yes
OperationTransactionValue Yes Yes Yes Yes
TransactionAccountingModel Yes Yes Yes Yes
TransactionItemAccountingConfig Yes Yes Yes Yes
TransactionType Yes Yes Yes Yes
TransactionValueType Yes Yes Yes Yes
Activity Yes No No Yes
Agreement Yes Yes Yes Yes
Agreement_BW Yes Yes Yes Yes
AgreementPricing Yes Yes Yes Yes
Invoice Yes Yes Yes Yes
Invoice_BW Yes Yes Yes Yes
InvoiceDetail Yes Yes Yes Yes
FTOS_VersionSettings Yes Yes Yes Yes
optionset Yes No No Yes
optionsetitem Yes No No Yes
systemuser Yes Yes Yes Yes

A user with this security role can access the following endpoints:

CONFIGURATIONS FOR CORE BANKING 104

CORE BANKING USER GUIDE

Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductDefaultValues
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo
GetProductInterestCommissionList
AddUpdateContractPaymentHoliday
CalculateContractCustomValues
CalculateContractCustomValues_ForDisbursement
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
ContractCommissionAmountCalc
DeleteDocument
DeleteRepaymentSchedule
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractCollateralInfo
GetContractEventEditUrl
GetContractExtendedData
GetContractInfo
GetContractRepaymentSchedule
GetContractsForLimit
GetContractsWithPaymentHolidayPossibility
GetCreditFacilityLimitPercent
GetDataSourceChartAgreement
GetDataSourceChartContractOverview

CONFIGURATIONS FOR CORE BANKING 105

CORE BANKING USER GUIDE

Endpoint
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceFutureInstallmentsReport
GetDataSourceNewContractsChart
GetDataSourcePastDueInstallmentsReport
GetEarlyRepaymentValues
GetExchangeRate
GetExchangeRateOfCollateralRegisterToContract
GetFixedVariableInterest
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfContractTranches
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetPurgeableRecordsByCode
GetReasonDetails
GetRemainingNotifications
GetSalesChannelByName
GetSoonToExpireCurrentAccountWithOverdrafts
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
GetWorkingDate
PaymentHolidaySchedule
PaymentScheduleFields
PaymentScheduleFieldsDisb
PeriodicityType
ProcessAccrualsAndProvisions
RecalculateEarlyRepaymentSchedule
RecalculateSchedule
releaseCollaterals
SetInterestRate
UpdateActivationDate

CONFIGURATIONS FOR CORE BANKING 106

CORE BANKING USER GUIDE

Endpoint
UpdateTranche
ValidateOverdraftExpireFields
FTOS_CheckLicense
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
CheckToBePurgedTransaction
GenerateAccountingEntry
GetTransactionTypeDetailsBulk
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails
GetAgreementDetails
GetInvoiceDetailContracts
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Accounting Read
A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:

Entity Read Insert Update Delete

Account Yes No No No
approvalTask Yes No No No
businessunit Yes No No No
entity Yes No No No
entitystatus Yes No No No
GroupMember Yes No No No
BankingProduct Yes No No No
BankingProductType Yes No No No
Commission Yes No No No
CommissionSchema Yes No No No
CommissionType Yes No No No
CommissionValue Yes No No No
FormulaType Yes No No No
GLAccounts Yes No No No

CONFIGURATIONS FOR CORE BANKING 107

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

Interest Yes No No No
PaymentScheduleType Yes No No No
ProductClassification Yes No No No
BankAccount Yes No No No
BankAccountOperation Yes No No No
Contract Yes No No No
ContractAccrualAndProvision Yes No No No
ContractClassification Yes No No No
ContractCollateral Yes No No No
ContractCovenant Yes No No No
ContractDisbursementTranche Yes No No No
ContractDocument Yes No No No
ContractEvent Yes No No No
ContractFee Yes No No No
ContractGuarantor Yes No No No
ContractParticipant Yes No No No
ContractPenalty Yes No No No
ContractReevaluation Yes No No No
ContractRepaymentSchedule Yes No No No
ContractRepaymentScheduleDetail Yes No No No
ContractRepaymentScheduleVersi
Yes No No No
on
CreditFacility Yes No No No
CreditFacilityAccrual Yes No No No
CreditFacilityDetail Yes No No No
CreditFacilityFee Yes No No No
CreditFacilityFeeValue Yes No No No
CreditFacilityParticipant Yes No No No
CreditFacilityPlan Yes No No No
CreditFacilityProduct Yes No No No
CustomerLimit Yes No No No
CustomerLimit_BW Yes No No No
CustomerLimitType Yes No No No
OperationItem Yes No No No
Payment Yes No No No
PaymentNotification Yes No No No
PeriodicityType Yes No No No
RepaymentNotification Yes No No No

CONFIGURATIONS FOR CORE BANKING 108

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

TransactionOperationType Yes No No No
VersioningReason Yes No No No
WeekDay Yes No No No
AccountType Yes No No No
Currency Yes No No No
EntityStatusSettings Yes No No No
AccountingChart Yes No No No
AccountingEntry Yes No No No
AccountingJournal Yes No No No
AccountingScope Yes No No No
AccountingSystem Yes No No No
Journal Yes No No No
LegalEntity Yes No No No
LegalEntitySystem Yes No No No
OperationTransaction Yes No No No
OperationTransactionValue Yes No No No
TransactionAccountingModel Yes No No No
TransactionItemAccountingConfig Yes No No No
TransactionType Yes No No No
TransactionValueType Yes No No No
Agreement Yes No No No
Agreement_BW Yes No No No
AgreementPricing Yes No No No
Invoice Yes No No No
Invoice_BW Yes No No No
InvoiceDetail Yes No No No
optionset Yes No No No
optionsetitem Yes No No No

A user with this security role can access the following endpoints:
Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo

CONFIGURATIONS FOR CORE BANKING 109

CORE BANKING USER GUIDE

Endpoint
GetProductInterestCommissionList
CalculateContractCustomValues
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractEventEditUrl
GetContractInfo
GetContractRepaymentSchedule
GetContractsForLimit
GetCreditFacilityLimitPercent
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceNewContractsChart
GetExchangeRate
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetSalesChannelByName
GetSystemInvariantDate
GetSystemParameter

CONFIGURATIONS FOR CORE BANKING 110

CORE BANKING USER GUIDE

Endpoint
GetTransactionTypeByCode
PeriodicityType
UpdateActivationDate
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
GenerateAccountingEntry
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails
GetAgreementDetails
GetInvoiceDetailContracts
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

The following dashboards can be viewed by a user with this security role:
Dashboards
FTOS_RequestContractEvent
CustomerLimit

Corporate Credit Officer

A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:
Entity Read Insert Update Delete
Account Yes No Yes No
AccountRelOwnership Yes No No No
approvalTask Yes No No No
attribute Yes No No No
businessunit Yes No No No
BWstatus Yes No No No
entity Yes No No No
entitystatus Yes No No No
GroupAccount Yes No No No
GroupMember Yes No No No
BankingProduct Yes No No No
BankingProductType Yes No No No

CONFIGURATIONS FOR CORE BANKING 111

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

CollateralType Yes No Yes No
Commission Yes No No No
Covenant Yes No No No
Interest Yes No No No
InterestCommissionItem Yes No No No
InterestCommissionItemFilter Yes No No No
PaymentScheduleType Yes No No No
ProductClassification Yes No No No
BankAccount Yes No No No
BankAccountOperation Yes No No No
CollateralRegister Yes Yes Yes No
CollateralRegister_BW Yes Yes No No
CollateralRegisterDocuments Yes Yes Yes No
CollateralRegisterOwner Yes Yes Yes No
CollateralRegisterParticipants Yes Yes Yes No
CollateralRegisterRank Yes Yes Yes No
Contract Yes Yes Yes No
Contract_BW Yes Yes No No
ContractAccrualAndProvision Yes Yes Yes No
ContractBorrowers Yes Yes Yes No
ContractClassification Yes No No No
ContractCollateral Yes Yes Yes No
ContractCorrectionEntry Yes Yes Yes No
ContractCorrectionEntryDetail Yes Yes Yes No
ContractCovenant Yes Yes Yes Yes
ContractDisbursement Yes Yes Yes No
ContractDisbursementTranche Yes Yes Yes Yes
ContractDiscount Yes Yes Yes No
ContractDocument Yes Yes Yes Yes
ContractDocument_BW Yes Yes No Yes
ContractEvent Yes Yes Yes No
ContractEvent_BW Yes Yes No No
ContractFee Yes Yes Yes Yes
ContractGuarantor Yes Yes Yes No
ContractParticipant Yes Yes Yes Yes
ContractParticipant_BW Yes Yes Yes Yes
ContractPenalty Yes Yes Yes No
ContractPenaltyDetail Yes Yes Yes No

CONFIGURATIONS FOR CORE BANKING 112

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

ContractReevaluation Yes Yes Yes No
ContractRepaymentSchedule Yes Yes Yes No
ContractRepaymentScheduleDetail Yes Yes Yes No
ContractRepaymentScheduleDisb Yes Yes Yes No
ContractRepaymentScheduleDisbD
Yes Yes Yes No
et
ContractRepaymentScheduleVersi
Yes Yes Yes No
on
ControlPanel Yes No No No
CreditFacility Yes Yes Yes No
CreditFacility_BW Yes Yes No No
CreditFacility_BWA Yes Yes No No
CreditFacilityAccrual Yes Yes Yes No
CreditFacilityDetail Yes Yes Yes No
CreditFacilityDetail_BW Yes Yes No No
CreditFacilityDetail_BWA Yes Yes No No
CreditFacilityFee Yes Yes Yes No
CreditFacilityFeeValue Yes Yes Yes No
CreditFacilityParticipant Yes Yes Yes No
CreditFacilityPlan Yes Yes Yes No
CreditFacilityProduct Yes Yes Yes No
CustomerLimit Yes Yes Yes Yes
CustomerLimit_BW Yes Yes Yes Yes
CustomerLimitType Yes Yes Yes Yes
DailyContractInterest Yes Yes Yes No
DelayCategory Yes No No No
DepositValueCalculation Yes Yes Yes No
OperationItem Yes No No No
PaymentAllocation Yes Yes Yes No
PaymentNotification Yes Yes Yes No
PeriodicityType Yes No No No
RepaymentNotification Yes Yes Yes No
VersioningReason Yes No No No
AccountType Yes No No No
Currency Yes No No No
FTOS_EntityStatusSettings Yes No No No
AccountingEntry Yes No No No
TransactionType Yes No No No

CONFIGURATIONS FOR CORE BANKING 113

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

FTOS_VersionSettings Yes No No No
systemuser Yes No No No

A user with this security role can access the following endpoints:
Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
GetBankingProductInfo
GetBankingProductsForCreditFacility
GetCommissionInfo
GetProductInterestCommissionList
CalculateContractCustomValues
CalculateContractCustomValues_ForDisbursement
CalculateMaturityDate_BA
CheckCustomerRole
CheckLimitTypeRole
ContractCommissionAmountCalc
DeleteDocument
DeleteRepaymentSchedule
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CreditFacility
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractCollateralInfo
GetContractEventEditUrl
GetContractExtendedData
GetContractRepaymentSchedule
GetContractsForLimit
GetCreditFacilityInfo
GetCreditFacilityLimitPercent
GetCreditFacilityParticipantInfo
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail

CONFIGURATIONS FOR CORE BANKING 114

CORE BANKING USER GUIDE

Endpoint
GetDataSourceClosingContractsChart
GetDataSourceFutureInstallmentsReport
GetDataSourceNewContractsChart
GetDataSourcePastDueInstallmentsReport
GetEarlyRepaymentValues
GetExchangeRate
GetExchangeRateOfCollateralRegisterToContract
GetFixedVariableInterest
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetLimitTypeByCustomer
GetNoOfContractTranches
GetNoOfCurrentAccountsForCurrencyId
GetPeriodicity
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetRecoverInterest
GetRemainingNotifications
GetSalesChannelByName
GetSoonToExpireCurrentAccountWithOverdrafts
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
PaymentHolidaySchedule
PaymentScheduleFieldsDisb
PeriodicityType
ProcessAccrualsAndProvisions
RecalculateEarlyRepaymentSchedule
RecalculateRescheduleOverduesSchedule
RecalculateSchedule
releaseCollaterals
SelectNotificationForReschedule
UpdateActivationDate
UpdateContractDelayCategory_Filtered
UpdateTranche

CONFIGURATIONS FOR CORE BANKING 115

CORE BANKING USER GUIDE

Endpoint
ValidateOverdraftExpireFields
FTOS_GetCustomersAvailableForCreditFacility
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartCreditFacility
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Retail Credit Officer

A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:
Entity Read Insert Update Delete
Account Yes No No No
AccountRelOwnership Yes No No No
Address Yes No No No
approvalTask Yes No No No
businessunit Yes Yes Yes No
BWstatus Yes Yes Yes No
entity Yes Yes Yes No
entitystatus Yes Yes Yes No
Division Yes No No No
GroupAccount Yes Yes Yes No
GroupMember Yes No No No
UnitType Yes No No No
BandedInterest Yes No No No
BankingProduct Yes No No No
BankingProductAgreement Yes No No No
BankingProductDiscount Yes No No No
BankingProductDocument Yes No No No
BankingProductType Yes No No No
ClassificationType Yes No No No
CollateralType Yes Yes Yes No
Commission Yes Yes Yes No
CommissionSchema Yes Yes Yes No
CommissionType Yes Yes Yes No
CommissionValue Yes Yes Yes No
Covenant Yes Yes Yes No
Feature Yes No No No

CONFIGURATIONS FOR CORE BANKING 116

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

Formula Yes No No No
FormulaType Yes Yes Yes No
GLAccounts Yes No No No
InsuranceItem Yes No No No
Interest Yes No No No
InterestCommissionItem Yes Yes Yes No
InterestCommissionItemFilter Yes Yes Yes No
InterestRateMatrix Yes No No No
InterestValue Yes No No No
PaymentScheduleType Yes No No No
ProductAvailabilityItemFilter Yes No No No
ProductClassification Yes No No No
ProductCovenant Yes No No No
ProductDestinationType Yes No No No
ProductDisbursement Yes No No No
ProductGuaranteeStructure Yes No No No
ProductQuestion Yes No No No
TestScenario Yes No No No
BankAccount Yes Yes Yes No
BankAccountOperation Yes Yes Yes No
CollateralRegister Yes Yes Yes No
CollateralRegister_BW Yes Yes Yes No
CollateralRegisterDocuments Yes Yes Yes No
CollateralRegisterOwner Yes Yes Yes No
CollateralRegisterParticipants Yes Yes Yes No
CollateralRegisterRank Yes Yes Yes No
Contract Yes Yes Yes No
Contract_BW Yes Yes Yes No
ContractAccrualAndProvision Yes Yes Yes No
ContractBorrowers Yes Yes Yes No
ContractClassification Yes Yes Yes No
ContractCollateral Yes Yes Yes No
ContractCorrectionEntry Yes Yes Yes No
ContractCorrectionEntry_BW Yes Yes Yes No
ContractCorrectionEntryDetail Yes Yes Yes No
ContractCovenant Yes Yes Yes No
ContractCovenant_BW Yes Yes Yes No
ContractDisbursement Yes Yes Yes No

CONFIGURATIONS FOR CORE BANKING 117

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

ContractDisbursementTranche Yes Yes Yes No
ContractDisbursementTranche_
Yes Yes Yes No
BW
ContractDiscount Yes Yes Yes No
ContractDocument Yes Yes Yes Yes
ContractDocument_BW Yes Yes No Yes
ContractEvent Yes Yes Yes No
ContractEvent_BW Yes Yes Yes No
ContractFee Yes Yes Yes No
ContractGuarantor Yes Yes Yes No
ContractParticipant Yes Yes Yes No
ContractParticipant_BW Yes Yes Yes No
ContractPenalty Yes Yes Yes No
ContractReevaluation Yes Yes Yes No
ContractRepaymentSchedule Yes Yes Yes No
ContractRepaymentScheduleDetail Yes Yes Yes No
ContractRepaymentScheduleDisb Yes Yes Yes No
ContractRepaymentScheduleDisbD
Yes Yes Yes No
et
ContractRepaymentScheduleVersi
Yes Yes Yes No
on
ControlPanel Yes No No No
CovenantResolution Yes Yes Yes No
CreditFacility Yes No No No
CreditFacilityAccrual Yes No No No
CreditFacilityDetail Yes Yes Yes No
CreditFacilityFee Yes No No No
CreditFacilityFeeValue Yes No No No
CreditFacilityParticipant Yes No No No
CreditFacilityPlan Yes No No No
CreditFacilityProduct Yes No No No
CustomerLimit Yes Yes Yes Yes
CustomerLimit_BW Yes Yes Yes Yes
CustomerLimitType Yes Yes Yes Yes
DailyContractInterest Yes Yes Yes No
DepositValueCalculation Yes Yes Yes No
OperationItem Yes No No No
Payment Yes Yes Yes No

CONFIGURATIONS FOR CORE BANKING 118

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

PaymentAllocation Yes Yes Yes No
PaymentNotification Yes Yes Yes No
PeriodicityType Yes Yes Yes No
RepaymentNotification Yes No No No
RepaymentNotificationDetail Yes No No No
VersioningReason Yes No No No
WeekDay Yes Yes No No
AccountType Yes No No No
Action Yes No No No
Activity Yes No No No
Country Yes No No No
Currency Yes Yes Yes No
FTOS_EntityStatusSettings Yes Yes Yes No
AccountingEntry Yes No No No
TransactionType Yes No No No
Activity Yes No No No
Agreement Yes Yes Yes No
Agreement_BW Yes Yes Yes No
AgreementPricing Yes Yes Yes No
Invoice Yes Yes Yes No
Invoice_BW Yes Yes Yes Yes
InvoiceDetail Yes Yes Yes No
FTOS_VersionSettings Yes Yes Yes No
systemuser Yes Yes Yes No

A user with this security role can access the following endpoints:
Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductDefaultValues
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo
GetProductInterestCommissionList
AddUpdateContractPaymentHoliday
CalculateContractCustomValues
CalculateContractCustomValues_ForDisbursement

CONFIGURATIONS FOR CORE BANKING 119

CORE BANKING USER GUIDE

Endpoint
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
ContractCommissionAmountCalc
DeleteDocument
DeleteRepaymentSchedule
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractCollateralInfo
GetContractEventEditUrl
GetContractExtendedData
GetContractInfo
GetContractRepaymentSchedule
GetContractsForLimit
GetContractsWithPaymentHolidayPossibility
GetCreditFacilityLimitPercent
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceFutureInstallmentsReport
GetDataSourceNewContractsChart
GetDataSourcePastDueInstallmentsReport
GetEarlyRepaymentValues
GetExchangeRate
GetExchangeRateOfCollateralRegisterToContract
GetFixedVariableInterest
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values

CONFIGURATIONS FOR CORE BANKING 120

CORE BANKING USER GUIDE

Endpoint
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfContractTranches
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetRemainingNotifications
GetSalesChannelByName
GetSoonToExpireCurrentAccountWithOverdrafts
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
GetWorkingDate
PaymentHolidaySchedule
PaymentScheduleFields
PaymentScheduleFieldsDisb
PeriodicityType
ProcessAccrualsAndProvisions
RecalculateEarlyRepaymentSchedule
RecalculateSchedule
releaseCollaterals
SetInterestRate
UpdateActivationDate
UpdateContractDelayCategory_Filtered
UpdateTranche
ValidateOverdraftExpireFields
FTOS_CheckLicense
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails
GetAgreementDetails
GetInvoiceDetailContracts

CONFIGURATIONS FOR CORE BANKING 121

CORE BANKING USER GUIDE

Endpoint
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Accounting Officer
A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:
Entity Read Insert Update Delete
Account Yes No No No
approvalTask Yes No No No
businessunit Yes No No No
entity Yes No No No
entitystatus Yes Yes Yes No
GroupMember Yes No No No
BankingProduct Yes No No No
BankingProductType Yes No No No
Commission Yes No No No
CommissionSchema Yes No No No
CommissionType Yes Yes Yes No
CommissionValue Yes No No No
FormulaType Yes No No No
GLAccounts Yes Yes Yes No
Interest Yes No No No
PaymentScheduleType Yes No No No
ProductClassification Yes No No No
BankAccount Yes No No No
BankAccountOperation Yes No No No
Contract Yes No No No
ContractAccrualAndProvision Yes No No No
ContractClassification Yes No No No
ContractCollateral Yes No No No
ContractCovenant Yes No No No
ContractDisbursementTranche Yes No No No
ContractDocument Yes No No No
ContractEvent Yes No No No
ContractFee Yes No No No
ContractParticipant Yes No No No
ContractPenalty Yes No No No

CONFIGURATIONS FOR CORE BANKING 122

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

ContractReevaluation Yes No No No
ContractRepaymentSchedule Yes No No No
ContractRepaymentScheduleDetail Yes No No No
ContractRepaymentScheduleVersi
Yes No No No
on
CreditFacility Yes No No No
CreditFacilityAccrual Yes No No No
CreditFacilityDetail Yes No No No
CreditFacilityFee Yes No No No
CreditFacilityFeeValue Yes No No No
CreditFacilityParticipant Yes No No No
CreditFacilityPlan Yes No No No
CreditFacilityProduct Yes No No No
CustomerLimit Yes No No No
CustomerLimit_BW Yes No No No
CustomerLimitType Yes No No No
OperationItem Yes No No No
Payment Yes No No No
PaymentNotification Yes No No No
PeriodicityType Yes No No No
RepaymentNotification Yes No No No
TransactionOperationType Yes Yes Yes No
VersioningReason Yes No No No
WeekDay Yes No No No
AccountType Yes No No No
Currency Yes No No No
FTOS_EntityStatusSettings Yes No No No
AccountingChart Yes Yes Yes No
AccountingEntry Yes Yes Yes No
AccountingJournal Yes Yes Yes No
AccountingScope Yes Yes Yes No
AccountingSystem Yes Yes Yes No
Journal Yes Yes Yes No
LegalEntity Yes Yes Yes No
LegalEntitySystem Yes Yes Yes No
OperationTransaction Yes Yes Yes No
OperationTransactionValue Yes Yes Yes No
TransactionAccountingModel Yes Yes Yes No

CONFIGURATIONS FOR CORE BANKING 123

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

TransactionItemAccountingConfig Yes Yes Yes No
TransactionType Yes Yes Yes No
TransactionValueType Yes Yes Yes No
Agreement Yes No No No
Agreement_BW Yes No No No
AgreementPricing Yes No No No
Invoice Yes No No No
Invoice_BW Yes No No No
InvoiceDetail Yes No No No
optionset Yes No No No
optionsetitem Yes No No No

A user with this security role can access the following endpoints:
Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo
GetProductInterestCommissionList
CalculateContractCustomValues
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractEventEditUrl
GetContractInfo
GetContractRepaymentSchedule

CONFIGURATIONS FOR CORE BANKING 124

CORE BANKING USER GUIDE

Endpoint
GetContractsForLimit
GetCreditFacilityLimitPercent
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceNewContractsChart
GetExchangeRate
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetSalesChannelByName
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
PeriodicityType
UpdateActivationDate
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
GenerateAccountingEntry
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails
GetAgreementDetails
GetInvoiceDetailContracts
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Supervisor Risk Officer

CONFIGURATIONS FOR CORE BANKING 125

CORE BANKING USER GUIDE

A user with this security role has the following access rights to records in the
High Productivity Fintech Infrastructure's entities within their organization:
Entity Read Insert Update Delete
Account Yes No Yes No
AccountRelOwnership Yes No No No
approvalTask Yes No Yes No
businessunit Yes No No No
entity Yes No No No
entitystatus Yes No No No
GroupAccount Yes No No No
GroupMember Yes No No No
BankingProductType Yes No No No
CollateralType Yes No No No
Commission Yes No No No
CommissionSchema Yes No No No
CommissionType Yes No No No
CommissionValue Yes No No No
Covenant Yes No No No
FormulaType Yes No No No
Interest Yes No No No
PaymentScheduleType Yes No No No
ProductClassification Yes No No No
BankAccount Yes No No No
BankAccountOperation Yes No No No
CollateralRegister Yes No No No
CollateralRegisterDocuments Yes No No No
CollateralRegisterOwner Yes No No No
CollateralRegisterParticipants Yes No No No
CollateralRegisterRank Yes No No No
Contract Yes No No No
ContractAccrualAndProvision Yes No No No
ContractClassification Yes No No No
ContractCollateral Yes No No No
ContractCorrectionEntry Yes No No No
ContractCorrectionEntryDetail Yes No No No
ContractCovenant Yes No No No
ContractDisbursementTranche Yes No No No
ContractDocument Yes No No No
ContractEvent Yes No No No

CONFIGURATIONS FOR CORE BANKING 126

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

ContractFee Yes No No No
ContractGuarantor Yes No No No
ContractParticipant Yes No No No
ContractPenalty Yes No No No
ContractPenaltyDetail Yes No No No
ContractReevaluation Yes No No No
ContractRepaymentSchedule Yes No No No
ContractRepaymentScheduleDetail Yes No No No
ContractRepaymentScheduleDisb Yes No No No
ContractRepaymentScheduleVersi
Yes No No No
on
CreditFacility Yes No No No
CreditFacility_BW Yes No No No
CreditFacilityAccrual Yes No No No
CreditFacilityDetail Yes No No No
CreditFacilityFee Yes No No No
CreditFacilityFeeValue Yes No No No
CreditFacilityParticipant Yes No No No
CreditFacilityPlan Yes No No No
CreditFacilityProduct Yes No No No
CustomerLimit Yes Yes Yes Yes
CustomerLimit_BW Yes Yes Yes Yes
CustomerLimitType Yes Yes Yes Yes
OperationItem Yes No No No
Payment Yes No No No
PaymentAllocation Yes No No No
PaymentNotification Yes No No No
PeriodicityType Yes No No No
RepaymentNotification Yes No No No
RepaymentNotificationDetail Yes No No No
VersioningReason Yes No No No
WeekDay Yes No No No
AccountType Yes No No No
Currency Yes No No No
FTOS_EntityStatusSettings Yes No No No
AccountingEntry Yes No No No
TransactionType Yes No No No
Agreement Yes No No No

CONFIGURATIONS FOR CORE BANKING 127

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

Agreement_BW Yes No No No
AgreementPricing Yes No No No
Invoice Yes No No No
Invoice_BW Yes No No No
InvoiceDetail Yes No No No
FTOS_VersionSettings Yes No No No
userCompetence Yes No No No

A user with this security role can access the following endpoints:
Endpoint
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo
GetProductInterestCommissionList
CalculateContractCustomValues
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractEventEditUrl
GetContractEventFee
GetContractInfo
GetContractRepaymentSchedule
GetContractsForLimit
GetCreditFacilityInfo
GetCreditFacilityLimitPercent

CONFIGURATIONS FOR CORE BANKING 128

CORE BANKING USER GUIDE

Endpoint
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceFutureInstallmentsReport
GetDataSourceNewContractsChart
GetDataSourcePastDueInstallmentsReport
GetEarlyRepaymentValues
GetExchangeRate
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfContractTranches
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetSalesChannelByName
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
PaymentHolidaySchedule
PaymentScheduleFields
PaymentScheduleFieldsDisb
PeriodicityType
ScheduleVersionFields
UpdateActivationDate
FTOS_Entity Version
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails

CONFIGURATIONS FOR CORE BANKING 129

CORE BANKING USER GUIDE

Endpoint
GetAgreementDetails
GetInvoiceDetailContracts
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Risk Officer
A user with this security role has the following access rights to records in
High Productivity Fintech Infrastructure's entities:
Entity Read Insert Update Delete
Account Yes No Yes No
AccountRelOwnership Yes No No No
Address Yes No No No
approvalTask Yes No No No
businessunit Yes No No No
entity Yes No No No
entitystatus Yes No No No
Division Yes No No No
GroupAccount Yes No No No
GroupMember Yes No No No
UnitType Yes No No No
BankingProductType Yes No No No
CollateralType Yes No No No
Commission Yes No No No
CommissionSchema Yes No No No
CommissionType Yes No No No
CommissionValue Yes No No No
Covenant Yes No No No
FormulaType Yes No No No
Interest Yes No No No
PaymentScheduleType Yes No No No
ProductClassification Yes No No No
BankAccount Yes No No No
BankAccountOperation Yes No No No
CollateralRegister Yes No No No
CollateralRegisterDocuments Yes No No No
CollateralRegisterOwner Yes No No No
CollateralRegisterParticipants Yes No No No

CONFIGURATIONS FOR CORE BANKING 130

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

CollateralRegisterRank Yes No No No
Contract Yes Yes No No
ContractAccrualAndProvision Yes No No No
ContractClassification Yes No No No
ContractCollateral Yes No No No
ContractCorrectionEntry Yes No No No
ContractCorrectionEntryDetail Yes No No No
ContractCovenant Yes No No No
ContractDisbursementTranche Yes No No No
ContractDocument Yes No No No
ContractEvent Yes No No No
ContractFee Yes No No No
ContractGuarantor Yes No No No
ContractParticipant Yes No No No
ContractPenalty Yes No No No
ContractReevaluation Yes No No No
ContractRepaymentSchedule Yes No No No
ContractRepaymentScheduleDetail Yes No No No
ContractRepaymentScheduleDisb Yes No No No
ContractRepaymentScheduleVersi
Yes No No No
on
CreditFacility Yes No No No
CreditFacility_BW Yes No No No
CreditFacilityAccrual Yes No No No
CreditFacilityDetail Yes No No No
CreditFacilityFee Yes No No No
CreditFacilityFeeValue Yes No No No
CreditFacilityParticipant Yes No No No
CreditFacilityPlan Yes No No No
CreditFacilityProduct Yes No No No
CustomerLimit Yes Yes Yes Yes
CustomerLimit_BW Yes Yes Yes Yes
CustomerLimitType Yes Yes Yes Yes
OperationItem Yes No No No
Payment Yes No No No
PaymentAllocation Yes No No No
PaymentNotification Yes No No No
PeriodicityType Yes No No No

CONFIGURATIONS FOR CORE BANKING 131

CORE BANKING USER GUIDE

Entity Read Insert Update Delete

RepaymentNotification Yes No No No
RepaymentNotificationDetail Yes No No No
VersioningReason Yes No No No
WeekDay Yes No No No
AccountType Yes No No No
Action Yes No No No
Activity Yes No No No
Currency Yes No No No
FTOS_EntityStatusSettings Yes No No No
AccountingEntry Yes No No No
TransactionType Yes No No No
Activity Yes No No No
Agreement Yes No No No
Agreement_BW Yes No No No
AgreementPricing Yes No No No
Invoice Yes No No No
Invoice_BW Yes No No No
InvoiceDetail Yes No No No
FTOS_VersionSettings Yes Yes Yes No

A user with this security role can access the following endpoints:
Endpoints
CheckFromToDates
CheckMandatoryRoleXLimitType
CommissionSchemaDetail
GetBankingProductInfo
GetCommissionInfo
GetCommissionTypeInfo
GetPeriodicityTypeInfo
GetProductInterestCommissionList
CalculateContractCustomValues
CalculateInvoiceAmounts
CalculateMaturityDate_BA
CheckCustomerRole
CheckInvoiceHasDetails
CheckLimitTypeRole
DisplayFinancedAmountEventForm
EntityVersion_Agreement
EntityVersion_Contract

CONFIGURATIONS FOR CORE BANKING 132

CORE BANKING USER GUIDE

Endpoints
EntityVersion_CustomerLimit
getBandedInterestObject
GetBlockAmountOnContract
GetClosureOfContracts
GetCommissionDetail
GetContractEventEditUrl
GetContractEventFee
GetContractInfo
GetContractRepaymentSchedule
GetContractsForLimit
GetCreditFacilityInfo
GetCreditFacilityLimitPercent
GetDataSourceChartAgreement
GetDataSourceChartContractOverview
GetDataSourceChartCreditFacility_LoanOfficerAdminRetail
GetDataSourceClosingContractsChart
GetDataSourceFutureInstallmentsReport
GetDataSourceNewContractsChart
GetDataSourcePastDueInstallmentsReport
GetEarlyRepaymentValues
GetExchangeRate
GetGLOnContract
GetGroupInfo
GetInstallment_Principal_InstallmenNo_Values
GetInterestReferencePeriod
GetInvoiceDetails
GetLimitTypeByCustomer
GetNoOfContractTranches
GetNoOfCurrentAccountsForCurrencyId
GetProductInterestValue
GetProductMinInterestRate
GetReasonDetails
GetSalesChannelByName
GetSystemInvariantDate
GetSystemParameter
GetTransactionTypeByCode
PaymentHolidaySchedule
PaymentScheduleFields

CONFIGURATIONS FOR CORE BANKING 133

CORE BANKING USER GUIDE

Endpoints
PaymentScheduleFieldsDisb
PeriodicityType
ScheduleVersionFields
UpdateActivationDate
FTOS_GetDataSourceChartContract
FTOS_GetDataSourceChartContractEvents
FTOS_GetDataSourceChartCreditFacility
CalculateCommissionAppliedTo
CallFormula
GetAgreementBusinessStatusDisplayName
GetAgreementCommissionsDetails
GetAgreementDetails
GetInvoiceDetailContracts
GetTransactionTypesForClawback
FTOS_VerifyUsersCompetence

Banks
A bank is a financial institution licensed to receive deposits and make loans. Core
Banking needs to have some basic information about your main bank or financial
institution and your branches network, as well as about other banks or financial
institutions with whom you are in a business relationship. Such information includes
name, bank identification, branches, and bank accounts.
To manage bank records in Core Banking:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Bank menu item to open the Banks List page.

CONFIGURATIONS FOR CORE BANKING 134

CORE BANKING USER GUIDE

On the Banks List page, you can add new bank records or search, edit, and delete
existing ones. You can also create external bank accounts for customers.

Creating Bank Records

Follow these steps to create new bank records:

1. Click Insert on the Banks List page to display the Add Bank page.

2. Fill in the following fields:

l Name - Enter the name of the bank/ financial institution.

l Main Bank - If the checkbox to mark this record as the main bank, the one
where all bank accounts are created when a new contract is approved.

3. Optionally, insert the following information:

l Swift/BIC - Enter the SWIFT / BIC codes of the bank (maximum length 11
characters).

CONFIGURATIONS FOR CORE BANKING 135

CORE BANKING USER GUIDE

l First 4 characters - Represent the bank code (alphabetic)

l Next 2 characters - ISO 3166-1 alpha-2 country code (alphabetic)

l Next 2 characters - Location code (alphanumeric) (passive

participants have 1 in the second character)
l Last 3 characters - Determine the branch code, optional (XXX for
main branch/ office) (alphanumeric)
l Parent Bank - Select the parent bank of the new record if the newly
entered bank is a branch.
l Branch Code - Enter the code of the branch (maximum length 4
characters).

4. Click the Save and Reload button. The bank record is saved and the Bank
Accounts section is displayed.
For an existent bank record, view all the accounts opened for that bank record in your
system within the Bank Accounts section. If the bank is marked as Main Bank, then
all the accounts created for customers when approving a new contract are listed here.
Each account shows the alias, the number, and the status of the bank account.

Creating External Bank Accounts

You can create bank accounts opened at banks other than your main bank. These
accounts are known as external accounts, being marked with attribute
isExtern = True, and they are created within your system, without interfering
with the other bank's accounts.

CONFIGURATIONS FOR CORE BANKING 136

CORE BANKING USER GUIDE

Follow these steps to create new external bank accounts:

1. On the Banks List page, double-click the desired bank record to edit it.

2. On the newly displayed Edit Bank page, make sure the bank is not marked as
Main Bank.

3. Under the Bank Account section, click the Insert button to open the Add Bank
Account page.

4. Fill in the following fields:

l Bank - This field is automatically completed with the bank where you are
opening the external bank account.
l Customer - Select the customer for whom you are opening the account.

l Currency - Select the currency of the account.

l Account Type - Select the type of the account. Possible values are current,
savings, fixed deposit, term deposit, and loan term account.

5. Optionally, insert the following information:

l Bank Account Number - Enter the bank account number recorded within
the external bank's systems. This is not the bank account number in Core
Banking, which is automatically generated when you save the record.
l Overdraft Limit Amount - Enter an overdraft limit amount, if applicable.

6. Click the Save and Close button. The external bank account record is saved in
the Opened status and is ready to be used for referencing in bank documents.

CONFIGURATIONS FOR CORE BANKING 137

CORE BANKING USER GUIDE

Sales Channels
In Core Banking, you can create contracts through different channels: the dedicated
Core Banking menus in FintechOS Portal, API integration calls, or various digital
journeys implemented within FintechOS accelerators. The information about the sales
channel for each contract is stored at the contract level, so it can be used by financial
institutions, for example for different pricing or for selling a product on a specific
channel.
To manage the sales channel that your financial institution uses:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click Sales Channels menu item to open the Sales Channels List page.

On the Sales Channels List page, you can create a new sales channel record, edit an
record from the list by double-clicking it, delete, export or find a record.

IMPORTANT!
You need to have the Loan Admin Officer security role attached to your user to
access the Sales Channel menu.

Creating Sales Channel Records

Follow these steps to create new sales channel records:

CONFIGURATIONS FOR CORE BANKING 138

CORE BANKING USER GUIDE

1. Click the Insert button on the Sales Channels List page to open the Add Sales
Channel page is displayed.

2. Fill in the Name field with the new sales channel's desired name.

3. Click the Save and Close button. The record is now saved and you can use it to
specify a contract's origin.

Reconciliation Accounts
Reconciliation is an accounting process that compares two sets of records to check
that figures are correct and in agreement. Reconciliation also confirms that accounts
in the general ledger are consistent, accurate, and complete. Core Banking uses
reconciliation accounts in its accounting processes and in the product definition itself
as tools for monitoring the activity for a specific product or groups of products. When
creating a banking product, you must choose a reconciliation account within the
Associated Transactions tab of the banking product. These accounts are later used by
the contracts based on those banking products when performing debit or credit
transactions. Reconciliation accounts are also known as "self-bank accounts" or
"internal bank accounts".
To manage reconciliation accounts:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Reconciliation Accounts to open the Reconciliation Accounts page.

CONFIGURATIONS FOR CORE BANKING 139

CORE BANKING USER GUIDE

On the Reconciliation Accounts page, you can create a new reconciliation account
record, edit an record from the list by double-clicking it, delete, export or find a
record. You can also view the debit and credit operations performed through each
reconciliation account by double-clicking the desired account and observing the Debit
Operations and Credit Operations sections.

CONFIGURATIONS FOR CORE BANKING 140

CORE BANKING USER GUIDE

NOTE
You can open reconciliation accounts in every currency, but for the sake of
automating some processes, Core Banking allows you to define which reconciliation
account opened in a specific currency should be used within a period of time.
Thanks to these settings, Core Banking determines automatically the reconciliation
account to be used for a currency at a specific date. Read about these settings on
the "Reconciliation Account Settings" on page 144 page.

Creating Reconciliation Accounts

Follow these steps to create reconciliation accounts:

CONFIGURATIONS FOR CORE BANKING 141

CORE BANKING USER GUIDE

1. In the FintechOS Portal, click the Insert button on the top right side of the
Reconciliation Accounts page. The Add Bank Account page is displayed.

2. Fill in the following fields:

l Bank - Automatically completed with the bank or financial institution

marked as Main Bank in the system. You can't change this value.
l Internal Bank Account - This checkbox specifies that the account is an
internal bank account, used for reconciliation. Automatically checked as
True. You can't change this value.
l Currency - Select from the list the currency of the reconciliation account.

l Bank Account Number - Enter the bank account number for the
reconciliation account.
l Initial Balance - Edit the reconciliation account's initial amount, which is
automatically completed with the value of 999,999,999.00. You need the
initial balance especially for those accounts that are used for debit
purposes, representing the source for some transactions.

3. Click the Save and Reload button. The reconciliation account is saved and its
status becomes Opened, ready to be used.
The Debit Operations and Credit Operations sections are now displayed, still empty.
You can see new records in these two sections when transactions are performed for
contracts based on banking products that use this reconciliation account. The
following information is displayed about each transaction:
l Value Date - The date when the transaction was requested in the system.

l Operation Date - The date when the transaction was operated by the system.

l Currency - The currency of the transaction.

l Amount - The amount of the transaction.

CONFIGURATIONS FOR CORE BANKING 142

CORE BANKING USER GUIDE

l Detail Text - The text representing information about the transaction, such as
event type, repayment notification number, due date, and so on.

Example of Reconciliation Accounts Usage in Core

Banking
Let’s consider the product definition of the Current Account EURO
banking product, where the value selected for the Reconciliation Account
field = Reconciliation EUR:

Checking the balance of the Reconciliation EUR account in the

Reconciliation Accounts menu, we see the Initial Balance =
10,000,139,541.26:

Using an approved contract based on the Current Account EURO banking

product, we inserted and approved a Top-Up Account transaction type, with
an Event Value = 300:

Checking back to the Reconciliation EUR account in the Reconciliation

Accounts menu, the balance of the reconciliation account is updated to
reflect the transaction just inserted above. The new balance value is

CONFIGURATIONS FOR CORE BANKING 143

CORE BANKING USER GUIDE

10,000,139,241.26, with a difference of -300 from the previous value.

Observe that the same debit transaction is listed in the Debit Operations
section:

Reconciliation Account Settings

Reconciliation accounts can be opened in every currency, but for the sake of
automating some processes, Core Banking allows you to define which reconciliation
account opened in a specific currency should be used within a period of time. Thanks
to these settings, Core Banking determines automatically the reconciliation account to
be used for a currency at a specific date. For example, it validates the existence of a
setting for a reconciliation account for a specific currency upon third-party agreement
or agreement version approval. Core Banking also checks whether the reconciliation
account setting has continuity for the entire validity period of the agreement. The
reconciliation account is then automatically determined for usage within the third-
party invoicing process.
The Reconciliation Account Settings menu item, accessible within the Portal's Admin
Configurations menu, allows you to .

CONFIGURATIONS FOR CORE BANKING 144

CORE BANKING USER GUIDE

IMPORTANT!
You must have the associated role of Loan Admin Officer to view, insert, update, or
delete reconciliation account settings records.

To configure the default settings of reconciliation accounts:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click the Reconciliation Account Settings menu item to open the Reconciliation
Account Settings List page.

On the Reconciliation Account Settings List page, you can create a new reconciliation
account setting, edit an record from the list by double-clicking it, delete, export or
find a record.

NOTE
You can only delete a setting if the reconciliation account associated to it is not part
of a third-party invoice.
You can only edit the End Date of a setting if the reconciliation account associated
to it is part of a third-party invoice. The End Date must be >= than the current
system date.

Creating Reconciliation Account Settings

Follow these steps to create reconciliation account settings:

1. Click Insert on the Reconciliation Account Settings List page to open the
Reconciliation Account Settings page.

CONFIGURATIONS FOR CORE BANKING 145

CORE BANKING USER GUIDE

2. Fill in the following fields:

l Currency - Select from the list the currency of the reconciliation account.

l Reconciliation Account - Select the reconciliation account that Core

Banking should automatically use for operations in the specified currency.
l Start Date - Select the starting date for Core Banking to use this
reconciliation account for operations in the specified currency.
l End Date - Select the ending date for Core Banking to use this
reconciliation account for operations in the specified currency. Make sure
that End Date>= Start Date.

3. Click the Save and Reload button.

Core Banking checks whether the start dates and end dates don't overlap for
reconciliation accounts defined for the same currency. If the validation passes,
the reconciliation account setting is saved with a unique name in the form of
Currency Code + Start Date.

CONFIGURATIONS FOR CORE BANKING 146

CORE BANKING USER GUIDE

Customers, Groups and

Limits
Financial institutions deal with customers, either individuals or legal entities.
Customers may be part of groups. Core Banking enables you to manage customers
and groups with the aid of dedicated menus.
To perform credit related activities, financial institutions can monitor their exposure
by setting up limits for their customers. You can manage limits through a series of
menus and reports available in Core Banking.

NOTE
You must record customers, groups (if applicable), and limits (depending on your
system's configuration) to Core Banking before creating loan contracts for those
customers.

This page contains a series of topics that explain how Core Banking is configured to
work with customers, groups, and limits:

Cust om ers 148

Creating Customers 149
Groups 158
Lim it s 160
Managing Limits 170
Role-Based Limits 171
Managing Limit Types 174
Creating Limits 176
Creating New Versions of Existing Limits 181

CUSTOMERS, GROUPS AND LIMITS 147

CORE BANKING USER GUIDE

Customers
A customer is an individual or a legal entity who has an account with a bank. Opening
an account is the crucial element in establishing the bank-customer relationship. You
must create a record for each of your financial institution's customers in Core
Banking. The customer records are stored in the Account entity.

IMPORTANT!
Perform complex customer management operations using the Single Customer
View solutions, as described here.
You can also manage customers and their relevant information from Core Banking.

Creating Customers Using the Single Customer View

Menus
You can manage customers via the Single Customer View dedicated menus:
SME Clients, Banking Retail Clients and Key Contact Person.

Create new customer records for customers following the steps described in
the Adding Companies page.
After creating a record for a customer, proceed to filling in their details as
described in the Managing Detailed Company Information page.

CUSTOMERS, GROUPS AND LIMITS 148

CORE BANKING USER GUIDE

NOTE
A customer has to be in the Prospect or Customer status to be selected
when creating contracts.

Alternatively, follow these steps to manage customers in Core Banking:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Customer Core menu item to open the Customer Core page.

On the Customer Core page, you can add new customer records or search, edit, and
delete existing ones.

Creating Customers
Follow these steps to create new customer records:

1. Click Insert on the Customer Core page to open the Overview page, the first in
the customer creation process.

CUSTOMERS, GROUPS AND LIMITS 149

CORE BANKING USER GUIDE

2. Fill in the following fields:

l Name - Enter the name of the customer.

l Account Type - Select the customer type from the possible options:
Legal person, Individual person or Self-employed
individual.

3. Optionally, fill in the following fields:

l First Name - Enter the first name of the customer, if this is not a legal
person.
l Last Name - Enter the last name of the customer, if this is not a legal
person.
l Unique ID (PIN/Fiscal Registration No) - Enter the customer's unique ID:
l For an Individual customer enter their personal identification
number (PIN).
l For a Legal person or a Self employed individual
customer enter their fiscal registration number.
l Direct Debit Settlement Account - Select this checkbox if the direct debit
settlement for repayment notifications should be turned on for this
customer, regardless of the settings at the contracts level.
You can choose whether this setting should impact all the customer's
existing contracts or not with the aid of a Core Bankingsystem parameter.
l Country - Select the country of the customer. This can affect Country
Exposure limits for customers part of groups.
l Main Email - Enter the email address of the customer.

l Main Phone - Enter the phone number of the customer.

CUSTOMERS, GROUPS AND LIMITS 150

CORE BANKING USER GUIDE

l Role - Select as many roles as you wish for this customer to be able to
have within contracts. The values are displayed from the Contract Role
option set.

NOTE Roles can affect the limits that can be set up for a customer.
If a customer has a role, then they can have role-based limits that
are configured with a limit type associated to the same role. For
example, if the customer is declared as Merchant, they can have a
limit based on a limit type with the associated Merchant role.

4. Click the Save and Reload button.

The customer is saved in Newbie status, with minimum information, such as an
auto-generated customer number, but you can now add more information
about the customer in the following sections: Company Representatives,
Products, Bank Accounts and Collateral Register. The Groups & Limits tab helps
you with the configuration of group membership and limits for this customer.

5. Scroll through each of the newly displayed sections and fill in the necessary
information, as described within the sections.

6. Select the Groups & Limits tab and fill in the necessary information, as
described here.

NOTE
Change the customer's status Prospect or Customer to select that customer when
you create contracts, as pictured here:

Manage Company Representatives

This section lists the customer’s legal representatives, such as administrators,
affiliates, owners, or other key contact persons.

CUSTOMERS, GROUPS AND LIMITS 151

CORE BANKING USER GUIDE

In this section, you can add new representatives, view the existing ones by
clicking the desired record from the list, delete records from the list and
export the list.
To add a new representative to the customer, follow these steps:

1. Click the Insert button within the Company Representatives section to

open the Add Contact page.

2. Fill in the following fields:

l Contact - Select an existing customer from the database as your

new customer's representative.
l Contact Type - Select the contact type from the drop-down list.

l Account Relation Type - Select the representative's type of

relation with the customer from the drop-down list of possible
values.

3. Click the Save and Close button.

View Products
View the contracts opened for the customer in the Products section. The list
displays information about the number of the contract, the banking product,
and the activation date.

CUSTOMERS, GROUPS AND LIMITS 152

CORE BANKING USER GUIDE

Click the desired record from the list to open the Contract page with the
selected contract's information.

View Bank Accounts

View the customer’s bank accounts in the Bank Accounts section, with
details such as name of the bank, Swift/BIC, account number and type,
customer, and business status.

Click the desired record from the list to open the Bank Account page with the
selected bank account's information.

Manage Collateral Register

Manage the customer’s registered collaterals in the Collaterals section,
displaying details such as name, business status, owner, available value,
currency, last and next evaluation dates.

CUSTOMERS, GROUPS AND LIMITS 153

CORE BANKING USER GUIDE

In this section, you can add new collateral register records, view the existing
ones by clicking the desired record from the list, delete records from the list
and export the list.
To add a new collateral register record to the customer, follow these steps:

1. Click the Insert button within the Collateral Register section to display
the Add Collateral Register page, with the Customer field
automatically completed with the current customer's name.

2. Follow the steps described in the Registering Collaterals page of this

guide.

Manage Groups & Limits

Access the Group & Limits tab to manage the limits set for the customer. If
the customer is a group, then all the limits applicable for the group members
are listed here, as well as details about the group members. To learn more
about how limits and groups work, see the Limits page.

CUSTOMERS, GROUPS AND LIMITS 154

CORE BANKING USER GUIDE

NOTE
You can add both legal entity and individual customers to groups. This can
be helpful if you need to monitor group exposure for a household or a
company and its shareholders together.
When the LimitMandatoryForIndividuals system parameter is set
to True, Core Banking performs limit validations for a group containing
individual customers the same way as for groups composed solely of legal
persons.

Go through the sections available within this tab to perform the following
tasks:

Configure Group Info

You can specify whether a customer represents a group of
companies in the Group Info section.

CUSTOMERS, GROUPS AND LIMITS 155

CORE BANKING USER GUIDE

1. Fill in the following information within this section:

l Is Group - Select the checkbox if the customer

represents a group.
l Group Name - This field is displayed only if the customer
represents a group and it is automatically completed
with the current customer's name.
l Account Limit Currency - Select the currency of the
customer limit.

2. If the customer is a group, fill in the Group Rating by entering

the rating of the group.

3. Click the Save and Reload button.

Set Limits
Set the customer's limits in the Limits section. If the customer is a
group, then all the limits applicable for the group, coming from
group members, are listed here.

To add a new limit record to the customer, follow these steps:

1. Click the Insert button within the Limits section to display the
Customer Limit page, with the customer, the group and the
currency automatically completed with the current customer's
values.

CUSTOMERS, GROUPS AND LIMITS 156

CORE BANKING USER GUIDE

2. Follow the steps described in the Creating Limits page of this

guide.

Manage Members/ Group Members Section

Manage the members/ group members' details in the Members or
Group Members section. Here you can add new member records,
view the existing ones by clicking the desired record from the list,
and export the list.

To add a new member or group member to the customer, follow

these steps:

1. Click the Insert button within the Members/Group Members

section to display the Add Member/ Add Group Member
page, with the master and the group automatically completed
with the current customer's values.

CUSTOMERS, GROUPS AND LIMITS 157

CORE BANKING USER GUIDE

2. Follow the instructions from the Groups page of this guide,

selecting a customer to add as a member, and entering an
ownership percentage.

Groups
Core Banking allows you to define not only customers, but groups of customers as
well. A corporate group or group of companies is a collection of parent and subsidiary
corporations that function as a single economic entity through a common source of
control. You can add both legal entity and individual customers to groups, or you can
create groups of individual customers. This can be helpful if you need to monitor
group exposure for a household or a company and its shareholders together.

IMPORTANT!
Complex group management operations are performed by the Single Customer
View apps. For detailed information, see the Groups Info section within the Single
Customer View Legal Entities user guide.
You can also manage customers groups' relevant information from Core Banking.

To define a group, select the checkbox Is Group from the Group&Limits tab of the
Customer page, accessible through the Core Banking Operational > Customer Core
menu. After you select the checkbox, the group name is automatically populated with
the customer’s name and you can insert a rating and a limit currency for that group.

CUSTOMERS, GROUPS AND LIMITS 158

CORE BANKING USER GUIDE

Add new members to the group by clicking the Insert button from the Group
Members section. If a member has other members associated with it, they are all
displayed in the same section. For a more clear picture of the group, you can insert an
ownership percent, determined by dividing the number of shares they own by the
number of outstanding shares.

You can add subsidiary companies (sometimes referred to as child companies) to a

company by clicking the Insert button from the Group Members tab. Therefore, a
customer’s child company is displayed in the Group Members tab.

If a customer is a child company for more than one company part of different groups,
it impacts the available limit amount of the group to which it was first added.

CUSTOMERS, GROUPS AND LIMITS 159

CORE BANKING USER GUIDE

NOTE
When a member is added to or deleted from a group, Core Banking automatically
recalculates the limits of the group. The limits of the deleted member become as
they were before entering the group.
If a member is moved from one group to another via API integration, the limits of
both affected groups are automatically recalculated in real time.

Limits
The exposure is the risk a financial institution is taking on for writing the loan. Every
time a financial institution grants any type of credit facility to a customer (a loan), the
financial institution monitors its exposure to various financial indicators, which can
negatively affect the customer and the institution itself. The financial institution uses
various algorithms to calculate their exposure to the risks, but this calculation simply
adds up to their exposure.
When referring to a loan, this page refers to all types of loans: unsecured loan,
secured loan, overdraft, promissory note, working capital loan, and so on.
In FintechOSCore Banking an exposure can be related to a group or to a customer.
The approval of limits is subject to validation, depending on the type of customer.
These validations are detailed below.

Group Exposure Types

l Total Exposure - the sum of the aggregate principal amount of the loans of a lender.

l Country Exposure - the limit placed by a financial institution on the number of loans
that can be given to borrowers in a particular country. They are used to control the
financial institution' risk exposure to particular regions.

l Company Exposure - the banks' exposure to a single non-banking financial company

(NBFC).

CUSTOMERS, GROUPS AND LIMITS 160

CORE BANKING USER GUIDE

l Product Type Exposure - the maximum amount of credit an institution extends to the
group for a specific type of product.

l Product Exposure - the maximum amount of credit an institution extends to the group
for a specific product.

l Exchange Exposure - the risk a company undertakes when making financial

transactions in foreign currencies. All currencies can experience periods of high
volatility which can adversely affect profit margins, if suitable strategies are not in
place to protect cash flow from sudden currency fluctuations.

Customer Exposure Types

l Total Exposure - the sum of the aggregate principal amount of the loans of a lender.

l Product Type Exposure - the maximum amount of credit a financial institution extends
to the customer for a specific type of product.

l Product Exposure - the maximum amount of credit a financial institution extends to

the customer for a specific product.

l Exchange Exposure - the risk a company undertakes when making financial

transactions in foreign currencies. All currencies can experience periods of high
volatility which can adversely affect profit margins, if suitable strategies are not in
place to protect cash flow from sudden currency fluctuations.

NOTE
You can define new limit types that are based on roles associated to contract
participants specific to your business, and use them throughout Core Banking with
all the functionality of any other default limit type. Read the dedicated page to learn
how to manage limit type records.

CUSTOMERS, GROUPS AND LIMITS 161

CORE BANKING USER GUIDE

Validations

IMPORTANT!
The LimitMandatoryForIndividual Core Banking system parameter allows
banks to specify whether their system should validate limits for individual customer,
the same way it validates limits for legal entity customers. The limits for legal
entities and groups are validated by Core Banking by default.

For Customers Not Belonging to Groups

l Total Exposure is validated to be unique.

l Product Type Exposure is validated against the approved and active

total exposure set on the customer.
l Product Exposure is validated against the Product Type Exposure if
exists. If a Product Type Exposure does not exist, it is validated against
the Total Exposure.
l Exchange Exposure is validated against Total Exposure.

For Customers Belonging to Groups

l Total Exposure is validated to be unique and it is validated against the
Total Exposure set on the group.
l When a group defines a Company Exposure, a Total Exposure is
automatically created for that company.
l All the other limits are validated against their correspondent set on the
customer’s group, if exists. If the correspondent does not exist, there
are validated against Total Exposure from the group.
l The account limit currency is automatically filled in with the group limit
currency.

NOTE
Both legal entity and individual customers can be added to groups. This
can be helpful if you need to monitor group exposure for a household or a

CUSTOMERS, GROUPS AND LIMITS 162

CORE BANKING USER GUIDE

company and its shareholders together.

When LimitMandatoryForIndividual = True, limit validations for a
group containing individual customers happen the same way as for groups
composed solely of legal persons.

For Groups
l Total Exposure is validated to be unique.

l Product Type Exposure is validated against the approved and active

Total Exposure set on the group.
l Product Exposure is validated against the Product Type Exposure if it
exists. If a Product Type exposure does not exist, it is validated against
the Total Exposure.
l Company Exposure is validated against the approved and active total
exposure set on the group.
l Country Exposure is validated against the approved and active total
exposure set on that group.
l Exchange Exposure is validated against Total Exposure.

l You can define as many limits with the same Type (on Group or on
Customer) as long as only one Limit (Type) is in Approved status.
After setting the limits, the loan approval is validated against those
limits, as detailed below:
l If there is not at least one limit set at the customer or group
level, the approval of the loan is not possible and an explicit error
is displayed.
l Contract maturity date cannot exceed the limit’s expiry date and
an explicit error is displayed.
l The loan amount cannot exceed the corresponding limit amount.
If not, an explicit error is displayed.

NOTE
When a member is added to or deleted from a group, Core Banking

CUSTOMERS, GROUPS AND LIMITS 163

CORE BANKING USER GUIDE

automatically recalculates the limits of the group. The limits of the deleted
member become as they were before entering the group.
If a member is moved from one group to another via API integration, the
limits of both affected groups are automatically recalculated in real time.

For Role-Based Limits

Role-based limits have all the functionality of any other system limit type.
The limits defined for participants at the contract level can be updated
according to the contract's value. If a limit is set as revolving, it is replenished
with capital repayments.
For contracts based on a banking product with a mandatory role configured
at the product level, Core Banking checks whether the contract contains a
participant with the same role. For example, for a banking product with
Merchant mandatory role, if Core Banking doesn't find a participant with
this Merchant role on the contract, then an error message informs you that
"Contract participants are blocking disbursement (Merchant)!". In this case,
add a participant with the Merchant role to the contract.
If the Search Limit checkbox was selected for the mandatory role at the
banking product level, then Core Banking checks whether there is a contract
participant whose limit is of the limit type associated with the same role. In
the example above, Core Banking checks the existence of a participant who
has a Merchant Exposure type limit.
If the existing limit's available amount is smaller than the value of the
contract, then Core Banking checks the limit's Is Mandatory field. If Is
Mandatory = True, then an error is raised that the limit is reached and the
contract cannot be approved, otherwise, a warning is presented but the
contract can be approved.

NOTE
The Is Mandatory field's value cannot be changed from False to True
when versioning a limit until Available Limit Amount >= 0.

CUSTOMERS, GROUPS AND LIMITS 164

CORE BANKING USER GUIDE

IMPORTANT!
The way the system is configured by default, there are no validations at
Contract Version approval for contract participants' limits. If this is
desired, the version settings for Contract Participants need to be
changed from IsUpdate= true to IsUpdate = false.

Calculation of Available Limit Amount

After loan approval, the available amount for each corresponding limit is recalculated
by subtracting the loan amount from the limit amount. When calculating the group
limit available amount, the application takes into account all group members. If the
limit currency and loan currency are different, the application automatically converts
the loan amount using the current exchange rate.
All group and customer limits are updated daily in accordance with the exchange rate.
This is done via a job called Daily Limit Recalculation.
If a limit is revolving (Is Revolving = True at the limit level), then the limit is a
revolving limit, meaning that the Available Amount of the limit is replenished either
on each repayment of the principal or on loan contract closure, depending on the On
Repayment field's value. If Is Revolving = False, then the limit is not revolving
in any circumstances.
At a revolving limit's level, if On Repayment = True, then the Available Amount of
the limit is replenished on each repayment of the principal with the repayment value.
If On Repayment = False, then the limit amount is replenished on loan contract
closure with the amount of the contract.

CUSTOMERS, GROUPS AND LIMITS 165

CORE BANKING USER GUIDE

If a customer that already has approved contracts becomes a member of a group, all
its active limits are suspended. The same applies when excluding a customer from a
group.
If a customer is a child company for more than one company which are part of
different groups, it should have impact on the available limit amount on the group to
which it was first added, unless if it was already part of a group.

Limits Lifecycle
Limit Statuses
The four-eyes principle is applicable for limits in FintechOSCore Banking,
meaning that a record should be approved by a second bank employee, with
higher authorization rights. This is enabled via approval task High
Productivity Fintech Infrastructure capabilities and thus it is also a bank's
responsibility to set proper security roles and access rights to its users, in
order to make sure that the same user can't insert and also authorize the
same record.
A limit record has the following business workflow statuses:

l Draft - the status of a newly created limit record that was not yet sent for
approval. While in this status, you can edit some fields, but you can't use it in
contracts. Send the record to approval after editing all the necessary details.
l Pending - this is a system status applied to limits or limit versions sent
for approval, but not yet approved. No updates of the records are
available in this system status.
l Approved - the status of a limit record after being authorized for use
throughout Core Banking by a user with customer limits approval
competencies. While in this status, you cannot edit the record's details. If you
need to alter the limit's details, create a new version based on the current
limit.

CUSTOMERS, GROUPS AND LIMITS 166

CORE BANKING USER GUIDE

l Closed - the last status of a limit, after manually closing it or after creating a
new version based on the current version. No updates are allowed on the
record. The limit record cannot be used anymore.

l Suspended - the status of limit records which are suspended at the moment
and cannot be used. If a customer is introduced into a group, the customer's
limits are all suspended automatically until the limit records are reviewed and
new versions are created for them with updated information.

l Expired - the status of limits whose availability has expired, thus the record
cannot be used anymore. You can edit a limit's expiration date to a future
date by creating a new version.

IMPORTANT!
For the limit to be applied, it must be in Approved status.

Limit Versioning
Core Banking allows you to create new versions for an existing limit if you
need to modify an existing approved limit.
A limit version can have the following statuses:
l Version Draft - the status of a newly created limit version record that
was not yet sent for approval. While in this status, you can edit some
fields. Send the record to approval after editing all the necessary
details.
l Approved - the status of a limit version record after being authorized
by a user with customer limits approval competencies. While in this
status, you cannot edit the record's details.
l Version Closed - the last status of a limit version, after manually closing
it or after creating another new version based on the current version.
No updates are allowed on the record.

CUSTOMERS, GROUPS AND LIMITS 167

CORE BANKING USER GUIDE

IMPORTANT!
The way the system is configured by default, there are no validations at
Contract Version approval for contract participants' limits. If this is
desired, the version settings for Contract Participants needs to be
changed from IsUpdate= true to IsUpdate = false.

Changing Limit Statuses

You can manage a limit's life cycle by changing its status from the top right
corner of the screen.

The limit status transitions are illustrated below:

CUSTOMERS, GROUPS AND LIMITS 168

CORE BANKING USER GUIDE

Note that:

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live limit, you must create a new limit
version.

l When you create a new limit version, the current version is retired and
moved to history; no updates are allowed on the retired version.

l Every limit version starts in a draft state and must go through an approval
process before going live.

l Only one version of a limit can be live at one time.

NOTE
As a best practice, new records or new versions of existing records created
on a specific day should be approved on the same day.

CUSTOMERS, GROUPS AND LIMITS 169

CORE BANKING USER GUIDE

Managing Limits

NOTE
You must have the Corporate Credit Officer, Retail Credit Officer, or Risk Officer
security roles to add and update limits. Other associated roles allow you only to read
limits information.

To manage limit records:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Customer Limit menu item to open the Customer Limits List page.

On the Customer Limits List page, you can create a new limit record for a customer,
delete records in Draft status, and search for a specific record. You can also edit the
information for limits in Draft or Version Draft status, or create new versions for
approved limits to change their information.
Alternatively, you can also manage limits at a customer level from the Customer Core
menu, by selecting a customer from the list and managing their limit records within
the Groups & Limits tab.

CUSTOMERS, GROUPS AND LIMITS 170

CORE BANKING USER GUIDE

Role-Based Limits
Role-based limit capabilities allow you to manage limits for different customer types,
such as merchants. Using role-based limits, the limit for a customer who is a merchant
within several contracts can be configured properly, allowing the customer to take
loans until they reach their set limit.
To use role-based limits within your contracts, follow these steps:

1. Define new limit types that are based on roles associated with contract
participants specific to your business.

You can use these new limit types throughout Core Banking with all the
functionality of any other default limit type. For example, you can configure a
Merchant Exposure limit type, to enable the creation of limits for customers
who have the Merchant role associated at a customer level.

2. Associate the same role to the customer.

You can associate as many roles as you need for a customer to be able to have
within contracts, using the Role field added to the Customer page accessible
through the Customer Core menu.
Limits defined for roles at a customer level are treated as system limits and they
are affected by contracts where that specific customer plays that role. For
example, if the customer has a Merchant role, you can define them a
Merchant Exposure type limit.

CUSTOMERS, GROUPS AND LIMITS 171

CORE BANKING USER GUIDE

3. Decide whether a customer limit is a mandatory limit or not.

The Is Mandatory field's value within the Customer Limit page configures the
limit validation at the contract level. When the existing limit's available amount
is smaller than the value of the contract, Core Banking checks the limit's Is
Mandatory field. If Is Mandatory = True, then an error is raised that the
limit is reached and the contract cannot be approved, otherwise, if Is
Mandatory = False, a warning is presented but the contract can be
approved. The default value is True.

4. Configure mandatory roles at the banking products level.

The Mandatory Roles section within the Availability tab at the banking product level
allows you to add the roles of the participants that are mandatory to exist at the
contract level for contracts based on this banking product. In other words, when
creating contracts based on banking products with the Merchant role in this section,
you must add a customer with the same Merchant role as a contract participant,
otherwise, the contract cannot be approved.
When Search Limit is selected for a role on a banking product, Core Banking checks

CUSTOMERS, GROUPS AND LIMITS 172

CORE BANKING USER GUIDE

if the contract participant with this role has an attached limit configured with a limit
type associated with the same role.

NOTE
Verify the access rights for users with Corporate Credit Officer, Retail Credit Officer,
and Risk Officer security roles. The out-of-the-box settings for these security roles
allow users to add and update limits, while users with other associated roles can
only read limit information. Update the access rights according to your financial
institution's needs.

Role-Based Limits Validations

Role-based limits have all the functionality of any other system limit type. The limits
defined for participants at the contract level can be updated according to the
contract's value. If a limit is set as revolving, it is replenished with capital repayments.
For contracts based on a banking product with a mandatory role configured at the
product level, Core Banking checks whether the contract contains a participant with
the same role. For example, for a banking product with Merchant mandatory role, if
Core Banking doesn't find a participant with this Merchant role on the contract, then
an error message informs you that "Contract participants are blocking disbursement
(Merchant)!". In this case, add a participant with the Merchant role to the contract.
If the Search Limit checkbox was selected for the mandatory role at the banking
product level, then Core Banking checks whether there is a contract participant whose
limit is of the limit type associated with the same role. In the example above, Core
Banking checks the existence of a participant who has a Merchant Exposure type
limit.
If the existing limit's available amount is smaller than the value of the contract, then
Core Banking checks the limit's Is Mandatory field. If Is Mandatory = True,
then an error is raised that the limit is reached and the contract cannot be approved,
otherwise, a warning is presented but the contract can be approved.

CUSTOMERS, GROUPS AND LIMITS 173

CORE BANKING USER GUIDE

NOTE
The Is Mandatory field's value cannot be changed from False to True when
versioning a limit until Available Limit Amount >= 0.

IMPORTANT!
The way the system is configured by default, there are no validations at Contract
Version approval for contract participants' limits. If this is desired, the version
settings for Contract Participants need to be changed from IsUpdate=
true to IsUpdate = false.

Managing Limit Types

You can define new limit types that are based on roles associated to contract
participants specific to your business, and use them throughout Core Banking with all
the functionality of any other default limit type. To manage limit type records:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

2. Click Customer Limit Type menu item to open the Customer Limit Types List
page.

CUSTOMERS, GROUPS AND LIMITS 174

CORE BANKING USER GUIDE

On the Customer Limit Types List page, you can add new limit type records or search,
edit, and delete existing ones.

IMPORTANT!
You can only edit or delete limit types that are not marked as Is System. Limit
types that come with the Core Banking packages are considered system limit types
and they are applicable to the customer of a contract.

Creating Limit Types

To create a new limit record for a customer, follow these steps:

1. Click Insert on the Customer Limit Types List page to open the Add Customer
Limit Type page.

2. Fill in the following fields:

CUSTOMERS, GROUPS AND LIMITS 175

CORE BANKING USER GUIDE

l Name - Enter the name of the limit type.

l Role - Select the role of the contract participant for which this limit type
can be used.
l Importance - Enter the order in which this limit is considered by the
system. The lower the number, the higher the limit type's importance
during the limit calculations.
l Is Group - Select this checkbox if the limit type is applicable to groups.

l Is System - This read-only field marks a record as system limit type, and
only the limit types that come within the Core Banking packages are
marked as system limit types and they are applicable to the customer of a
contract. You can only edit or delete limit types that are not marked as Is
System.

3. Click the Save and Reload button.

You can view the existing customer limits affected by this limit type in the Customer
Limits section. Only customers with the same role selected on their customer record
have their customer limit displayed here.

Creating Limits

IMPORTANT!
The LimitMandatoryForIndividual Core Banking system parameter allows

CUSTOMERS, GROUPS AND LIMITS 176

CORE BANKING USER GUIDE

financial institutions to specify whether their system should validate limits for
individual customer, the same way it validates limits for legal entity customers. The
limits for legal entities and groups are validated by Core Banking by default.

To create a new limit record for a customer, follow these steps:

1. In the FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Customer Limit menu item to open the Customer Limits List page.

3. Click the Insert button to display the Customer Limit page.

Alternatively, click the Add New Customer Limit button in the Customer Limits
dashboard to display the same Customer Limit page.
Or you can manage limits at a customer level from the Customer Core menu, by
selecting a customer from the list and managing their limit records within the Groups &
Limits tab.

4. Fill in the following fields:

l Customer - Select the customer to whom the limit is associated.

l Currency - Select the currency for this limit.

l Is Group - Select the checkbox if the customer represents a group.

l Group - If the customer is not a group, this field is read-only. If the customer is a legal
entity that is also a group, the name of the group is automatically filled in.

CUSTOMERS, GROUPS AND LIMITS 177

CORE BANKING USER GUIDE

l Limit Type - Select the type from the list Total Exposure, Product Type
Exposure, Product Exposure, Exchange Exposure, Country Exposure,
Company Exposure, each predefined type explained in the Limits page, or Role-
based limits (such as Merchant Exposure) associated with the same role that
the customer has in its record.
If a customer has a role, then they can have role-based limits configured with a limit
type associated to the same role. For example, if the customer is declared as Merchant,
they can have a limit based on a limit type with the associated Merchant role.

IMPORTANT!
The correlation between the limits and group is important as the limits on
the parent entity affect the child entities. If the customer is a group, two
additional types of exposures are available: country and company
exposure.

l Limit Date - Enter the date when the limit becomes active. It is automatically
completed with the current date, but it can be changed.

l Is Revolving - If you select this checkbox, then the limit is a revolving limit, meaning
that the Available Amount of the limit is replenished either on each repayment of the
principal or on loan contract closure, depending on the On Repayment field's value. If
the checkbox is not selected, then the limit is not revolving in any circumstances. The
default value is True.

l On Repayment - You can only select this if Is Revolving = True. If selected, then
the Available Amount of the limit is replenished on each repayment of the principal
with the repayment value. If the checkbox is not selected for a revolving limit, then the
limit amount is replenished on contract closure with the amount of the contract. The
default value is True.

CUSTOMERS, GROUPS AND LIMITS 178

CORE BANKING USER GUIDE

NOTE
You can't modify the On Repayment and Is Revolving fields after limit
approval. If you must change these properties, close the limit and open a
new limit with the required setup.

l Limit Amount - Select the amount representing the limit for the credit.

l Available Limit Amount - This field is automatically completed by Core Banking

with the remaining amount, e.g. if the total exposure was $5 million, a credit
was given for $3 million, $2 million is still available.
l Is Mandatory - Selected by default. At limit validation at the contract level,
when the existing limit's available amount is smaller than the value of the
contract, then Core Banking checks the limit's Is Mandatory field. If Is
Mandatory = True, then an error is raised that the limit is reached and the
contract cannot be approved, otherwise, if Is Mandatory = False, a
warning is presented but the contract can be approved.

NOTE
The Is Mandatory field's value cannot be changed from False to True
when versioning a limit until Available Limit Amount >= 0.

l Expire Period Type - Select from the list the period type applicable for this limit:
Days, Weeks, Months, Years, or Once.
l Expire Period - Insert the number for the period, e.g. 4., i.e. 4 months.

l Expire Date - This field is automatically completed with the date when the limit
expires, as calculated based on the values entered in the previous fields.
l Review Date - Select a date when the limit is reviewed.

5. Depending on the type of exposure selected, fill in these additional fields:

CUSTOMERS, GROUPS AND LIMITS 179

CORE BANKING USER GUIDE

l For Exchange exposure, select the Exchange currency limit from the list.

l For Product Exposure, select the Product from the list. From the total exposure
amount, you can set a limited amount to be given on a certain product. For example,
for a corporate term loan to give only $2 million dollars while the total exposure is $3
million.

l For Product Type Exposure, select the Product Type from the list. If the type is
secured by an asset, then select the Product type is secured checkbox.

l For Country Exposure, select the Country where the limit is available.

l For Company Limit, select the Company for which the limit applies from the list of
group members. See Groups for details about groups.

6. Click the Save and Reload button. Core Banking saves the limit and generates a
number for a record, then displays it at the top of the page along with the name of the
customer. The History tab is also displayed, containing information about each version
of the record.

The existing contracts affected by this limit are displayed in the Contracts section.

7. Repeat to add as many limits as needed.

CUSTOMERS, GROUPS AND LIMITS 180

CORE BANKING USER GUIDE

IMPORTANT!
For the same customer, only one limit exposure can be added.

8. Send the limit record to approval by changing its status into Send to Approved.

9. As a user with customer limits approval rights, approve the record, so that it becomes
active in the system. Approve the limit from the Customer Limits dashboard
>Customer Limits Approval Requests tab or from the Approval Tasks menu.

Creating New Versions of Existing Limits

The limits are set up for versioning. Thus, if the details of an approved limit have to be
updated, a new version of the record must be created.
To create a new version for a record with the Approved status, follow these steps:

1. Double-click the limit record selected for updates.

2. Click the New Version button in the top right corner of the page.

A new version of the limit is created, with Version Draft status.

CUSTOMERS, GROUPS AND LIMITS 181

CORE BANKING USER GUIDE

3. Edit the desired fields in the Customer Limit tab. You cannot edit the limit type,
currency, group and available limit amount.

4. Click the Save and Reload button. The number of the record is automatically
updated and displayed at the top of the page. The History tab is also displayed,
containing information about each version of the record.

If the version draft record is approved, then the original record transitions into the
Version Closed status and the secondary version becomes the Approved currently
active limit record.
Read more details about versioning a record on the How to Version an Entity Record
page.

CUSTOMERS, GROUPS AND LIMITS 182

CORE BANKING USER GUIDE

Collaterals
A collateral is a property, such as securities, items of value, pledged by a borrower to
protect the interests of the lender. A lender can seize the collateral from a borrower if
the latter fails to repay a loan according to the agreed terms. A collateral acts as a
guarantee that the lender receives the amount lent even if the borrower does not
repay the loan as agreed. For example, when contracting a mortgage, the bank asks
the customer to provide their house as collateral. If the customer fails to meet the
repayment terms of their mortgage, the bank has the right to take ownership of the
house. The bank can then sell the house in order to recoup the money that it lent to
the customer.
Collateral management is the method of granting, verifying and managing collateral
transactions in order to reduce credit risk in unsecured financial transactions. It is an
essential and integral part of any financial institution's risk and regulatory compliance
framework.
There is a wide range of possible collaterals used to hedge credit exposure with
various degrees of risk:

l Cash Collateral: Fixed Deposit, Stocks, etc.

l Real estate: Property, Land

l Other: metals, commodities, etc.

Collateral System Statuses

In Core Banking, a registered collateral has the following statuses:
l Draft - the status of a newly created collateral registration record that
was not yet cleared to be used. While in this status, you can edit its
fields. Change the status of the record to Active after editing all the
necessary details in order to use it later in contracts.
l Active - the status of a collateral registration record after being
authorized for usage in contracts.

COLLATERALS 183
CORE BANKING USER GUIDE

l Owned - the collateral is being used by a contract. It is linked to a loan

or any other secured product (overdraft, bank guarantee, etc).
l Released - the status of a collateral after closing the contract to which
it was attached.

IMPORTANT!
In order to use the collateral as a guarantee for covering a secured loan
contract, it must have the Active status.

Managing Collaterals
Perform the following steps to manage collaterals in FintechOS Core Banking:

1. Add new guarantee types, if your financial institutions wishes to work with
guarantee types other than the default ones. If not, skip to Registering
Collaterals.

2. Create collateral types based on the newly added guarantee types, if applicable.
If not, skip to Registering Collaterals.

3. Register a collateral before using it within a contract. Registration is performed

based on a collateral type.
The first two steps are usually performed during Core Banking configuration, while the
3rd step is performed each time you must register an asset as a collateral, to be later
on used to cover a contract.

IMPORTANT!
You must first register a collateral so that you can use it as a guarantee for covering
a secured loan contract.

Setting Guarantee Types

COLLATERALS 184
CORE BANKING USER GUIDE

There are two guarantee types defined by default in the GuaranteeTypes

option set that cover most of the business requirements: Real Estate and
Cash Collateral.
if your financial institutions wishes to work with guarantee types other than
the default ones, add new guarantee types following these steps:

1. In Innovation Studio, click the main menu icon, expand the Admin menu, and
click Option Sets to open the Option Sets List page.

2. Find the GuaranteeTypes option set, storing the guarantee types, and
double-click it to open the Edit Option Set page.

3. In the Option Set Items section, click the Insert button to open the Add
Option Set Item page.

4. Add the details of the new guarantee type by filling in the following fields:

l Name - Enter the name of the guarantee type.

l Display Name - Enter the display name of the guarantee type.

l Value - Enter the value of the guarantee type.

l Status Id - Select the status of the item within the option set: active or
inactive. Default value: Active.

5. Click the Save and Close button. The id of the option set item is automatically
generated when saving the record.

Guarantee types are further used to define collateral types.

Creating Collateral Types

In FintechOS Core Banking there is a large range of predefined collateral
types:

COLLATERALS 185
CORE BANKING USER GUIDE

l Predefined collaterals for Cash Collateral guarantee: Fixed Deposit, Stock,

Bonds.

l Predefined collaterals for Real Estate guarantee: Land and Property.

You can create new ones for your business specific needs. To add new
collateral types, follow the steps described in the Collateral Type page within
the Banking Product Factory user guide.

Registering Collaterals
You should register a collateral to support managing secured loans. You can
attach a registered collateral to multiple contracts if the contracts total
amount does not exceed the collateral available amount.
In order to use the collateral as a guarantee for covering a secured loan
contract, you must first insert it in the collateral register. Follow these steps
to register a collateral:

1. In the FintechOS Portal, click the main menu icon and expand the Core
Banking Operational menu.

2. Click Collateral Register menu item to open the Collateral Register List page.
On the Collateral Register List page, you can add new collateral records or
search, edit, and delete existing ones.

COLLATERALS 186
CORE BANKING USER GUIDE

NOTE
Collateral register records with an Owned status cannot be deleted. See
Collateral System Statuses for more details.

3. Click the Insert button on the Collateral Register List page to add a
new collateral register.

4. In the newly displayed Add Collateral Register page, fill in the following
fields:

l Name - Automatically completed by Core Banking after saving

the record, it displays the id of the collateral.
l Customer - Select the customer who owns the collateral. A
collateral may have many owners. If this is your case, enter the
rest of the owners in the Collateral Owners section as
guarantors.
Only displayed when registering a new collateral.

COLLATERALS 187
CORE BANKING USER GUIDE

l Collateral Type - Select the type of the collateral from the drop-
down list.
l Currency - Select the currency of the collateral. It can be
different from the currency of the contract which uses this
collateral as a guarantee.
l Next Evaluation Date - For Real Estate collaterals, you can insert
the next evaluation date. Only displayed when editing an existing
collateral register.

5. Optionally, fill in the following fields:

l Market Value - Enter the market value of the collateral which is
taken into consideration. Only applicable for Real Estate and
Others collateral types.
l Adjusted Value - The percent that should be covered by the
collateral is set in at the banking product level, in the
Collateral Cover Percent field. Only applicable for Real
Estate and Others collateral types, it is automatically calculated
by Core Banking.
l Available Value - If the collateral is used to cover other loans,
Core Banking automatically calculates the remaining value and
displays it in this read-only field.
l Bank Account - Enter the customer's current account so that the
funds within the account can serve as a guarantee.
l Deposit Bank Account - Select the deposit bank account of the
customer from the list of accounts with Open status and type
different than Loan Term Account. Only applicable for Cash
collateral types.
l Start Date - Select the start date for the collateral registration.

l Expiry Date - Select the end date for the collateral registration.

l Renewal Date - Select the date when the collateral registration is

renewed.
l Evaluated By - Select the customer who evaluated the collateral.

COLLATERALS 188
CORE BANKING USER GUIDE

l Right On Good - Select the type of rights held on the collateral

goods. Possible values: Full Property, Naked Property and
Usufruct.
l Last Evaluation Date - For Real Estate collaterals, you can insert
the previous evaluation date. Only displayed when editing an
existing collateral register.
l Description - Enter a suggestive description for the collateral.

l Attached File - Attach files relevant for the collateral.

6. Click the Save and Reload button.

After saving the record, fill in the new sections displayed in the page, with
specific information:

Add Collateral Register Rank

In the Collateral Register Rank section, you can insert, delete or
export collateral register ranks.
To add a rank:

1. Click Insert and fill in the following fields:

l Parity On Rank - Select the checkbox to mark the
collateral with parity on rank.
l Rank - Select the rank of the collateral.

l Owner - Select the customer who owns the collateral.

2. Click the Save and Close button.

View Contract Collaterals

The list within the Contract Collateral section is automatically
generated, displaying the contracts where the current collateral is
used as guarantee, if such contracts exist. The following information
is displayed:

COLLATERALS 189
CORE BANKING USER GUIDE

l Contract - The id of the contract where the collateral is

attached.
l Status - The status of the contract.

l Collateral Register Value - The value of the registered

collateral.
l Collateral Register Value Usage (%) - The percent from the
collateral used for coverage within the contract.
l Value in Contract Currency - The value of the collateral
expressed in the currency of the contract.
To edit a collateral attached to a contract from this list:

1. Double-click the record and perform the desired updates in

the Edit Contract Collateral page.

2. Click the Save and Close button.

Manage Collateral Owners

A collateral may have multiple owners. The customer whom you
previously entered before saving the collateral register record
becomes the main owner. To add other registered customers who
partially own the collateral, use the Collateral Owners section of the
Edit Collateral Register page. The other owners of the collateral are
considered guarantors of the contract, and they should consent on
this. They are stored in the Collateral Register Owner entity.
To add an owner:

1. Click Insert and fill in the following fields:

l Collateral - Automatically filled in by Core Banking with
the id of the collateral register record.

COLLATERALS 190
CORE BANKING USER GUIDE

l Customer - Select the customer who partially owns the

collateral and becomes a guarantor for contracts where
the collateral is used.

2. Click the Save and Close button.

Manage Collateral Register Participants

In the Collateral Register Participants section, you can insert, delete
or export customers who participate to the collateral in a specific
role such as notary, valuer, etc.
To add a participant:

1. Click Insert and fill in the following fields:

l Participant - Select the customer who is a participant to
the collateral.
l Participant Role - Select the role of the customer in this
collateral.

2. Click the Save and Close button.

Manage Collateral Register Documents

In the Collateral Register Documents section, you can insert, delete
or export collateral documents.
To add a document:

1. Click Insert and fill in the following fields:

l Document Type - Select the type of the document that
is uploaded for the collateral.
l Collateral File - Attach the file to be uploaded.

2. Click the Save and Close button.

COLLATERALS 191
CORE BANKING USER GUIDE

Contracts
Any agreement between a bank or a financial institution and a customer regarding the
usage of a banking product is documented legally with a contract.
FintechOS Core Banking allows financial institutions to create banking product
agreements (contracts) for their customers based on approvals. This is how Core
Banking indicates the selling of a banking product, recording a contract to reflect the
product and negotiated details within the origination process.

Contract Implementation Notes

l The contract approval is made according to the specifications of the financial
institution set during the implementation process.
l The integration is done according to the financial institution's requirements.

l The contract should be approved only after the advance is paid. This should be
applicable for loan contracts with a stipulated advance amount or percent to be
paid on the first disbursement day (for merchant loans), in order to avoid having
to close newly created contracts if the process of collecting the advance and
potential fees fails.

Managing Contracts
NOTE
Core Banking enables you to manage contracts via the user interface or via
integration through APIs. For information about the available endpoints, please visit
the Core Banking Developer Guide.
For information about managing contracts via the user interface, continue reading
this page.

To manage contracts:

CONTRACTS 192
CORE BANKING USER GUIDE

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Contract menu item to open the Contracts page.

Alternatively, you can select the Contracts dashboard.

On the Contracts page, you can add new contract records or search, edit, and
delete existing ones in Draft status.

CONTRACTS 193
CORE BANKING USER GUIDE

Core Banking has a series of buttons that help shorten the processes of managing
contracts. Such actions aid you quickly streamline several processes. In the selected
contract's page, in the top right corner, a series of buttons (depicted below in green)
trigger different actions.

l Button 1 is the Save and close button.

l Button 2 is the Save and reload button.

l Button 3 opens the Contract Business Workflow Transitions List.

l Button 4 creates a new version of the existing contract. The new version has to
be approved before the customer starts using it. If it is NOT approved, then the
initial version can still be used.

Loans
A loan is a banking product which defines a loan for a specific amount, that has a
specified repayment schedule and either a fixed or floating interest rate. Core Banking
enables you to create contracts based on term loan products and to manage such
contracts. Read about the operations that you can perform for the various types of
loans: revolving loans, unsecured personal loans, secured loans, credit facility, SME
loans.

Loan Cont ract Life Cycle and St at es 195

Creat ing A N ew Unsecured Loan 199
Creat ing A N ew Secured Loan 216

CONTRACTS 194
CORE BANKING USER GUIDE

Approving a Loan 220

Reject ing a Loan 226
Disbursing a Loan 228
Processing Loan Repaym ent s 234
Working wit h Overdue Loans 263
Applying Paym ent Holiday t o a Loan 266
Working wit h Grace 270
Working wit h Part icipant s 272
Working wit h Tranches 274
Working wit h Covenant s 276
Working wit h Cont ract Classificat ion 280
Working wit h Ret urns 281
Applying Fees and Com m issions 290
Closing a Loan Wit h All Obligat ions M et 293
Rescheduling and Refinancing Loans 296
Changing t he Int erest Rat e 306
Edit ing and Cust om izing Repaym ent Schedules 309
M anually Capt ure N ot ificat ions 331
Working wit h Docum ent s 336
Treat m ent of N on Working Days for Schedule 339
Working wit h Lim it s 340
Creat ing N ew Versions of Exist ing Loan Cont ract s 343
Viewing a Cont ract 's Hist ory 345
Viewing a Cont ract 's Account ing Ent ries 346

Loan Contract Life Cycle and States

The four-eyes principle is applicable for all contracts in FintechOSCore Banking,
meaning that a record should be approved by a second financial institution employee,
with higher authorization rights. This is enabled via approval task High Productivity

CONTRACTS 195
CORE BANKING USER GUIDE

Fintech Infrastructure capabilities and thus it is also a financial institution's

responsibility to set proper security roles and access rights to its users, in order to
make sure that the same user can't insert and also authorize the same record.
A contract record has the following business workflow statuses:
l Draft - the status of a newly created contract record that was not yet sent for
approval. While in this status, you can edit some fields, but you can't add events
(payments) to it. Send the record to approval after editing all the necessary
details.
l Pending - this is a system status applied to contracts sent for approval, but not
yet approved. No updates are available in this system status.
l Approved - the status of a contract record after being authorized by a user with
contract approval competencies. While in this status, you cannot edit the
record's details, but you can add events to it within the Payments tab. If you
need to alter the contract's details, create a new version based on the current
contract.

NOTE
Each event must also be approved by a user with contract approval
competencies, otherwise, the transaction is not performed by the system.
New contract approval is blocked by Core Banking if the customer has
overdue days >= the value of the
DelayDaysForBlockNewContractApproval parameter.

l Closed - the last status of a contract, after manually closing it or after creating a
new version based on the current version. No updates are allowed on the
record.
l Canceled - the status of a contract after manually canceling it straight from the
Draft status. No updates are allowed on the record.

NOTE
Change the contract's status to Approved so that the customer can use the contract
and in order to apply transactions to it.

CONTRACTS 196
CORE BANKING USER GUIDE

Contract Versioning

Core Banking allows you to create new versions for an existing contract if you need to
modify an existing approved contract. New versions are automatically created when
the payment schedule is modified - that implies any increase/ decrease, change of
costs, reschedule or payment holiday transactions.
A contract version can have the following statuses:
l Contract Version Draft - the status of a newly created contract version record
that was not yet sent for approval. While in this status, you can edit some fields,
but you can't add events (payments) to it. Send the record to approval after
editing all the necessary details.
l Approved - the status of a contract version record after being authorized by a
user with contract approval competencies. While in this status, you cannot edit
the record's details, but you can add events to it within the Payments tab.
l Contract Version Closed - the last status of a contract version, after manually
closing it or after creating another new version based on the current version. No
updates are allowed on the record.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event outside
regular schedule is approved for that contract.

Changing Contract Statuses

You can manage a contract's life cycle by changing its status from the top right corner
of the screen.

The contract status transitions are illustrated below:

CONTRACTS 197
CORE BANKING USER GUIDE

Note that:

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live contract, you must create a new contract
version.

l When you create a new contract version, the current version is retired and moved to
history; no updates are allowed on the retired version.

l Every contract version starts in a draft state and must go through an approval process
before going live.

l Only one version of a contract can be live at one time.

NOTE
As a best practice, new records or new versions of existing records created on a
specific day should be approved on the same day.

CONTRACTS 198
CORE BANKING USER GUIDE

Creating A New Unsecured Loan

An unsecured loan is a loan that doesn't require any type of collateral. Instead of
relying on a borrower's assets as security, financial institutions approve unsecured
loans based on a borrower’s creditworthiness.
Before creating a unsecured term loan contract, make sure that:
l the customer is recorded in Core Banking,

l a settlement account (a current account contract for the same customer) is set
up for the desired currency,
l and the limits are configured according to Core Banking's setup.

To create a new contract:

1. Add Minimum Contract Data

1. Open the Contracts page as described in the Managing Contracts
section.

2. Click the Insert button to display the Add Contract page, the initial
page when you insert any type of contract.

3. Fill in the following fields:

l Customer Type - Optionally, select the type of the customer for the
contract, to filter the displayed customers in the next field.
l Customer - Select from the list the customer for whom you are creating
a contract.

CONTRACTS 199
CORE BANKING USER GUIDE

l Product Type - Select from the list the product type to filter the list of
banking products accordingly.
l Banking Product - Select from the list the desired banking product.

NOTE
Be careful when choosing the values for the previously mentioned fields
because you can't modify them after saving the contract!
Make sure that you select Term Loan in the Product Type field and an
Unsecured Loan banking product in the Banking Product field.

4. Click the Save and Reload button.

Core Banking saves the contract in Draft status, with minimum default
information, such as an auto-generated contract number, created by, version
and version number. The previously provided details are kept on screen in
the General Data section, but they are no longer available for update. The
Currency has been updated from the banking product level.

Proceed to the next steps where the details about the contract are captured
and validated against the underlying product, setting the basic elements for
the creation of a contract such as customer, banking product, account,
interest rate, participants, tranches, fees, and contract covenants, within the
newly displayed Overview tab.

2. Add General Data to the Contract

CONTRACTS 200
CORE BANKING USER GUIDE

1. Fill in or modify the following information:

l Current Account - Select the current account to be used for
settlement.
l Destination Bank Account - Enter the destination bank account
number, an account where the disbursements should be
performed, if it's different from the current account selected
previously.
l Amount - Enter the actual amount of credit for the contract.

l Advance Amount Percentage & Advance Amount Value - Use

these in case the product requires a first installment to be
claimed on granting the loan itself, or as approval condition -
used for orchestrating BNPL where the customer needs to
provide a certain amount before benefiting from the loan;
requires orchestration of the payment and the approval of such
contract should happen only on instruction that payment for
advance has been supplied. The 2 fields change one based on the
value inserted in the other, so if you insert a percentage the
amount is updated based on loan amount.

NOTE Limit validations for contracts with advance

amount >0 are performed for Amount - Advance Amount.
When the contract is activated, the available limit amount

CONTRACTS 201
CORE BANKING USER GUIDE

is decreased with the (Amount - Advance Amount) value.

Auto Disbursement = True and cannot be changed
for contracts with advance amount >0.
If the advance amount is changed back to zero, then the
value of the Auto Disbursement checkbox becomes the
default value set at the banking product level and can be
edited.

l Sales Channel - Select the channel through which the contract is

created.

2. Optionally, fill in or modify the following information:

l Contract ID - Enter a contract ID other than the contract number
generated automatically by Core Banking when you saved the
contract.
l Activation Date - Modify the date when the contract is activated.
It is automatically completed with the system date.
l Start Calculation Date For Amount Unused - Enter the date
when commitment fee starts being applied. There are instances
when, because the loan is granted, the financial institution needs
to reserve those funds and make sure they are available when
the customer asks for a disbursement, provided all other
conditions are met. For such cases, when the financial institution
does not generate income from interest, they might want to have
a minimum income and thus the commitment fee (commissions
with Commission Unsuage type). They can also allow for an
interval for the amounts to be used and start applying such
commissions post that interval.
l Maximum Disburse Date - Select the maximum date by which
the loan should be used for the approved contract. It can be that
it is required because of internal policies or legislation – such in
case of an investment or a mortgage, if you do not use the funds

CONTRACTS 202
CORE BANKING USER GUIDE

for 6 months, there might be a need for a reassessment. If not

selected, this date is calculated based on the Maximum Period
Disburse After Activation (Months) from the banking
product level, and Maximum Disburse Date = Maturity
Date - 1.
l Managing Branch - This represents the branch of the
organization where the contract was created. Suppose you work
in a branch or credit center, and you need cases to be linked to a
specific location so that you can properly allocate them for
further actions. It is automatically completed at contract saving
time, but you can select another branch from the list.
l Auto disbursement - Select this checkbox if the financed amount
must be automatically disbursed on the approval of the contract.
If selected, Core Banking performs the disbursement transaction
immediately after contract approval, and the funds are moved to
the settlement account or destination account as per
instructions. The auto disbursement property is set at banking
product level, but it can be modified at the contract level. The
following validations are performed for this checkbox:
l If the contract has multiple tranches, then Auto
disbursement = False and it cannot be edited.

l If Auto disbursement = True and the contract approval

date = activation date, then Core Banking does not generate a
new version for the contract.

l If Auto disbursement = True and the contract approval

date > activation date, then Core Banking generates a new
version for the contract.
l Direct Debit Settlement Account - Select this checkbox if the
automated settlement of repayment notifications (the direct
debit settlement account) functionality is turned on at the
contract level. The value of the checkbox was set at the banking

CONTRACTS 203
CORE BANKING USER GUIDE

product level, but it can be modified at the contract level. The

checkbox can be edited in all the statuses of a contract except
Version Closed, Closed, and Canceled.

NOTE The Direct Debit Settlement Account

setting at the customer level takes precedence over the
setting at the contract level when creating new contracts.
For existing contracts, Core Banking applies the setting
configured within the
CustomerToContractDirectDebitSettlementAcc
system parameter.

3. Click the Save and Reload button.

3. Enter Repayment Information for the Contract

In the Repayment Overview section you should enter term, schedule type
and first due date so that Core Banking can properly build the repayment
schedule. Optionally you can set a grace period, mention if the due date
should always be on the last day of the month and if there is any manual
value for the installment.

1. Fill in or modify the following information specific to the contract's

repayment schedule:

CONTRACTS 204
CORE BANKING USER GUIDE

l Schedule Type - Select the payment schedule type to be used to

calculate the installments of this contract. You can select one of
the payment schedule types associated to the underlying banking
product in the Details tab > Associated Payment Schedule Types
list. Core Banking uses the schedule type to build the repayment
plan with equal instalments or liniar payments, include fees on
the schedule and arrive to the day basis to be used for interest
calculation (30/360).
l Contract Period - Edit the term of the loan that was
automatically completed with the number of contract period of
contract period type as it was defined at banking product level,
according to your needs. The contract period is used together
with Contract Period Type and Periodicity Type. They all need to
be in sync and also in sync with the schedule definition itself, and
if there are multiple definitions allowed on the product, make
sure to pick those working together.
l Contract Period Type - This field is automatically completed with
the contract period type as it was defined at banking product
level. You can't edit this value.
l Maturity Date - This field is automatically completed with the
contract maturity date, calculated based on the values of the
Contract Period, Contract Period Type, Due Date and Activation
Date.
l Due Day - Enter the exact day of month for installment
repayment. If it is set to 31, then the system takes the last day of
month. If you manually select the First Due Date, then this
field is automatically completed and not editable. If the
periodicity and the repayments are set to every 30 days, Core
Banking defaults the due date based on the activation date.
l Periodicity Type - Select the time interval for the repayment
schedule. Possible values are set at the banking product level. If
the periodicity is set to Once, then the payment happens one
time, at loan maturity. You can only select from periodicity types
with the same measurement unit as the selected schedule type's

CONTRACTS 205
CORE BANKING USER GUIDE

contract period type. For example, if the value in the Contract

Period Type is Days, you can only select a periodicity type
whose measurement unit is in days.
l Installment Method - Select the installment method to calculate
if the first due date is set into the current month or in the next
month. Possible values:
l Actual Period, with the first installment's due date
calculated within the same calendar month;
l Next Period, with the first installment's due date
calculated within the next calendar month after contract
approval.
l First Due Date - Select the date of the first due installment. If you
manually select the Due Day, then this field is automatically
completed as calculated based on the information within the Due
Date, Periodicity Type and Installment Method, and it is not
editable.
l Initial Royalty - This field is automatically completed with the
value of an installment. The field is displayed and can be filled in
if the selected schedule type is of type Equal Installment.
You can edit this value. If at the selected payment schedule
type's level the Installment Value Custom field is False,
then the Initial Royalty field at the contract level is read
only.
l Initial Principal Value - This field is automatically completed with
the value of the principal within an installment. The field is
displayed and can be filled in if the selected schedule type is of
type Equal Principal. You can edit this value. If at the
selected payment schedule type's level the Installment
Value Custom field is False, then the Initial Principal
Value field at the contract level is read only.
l Number of installments - This field is automatically completed
with the number of installments to be paid for this contract,
calculated based on previously defined values.

CONTRACTS 206
CORE BANKING USER GUIDE

l Principal Grace Period (Months) - This field is displayed only if

the banking product allows a principal grace period. Enter a value
in months for the grace period allowed for principal repayment
for this contract. The value inserted in this field should be
between the minimum and maximum grace period set at the
banking product level.
l Interest Grace Period (Months) - This field is displayed only if the
banking product allows an interest grace period. Enter a value in
months for the grace period allowed for interest repayment for
this contract. The value inserted in this field should be between
minimum and maximum grace period set at the banking product
level.
l Repayment at end of month - If you select this checkbox, then
the due day of the contract is automatically set to the last day of
the month, and the repayment schedule is calculated with an
installment in the last day of month.
l Is Manual Value - If you select this checkbox, then you can
manually enter the value for royalty or principal, thus overriding
the values automatically calculated by Core Banking.
l If Is Manual Value = False, then the Initial
Royalty and the Initial Principal Value fields are
read-onlyand cannot be modified.
l If at the selected payment schedule type's level the
Installment Value Custom field is False, then the Is
Manual Value field at the contract level is read only.
l If Installment Value Custom = True, then the Is
Manual Value field at the contract level is editable, with
False default value.

2. Click the Save and Reload button.

4. Manage Product Interest Rate for the Contract

CONTRACTS 207
CORE BANKING USER GUIDE

Enter the details about the Product Interest Rate applied to the loan.
Depending on the product definition again, you have a list of interest
definitions that you can bring along to the contract.

To manage the product interest rate as it must be applied to this contract:

1. Fill in or modify the following fields:

l Interest Commission Item - This field is automatically completed with

the interest & commission item defined at the product level, if only one
item is found at the product level. If the selected product has more
items, you must select one from the list.
l Product Interest - Select from the interest to be applied for this
contract. Only the interests associated to the selected banking product
are displayed within the list. Penalty interests cannot be selected here.
l Date for Review Interest Rate - Enter the date for reviewing the
interest rate applicable for the remaining amount. This date must be
between Activation Date and Maturity Date, otherwise, an
error is displayed.
For variable interest, this field is automatically completed with the
Reference Rate Date + Reference Interest Period of the
underlying interest definition, from the base type interest attached to
variable interest. You can edit this field. For months where the date is
over lapsed, the last day of the month is used for the calculation (for
example, if you specify 30, then in February the system takes the last
day, which can be the 28th or the 29th).

2. If the underlying interest definition has referenced a variable interest

rate, the details included other fields for you to complete:

CONTRACTS 208
CORE BANKING USER GUIDE

l Margin – The margin applicable on top of the variable interest rate.

l Reference Rate Date – The date to be considered in order to arrive to

the applicable rate for the underlying variable interest (EURIBOR as of
30th June 2022).
l Reference Rate – The underlying rate for the variable interest as
captured in Core Banking for the date above.

3. Click the Save and Reload button.

NOTE
Fill in any other mandatory fields from the General Data and Repayment
Overview sections, otherwise you can't successfully save the contract.

5. Manage Contract Level Interest & Penalty Interest

Rate
Define the information about the contract interest rate (or rates, if you
selected a Collection type interest rate in the previous Product Interest
Rate section) in a table format, in the section Contract Interest Rate section,
which appears only after saving the selected product interest rates.
You can edit the tables cells, so you can customize the interest rates selected
at the product level, if the interest and commission list was defined as
negotiable, to obtain the desired interest rates configuration at the
contract level. You can also add or delete interest rates, using the Add
Interest Rate, respectively the Delete buttons above the tables. Thus, the
tables enables you to work with multiple interest rates at the contract level.

NOTE
The information disappears if you change the product interest, tenor, first

CONTRACTS 209
CORE BANKING USER GUIDE

due date, maturity date, contract period, or activation date. In this case,
save the contract again to display the updated information.

To customize the information specific to each of the contract's interest rates:

1. In the Contract Interest Rate section, edit the existing information that
was automatically completed based on your product interest rate
selections:
l Interest - Automatically completed with the interest (or interests, for
Collection type product interest rate) selected in the previous
Product Interest Rate section. You can select from the drop-down list
the interest to be applied for this contract. Only the interests
associated to the selected banking product are displayed within the
list. Penalty and overdraft interests cannot be selected here.
Depending on the selected interest, other fields can be displayed to be
filled in.
l Start Date - The interest's start date, automatically completed with the
contract's activation date.
l End Date - The interest's end date, automatically completed with the
contract's maturity date.
l From Installment - The first installment for which this interest is
applied to the contract.
l To Installment - The last installment for which this interest is applied to
the contract.
l Minimum Interest Rate - This read-only cell is automatically completed
with the minimum interest rate applicable for the contract, defined at
the banking product level.
l Fixed Rate - The fixed rate of the interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.
l Margin - This cell is automatically completed with the margin of the
previously selected product interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.
If the product interest was not selected, you can manually enter the

CONTRACTS 210
CORE BANKING USER GUIDE

margin.
l Reference Rate - This read-only cell is automatically completed with
the interest type's definition's reference rate valid at the previously
selected date.
l Total Interest Rate - This read-only cell is automatically completed with
the calculated total interest rate of the previously selected product
interest and any values entered for margin and reference rate. If the
product interest was not selected or if the interest at the banking
product level was marked as Is Negociable, you can manually enter
the interest rate.
l Notified - This is a read-only checkbox. For contracts in Version
Draft status, it shows you whether the installments range shown on
this table line was already notified or not.
l Past Unnotified - This is read-only cell read-only checkbox. For
contracts in Version Draft status, it shows whether there are days
that already passed from the current month's not yet notified
installment, days for which you can't change the interest rate.

2. After performing the desired changes, make sure that the interest rate
(s) cover the entire tenor of the contract, from activation date until
maturity date, and there are no overlapping intervals, otherwise an
error prevents you from approving the contract.

3. Click the Save and Reload button.

Later, after contract approval, the contract repayment schedule is calculated

taking into consideration the contract interest rates as defined in this
section. For example, for a multiple interest rates, the installment amounts
differ depending on the interest rate applicable for those installment
numbers. The picture below shows different values calculated for the
repayment schedule of a loan with multiple interest rates, where an interest
rate was applied for the first 12 installments, and another interest rate was
applied for the rest of the installments.

CONTRACTS 211
CORE BANKING USER GUIDE

6. Amend Closure Settings

If allowed from the product definition, you can amend the closure settings of
the contract, the way Core Banking should behave once the loan is repaid
and the contract can be closed. Most of the times this is not something that
you have to access, but it adds extra flexibility at the contract level. This may
prove useful if you suspect there may be reasons to keep a contract open for
some time post recovering all amounts for instances when there may appear
claims of funds (SEPA DD) or other similar cases.
The Closure Settings section is only displayed for contracts based on banking
products having the Closing Is Flexible = True setting.

To amend the closure settings brought from product level here at the
contract level:

1. Fill in or modify the following fields:

l Automatic Closure – If selected, Core Banking automatically
closes the contract once all other conditions are met. This field is
automatically completed with the value defined at the banking

CONTRACTS 212
CORE BANKING USER GUIDE

product level, but you can modify it.

l Select this checkbox to instruct Core Banking to close the
contract automatically when the available amount becomes
zero and there are no further amounts to be recovered,
and after the number of days set as buffer before closure
pass and Closure Date = Current Date.
l Deselect it to instruct Core Banking to keep the contract
open, regardless of the fulfillment of its maturity and
balance criteria, waiting to be manually closed by changing
its status to Closed.

NOTE
Revolving loans are closed only after maturity. In
this case, the available loan amount is considered as
balance.
You can perform contracts events as specified in the
Allowed Transactions section of the banking
product, plus manual closure while the contract is
pending closure. Performing any other transactions
displays an error message.

l Real Time Closure – If you select this checkbox, when the

amounts become zero and the loan is not a revolving one, the
contract is closed automatically. If Real Time Closure =
True, then Buffer Close Days = 0 and Automatic
Closure = True. For more details about the real-time closure,
see Close Contracts RealTime(CB) Job.
l Buffer Close Days - Enter the number of days used as buffer
before automatically closing the contract. If Buffer Close
Days > 0, then Real Time Closure = False. Core Banking
waits the entered number of days after the contract's balances

CONTRACTS 213
CORE BANKING USER GUIDE

reach zero, and at the end of that day the contract is closed.
l Balance Off Date – This is a system maintained field and it is
populated with the date on top of which Core Banking adds the
Buffer Close Days to arrive to the Closure Date.
l Closure Date – This is a system maintained field and holds the
date when the contract is closed. For automatic closure, the date
is calculated by Core Banking as Balance Off Date + Buffer Close
Days.

2. Click the Save and Reload button.

7. Check Other Details Pre-Filled Based on Product

Definition
Once you defined the mandatory details, then saved and reloaded the
contract, Core Banking updates some of the next sections on the page, based
on product definitions:

CONTRACTS 214
CORE BANKING USER GUIDE

Core Banking brings the Contract Participants, the Borrower being also
Beneficiary of the funds and the Customer who is granted the loan. If
needed, you can add other participants to the contract, like Guarantors, Co-
Debtors, etc. There may be cases when some roles are mandatory for a
product. Those are detailed in a separate section. If there is a mandatory role
defined in the banking product definition, Core Banking displays an error on
trying to approve the contract.
Contract Tranches is a section where you can implement progressive access
to the funds. This is valuable in case of loans granted for investment projects
where you can know upfront that there is a plan for the project and
payments need to happen for each stage of the project, those stages being
known from the start.

CONTRACTS 215
CORE BANKING USER GUIDE

Another important section brought from the product definition is the Fees &
Commissions. Depending on the system setup, you are allowed or not to
amend fees and commissions in this section.
Contract Covenants section displays the covenants that applicants must
abide by after getting the loan, configured at the product level. Such
conventions are usually applicable for corporate clients that must meet
certain requirements in order to continue to receive disbursements and not
only: submit balance sheet every x months, have account turnover of at least
x percent from average monthly turnover, provide other relevant documents
from authorities. In this section, you can manage covenants for the contract.
These covenants would need to be monitored procedurally; Core Banking
doesn't have the logic in place to implement automated processes.
You can use the Contract Classifications section to capture various
classifications that might be relevant for the financial institution for that loan
at a moment in time. It is a placeholder for such details and there is no
automated logic in place to update them. In implementation this can be used
for other developments if required.

After defining the relevant details of the contract, proceed to contract approval.

Creating A New Secured Loan

Secured loans are business or personal loans that require some type of collateral as a
condition of borrowing. A financial institution can request collateral for large loans for
which the funds are used to purchase a specific asset or in cases where the customer's
credit scores aren’t sufficient to qualify for an unsecured loan.
Before creating a secured term loan contract, make sure that:
l the customer is recorded in Core Banking,

l a settlement account (a current account contract for the same customer) is set
up for the desired currency,

CONTRACTS 216
CORE BANKING USER GUIDE

l the collateral is registered in Core Banking,

l and the limits are configured according to Core Banking's setup.

To create a new secured loan contract:

1. Follow the Same Steps as for Creating an

Unsecured Loan Contract
The process of creating an secured loan contract is similar to that of creating
an unsecured loan contract. The difference is that you must choose a banking
product that is secured when creating the contract.

After performing the steps described in the "Creating A New Unsecured

Loan" on page 199 page, perform the actions required to link collaterals to
the contract.

2. Link Collaterals to the Loan

You can set collaterals as guarantees for secured loan contracts in the
Collaterals tab. This tab is displayed only for contracts based on secured
products.

CONTRACTS 217
CORE BANKING USER GUIDE

The fields Cover Value and Product Collateral Cover Percent are
automatically populated from product level.

NOTE
You can send a contract for approval only if Cover Value = Financed
Amount * Product Collateral Cover Percent / 100.

You can use collaterals not owned by the customer, but by a guarantor to
cover the contract risk. To add guarantors to the contract, follow these steps:

1. Click the Insert button within the Contract Guarantor section.

2. In the newly displayed Add Contract Guarantors page, fill in the Guarantor
field by selecting the customer who acts as a guarantor for the contract.

3. Click the Save and Close button.

To link a collateral to the contract, follow these steps:

CONTRACTS 218
CORE BANKING USER GUIDE

1. Click the Insert button from the Contract Collateral section.

2. In the newly displayed Add Contract Collateral page, fill in or modify the
following fields:

l Customer / Guarantor - Select the customer who acts as

guarantor for the contract. The field is automatically completed
with the customer selected in the contract, but you can select
any of the customers already added as guarantors for this
contract.
l Collateral Register - Select a collateral registered to the current
customer. When selecting a collateral, the Cover Register
Value, Cover Register Value Usage and Cover Value
in Contract Currency fields are automatically calculated.

NOTE
Make sure that the collateral you are planning to use for
the secured loan contract is previously registered,
otherwise you can't use it for covering the contract.
You can link a registered collateral to multiple contracts if
the contracts total amount does not exceed the collateral
available amount.

When selecting a Fixed deposit collateral, the status of the

associated bank account becomes Blocked.
If the contract's status changes from Owned or Active into
Released, the status of the bank account becomes Opened.

CONTRACTS 219
CORE BANKING USER GUIDE

l Collateral Register Value Usage (%) - Edit the percentage to be

used from the registered collateral's total value. It was set at
banking product level, in the Collateral Cover Percent
field. As a result, the Collateral Register Value and the
Cover Value in Contract Currency values are
automatically recalculated by Core Banking.
l Cover Register Value - The value is taken from collateral,
expressed in the collateral's currency. If the collateral is in a
different currency than the contract currency, the exchange rate
is automatically applied in order to have the available amount
correctly calculated. Further, a job runs daily in order to
recalculate the available amount for each collateral.
l Cover Value in Contract Currency - This is the cover value
converted in the contract's currency at the exchange rate defined
in Core Banking.
l Mortgage File - Attach a file relevant for the mortgage.

3. Click the Save and close button.

4. Change the status of the collateral to Secured before approving the contract,
otherwise Core Banking triggers an error.

After defining the relevant details of the contract, proceed to contract approval.

Approving a Loan
You can perform the approval either from a digital journey flow via API integration or
from the Core Banking user interface.
After defining the relevant details of the contract, proceed to contract approval:

CONTRACTS 220
CORE BANKING USER GUIDE

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Approved.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Approved.

Example of error displayed by Core Banking if the validations are not met

CONTRACTS 221
CORE BANKING USER GUIDE

If you try to approve a contract for the value of 12000, but the maximum
amount allowed at the product level is only 10000, then Core Banking
triggers an error because this value is beyond the product setup.

Similarly, Core Banking triggers errors if there are specific limits imposed
from product level regarding minimum and maximum term, advance or
amount itself. Below is how those limits are captured on product definition.

Automated Actions After Contract Approval

The Main Bank Account is created automatically for the bank defined as Main within
the Core Banking Operational > Bank menu. In order for Core Banking to generate an
account number, a rule must be defined during the implementation phase (example:
branch code + incremental sequence number).
On the Payments tab you can see the repayment schedule that was generated
following the disbursement (the auto disbursement functionality was selected), the

CONTRACTS 222
CORE BANKING USER GUIDE

disbursement transaction itself, the notification that was created for the flat upfront
fee. Not only it got created but it is also settled from funds on the Current Account
selected for settlement purposes, the same where funds were disbursed.

NOTE The tab Payments has no information to display while the contract is in the
Draft status. You must approve the contract to perform any contract event.
Meaningful payment information is displayed in this tab only after performing
transactions on the contract.

The Contract Repayment Schedule shows the equal installments, on top of which the
Administration fee is added on contracts where applied.

CONTRACTS 223
CORE BANKING USER GUIDE

The Disbursement transaction includes the repayments schedule that was generated
with that disbursement.

The Repayment Notification shows what was made due, when, how much, what type
of amount and when/if amounts were recovered.

CONTRACTS 224
CORE BANKING USER GUIDE

You can also check the Current Account transaction. On the contract's Overview tab,
click on the pencil next to the Current Account:

In the displayed window, filter by your contract number and get the amounts posted
to the account following our contract processing.

CONTRACTS 225
CORE BANKING USER GUIDE

Rejecting a Loan
You can reject a loan, canceling it, when the deal with the customer drops. You can
perform the cancellation either from a digital journey flow via API integration or from
the Core Banking user interface.
Follow these steps to cancel the contract:

CONTRACTS 226
CORE BANKING USER GUIDE

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Canceled.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Canceled.

CONTRACTS 227
CORE BANKING USER GUIDE

NOTE You can't further use a canceled contract. Create a new contract, if you
need to.

Disbursing a Loan
A disbursement represents the actual delivery of funds from a bank account to the
customer. The repayment schedule of the loan contract is automatically calculated or
recalculated as a result of performing a disbursement.
In Core Banking, you can choose between a disbursement performed automatically
when the contract gets approved, or manually triggering the disbursement by
performing a disbursement transaction, for cases when you need a request for
disbursement from the customer, or other details are pending before you can release
the funds, such as registering the collaterals with a certain authority.

Automatic Disbursement at Contract Approval

You can instruct Core Bankingto automatically perform the disbursement of
funds for a loan contract during contract creation, if the auto disbursement
property was set at banking product level. To do this, select the Auto
disbursement checkbox in the contract's Overview tab, thus marking the
financed amount to be automatically disbursed on the approval of the
contract.

CONTRACTS 228
CORE BANKING USER GUIDE

If selected, Core Banking performs the disbursement transaction immediately

after contract approval, and the funds are moved to the settlement account
or destination account as per instructions. The contract repayment schedule
is also calculated:

You can see the disbursement transaction's details and the calculated
repayment schedule by double-clicking the transaction.

CONTRACTS 229
CORE BANKING USER GUIDE

Adding a Disbursement Transaction To an Approved

Contract
You can add disbursement transactions to an approved contract via Core
Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.
In order to add a disbursement transaction to a loan contract through the
menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

CONTRACTS 230
CORE BANKING USER GUIDE

3. Fill in the following fields:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the Disbursement

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. A series of
value fields are automatically calculated, their values are displayed,
and you can't edit them: the contract's financed and available amounts,
the selected installment calculation method, the repayment day ant
the contract's tenor.

5. Fill in the Event Value with the value of the transaction, and enter an
external identifier of the transaction, if available.

CONTRACTS 231
CORE BANKING USER GUIDE

6. Decide whether you want to use the repayment schedule calculated by

Core Banking through automatic processes, or you want to import a
custom schedule. For custom schedule, select the Import Schedule
checkbox. Read more about importing a custom schedule file in the
Manually Upload Repayment Schedules section of the user guide.

7. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

8. Click the Calculate repayment schedule button to view the details of

each installment of the calculated repayment schedule.

CONTRACTS 232
CORE BANKING USER GUIDE

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

IMPORTANT! A Disbursement event can't be approved if the

current system date > the minimum between Maximum Disburse
Date and Maturity Date-1.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking transfers the
funds to the configured settlement account.
The event value is now applied and visible in the contract's Payments
tab -> Transactions section.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

CONTRACTS 233
CORE BANKING USER GUIDE

Processing Loan Repayments

Based on defined product pricing and established parameters, financial institutions
can manage the billing and collection process on a loan contract fully automatically.
Once the disbursement is performed, Core Banking generates the repayment schedule
and sends the payment notifications to the customer on the due date. Automated
collection is triggered via integration with 3rd party payments engine or from the
customer's settlement account. If funds are not available, overdue amounts and days
are calculated and penalties applied.
Once a loan approved and disbursed, you can check the repayment schedule built
based on contract details, on the Payments tab, in the designated section, as
described in the Viewing a Contract's Repayment Schedule topic. If there are front-
end fees, they are notified automatically by Core Banking and you can check them on
the Payments tab, in the Repayment Notifications section (even without disbursing
the funds). Read about repayment notifications in the Managing Repayment
Notifications topic.
When the system reaches the dates that appear on schedule projections, the amounts
resulting are made due, and Core Banking automatically triggers the notifications.
Depending on the availability of funds in the settlement account and the direct debit
setup, Core Banking settles those notifications, marking them with the Recovered
status. Any amount that is not recovered on due date stays on the notification, and
when funds become available, Core Banking automatically recovers and allocates
them to the pending notifications based on the Payment Allocation Method setup at
the product level, in the Lean Core tab. When the notifications are recovered, you can
see the underlying debit transactions on the settlement account – there is always such
traceability of the funds. You can also see the automatic payments performed by Core
Banking either at contract level or in a dedicated menu, as described in the Viewing
Customer Payments topic.
Payment Schedule Types, defined at the Banking Product Factory level, define how
Core Banking handles the following:

CONTRACTS 234
CORE BANKING USER GUIDE

l How the interest is calculated (day basis: 30/360, actual/ 360, etc).

l If the capital repayment is linear or annuity type (same principal for every
installment or increasing principal and decreasing interest resulting in a
constant amount being due for every installment).
l Fees you want to include in the repayment schedule.

l If you allow for manual installment amount to be provided and overwrite

automatically calculated one.
l Frequency of the installment (monthly, every 30 days, etc).

When amounts are not available to cover notified amounts and there is a penalty
interest defined for the product, the missed amounts are subject to automatic penalty
calculation. Core Banking calculates and notifies the penalty interest daily. All the
penalties applied by automated processes at the contract level are visible on the
Payments tab, in the Penalties section, as described in the Viewing a Contract's
Penalties topic. When the penalty interest is defined, there are specific Operation
Items linked to it so that the system knows what types of amounts are subject to
penalty: overdue principal, interest, commissions. Alternatively, the penalty interest
can be applied to all missed payments. Penalty interest is defaulted from the product
level and, if allowed, it can also be amended at contract level.

You can find all the existing transactions, payments, penalties, bank account
operations, repayment schedules, schedule versions, repayment notifications for a
contract on the Payments tab. The tab has no information to display for contracts in
Draft status. Approve the contract to perform any transactions on the contract.
Meaningful payment information is displayed here only after performing a
disbursement.

CONTRACTS 235
CORE BANKING USER GUIDE

Managing a Contract's Transactions

Contract transactions are events/ changes performed at the Approved
contract's level. Such events are disbursements, reschedule overdues, early
repayments, applying payment holidays, returning of amounts, and so on.
Read more information about the available transaction types in the
"Transaction Types Used in Core Banking" on page 68 topic.
The Transactions section within the Payments tab holds all the transactions
performed at the contract level, in any status. This section only has
information if the contract is in Approved status and transactions were
already created.

CONTRACTS 236
CORE BANKING USER GUIDE

Event Statuses
An event record has the following statuses, visible in the top left
corner of any Event page:
l Draft - the status of a newly created event record that was not
yet sent for approval. The event value is not applied to the
contract while the event is still in this status. While in this
status, you can edit some fields. Approve after editing all the
necessary details.
l Approved - the status of an event record after being
authorized. The event value is applied to the contract and you
cannot edit any of the event's details. There is no further
transition from this status.
l Canceled - the status of an event record after being canceled.
The event value is not applied to the contract and you cannot
edit any of the event's details. There is no further transition
from this status.

NOTE
As a best practice, new records or new versions of existing
records created on a specific day should be approved on the
same day.

Viewing Existing Events

To view the events on a contract, follow these steps:

1. In FintechOS Portal, select a contract with Approved status

and double-click to open it.

CONTRACTS 237
CORE BANKING USER GUIDE

2. Navigate to the contract's Payments tab and view the list of

events displayed in the Transactions section.

Here you can see only basic information about the

transactions, such as event number, status, date, transaction
type, value and the user who created it.

3. To view detailed information about the transaction and the

repayment schedule generated for the Approved event,
double-click the event record to open the Event page:

You can't edit the information displayed on this page.

4. View the following information displayed about each event,

with some variations depending on the event type:

CONTRACTS 238
CORE BANKING USER GUIDE

l Transaction status, contract number, customer name,

transaction number, type, and currency, all displayed in
the header of the page.
The following details are displayed in the body of the page:
l Event date and value. Contract events added through
API integration also contain an external identifier.
l Contract's financed and available amounts, and the
installment method used for calculating the schedule.
l The event's results, in this example, the results of a
disbursement event: amount of the installments,
repayment day and tenor of the contract in months.

5. In the Contract Repayment Schedule section, view the

information about each of the installments that are part of the
repayment scheduled calculated as a result of performing the
transaction:
l Number of the repayment schedule version detail, date
when the installment must be paid, value remaining to
be repaid from the contract value at the moment of this
installment, value of the interest and of the principal
calculated for this installment, and total value of the
installment to be paid.

Adding Events To Approved Contracts (General

Steps)
You can add events to an approved contract via Core Banking's user
interface or through API calls, using the Core Banking endpoints.
Read more about these endpoints in the Core Banking Developer
Guide.
In order to add events to a contract through the menus available in
Core Banking, follow these steps:

CONTRACTS 239
CORE BANKING USER GUIDE

1. In FintechOS Portal, select a contract with Approved status

and double-click to open it.

2. Navigate to the contract's Payments tab and click the Insert

button above the Transactions section. The Event page is
displayed.

3. Fill in the following fields, common to every transaction type:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the transaction

type. Only the transaction types associated with the
banking product which is at the base of the contract are
displayed here.
Other values are automatically completed: contract, customer,
and currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. A
series of value fields are automatically calculated and their
values are displayed.

5. Depending on the selected transaction type, follow the

instructions for each event type as defined in the
corresponding topics:
l Disbursement - described in the "Disbursing a Loan" on
page 228 topic
l Early repayment - described in the "Refinancing a Loan
By Performing an Early Repayment" on page 300 topic

CONTRACTS 240
CORE BANKING USER GUIDE

l Reschedule Overdues - described in the "Rescheduling

the Overdue Amounts for a Contract" on page 296 topic
l Payment Holiday - described in the "Applying Payment
Holiday to a Loan" on page 266 topic
l Returned Amount or Goods - described in the "Working
with Returns" on page 281 topic.

6. After defining the event as described in the corresponding

page, save it.
If the event value meets the business requirements defined
within Core Banking, the event is saved. Otherwise, an error
message appears. Change the values as instructed in the
message and try saving the event again.
While the event is in Draft status, you can modify all the
event's fields except Transaction Type. The event value is not
applied to the contract while the event is still in this status.

Depending on the selected transaction type, new sections are

displayed at the bottom of the page, containing the contract
repayment schedule for the event and any generated
notifications.

7. If it appears, click the Calculate/ Simulate Early repayment/

Simulate repayment schedule/ Simulate reschedule overdues
buttons (the displayed button depends on the selected
transaction type) to view the details of each installment.

CONTRACTS 241
CORE BANKING USER GUIDE

For Reschedule Overdue transaction type, select from the list

the overdue payment notifications that you wish to
reschedule.

8. Approve the event by changing its status to Approved in the

upper left corner of the Event page.

9. Confirm the change of status in the Confirmation window,

clicking Yes. The event is now in Approved status.
The event value is now applied and visible in the contract's
Payments tab -> Transactions section.

NOTE
All existing versions of the contract in Contract Version Draft
status are automatically changed to Contract Version Closed
when a payment event is approved for that contract.

Managing Repayment Notifications

Core Banking automatically generates notifications for each installment that
has to be paid for existing contracts that disbursed various amounts to
customers. There can be various types of notifications generated for fees,
commissions, payment holidays, and so on. Core Banking also assists you
reconcile wrongly processed cases and other situations resulted from
delayed processing/ wrong updates. Thus, depending on your user rights, you
can manually add notifications for an active contract based on lending
product types, term loans, and mortgages, or add notifications for amounts
to be recovered even if there is no active contract. Core Banking includes all
such manual notifications in the recovery processes.

CONTRACTS 242
CORE BANKING USER GUIDE

All the repayment notifications that are not paid in full after their maturity
dates are subject to automated penalty calculation processes performed by
Core Banking. Thus, for repayment notifications linked to a contract, Core
Banking uses the penalty interests defined within the interests list attached
at the banking product level, and for repayment notifications not linked to a
contract, it uses the penalty interest list specified in a system parameter.

NOTE
All the Front-End Fee commission types with Once periodicity type
applied to a contract are notified and must be paid when the contract is
approved. The Core Banking system parameter FrontEndFee defines the
type of commission that is automatically notified at the contract approval.

Repayment Notification Statuses

A repayment notification record has the following business
workflow statuses:

CONTRACTS 243
CORE BANKING USER GUIDE

l Draft - the status of a newly created repayment notification

record, either automatic or manual.
l Approved - the status of a manual repayment notification
record after being authorized by a user with notification
approval competencies. While in this status, you cannot edit
the record's details. From this status, the record is picked up
by a scheduled job and its status is automatically changed,
depending on the direct debit settlement settings. If the
Direct Debit Settlement Account field at the contract
level = True, then the manual notification's status changes to
In Recovery, otherwise it changes to Pending Recover.
l Canceled - the status of a manual repayment notification after
canceling it straight from the Draft status. You can only cancel
a manual notification if its Total Amount = Remaining
Value.
l Pending Recover - this is a system status applied to
repayment notification when Direct Debit Settlement
Account at the contract level is set to False. No updates are
available in this system status.
l In Recovery - this is a system status applied to repayment
notification when Direct Debit Settlement Account
at the contract level is set to True. No updates are allowed on
the record.
l Recovered - the last status of a repayment notification, after
the complete recovery of the notification's debt. No updates
are allowed on the record.
The repayment notification status transitions are illustrated below:

CONTRACTS 244
CORE BANKING USER GUIDE

Accessing Repayment Notifications

Core Banking enables you to access notifications in several places,
for your convenience.

Accessing a contract's repayment

notifications
To view the notifications generated for a specific contract,
follow these steps:

1. On the Contract page, navigate to the Payments tab

> Repayment Notifications section.

2. View all the repayment notifications generated for

the contract. This section only has information if the
contract is in Approved status and disbursements
were already performed.

CONTRACTS 245
CORE BANKING USER GUIDE

Repayment notifications highlighted in blue are

already paid, allocated or closed to payment, while
the ones not highlighted remain to be paid.

3. View the information is displayed about each

notification:
l Number, date, and status of the notification

l Customer and currency of the contract

l Amount of the installment for which the

notification was generated
l Remaining amount from the installment to be
paid
l Maturity date of the notification, automatically
calculated adding the value of the Grace
period for repayment field at the banking
product level to the notification date.

Accessing all the repayment notifications

generated by Core Banking
To access all the notifications created in Core Banking,
follow these steps:

CONTRACTS 246
CORE BANKING USER GUIDE

1. In the FintechOS Portal, click the main menu icon and

expand the Core Banking Operational menu.

2. To access only manually captured notifications, click

Manual Repayment Notification menu item to open
the Manual Repayment Notifications page.

3. To access automatic and manual notifications, click

Repayment Notification menu item to open the
Repayment Notifications List page.

Viewing Repayment Notifications

1. To view the details of a repayment notification, double-click
the desired record. The Edit Repayment Notification page is
displayed for automatically generated notifications, or the Edit
Manual Repayment Notification page for manual
notifications, both presenting the repayment notification
details.

CONTRACTS 247
CORE BANKING USER GUIDE

NOTE
Automatically generated notifications can't be edited!
You can only edit the details of manual notifications in
Draft status.

2. View notification specific data in the Repayment Notification

section:
l Repayment Notification No. - The number of the
repayment notification record.
l Customer - The customer for whom the notification was
generated.
l Currency - The currency of the notification.

CONTRACTS 248
CORE BANKING USER GUIDE

l Contract - The number of the contract for which the

notification was generated.
l Notification Date - The date when the notification was
generated.
l Maturity Date - The maturity date of the notification.
This is calculated by adding the value of the Grace
period for repayment field at the banking product
level to the notification date.
l Source Bank Account - The bank account from where
the notified amount should be allocated.
l Total Amount - The total amount to be paid within the
notification (the sum of all the details' values).
l Repayment Description - A description of the manual
notification.

3. View details (lines) of the notification in the Repayment

Notification Details section:
l Operation Item - The operation item for which the
notification detail is generated.
l Value - The value of the notification detail.

l Remaining Value - The remaining value still to be paid

from the notification value.
l Is Paid - This checkbox is automatically marked as true
when the full amount is allocated to the detail value.
You cannot change this value.

NOTE
Notification details are automatically marked as
paid when a repayment transaction performed

CONTRACTS 249
CORE BANKING USER GUIDE

and approved for the contract is allocated by the

system to cover the value of the notification
detail.

4. To view more information about a notification detail, double-

click it to open the Repayment Notification Details page:

5. View information about the payments allocated for the

notification details in the Payment Allocation section:
l Payment No. - The number of the payment.

l Payment Date - The date when the payment was

performed.
l Operation Item - The operation item from the
notification for which the payment was allocated.
l Allocated Amount - The amount allocated from the
payment.
l Due Date - The due date of the notification.

l Delays (days) - The number of days passed since the

notification's due date.

6. To view more information about a payment allocation,

double-click it to open the Edit Payment Allocation page:

CONTRACTS 250
CORE BANKING USER GUIDE

You cannot edit any of the fields from this page.

NOTE
The operation item is used in the payment allocation
process. If the repayment notification is not linked to
contract, then Core Banking takes the operation item
value from the allocation method configured within the
ManualAllocationMethod system parameter. If a
repayment notification is created for a contract with
Closed status, then Core Banking takes the operation
item value from the allocation method selected at the
banking product level.

7. View information about the penalties calculated for the

manual repayment notifications that were not paid in full until
their maturity date in the Viewing Notification Penalties
section:

CONTRACTS 251
CORE BANKING USER GUIDE

All the repayment notifications that are not paid in full after
their maturity dates are subject to automated penalty
calculation processes performed by Core Banking. Thus, for
repayment notifications linked to a contract, Core Banking
uses the penalty interests defined within the interests list
attached at the banking product level. For repayment
notifications which are not linked to a contract, Core Banking
uses the penalty interest list specified in the
ManualPenaltyInterestList system parameter.
Each penalty displays information about the penalized item,
the penalty date, the number of penalty notification, the
number of overdue days after the repayment notification's
maturity date, the penalty amount, a description, and whether
the penalty was pad or not.

8. To view more information about a correction entry, double-

click it to open the Edit Contract Penalty Detail page:

You can't edit any of the fields from this page.

9. View information about any correction entries created for the

notification in the Viewing Corrections section. Contract
correction entries are automatically generated, for
notifications that are overdue, when creating a Reschedule
Overdue transaction type contract event. Here you can see
information about the customer of the contract, the date and

CONTRACTS 252
CORE BANKING USER GUIDE

currency of the correction entry, and the total amount of the

correction (the sum of all the correction details' values).

10. To view more information about a correction entry, double-

click it to open the Edit Contract Correction Entry page:

l Repayment Notification - The repayment notification

number.
l Contract - The contract number associated with the
notification.
l Currency - The currency of the notification.

l Customer - The customer associated with the

notification.
l Correction Date - The date when the correction was
created.
l Total Correction - The sum of all correction entry detail
records associated with the current correction entry.

11. Additionally, you can view information about each detail

within the correction:
l Operation Item - The operation item of the transaction
for which the correction entry detail was inserted.
l Correction Value - The value of the correction entry
detail, in the correction entry's currency.

CONTRACTS 253
CORE BANKING USER GUIDE

Understanding Automated Settlement of

Repayment Notifications (Direct Debit
Settlement Account)
The automated settlement of repayment notification, or direct debit
settlement account, is the functionality whereby, if funds are
available on the settlement account and the contract has repayment
notifications pending for recovery, Core Banking automatically uses
the available balance up to full settlement of repayment
notifications.
When you have restrictions of any kind on the settlement account
or the allocation simply needs to be done as per a legal authority
instructions, you can turn off the automated settlement of
Installment type repayment notifications functionality (the
payment allocation) at the contract level using the Direct Debit
Settlement Account checkbox. De-selecting the checkbox leads
to the underlying amounts on notifications pending recovery not
being retrieved automatically even if there are available funds in
settlement account. Thus, financial institution can manage the
contracts in case of blocked accounts and control the allocation of
funds to outstanding Installment type notifications in case of
need to impose a block on the settlement account, or manage the
settlement of multiple loans from the same settlement account
when short on funds and exceptional rules might apply.
This parametrization is available at product level, you can it
amended at the contract level, and it is also available at customer
level with a system parameter to instruct Core Banking if the
customer level setup should impact underlying contracts or not.
Thus, you can manage the Direct Debit Settlement Account
setting at the customer level. The customer level setting takes
precedence over the setting at the contract level when creating new
contracts. For existing contracts, Core Banking applies the setting
configured within the
CustomerToContractDirectDebitSettlementAcc system
parameter.

CONTRACTS 254
CORE BANKING USER GUIDE

If the automated settlement of repayment notification functionality

is turned off, the contract is pending for manual repayment. You can
turn it back on as required, when required, and allow Core Banking
to allocate the funds according to its automated processes, using
any funds that become available in the settlement account in order
to cover pending notifications. When the functionality is turned on
or off, the notifications already processed remain unchanged. You
can turn the automated settlement functionality on or off even after
the maturity of a loan, as long as the contract is not closed.
The following validations are performed for the Direct Debit
Settlement Account field at the contract level:

l If Direct Debit Settlement Account = True and new

Installment type repayment notifications are generated, the
system automatically tries to recover the values from Settlement
Amount. When the repayment notification is fully paid, Core
Banking automatically changes the Installment type repayment
notification's status to Recovered.

l If Direct Debit Settlement Account = True and old unpaid

Installment type repayment notifications already exist, the
system tries to create recover debt records for the remaining
amount for all unpaid Installment type repayment notifications,
and changes their status to In recovery.

l If Direct Debit Settlement Account = False and new

Installment type repayment notifications are generated, the
system doesn't register any debt to recover, and changes the
notification's status to Pending Recover.

l if Direct Debit Settlement Account = False and old

Installment type repayment notifications are generated, the

CONTRACTS 255
CORE BANKING USER GUIDE

system removes debts to recover from the Settlement Account, and

changes the status to Pending Recover.

Viewing a Contract's Penalties

You can view the penalty interest already notified for the contract in the
Penalties section of the Payments tab. These penalties are automatically
calculated by Core Banking for an approved contract based on all the
interests with selected Is Penalty checkbox that are applied to this contract.
To view the penalties applied to a contract, follow these steps:

1. On an approved contract's Payments tab, navigate to the Penalties

section. If any penalty interest was calculated for the contract, they are
displayed here:

2. View basic information about the penalties in the list, such as penalty
date, amount, notification number and whether it was paid or not.
Payed penalties are also highlighted in blue, for your convenience.

3. To see detailed information about one of the applied penalties, double-

click on the desired penalty record. The Contract Penalty page is
displayed with the selected penalty's details:

CONTRACTS 256
CORE BANKING USER GUIDE

You can't edit the information displayed on this page.

4. View the information in the Contract Penalty section, as displayed:

l Contract - The number of the contract for which the penalty is
applied.
l Customer - The customer for whom the contract was created.

l Is Paid - A checkbox indicating whether the penalty was already

paid through a payment allocation or not.
l Name - The name of the penalty.

l Notification - The number of the notification where the penalty is

included.
l Penalty Amount - The amount of the penalty expressed in the
contract's currency.
l Penalty Date - The date when the penalty was calculated.

5. View the information in the Contract Penalty Details section, as

displayed:

CONTRACTS 257
CORE BANKING USER GUIDE

l Penalized Notification - The notification which was not paid in

time and for which the penalty is calculated.
l Penalized Item - The item to which the penalty interest was
applied.
l Overdue Days - The number of days since the notification was
overdue for payment.
l Penalty Amount - The calculated amount of the penalty.

l Loan Item - The loan item which is used to calculate the penalty
interest.
l Description - The description of the contract penalty detail. It
contains the total penalty value, the penalty percent or value
applied to the number of overdue, and the delay days for
calculation.

6. Double-click a detail record to view the details of the penalty on a

separate page, Edit Contract Penalty Detail:

You can't edit the information displayed on this page.

Viewing Customer Payments

Core Banking processes payments automatically, so you can't insert payment
records manually. Payment information is displayed at the contract level,
within the Payments tab. For convenience, you can also view each performed

CONTRACTS 258
CORE BANKING USER GUIDE

payment, along with its allocation details, on the Customer Payments page.

Payment Statuses
A payment record has the following statuses, visible next to the
payment number on the Payment page:
l Draft - the status of a newly created record that was not yet
sent for allocation. The payment amount is not allocated yet
as repayment for the contract's repayment notification. You
can delete records with this status.
l Unallocated - the status of a payment record before its
amount gets allocated as payment for a repayment
notification.
l Partially Allocated - the status of a record after some of its
amount gets allocated as payment for a repayment
notification.
l Allocated - the status of a record after its entire amount gets
allocated as payment for a repayment notification. There is no
further transition from this status.

IMPORTANT!
Only payments with Allocated status operate changes at the
contract repayment notification level.

To view a specific payment, follow these steps:

1. In FintechOS Portal, click the main menu icon and expand the Core
Banking Operational menu.

2. Click Customer Payments menu item to open the Customer Payments

page.

CONTRACTS 259
CORE BANKING USER GUIDE

On the Customer Payments page, you can search for records, delete a
payment in Draft status, or open a specific a payment for viewing.

3. Double-click the desired payment on the Customer Payments page.

The Edit Payment page is displayed.

You can only view a payment record, but you can't edit any of the fields
of a payment.

CONTRACTS 260
CORE BANKING USER GUIDE

4. View the following information about the selected payment:

l Payment No - The number of the payment, as generated by Core
Banking.
l Customer - The name of the customer associated with the
payment.
l Payer Name - The bank account number from where the
payment was performed.
l IBAN - The IBAN of the account where the money is being paid.

l Transaction Date - The date of the payment transaction.

l Currency - The currency of the payment.

l Bank Reference - The bank reference for the payment.

l Bank Charge - The amount charged by the bank for performing

this transaction.
l Total Payment Amount - The sum of the payment amount and
the bank charge value.
l Payment Amount - The amount of the payment.

l Allocated Amount - The amount that was already allocated as a

contract's repayment for a notification for the selected customer.
l Unallocated Amount - The amount that remains to be allocated
as a contract's repayment for a notification for the selected
customer.
l Comments - Any comments referring to the payment.

5. View the payment allocation information, displayed in the Payment

Allocation section.

CONTRACTS 261
CORE BANKING USER GUIDE

This section is empty for payments in Draft or Unallocated status. The

payment allocations for due repayment notifications are automatically
calculated by Core Banking and they are displayed after the record
reaches the Allocated or Partially Allocated status.

6. View more details about each allocation by double-clicking it. he

payment allocation record opens in the Allocation Overview page,
displaying the following information:

l Contract Id - The contract for which the payment was allocated.

l Payment - The number of the payment.

l Payment Date - The date of the payment.

l Currency Id - The currency of the payment.

l Allocation Value - The value of the allocation.

l Repayment Notification - The repayment notification for which

the payment was allocated.
l Operation Item - The operation item which was repaid with this
allocation.
l Delay Days - The days passed since the due date.

l Contract Installment No - The number of the contract

installment.
l Installment Due Date - The due date of the installment.

CONTRACTS 262
CORE BANKING USER GUIDE

l Notification Maturity Date - The notification's maturity date.

l Notification Remaining Value - The notification's remaining

value to be paid.

NOTE
You can't edit any of the fields of a payment allocation record.

Working with Overdue Loans

Financial institutions classify their existing loan contracts based upon the days past
due (DPD), the number of days passed since repayment due date without fully
repaying the due amount for the oldest unpaid repayment notification. In order to
comply with the risk method calculation, the DPD (days past due) value is calculated
as the number of days between the contract's due date and the current system date
of Core Banking. The financial institutions can apply different provision percentages
for principal or for interest for each contract, based on this classification: the higher
the delay period, the higher the provision percentage applicable and the risk
classification.
In Core Banking, the loan classification works by risk contamination at the customer
and the group levels. This means that if a loan contract belonging to a customer is
classified as one of a higher risk due to delays in the repayment process, all the other
loans of the customer and of the group where the customer is a member are further
classified into that high-risk classification. The risk classification of loan contracts is
automatically performed by the Update Loan Classification (CB) scheduled
job based on the loan classification records' definition. Read about managing loan
classification records in the Loan Classification topic.
Core Banking uses two system parameters that help you manage contracts with DPD:
l UseContaminationForDPDCategory - this parameter specifies whether Core
Banking should use the risk contamination for loan classification or not;

CONTRACTS 263
CORE BANKING USER GUIDE

l DelayDaysForBlockNewContractApproval - this parameter controls the

default number of delay days for blocking the approval of new loan contracts for
customers who have overdue payments.
You can view the contracts with DPD in the dedicated Days Past Due report,
accessible through Core Banking's Reports menu. Double-click any of the contracts
from the report to open it for editing. The report displays the contracts with overdue
repayment notifications, along with information about the number of overdue days
and the contract's classification based on the DPD:

You can also extract the information about overdue repayment notifications through
API integration, using the GetDataSourcePastDueInstallmentsReport
endpoint.
The allocation of funds for repayment notification is performed according to the cost
allocation method defined at the banking product definition level, in the product's
Lean Core Settings tab -> Payment Allocation Settings section, as described in the
Banking Product Factory user guide:

CONTRACTS 264
CORE BANKING USER GUIDE

NOTE
In order to avoid having to deal with overdues, you can perform payment holiday
transactions. If you already have overdues, then perform reschedule overdues
transactions on the contracts. Both transactions are usually part of the risk
management/ collection departments' policies and can be proactively implemented
by the bank, or on the customer's demand.

CONTRACTS 265
CORE BANKING USER GUIDE

Applying Payment Holiday to a Loan

The payment holiday represents taking a break of any number of installments for the
generated repayment schedule of a loan. You can apply payment holiday for the
principal alone or for both interest and principal of a loan contract. This has been a
functionality in demand lately during the COVID pandemic, being a regulatory
requirement for financial institutions. After applying a payment holiday transaction to
a loan contract, Core Banking recalculates the repayment schedule, rebuilding the
schedule projection automatically based on the instructions you provided.

NOTE If you are referring to payment holiday as a grace period, then you should
read the "Working with Grace" on page 270 topic. For that sort of grace, after the
initial granting of the loan, Core Banking has dedicated a transaction that can be
enabled via product definition. It does pretty much the same just during the life of
the loan, not at the very beginning of it.

Adding a Payment Holiday Transaction To an

Approved Contract
You can add payment holiday transactions to an approved contract via Core
Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.
In order to add a payment holiday transaction to a loan contract through the
menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

CONTRACTS 266
CORE BANKING USER GUIDE

3. Fill in the following fields:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the Payment Holiday

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. A series of
value fields are automatically calculated, their values are displayed,
and you can't edit them: the contract's financed and available amounts,
the selected installment calculation method, the repayment day ant
the contract's tenor.

5. Fill in the external identifier of the transaction, if available.

6. View the fee for repayment or the repayment fee percent, depending
on which is displayed. The fee value or the percentage are pre-filled by
Core Banking according to the Charge Fee defined for this transaction
type. Depending on the ManualRepaymentFeeCore Banking system
parameter's value, the system may allow you to change the fee or the
percentage. See Transaction Fees for more details.

CONTRACTS 267
CORE BANKING USER GUIDE

7. Set the payment holiday options:

l Keep Contract Period - Select this checkbox to instruct Core
Banking to keep the period of the contract. If left unselected, the
contract period is recalculated.
l Payment Holiday Period - Enter the number of months for which
you request a break from the payments.
l Payment Holiday Period Type - Select the type of payment
holiday to be applied for the contract:
l Both - take a break from paying the principal and interest
amounts of the installments.
l Principal - take a break from paying the principal
amount of the installments.
l Reason - Select the reason for requesting the event: activity
suspended, major force, or financial restructuring.

8. Decide whether you want to use the repayment schedule calculated by

Core Banking through automatic processes, or you want to import a
custom schedule. For custom schedule, select the Import Schedule
checkbox. Read more about importing a custom schedule file in the
Manually Upload Repayment Schedules section of the user guide.

9. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract

CONTRACTS 268
CORE BANKING USER GUIDE

while the event is still in this status.

10. Click the Simulate Payment Holiday button to view the details of each
installment of the calculated repayment schedule.

11. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

12. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
recalculated repayment schedule to the contract, displaying the
previous schedule version in the Contract Repayment Schedule
Versions section of the contract's Payments tab.
The transaction is visible in the Transactions section.

CONTRACTS 269
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Working with Grace

You can apply a grace period to a loan contract, so that the customer starts repaying
the loan later, effectively moving the due installments in the future with a number of
months (or as per periodicity). You can set the grace period to apply for the loan's
principal, the loan's interest, or both.

NOTE If you wish to apply a grace period during the life of the contract, then you
should read the "Applying Payment Holiday to a Loan" on page 266 topic.

Core Banking uses the grace concept in two different contexts, at the loan level or the
installment level. The grace period settings must be applied at the banking product
definition level, as follows:
l Loan grace - This is negotiated as part of the approval of a loan contract and is
granted at the beginning of the loan, for a given number of installments during
which the borrower pays only interest or nothing at all. This one has an impact
on the schedule projection. Set the loan grace at the banking product definition

CONTRACTS 270
CORE BANKING USER GUIDE

level, in the Details tab's Payment Schedule Types section, as described in the
Banking Product Factory user guide.

The loan grace setting are exposed at contract definition level for you to
customize according to the customer's needs, within the Repayment Overview
section:

l Installment grace - This is when you set a number of days allowed for the
borrower to settle their notified amounts. Suppose the contract's schedule has
its due date every month on the 15th and you want to allow for 5 days for the
amounts to be recovered. If the amounts are not recovered in the 5 days, you
also have the option to recalculate the penalty interest, if such interests exist on
the contract, starting from the initial due date of 15th, or start applying it
starting from 20th of the month. This one does not have an impact on the
schedule projection, but on how and when to consider the amounts as overdue,
and it relates to the notifications processing. These settings must be set at the
banking product level, within the Lean Core Settings' tab Payment Allocation
Settings section, as described in the in the Banking Product Factory user guide.

CONTRACTS 271
CORE BANKING USER GUIDE

Working with Participants

The participants to a contract are those legal or individual persons who have a role to
play during the life-cycle of the contract. They can be the person who borrows the
funds, the actual beneficiary of the funds, the company administrator of the legal
person, a notary, and so on. Another example are the agents, brokers, insurers, or
merchants who participate in contracts as third-party entities, and they may get
commissions according to third-party agreements. They must be recorded in contracts
as contract participant with the specified role in order to qualify for the commissions
stated in the agreement pricing records added to an agreement.
While creating a contract, Core Banking automatically populates the Contract
Participants section within the Overview tab of the contract with the customer's
information as both Borrower and Beneficiary of the funds, for loan contracts. If the
customer is a legal entity, all the company’s already entered legal representatives
such as administrators, affiliates, owners, or other key contact persons are displayed
in this list. In the Contract Participants section, you can add other participants to the
contract, like Guarantors, Co-Debtors, etc, even after approval, delete, block, or
export customers who participate in a contract.

There may be cases when some roles are mandatory for a product. If there is a
mandatory role defined in the banking product definition, Core Banking displays an
error on trying to approve the contract without a customer mentioned in the contract
with that specific role.

CONTRACTS 272
CORE BANKING USER GUIDE

Adding Participants

1. To add a participant, click Insert in the Contract Participants section of contract

in Draft, Version Draft, or Approved status.

2. On the newly displayed Participant page, fill in the following fields:

l Participant - Select from the list the name of the customer who can access
the contract.
l Role - Select from the list the role in the contract of the previously
selected customer.
l Blocking Reason - Leave this empty if you don't want to limit the
customer's access to the contract.

3. Click the Save and Close button.

IMPORTANT!
For legal entity customers, add the participant with the Company Administrator
role, otherwise, the loan contracts cannot be approved. This is not the case for
current account contracts.

CONTRACTS 273
CORE BANKING USER GUIDE

Blocking Participants
If you need to block an existing participant's access to the contract for various
reasons, such as the person left the company who is the beneficiary of the contract,
follow these steps:

1. Double-click an existing participant in the Contract Participants section of

contract in Draft, Version Draft, or Approved status.

2. On the displayed Participant page, in the Blocking Reason field, choose the
reason for blocking the selected participant from accessing the contract.

3. In the Block Role Date field, select the starting date for blocking the
participant's access to the contract.

4. Select the Block Disbursement checkbox to instruct Core Banking to stop

disbursements on the contract, if needed.

5. Click the Save and Close button.

Working with Tranches

Tranches represent multiple disbursements performed from a loan's financed amount,
which allow you to implement progressive access to the funds. This is valuable in case
of loans granted for investment projects where you can know upfront that there is a
plan for the project and payments need to happen for each stage of the project, those
stages being known from the start. Tranches are usually used for corporate loans,
such dividend payments or cash outflows are not done in equal amounts and usually
trigger a recalculation in terms of interest.
The disbursement tranches are configured at the product level.

CONTRACTS 274
CORE BANKING USER GUIDE

At contract creation, Core Banking brings the tranche information from the product
level. In the Contract Tranches section of the contract's Overview tab, you can also
insert, delete or export disbursement tranches for the contract.

Adding Tranches to a Contract

1. To add a tranche in a contract based on a product that has a disbursement

matrix set up, click Insert and fill in the following fields:

l Tranche Date - Select the date of the disbursement tranche.

l Tranche Percent - Enter the percentage from the contract value that has
to be disbursed with this tranche, or allow Core Banking to calculate it
based on the Amount value.

CONTRACTS 275
CORE BANKING USER GUIDE

l Amount - Enter the amount from the contract value that has to be
disbursed with this tranche, or allow Core Banking to calculate it based on
the Tranche Percent value.
l Interest Percent - Enter the interest percent applicable for this tranche if
it must be different from the interest rate applicable for the entire
contract.
l Unusage Commission Percent - Enter the commission percent applicable
for the unused loan amount from this tranche.
l Submitted Document - Upload the documents related to the tranche
disbursement.

2. Click the Save and Reload button. If the product has no disbursement matrix,
then Core Banking triggers an error. If Core Banking performs all validations
successfully, then the tranche record is saved in Draft status.

3. To activate the tranche, change the tranche's status to Approved. Note that you
can't modify the details of an approved tranche.

4. Click the Save and Close button.

Each day, Core Banking runs a specialized job to disburse Approved tranches,
and the amount recorded in the tranche is disbursed in the contract's
destination account. Alternatively, if you want to process the disbursement
right-away, you can run the Activate Tranche (CB) job.

Working with Covenants

The covenants are conventions that applicants must abide by after the approval of a
contract. Such conventions are usually applicable for corporate clients that must meet
certain requirements in order to continue to receive disbursements and not only:

CONTRACTS 276
CORE BANKING USER GUIDE

submit balance sheet every x months, have account turnover of at least x percent
from average monthly turnover, provide other relevant documents from authorities.
Covenants are configured at the product level.
While creating a contract, Core Banking brings the covenants to the contract level, in
the Contract Covenant section of the Overview tab. There you also add, delete or
export covenants for the contract.

Upon adding a covenant to a contract, you must activate it. After approving the
contract, when it reaches the covenant's review date, you must perform the review of
the covenant. If the conditions are not met, then you can mark the covenant for
blocking further disbursements of the contract. Further implementation is needed if
you want automatic processes to take care of contracts with breached covenants.

Adding & Activating Covenants

1. To add a covenant to a contract, click Insert in the Contracts Covenant section

of a contract in Draft or Version Draft status.

2. On the newly displayed Contract Covenant page, fill in the following fields:

l Covenant - Select the desired covenant from the list of possible values:
l Borrowers should perform tax obligations: the lenders
expect the borrowers to perform their tax obligations to both the
business and towards their employees. This covenant is of type
affirmative.

CONTRACTS 277
CORE BANKING USER GUIDE

l Lender can monitor borrower's current ratio: the

lender may continuously monitor the borrower's current ratio to
ensure it stays relatively attractive and promising. This covenant is
of type financial.
l Lender posses the right to prevent merges or
acquisitions: a clear stipulation that the lender possesses the
right to prevent merges of acquisitions without proper notification
or full knowledge of the process. This covenant is of type negative.
Core Banking automatically fills in the covenant type.
l Value - Enter the numeric value of the covenant, if applicable.

l Review Frequency (Months) - Enter the number of months after which

the covenant has to be reviewed.
l Review Date - Enter the date when the covenant has to be reviewed.

3. Click the Save and Reload button. The covenant is displayed in the list of
covenants in the Contracts Covenant section, in Draft status.

4. Activate the covenant record by changing its status to Active and confirming
your action.

5. Click the Save and Close button. The covenant's status changes to Active.

Reviewing Covenants
Core Banking allows you to add details about the process of reviewing a covenant for
an approved contract.

1. To review an active covenant for an approved contract, double-click the desired

covenant in the Contracts Covenant section of the contract's Overview tab.

CONTRACTS 278
CORE BANKING USER GUIDE

2. On the newly displayed Contract Covenant page, change the covenant's status
to Review and confirm your action.

The covenant's status changes to Review and the page reloads with new fields.

3. Fill in the following fields with the results of the covenant review process:

l Grace Period (Months) - Enter a grace period in month for the fulfillment
of the covenant, if needed.
l Resolution - Select from the list the actual resolution of the covenant. Add
a new covenant resolution, if you can't find a match in the list.
l Resolve Date - Enter the date when the covenant is considered as
resolved.
l End Date - Enter an end date for the covenant, if needed.

l Start Early Termination - If the covenant's terms are not met, then you
can check this field to mark the covenant for contract early termination.
l Block Disbursement - If the covenant's terms are not met, then you can
check this field to mark the covenant for blocking further disbursements
of the contract.

4. Click the Save and Reload button.

CONTRACTS 279
CORE BANKING USER GUIDE

5. If the covenant's terms are met, change the covenant's status to Active and
confirm your action.
If the covenant's terms are not met, change the covenant's status to Breached
and confirm your action.

6. Click the Save and Close button. The covenant's status changes to Active or
Breached, according to your previous choice.

NOTE Further implementations are needed in order for Core Banking to manage
contracts with breached covenants if you need actions enforced at the contract
level.

Working with Contract Classification

Financial institutions may classify their contracts for organization purposes, or to mark
some contracts as to belonging to a specific category or another. Core Banking brings
the classifications defined at the product level to the contract level when creating a
contract.

NOTE
For information about the automatic loan classification performed by Core Banking
based on DPD, please read the "Loan Classification" on page 40 topic.

You can manage a contract's classification within the Contract Classifications section
on the Overview tab. Here you can insert, delete or export classifications for the
contract.

CONTRACTS 280
CORE BANKING USER GUIDE

Adding Classifications to a Contract

1. To add a classification to a contract, click Insert in the Contract Classifications

section of a contract.

2. On the newly displayed Add Contract Classification page, fill in the following
fields:

l Classification - Select the desired classification for the contract from the
list of classifications associated with the banking product.
l Description - Enter a description for the contract classification.

3. Click the Save and Close button.

Working with Returns

To manage merchandise return in a contract based on a BNPL-type banking product or
even a return of funds in a different kind of loan, no matter if the return is partial or
full, Core Banking allows you to perform an early repayment and decide if the
repayment amount is excluded from interest calculation, as well as decide how to
treat potentially claimed interest at the moment of performing the early repayment.
This feature was created in context of BNPL where you can return goods but can also
apply for mortgages when the deal drops and the solicitor returns the funds.

CONTRACTS 281
CORE BANKING USER GUIDE

The Returned Amounts or Goods transaction triggers an early repay and reconciles/
gives back any interest if collected for that specific amount so far, as well as all or part
of the upfront fee. The recalculation of the repayment schedule covers the
recalculation of interest and the mitigation of potentially already charged/ notified
interest amounts. Core Banking can capture the return for any amount no matter if
the disbursement of the loan was done in one or multiple transactions. Even if there
are overdue payments on the contract, the principal can be decreased and also the
overdue notifications overdue are adjusted to reflect the early repayment, if the date
of processing is before the notification date. The transaction only accepts Return
Fee commission types. Upon transaction approval, a new contract version is
automatically created.
Whether a contract allows or not Returned Amounts or Goods transactions must be
defined at the banking product level, within the Lean Core Settings' tab Return of
Goods section, as described in the Banking Product Factory user guide.

Adding a Returned Amount or Goods Transaction To

an Approved Contract
You can add Returned Amounts or Goods transactions to an approved and
disbursed contract via Core Banking's user interface or through API calls,
using the Core Banking endpoints. Read more about these endpoints in the
Core Banking Developer Guide.
In order to add a Returned Amounts or Goods transaction to a loan contract
through the menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

CONTRACTS 282
CORE BANKING USER GUIDE

3. Fill in the following fields:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the Returned Amounts or

Goods transaction type. If you can't find it, then the transaction
type is not associated with the banking product which is at the
base of the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. A series of
value fields are automatically calculated, their values are displayed,
and you can't edit them: the contract's financed and available amounts,
the selected installment calculation method, the repayment day ant
the contract's tenor.

CONTRACTS 283
CORE BANKING USER GUIDE

5. In the General Data section, fill in the external identifier of the

transaction, if available.
The date for return is pre-filled and it can't be before Activation
Date and after Current Date.
The event value represents value of the transaction, calculated and
displayed after saving the record, based on the information filled in a
series of other fields: Event Value = Repayment Principal
Amount + Commission Value + Interest To Be Returned.

6. In the Unpaid Info section, you can only view the information about:
l Accrued Interest - The interest accrued up until the event date
for an early repayment contract event.
l Unpaid Amount On Contract - The value of the unpaid amount
still on the contract.
l Unpaid Amount For Customer - The value of the unpaid amount
for the customer.

7. In the General Data section, fill in the Repayment Principal Amount

with the amount from the Principal that the customer wishes to return.
You can only view the following information:

CONTRACTS 284
CORE BANKING USER GUIDE

l Remaining Principal At Date - The remaining value of the

principal at the current date.
l Returned Accrued Interest - The returned accrued interest.

l Interest For Returned Amount - The interest for the returned

amount.
l Interest To Be Returned - The interest to be returned with this
event.

8. In the Fees section, you can only view the information about:
l Return Fee - The transaction fee applicable for a Returned
Amount or Goods transaction on this contract. See Transaction
Fees for more details.
l Return Fee Percent - The return fee percentage applicable for
the contract, if the return fee is set up as a percentage.
l Return Fee Value - The return fee value applicable for the
contract.

9. In the Early Repayment Options section, select the Keep Contract

Period checkbox if Core Banking should keep the period of the
contract.

10. Select the Fee Value To Principal checkbox to indicate that the value of
the return fee should be applied to the principal, using its value to
include it in the repayment amount and diminishing the outstanding
principal.

11. In the Early Repayment Result section, you can only view the
information about:
l Future Installments No - the number of installments to be paid in
the future. This depends on whether you opted to keep the
contract period as it was or not.
l Future Annuity - the future value of the installment as
recalculated after this payment.

CONTRACTS 285
CORE BANKING USER GUIDE

l Future Principal For Installment - the future value of the

principal as recalculated after this payment.

12. Decide whether you want to use the repayment schedule calculated by
Core Banking through automatic processes, or you want to import a
custom schedule. For custom schedule, select the Import Schedule
checkbox. Read more about importing a custom schedule file in the
Manually Upload Repayment Schedules section of the user guide.

13. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

14. Click the Simulate Returned Amounts or Goods button to view the
details of each installment of the calculated repayment schedule.

CONTRACTS 286
CORE BANKING USER GUIDE

15. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

16. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
recalculated repayment schedule to the contract, displaying the
previous schedule version in the Contract Repayment Schedule
Versions section of the contract's Payments tab.
The transaction is visible in the Transactions section.

CONTRACTS 287
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Automatic Calculations of Value Fields

Legend:
l RA = Returned amount/ Returned value of the goods

l IFRV = Interest for remaining value after returning the

amount/ returning the value of the goods
l IFRA = Interest for returned amount starting from return date

l RVA = Remaining value after returned amount/ returned value

of the good
l RVBA = Remaining value before returned amount/ return
value of the good
Principal To Be Returned = if RA > RVBA => RA - RVBA, else 0.
Interest To Be Returned = if IFRA > IFRV=>IFRA -IFRV, else 0.

CONTRACTS 288
CORE BANKING USER GUIDE

Interest on the first installment generated by the transaction: if

IFRV > IFRA => IFRV - IFRA, else 0.

Returned Amount Or Goods Event Validations

On event approval, Core Banking verifies if Event Date respects
the formula: Activation Date + Accepted Days For
Return >= Current Date. If the formula is not respected, Core
Banking returns:
l an error message, if Return Message = Error on the
banking product definition;
l a warning message, if Return Message = Warning on the
banking product definition;
l nothing, if Return Message = NoMessage on the banking
product definition.
Core Banking also checks on event approval if the Return Fee is
not greater that the sum of commissions with type Front-End Fee
with Is Returnable = True on the contract level.
There is no validation of the event amount on this transaction
related to balance of current account.

After Event Validation

After event validation, Core Banking creates a new version of the
contract. The contract's current account (customer casa account) is
topped-up TOP Up with the Event Value = Amount + Return
Fee. The return fee is added to the contract's Fees & Commissions
section with a negative value that can't be modified.
In the Contract Repayment Schedule, Core Banking creates an
installment with all columns = 0, except Principal, Remaining Value
and Total Installment, with Is Early Repayment = True and Is
Return = True. The Principal amount is:

CONTRACTS 289
CORE BANKING USER GUIDE

l the principal amount saved on the transaction if Fee Value

To Principal = False;
l the event amount saved on transaction if Fee Value To
Principal = True.
Core Banking generates a notification for this installment and
performs the allocation. The allocation process affects the main
bank account balance as it is now, all the limits with Is Revolving
= True and On Repayment = True affected by this contract, and
the available amount on the contract if Is Revolving = True at
the product level.

Applying Fees and Commissions

The financial institutions take commissions and fees for offering a product or service
such as opening an account, for cash withdrawals, for transfers, for making payments
in certain countries, for exchanging currencies, for emitting debit cards, for handling
documents etc. These commissions are set at the product level and vary from
institution to institution, based on their policy.
In the Fees & Commissions section within the Overview tab of the contract, you can
view all the fees and commissions configured at the product level that have the
Automatic Load on Contract checkbox set to True. After the first saving
operation, Core Banking display all the fees that are defined as values. The fees
defined as percentages are displayed after completing all the values of the contract.
Read more about the commissions automatically inserted and calculated in the below
section. You can also add, delete or export fees and commissions for the contract.

Automatic Insertion and Calculation of Commissions

CONTRACTS 290
CORE BANKING USER GUIDE

Core Banking automatically inserts/ updates commissions in the Fees &

Commissions section depending on the life cycle and status of the contract:
l Creating a new contract: Core Banking automatically inserts active
commissions associated to the banking product, within their defined
validity period, with Automatically load on contract = True,
with Is For Unusage = False, and Commission value is
percentage = False.
If Commission value is percentage = True, then the
commission is only inserted if the amount value was previously
inserted.
l Updating a contract in Draft status: Core Banking automatically
inserts active commissions associated to the banking product, within
their defined validity period, with Automatically load on
contract = True, with Is For Unusage = False. If a
commission with Commission value is percentage = True was
already inserted, then the commission's value is updated according to
the contract's financed amount. If the value of a commission with
Commission value is percentage = True was manually
modified (for negotiable commissions), then the new value is
calculated based on the modified percentage.
l Creating a new version for a contract: Core Banking automatically
inserts all the commissions already present in the contract.
Additionally, all commissions specifically created for contract version
(Is For Contract Version = True) are added as well.

NOTE
If a version for a contract is created more than once on the same
day, then all commissions with Is For Contract Version =
True that were not notified yet for each previous version are
deleted. At the end of the day, there is only one commission for
the latest version.

CONTRACTS 291
CORE BANKING USER GUIDE

l Updating a contract in Contract Version Draft status: Core

Banking only updates the percentage commissions that are not already
notified.
For percentage commissions (with Commission value is percentage
= True), the financed amount of the contract is used to calculate the
commission value based on the percentage. The calculation method differs
depending on the contract type:
l For contracts based on Term Loan,Mortgage or Overdraft banking
products:
l If the commission is applied to amount, then the financed
amount = amount due;
l If the commission is applied to financed amount, then the
financed amount = amount due - advance amount;
l If the commission is applied to remaining value and the contract
is in Contract Version Draft status, then financed amount
= (-1) * main bank account balance. If the result is a negative
value, then financed amount = null. In all the other cases,
financed amount = null, which is the default value.
l For contracts based on Bank Account with Overdraft banking products:
l If the commission is applied to overdraft limit amount, then the
financed amount = overdraft limit amount;
l If the commission is applied to used amount and the
commission's period type is Once, then the financed amount =
overdraft limit amount - available amount for overdraft. In all the
other cases, financed amount = null, which is the default value.

Adding Fees

1. To add a fee for this contract, click Insert in the Fees & Commissions section of
a contract in Draft or Version Draft status.

2. On the newly displayed Contract Fee page, fill in the following fields:

CONTRACTS 292
CORE BANKING USER GUIDE

l Fee - Select a commission from the list of commissions defined for the
banking product used when creating the contract.
l Fee Date - Specify which value of the commission is to be used by
selecting the date of the commission.

3. Optionally, check the rest of the fields, automatically filled in by Core Banking:
contract number, currency, periodicity type of the selected fee, the fee
percentage or value applicable for the selected date. You can't change these
values.

4. Click the Save and Close button.

Closing a Loan With All Obligations Met

Loan contracts with all their financial obligations met can be closed. Core Banking
enables you to close these contracts automatically through scheduled jobs or
manually, according to a series of settings defined at the banking product and at the
contract level.
There are cases when you might expect the loan to get closed once all amounts
recovered and the loan is not revolving, or you might want such contracts to be closed
after a certain number of days, allowing for possible reconciliations, or even leave
them to be manually closed or with a localized job. All this is enabled from product
level and, if set as negotiable, you can also change the default at contract level. You
might need such settings if you work with direct debit and need to allow for the
number of days the direct debit can bounce to pass before you really close the deal.
You can configure the closure settings during product definition, in the Lean Contract
Settings' tab -> Closing Contract Settings section, as described in the Banking Product
Factory user guide:

CONTRACTS 293
CORE BANKING USER GUIDE

If allowed from the product definition, you can amend the closure settings of the
contract, the way Core Banking should behave once the loan is repaid and the
contract can be closed. Perform these configurations in the Closure Settings section
of the Overview tab, during contract creation, for contracts based on banking
products having the Closing Is Flexible = True setting:

Depending on the real time closure setting, Core Banking uses the one following
scheduled jobs to close the contracts automatically:
l Close Contracts (CB) Job - this job closes automatically all contracts with
Automatic Closure = True and Real Time Closure = False, with
zero available amount and with no further amounts to be recovered, that have
Balance Off Date filled in and Closure Date = Current Date.
l Close Contracts RealTime(CB) Job - this job closes automatically all
contracts with Automatic Closure = True and Real Time Closure =
True, with zero available amount and with no further amounts to be recovered.
You can see the list of contracts that are ready to be closed in the Closure of
Contracts report:

CONTRACTS 294
CORE BANKING USER GUIDE

You can also use the GetClosureOfContracts endpoint to fetch the same
information within your own API integration.

Manually Closing a Contract

If you opted to close a contract with all the obligations met manually, and
not automatically, then follow these steps:

1. Double-click an approved contract with zero amounts to be recovered,

opening it for editing.

2. Change the contract's Next Status into Closed.

If Core Banking performs all the validations and finds that the financial
obligations are met and there are no more amount to be recovered,
then the contract's status becomes Closed. You can't perform any
other operations on this contract.

Any existing versions of the contract are also automatically closed, as

CONTRACTS 295
CORE BANKING USER GUIDE

you can see in the History tab.

Rescheduling and Refinancing Loans

Core Banking allows you to reschedule the overdue amounts of a loan contract, or to
perform an early repayment of the due amounts, effectively refinancing the loan. This
page covers the steps you must follow when performing these transactions on a loan
contract.

Rescheduling the Overdue Amounts for a Contract

A reschedule overdues transaction represents an operation where overdue
installments are merged to the following installments, turning the remaining
amounts on the notifications into capital, and they are no longer collecting
penalties. Core Banking also recalculates the repayments schedule.
You can add reschedule overdues transactions to an approved contract via
Core Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.
In order to add a reschedule overdues transaction to a loan contract through
the menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status with

notified overdue amounts and double-click to open it.

CONTRACTS 296
CORE BANKING USER GUIDE

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the Reschedule Overdues

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed.

CONTRACTS 297
CORE BANKING USER GUIDE

5. Fill in the external identifier of the transaction, if available.

6. Decide whether to keep the period of the contract or recalculate it.

Select the Keep Contract Period checkbox to keep the period.

7. View the transaction fee applicable for the transaction, if it was

defined, displayed in the Charge Fee field.

8. View the fee for repayment or the repayment fee percent, depending
on which is displayed. The fee value or the percentage are pre-filled by
Core Banking according to the Charge Fee defined for this transaction
type. Depending on the ManualRepaymentFeeCore Banking system
parameter's value, the system may allow you to change the fee or the
percentage. See Transaction Fees for more details.

9. Decide whether you want to use the repayment schedule calculated by

Core Banking through automatic processes, or you want to import a
custom schedule. For custom schedule, select the Import Schedule
checkbox. Read more about importing a custom schedule file in the

CONTRACTS 298
CORE BANKING USER GUIDE

Manually Upload Repayment Schedules section of the user guide.

10. Select from the Notifications list the overdue payment notifications
that you wish to reschedule.

11. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

12. Click the Simulate Reschedule Overdues button to view the details of
each installment of the calculated repayment schedule.

13. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

14. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
recalculated repayment schedule to the contract, displaying the
previous schedule version in the Contract Repayment Schedule
Versions section of the contract's Payments tab.
The transaction becomes visible in the Transactions section.

CONTRACTS 299
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Refinancing a Loan By Performing an Early

Repayment
An early repayment transaction represents the early return of funds
previously borrowed from a lender. Core Banking also recalculates the
repayments schedule. Early repayments can result in a decrease of term
while keeping the monthly installment, or a decrease of installment amount
while keeping the term. You can also perform early repayments with the
collection of interest accrued to date or leaving it until the next regular due
date. When you insert the early repayment principal amount, make sure that
you also have available funds for the interest accrued to date in case you
want to collect it, as well as any transactional fee, for cases when you have
an early repayment fee.

NOTE
Various activities can be orchestrated according to the internal procedures
of the financial institution. If the refinancing takes place in another bank,
then it's possible that the amounts are released only after the proof of
closing the other loan. Some financial institutions may refinance Principal
+ Costs, others only Principal and so the customer must cover from their
own funds the interests and potential fees.
All these must be orchestrated during the implementation process, before
actually starting to use Core Banking, if they must be automated,
otherwise they can be implemented as internal procedures.

You can add early repayment transactions to an approved contract via Core
Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.
In order to add an early repayment transaction to a loan contract through
the menus available in Core Banking, follow these steps:

CONTRACTS 300
CORE BANKING USER GUIDE

1. In FintechOS Portal, select a contract with Approved status, already

disbursed, and double-click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with current date.

l Transaction Type - Select from the list the Early Repayment

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. A series of
value fields are automatically calculated, their values are displayed,
and you can't edit them: the contract's unpaid information such as
accrued interest, unpaid amount on contract or on customer, interest
value for capital, remaining principal at date, future installments
number and future annuity.

CONTRACTS 301
CORE BANKING USER GUIDE

5. Fill in the external identifier of the transaction, if available.

6. View the interest accrued up until the event date, the unpaid amount
on the contract , and the unpaid amount for the customer. The values
are pre-filled by Core Banking and you can't change them.

7. Edit the principal amount to be repaid with this event, in the

Repayment Principal Amount field.

8. View the interest value applicable to the payment and the remaining
value of the principal at the current date, as calculated by Core
Banking.

9. View the transaction fee applicable for the transaction, if it was

defined, displayed in the Charge Fee field.

10. View the fee for repayment or the repayment fee percent, depending
on which is displayed. The fee value or the percentage are pre-filled by
Core Banking according to the Charge Fee defined for this transaction
type. Depending on the ManualRepaymentFeeCore Banking system
parameter's value, the system may allow you to change the fee or the
percentage. See Transaction Fees for more details.

11. View the total value of other fees applicable for the transaction, if any.

12. Set the early repayment options:

CONTRACTS 302
CORE BANKING USER GUIDE

l Keep Contract Period - Select this checkbox to instruct Core

Banking to keep the period of the contract. If left unselected, the
contract period is recalculated.
l Collect accrued interest - Select this checkbox to instruct Core
Banking to collect the interest accrued up to date. If the
checkbox is not selected, then the Accrued Interest = 0.00, if
it's selected, then Accrued Interest = the value of accrued
interest until the event's date. The payment schedule projection
takes into consideration both the payment schedule type defined
at the banking product level, and whether to collect the interest
accrued on the contract until the date of an early repayment
event, thus repaying the accrued interest, or not, thus adding the
accrued interest to the next installment due after the early
repayment event.
The CalculateAccrualEarlyRepayment Core Banking system
parameter specifies whether the accrual and provision should be
calculated for early repayments with the event value equal to a
part of contract's unpaid amount (partial early repayments) or
only for full early repayments.
l Accrued interest - View the interest accrued up until the event
date, as calculated by Core Banking.

13. View the early repayment results, with the number of installments to
be paid in the future, and either the future value of the installment as
recalculated after this payment in the Future Annuity field, or the
future value of the principal in the Future Principal For Installment
field.

CONTRACTS 303
CORE BANKING USER GUIDE

14. Decide whether you want to use the repayment schedule calculated by
Core Banking through automatic processes, or you want to import a
custom schedule. For custom schedule, select the Import Schedule
checkbox. Read more about importing a custom schedule file in the
Manually Upload Repayment Schedules section of the user guide.

15. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

16. Click the Simulate Early Repayment button to view the details of each
installment of the calculated repayment schedule.

CONTRACTS 304
CORE BANKING USER GUIDE

17. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

18. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
recalculated repayment schedule to the contract, displaying the
previous schedule version in the Contract Repayment Schedule
Versions section of the contract's Payments tab.
The transaction is visible in the Transactions section.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

CONTRACTS 305
CORE BANKING USER GUIDE

Changing the Interest Rate

During the life-cycle of a contract, there may be situations when you need to change
the interest rates applicable to the contract.

You can do this if the interest is defined as negotiable:

CONTRACTS 306
CORE BANKING USER GUIDE

1. To modify an approved contract's interest, you must first create a new version
as described in the dedicated topic.

2. In the contract with Version Draft status, you can change the interest rates
either using another definition of interest from those listed in product setup, or
modifying the fixed rate, margin, or minimum interest rate, in the Overview
tab's Product Interest Rate and Contract Interest Rate sections.

For contracts in Version Draft status, you can't perform any changes to the
contract interest rates for notified installments or for days that have elapsed
already from the current month's installment (if either the Notified or the Past
Unnotified checkboxes are selected).

3. Remember to recalculate the repayment schedule before approving a contract

in Version Draft status for which you performed interest rate changes,
otherwise an error prevents you from approving the contract!
Navigate to the Payments tab -> Contract Repayment Schedule section and
double-click the repayment schedule generated for contract version.

CONTRACTS 307
CORE BANKING USER GUIDE

4. On the displayed Contract Repayment Schedule page, click Recalculate. Core

Banking recalculates the repayment schedule for the remaining installments,
using the changed interest rates.

5. Click the Save and Close button.

6. Approve the contract in Version Draft status, changing its status to

Approved and then confirming your action. Thus, Core Banking applies the new
recalculated repayment schedule to the contract.

CONTRACTS 308
CORE BANKING USER GUIDE

7. View the approved contract's changed interest rates in the Overview tab.

Editing and Customizing Repayment Schedules

Once a loan approved and disbursed, you can check the repayment schedule built
based on the contract's details in the Payments tab. You can also view the versions of
the repayment schedules automatically generated by Core Banking when the schedule
is recalculated due to specific contract events.

CONTRACTS 309
CORE BANKING USER GUIDE

If you need to have a schedule to reflect a product that has a fixed rate for the first x
years and moving to variable afterward, use a Collection interest type at product
definition. When creating the contract, Core Banking automatically builds the
schedule projection with the 2 different rates, while the changes in amounts to be
collected are visible upfront. This is sometimes referred to as fixed to variable loan,
especially valid for mortgages. Read more in the Manage Contract Level Interest &
Penalty Interest Rate and in the Applying Fees and Commissions sections.

CONTRACTS 310
CORE BANKING USER GUIDE

When you need to collect amounts during the life of the loan, but also leave a balloon
(residual) payment, you can use the functionality enabled via the Is Manual Value
option on the contract, if Installment Value Custom is set on the schedule type
definition used within the product. This allows you to overwrite the repayment
amount in the Initial Royalty or Initial Principal Value field and provide a lower one,
thus any capital not made due until maturity results in a balloon payment. In practice,
you can also manage in this way fixed to variable loans where the business is to fix the

CONTRACTS 311
CORE BANKING USER GUIDE

mortgage for the x years, and you are expected either to close by the time it moves to
variable, or re-fix again. Read more about setting the repayment information on
contract level in the Enter Repayment Information for the Contract section.

A revolving line of credit might be a case where you need to enable a loan for which
you collect interest and potentially some fees monthly, at end of month, and the
principal at maturity. Such loan would also be a revolving one. This sort of setup can
be achieved with a schedule definition that includes the fee. On the contract, you
select the due date as end of month, plus a grace for principal for the number of
installments of the full loan minus one, for example the loan has 13 installments, the
Principal Grace Period (Months) has 12 installments, and thus all principal is expected
to be repaid on maturity. When the funds are available, you can perform an early
repayment transaction and reuse those funds again when needed since it is a
revolving setup. In practice, such approvals may be extended and if this is the case
you need to make sure you perform the extension one day in advance of the maturity,

CONTRACTS 312
CORE BANKING USER GUIDE

otherwise the jobs set at the end of the day also pick up and process such maturity.
Read more about setting the repayment information on contract level in the Enter
Repayment Information for the Contract section.

Below is an example of an out-of-the-box setting for a repayment schedule setup, to

obtain the same approach with full capital repaid on maturity. Make sure you have
Once for Principal definition, as pictured here:

CONTRACTS 313
CORE BANKING USER GUIDE

Apart from the standardized regular repayment schedules, there may be cases when
for a specific customer or for a specific business area you need custom repayment
frequencies or even amounts. For such cases, you can manually upload a repayment
schedule from an excel template. There are some validations and transformation
requirements, but at the end you have a repayment schedule that does not follow any
of the classical definitions.

Viewing a Contract's Repayment Schedule

Follow these steps to view the repayment schedule automatically generated
by Core Banking for the approved contract, after performing a disbursement:

1. In the contract's Payments tab, go to the Contract Repayment

Schedule section. This section displays only basic information about the
generated schedule, such as contract number, schedule date and last
modification date and time.

CONTRACTS 314
CORE BANKING USER GUIDE

2. To see detailed information and the actual list of the installments,

double-click the schedule. The Contract Repayment Schedule page is
displayed with the selected schedule and a list with every schedule
detail:

You can't edit the information displayed on this page, but for contracts
in Version Draft status, you can import a custom repayment plan, if
you don't want the contract to use the repayment plan automatically
generated by Core Banking.

NOTE
Following an early repayment event, for contracts based on
banking products with the Is Revolving field set to False, when
the installments number recalculated after such an event is
lower than the previous installments number, the maturity date
and the contract period are updated along with the number of
installments.

3. View the information displayed about each schedule detail

(installment): number, due date of the installment, interest, principal
and commissions calculated for this installment, the value of the

CONTRACTS 315
CORE BANKING USER GUIDE

repayment notification generated for this schedule detail, and its

number, if the repayment notification was already generated.
Within the list, the schedule details are color coded as follows:
l Schedule details highlighted in blue are already paid, allocated or
closed to payment.
l Schedule details not highlighted (displayed on a white
background) remain to be paid.

4. To export the schedule in a .pdf file, click the Print Schedule button.
Your browser automatically downloads the PaymentScheduleFile
file, with all the information displayed within the Contract Repayment
Schedule page.

Viewing a Contract's Repayment Schedule Versions

Follow these steps to view the versions of the repayment schedules
automatically generated by Core Banking each time when a contract event
that changed either the maturity date or the amount of a repayment was
performed on the contract:

1. In the contract's Payments tab, go to the Contract Repayment

Schedule Versions section. The section displays only basic information
about the generated versions, such as version number, versioning
reason, version creation date and the date of the previously active
schedule.

NOTE
The most recent repayment schedule version is considered active

CONTRACTS 316
CORE BANKING USER GUIDE

by Core Banking, while the previous schedule records are kept

for historical purposes.

2. To see detailed information about the repayment schedule version,

double-click on the desired record. The Edit Contract Repayment
Schedule Version page is displayed with the selected schedule and a
list with every schedule detail:

You can't edit the information displayed on this page.

3. View the information displayed about each schedule version: its

number and date, the versioning reason specifying the type of contract
event that triggered the generation of the version, the customer,
contract and event information, as well as the date of the previous
repayment schedule and the type of schedule selected in the contract
and used to generate the repayment schedule.

4. View the information displayed about each schedule detail

(installment): number, due date of the installment, remaining value to
be repaid from the contract value at the moment of this installment,
interest, principal and commissions calculated for this installment, the
value of the repayment notification generated for this schedule detail,
and its number, if the repayment notification was already generated.

CONTRACTS 317
CORE BANKING USER GUIDE

Manually Upload Repayment Schedules

To accommodate cases when a contract's repayment plan can't be built using
any of the existing Core Banking automated logic, you can import a custom-
built schedule on a contract. You can either perform the import at a contract
event level (when adding a Disbursement, Early Repayment, Payment
Holiday, or Reschedule Overdues transaction), or at a contract level within
the Contract Repayment Schedule page, for contracts in Version Draft
status. After importing a custom repayment plan on a contract through a
.xlsx file whose template must be first exported, Core Banking validates
that the total outstanding amount is matched by the principal on schedule.
On due dates, the due amounts are processed properly and the notifications
are generated as per the imported repayment plan.
For example, you could use such imported schedules for contracts that
require seasonal repayment plans. For seasonal credits in agriculture, you
could have due dates only in April or September. You could build a schedule
to have installments only in these months, to accommodate such situations.
Another example is that you could use the import functionality for contracts
with atypical schedules that have to be migrated into Core Banking. First, you
could import the schedules as they are, then you could decide to adopt the
Core Banking logic for schedule calculation, maybe change the interest rate,
so you version the contract to have a repayment plan automatically
calculated by the system.

Importing Repayment Plans at Contract Event

Level
To import a custom repayment plan at a contract event level (when
performing a transaction), for contract events in Approved status,
perform the following steps:

1. On the Contracts page or in the Contracts Dashboard, select a

contract with Approved status.

2. Double-click the contract to open it for editing.

3. Navigate to the contract's Payments tab.

CONTRACTS 318
CORE BANKING USER GUIDE

4. Double-click a Disbursement, Early Repayment, Payment

Holiday, Returned Amount Or Goods, or Reschedule
Overdues transaction in Draft status.
OR
Create a new Disbursement, Early Repayment, Payment
Holiday, Returned Amount Or Goods, or Reschedule
Overdues transaction, up until saving the event in Draft
status.

5. Select the Import Schedule checkbox. The Schedule File field

is displayed, with the Select file button. The Export Schedule
Template button is also displayed. A warning message informs
you that "The previous repayment schedule was generated by
the system".

6. Click the Export Schedule Template button to download a

.xslx file with the schedule template for this specific
contract.

7. Open the downloaded schedule template .xlsx file exported

from Core Banking and make it editable.

8. Format the Due Date column as Text

CONTRACTS 319
CORE BANKING USER GUIDE

9. Fill in the lines of the template file with the data needed in the
contract's custom repayment plan.
Fill in each installment's type according to the event type.

NOTE
Make sure you don't change the data formats within
the columns, except for the Due Date column which
needs to be Text. Do not change the headings.
Validations are performed for the file after uploading it
to Core Banking, when the record is saved, and
incorrect formats or data are not accepted, then error
messages are shown for such files.

IMPORTANT!
For contracts with existing repayment notifications,
these notifications are already present in the
downloaded template file. Do not modify the existing
notifications' data. Compose your custom schedule
taking into account the already existing repayment
notifications.

Read more about the repayment plan template file and how to
fill it in its dedicated section.

10. Save the file. If the file needs to be labeled according to your
company's information protection policy, label it as Public,
otherwise, Core Banking can't import it.

CONTRACTS 320
CORE BANKING USER GUIDE

11. Back in Core Banking's Contract Repayment Schedule page,

click Select File.

12. In the newly displayed Explorer window, browse for the

.xlsx file that contains the custom schedule you've filled in
with the contract's repayment plan, then click Open.
The selected file's name is displayed under the Schedule File
field.

13. Click the Save and Reload button.Core Banking performs the
validations, making sure that the uploaded file meets all the
criteria for a correct, functional schedule.

14. Click the Run Import Schedule button to perform the import
of the new custom schedule to the contract. This button can
be clicked only if a file was selected in the Schedule File field.
The Contract Repayment Schedule Details section now
displays data contained in your custom schedule.

If you click the Run Import Schedule button one more time,
the values within the Contract Repayment Schedule Details
section are deleted and reinserted.

15. Approve the event by changing its status to Approved in the

upper left corner of the Event page.
The contract's repayment schedule, accessible through the

CONTRACTS 321
CORE BANKING USER GUIDE

Contract Repayment Schedule page, now displays the custom

repayment plan uploaded through the approved event.

NOTE
When versioning a contract that has an imported repayment
plan, the schedule recalculation is not mandatory. You can
choose between recalculating and importing an updated
repayment plan.

Importing Repayment Plans at Contract Level

To import a custom repayment plan directly at a contract level, for
contracts in Version Draft status, perform the following steps:

1. On the Contracts page or in the Contracts Dashboard, select

the contract for which you wish to change its schedule with a
custom repayment plan. Make sure that the contract is in
Version Draft status.

2. On the displayed contract's page, navigate to the Payments

tab and double-click the contract displayed in the Contract
Repayment Schedule section. The Contract Repayment
Schedule page is displayed.

CONTRACTS 322
CORE BANKING USER GUIDE

A warning message lets you know that "The previous

repayment schedule was generated by the system". You can
either recalculate the schedule using the Core Banking logic,
or you can import a custom repayment plan which you build
for this contract version.

3. On the newly opened Contract Repayment Schedule page,

select the Import Schedule checkbox. The Schedule File field
is displayed, with the Select file button. The Export Schedule
Template button is also displayed. A warning message informs
you that "The previous repayment schedule was generated by
the system".

4. Click the Export Schedule Template button to download a

.xslx file with the schedule template for this specific
contract.

5. Open the downloaded schedule template .xlsx file exported

from Core Banking and make it editable.

6. Format the Due Date column as Text

7. Fill in the lines of the template file with the data needed in the
contract's custom repayment plan.
Fill in each installment's type according to the event type.

CONTRACTS 323
CORE BANKING USER GUIDE

NOTE
Make sure you don't change the data formats within
the columns, except for the Due Date column which
needs to be Text. Do not change the headings.
Validations are performed for the file after uploading it
to Core Banking, when the record is saved, and
incorrect formats or data are not accepted, then error
messages are shown for such files.

IMPORTANT!
For contracts with existing repayment notifications,
these notifications are already present in the
downloaded template file. Do not modify the existing
notifications' data. Compose your custom schedule
taking into account the already existing repayment
notifications.

Read more about the repayment plan template file and how to
fill it in its dedicated section.

8. Save the file. If the file needs to be labeled according to your

company's information protection policy, label it as Public,
otherwise, Core Banking can't import it.

9. Back in Core Banking's Contract Repayment Schedule page,

click Select File.

CONTRACTS 324
CORE BANKING USER GUIDE

10. In the newly displayed Explorer window, browse for the

.xlsx file that contains the custom schedule you've filled in
with the contract's repayment plan, then click Open.
The selected file's name is displayed under the Schedule File
field.

11. Click the Save and Reload button.Core Banking performs the
validations, making sure that the uploaded file meets all the
criteria for a correct, functional schedule.

12. Click the Run Import Schedule button to perform the import
of the new custom schedule to the contract. This button can
be clicked only if a file was selected in the Schedule File field.
The Contract Repayment Schedule Details section now
displays data contained in your custom schedule.

If you click the Run Import Schedule button one more time,
the values within the Contract Repayment Schedule Details
section are deleted and reinserted.

NOTE
When versioning a contract that has an imported repayment
plan, the schedule recalculation is not mandatory. You can
choose between recalculating and importing an updated
repayment plan.

Working with a Repayment Plan Template File

CONTRACTS 325
CORE BANKING USER GUIDE

Each time you need to import a custom schedule to a contract, you

must export its template file first, make the needed changes, then
save the file. Follow these steps to work with repayment schedule
template files:

1. On the Contract Repayment Schedule page, or on the

Contract Event page, click the Export Schedule Template
button.
A file with .xlsx format is downloaded to your computer.
The file contains the columns that must be filled in based on
the contract's schedule type definition.

NOTE
Each contract type may have a different schedule type
definition, so make sure you download the template!

This is an example of an exported repayment plan template

file:

2. After opening the downloaded schedule template .xlsx file,

make it editable so that you can perform changes within its
cells.

3. Format the Due Date column as Text.

CONTRACTS 326
CORE BANKING USER GUIDE

4. Fill in the lines of the template file with the data needed in the
contract's custom repayment plan. Fill in each installment's
type according to the event type. The possible values are
Installment, EarlyRepayment, DownPayment,
PaymentHoliday, ReturnAmount, or
RescheduleOverdue.

CONTRACTS 327
CORE BANKING USER GUIDE

NOTE
Make sure you don't change the data formats within
the columns, except for the Due Date column which
needs to be Text. Do not change the headings.
Validations are performed for the file after uploading it
to Core Banking, when the record is saved, and
incorrect formats or data are not accepted, then error
messages are shown for such files.

IMPORTANT!
For contracts with existing repayment notifications,
these notifications are already present in the
downloaded template file. Do not modify the existing
notifications' data. Compose your custom schedule
taking into account the already existing repayment
notifications.

5. Save the file after filling in the template file with the desired
schedule information. If the file needs to be labeled according
to your company's information protection policy, label it as
Public, otherwise, Core Banking can't import it.

Automatic Validations Performed by Core

Banking
A series of checks and validations are performed for the file
after uploading it to Core Banking, when the record is
saved, before being imported:

CONTRACTS 328
CORE BANKING USER GUIDE

l Due Date must be of the correct Text format: dd-

mm-yyyy;
l Remaining Value = previous Remaining Value -
previous Principal;
l Sum(Principal) = eventValue for Disbursement
event type;
l Sum(Principal) = outstanding amount (sum of
principal for installments not notified yet) in all other
cases;
l Values are not negative;

l Due Date >= Activation Date if installment type =

DownPayment;
l Due Date >= First Due Date if installment type =
Installment;
l Due Date <= Maturity Date;

l Total Installment respects the formula from the

contract's schedule type;
l Max(InstallmentNo) <= Installment Number from the
contract Overview tab;
l Due Date and InstallmentNo values must be different
and consecutive, except for Early Repayment
event type, where you can have 2 installments of the
same number on the same day;
l If the installment is of Early Repayment event
type, it can only be the first installment in the
imported schedule;
l If the import is performed on a contract in Version
Draft status and there are installments notified,
those should not be modified and the checks should

CONTRACTS 329
CORE BANKING USER GUIDE

be done over installments that were not notified yet,

so sum(principal) for installments to be imported =
outstanding amount. In this case, Due Date should be
>= than the last notified installment and Installment
Number > the last notified installment.

If any of these checks fail, then you are presented with

error messages and cannot continue with the import
process. For example, an error appears when you try to
change an installment's Due Date (within the contract's
Overview section) starting with the second disbursement.
Warning messages notify you if the previous repayment
schedule was generated by the system or it was imported.
These warnings are for your information and do not affect
the import process. For example, whenever you opt for
using the automatically generated repayment plan on a
contract that already had an imported schedule, a warning
message informs you that the standard system method
overwrites the schedule that was imported in a previous
version/ event.

IMPORTANT!
For contracts with imported schedules where the second disbursement
with repayment contract was automatically generated by Core Banking,
the workaround is to:
1. Create a new version of the contract.
2. Recalculate the repayment plan.
3. Approve the contract version.
4. Create a new disbursement.

CONTRACTS 330
CORE BANKING USER GUIDE

Manually Capture Notifications

Apart from the notifications automatically generated by Core Banking for each
installment that has to be paid for existing contracts that disbursed various amounts
to customers, Core Banking also assists you reconcile wrongly processed cases and
other situations resulted from delayed processing/ wrong updates. Thus, depending
on your user rights, you can manually add notifications for an active contract based on
lending product types, term loans, and mortgages, or add notifications for amounts to
be recovered even if there is no active contract. Core Banking includes all such manual
notifications in the recovery processes.

NOTE
Core Banking enables you to manage manual repayment notification via the user
interface or via integration through APIs. For information about the available
endpoints, please visit the Core Banking Developer Guide.
For information about managing manual repayment notification via the user
interface, continue reading this page.

NOTE
You need one of the Corporate Credit Officer, Retail Credit Officer, or Loan Admin
Officer security roles to view, create, delete, and update manual repayment
notifications.
You need the Loan Admin Officer security role to update their status to Approved.

Adding Repayment Notifications

Follow these steps to manually add a repayment notification:

1. In the FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

CONTRACTS 331
CORE BANKING USER GUIDE

2. Click Manual Repayment Notification menu item to open the Manual

Repayment Notifications page.

Or, click Repayment Notification menu item to open the Repayment

Notifications List page.

Within the list, the notifications highlighted in blue are already paid, allocated,
or closed to payment, while notifications not highlighted (displayed on a white
background) remain to be paid.

3. On the Manual Repayment Notifications page, click Insert to open the Add
Manual Repayment Notification page.

4. Fill in the following details regarding the notification:

CONTRACTS 332
CORE BANKING USER GUIDE

l Customer - Select the customer for whom the notification is created.

l Contract - Select the number of the contract for which the notification is
generated. You can choose from the approved and closed contracts of the
selected customer. The currency and the source bank account are
automatically filled in using the values from the selected contract. If the
notification is not linked to an active contract, you must select a source
bank account.
l Source Bank Account - Automatically filled in if the contract was selected.
Select the bank account from where the notified amount should be
allocated. After selecting a source bank account, the currency is changed
with the bank account's currency.
l Notification Date - Select the date when the notification is created.

NOTE
You can also add manual repayment notification from the contract
level's Payments tab, clicking Insert within the Repayment
Notification section. In the displayed Add Manual Repayment
Notification page, some of the fields are automatically filled in
based on the contract's information and can't be modified.

5. Optionally, view or edit the following details:

l Currency - Automatically filled in with the currency of the notification, if
the contract or the source bank account was selected.
l Total Amount - This read-only field holds the total amount to be paid
within the notification, calculated as the sum of all the details' values.
l Maturity Date - This field is automatically filled in with the maturity date
of the notification, calculated by adding the value of the Grace period
for repayment field at the banking product level to the notification
date. If no contract is selected, hence there is grace period to consider
from the banking product level, then the ManualGraceRepayment Core
Banking system parameter is used for maturity date calculation.
l Repayment Description - Enter a description for the manual notification.

CONTRACTS 333
CORE BANKING USER GUIDE

6. Click the Save and Reload button. The manual notification is saved by Core
Banking in Draft status. You can now continue by adding repayment
notification details to it.
You can view the notifications generated for a specific contract on the Contract
page, in the Payments tab > Repayment Notifications section:

NOTE
Once the repayment notification is in Draft status, you can edit the currency and
the source bank account only if there are no notification details created for it.

Adding Repayment Notification Details

Follow these steps to manually add a repayment notification detail:

1. On the Edit Manual Repayment Notifications page, click Insert to open the Add
Manual Repayment Notification Detail page. The page already has the currency
of the notification and the remaining value still to be paid from the notification
value completed. When you create the notification detail, Remaining Value
= Value.

2. Fill in the following details regarding the notification detail:

l Operation Item - Select the operation item for which the notification detail is created.
The operation item is used in the payment allocation process. If you select an
operation item that is not included in the allocation method used for manual
notifications (stored in the ManualAllocationMethod system parameter), then Core

CONTRACTS 334
CORE BANKING USER GUIDE

Banking displays a warning message.

l Value - Enter the value of the notification detail. It must be must be greater
than 0.

3. Click the Save and Close button. The notification detail is saved by Core
Banking. You can add as many details as needed to a manual repayment
notification in Draft status.

NOTE
For the payment allocation job to process the details, you must first approve the
manual repayment notification record.

Approving Manual Repayment Notifications

After adding all the details you need to a manual repayment notification, make sure
you approve it by changing its status to Approved. Otherwise, the payment allocation
automated jobs don't process it.
Core Banking performs the following validations before approving a manual
repayment notification:
l The Total Amount of the repayment notification must be greater than 0;

l The Value fields at the details level must be greater than 0;

l The operation items selected at details level must be included in the allocation
method used for manual notifications (stored in the
ManualAllocationMethod system parameter).
After approval, Core Banking automatically transitions manual repayment
notifications from the Approved status into Pending Recover or In Recovery statuses,
using the Auto Process Manual Repayment Notifications scheduled job.
Further, the automated settlement of repayment notification takes the notification
and processes it, allocating funds from the source bank account to settle the debt.

CONTRACTS 335
CORE BANKING USER GUIDE

Working with Documents

Core Banking allows you to manage all the documents related to a contract in one
place, in the contract's Contracts & Documents tab. The tab is meant to be the
electronic folder of the contract. It displays a list of the document records for the
current contract, with details such as document name, type, status, number, whether
the record was added through the user interface (Is manual = True) or through
API integration (Is manual = False), and download options for the attached files.
Contract documents have a dedicated business workflow, thus you can transition
them through a series of statuses.

In the Contracts & Documents tab, you can: add a new contract document record,
edit or delete a record in Draft status, view the details for records in Signed or
Canceled status, or download the initial or the signed document, if it exists, by clicking
the Initial document, respectively the Signed document button next to the record.
Open the downloaded file to view its content.

NOTE
Users with the associated predefined security roles of Corporate Credit Officer and
Retail Credit Officer can perform contract document-related operations such as
adding, updating, and deleting records or changing their statuses.

Contract Document Statuses

A contract document record has the following statuses, visible in the top left
corner of the Add Contract Document page, after saving the record:

CONTRACTS 336
CORE BANKING USER GUIDE

l Draft - the status of a newly created contract document record that

was not yet authorized (marked as Signed). While in this status, you
can edit some fields and you can delete the uploaded documents.
Change its status to Signed after editing all the necessary details and
uploading the Signed Document file. Change its status to Canceled if
the document is not to be used within the contract.
l Signed - the status of a contract document record after being
authorized. You cannot edit any of the record's details. You can change
the status of the record to Canceled, if needed.
l Canceled - the status of a contract document after being canceled.
Once Signed, a contract document should be canceled if the document
is not to be used within the contract. You cannot edit any of the
record's details. There is no further transition from this status. Contract
document records created through integration (having their Is
manual field = False) can't be canceled.

Adding Contract Documents

1. To insert a document to the contract, click the Insert button in the Contract
Document section.
The Add Contract Document page is displayed, with the Document Name field
automatically completed with the name of the document.

NOTE
You can't add documents to contracts in Contract Closed or Contract
Version Closed statuses.

2. Fill in the following fields:

CONTRACTS 337
CORE BANKING USER GUIDE

l Document type - Select the type of the document.

l Description - Enter the description of the document.

l Number - Enter the number of the document, if the document has an

external identifier number.
l Initial document - Insert the file containing the initial, unsigned
document.
Click the Select file button under this field, navigate to the desired file,
select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.
l Signed Document - Insert the file containing the final, signed document, if
available.
Click the Select file button under this field, navigate to the desired file,
select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.

NOTE
To change the status of the contract document record to Signed, a
signed document file must exist within the record.

3. Click the Save and Close button.

NOTE
You can also add, update, and approve contract document records through API
integration, using the AddUpdateContractDocument and
ApproveContractDocument endpoints. Read more details in the Core Banking
Developer Guide.
Contract document files added through integration cannot be deleted and those
records can't be canceled!

Automatic Contract Document Validations

Core Banking performs the following validations for contract document

records:

CONTRACTS 338
CORE BANKING USER GUIDE

l The uploaded files' specifications follow High Productivity Fintech

Infrastructure's settings and restrictions regarding size and format,
allowing
.pdf,.doc,.docx,.els,.jpg,.jpeg,.xlsx,.dll,.ppt,.pptx,.txt,.png,.ttf,.xml file
formats.
l If the contract document record is in Signed status, the record can't be
deleted or updated, nor can its files be deleted.
l The name of the contract document record is unique, automatically
generated by Core Banking. The naming convention is "the contract
name + '-' + the selected document type + '-' + a unique document
increment". For example, 5203 - Income Statement - 60.
l The names of the selected files are not validated for uniqueness.

Treatment of Non Working Days for Schedule

Core Banking takes into consideration the defined non-working days when creating
the repayment schedules. The calendar is the default holiday treatment for the loan
contracts. In order to have flexibility on how to treat non-working days or public
holidays, Core Banking uses a series of attributes and underlying logic. Thus, if the
regular due date for loan repayment is defined as the 15th of every month and it falls
on a non-working day according to the country calendar followed for that product,
Core Banking can shift the due date backward or forward to the first working day, and
then continue with the regular 15th of every month.
Manage the holiday settings during banking product definition, in the product's
Details tab -> Holiday Settings and Country Calendars sections, as described in the
Banking Product Factory user guide:

CONTRACTS 339
CORE BANKING USER GUIDE

Furthermore, you also have a defer option that allows you to shift the due date
without changing the amounts being collected.

Working with Limits

Limits are used in order to have control over risk exposure. You may approve for a
particular customer to take up to certain maximum amount across multiple products
or you might want to approve types of products or even have a limit for a specific
product alone. The granularity of control you can enforce is up to each financial
institution’s way of driving the business. Limits capability supports financial
institutions to properly manage the company exposure, giving control over their
exposure in the market and alignment with their market strategy.

IMPORTANT!
Setting up limits is mandatory before creating loan contracts. Approved and
disbursed loan contracts affect the available limit amounts, so make sure you've
configured the limits settings according to your financial institution's needs.

CONTRACTS 340
CORE BANKING USER GUIDE

The idea behind working with limits is that when you insert the loan contract, Core
Banking performs a validation against the available limit and, if the amount exceeds
the available limit, you can decide to increase the limit or decrease the loan.
Once you create a limit record, Core Banking automatically identifies it and links the
relevant contracts to it, you can see them on the Customer Limit page's Contracts
section.

Some contracts can be linked to multiple limits if you have a complex limit structure
approved: Total Exposure includes all contracts, then Product Type
Exposure has also contracts that may be found under Product Exposure. You can
only have one limit of each type of exposure valid in the system. Each exposure is
limited in its own and by the higher level. If a customer that already has approved
contracts becomes a member of a group, all its active limits are suspended. The same
applies when excluding a customer from a group. Read more about group and
customer exposure types.
Apart from the limit types available out-of-the-box, Core Banking allows you to add
your own limit types based on roles associated to contract participants specific to
your business, and use them throughout Core Banking with all the functionality of any
other default limit type. Read more about managing limit types and role-based limits.

CONTRACTS 341
CORE BANKING USER GUIDE

Similar to contracts, the limits can be revolving or not. For revolving limits, after
performing a repayment, the amounts become available on the limit after closing the
loan contract or after each repayment transaction.
As for contracts, the History tab allows you to you see when and who created each
version of the limit and access the history version to spot the differences.

When versioning a limit, you can change certain details, while other can no longer be
amended. Usually, you would change the amount and term/ review date for the
limits.
You can have the limit in one currency and the underlying contracts in other
currencies, unless you have product specific limits. Core Banking uses the available
Exchange Rate to translate the amount into the limit currency and impact the usage
and available figures.

Jobs, System Parameters, and Reports for Limits

Core Banking uses the following jobs to recalculate limits:
l Start Of Day (SOD) Job with the following services:
l Set Limit Available Amount Due To FX Change - The
service recalculates the available amount on limits depending on
the currency's exchange rate on a specific day
l Set Contract Amount (Overdraft) Due To Plan Due
Date Reached (Increase/ Decrease) - The service
increases/ decreases the limit amount on overdraft contracts that
reached their reevaluation plan due date.
l Set Credit Facility Amount Due To Plan DueDate
Reached (Increase/ Decrease) - The service increases/

CONTRACTS 342
CORE BANKING USER GUIDE

decreases the limit amount on credit facilities that reached their

reevaluation plan due date.
l End Of Day (EOD) Job with the following services:
l Set Limit Expired - The service sets the limits which are
about to expire in the current day as Expired.
l Set Limit Available Amount Due To FX Changes - The
service sets the limit amounts available to all contracts due to
exchange rates changes.
The system parameters used for limits management are listed below:
l LimitMandatoryForIndividuals - specifies whether Core Banking
should validate the limits for individual customers or only validate
them for legal entity customers.
l DefaultIntervalLimitsReport - represents the default number of
months considered when running the reports within the Limit Report
dashboard.
l CreditFacilityLimitPercent - represents the default limit of
credit facility records.
Here are the reports that help you view the limits in Core Banking:
l Customer Limits - displays a list of the existing customer limit records,
a list of the customer limit approval requests, and a button for adding
new customer limits.
l Limit Report - displays different sections for expired limits, limits with
available amount lower than 0, limits about to expire and limits to be
reviewed, the latest two with the option to select the desired interval
of dates.

Creating New Versions of Existing Loan Contracts

In Core Banking, the contracts are set up for versioning. Thus, if you want to update
the details of an approved contract, then you must create a new version of the record.
To create a new version for a record with the Approved status, follow these steps:

CONTRACTS 343
CORE BANKING USER GUIDE

1. While in the Contract page of the record selected for updates, click the New
Version button.

2. View the new version of the contract created by Core Banking, with Contract
Version Draft status.

3. Edit the desired fields in the Overview tab. You can only edit a set of fields for
contracts based on specific banking products.

4. Click the Save and Reload button.

If you approve the contract in Contract Version Draft status, then the original record
transitions into the Contract Version Closed status and the secondary version
becomes the Approved currently active contract record.
Read more details about versioning a record on the How to Version an Entity Record
page.

NOTE
Core Banking automatically creates a new version of a contract when the payment
schedule is modified.
When versioning a contract that has an imported repayment plan, the schedule
recalculation is not mandatory. You can choose between recalculating and importing
an updated repayment plan.

CONTRACTS 344
CORE BANKING USER GUIDE

Possible Changes on New Loan Contract Versions

l The Financed Amount value can either be increased or decreased. The amount
can be decreased with a number smaller than or equal to the Available amount.
Financed amount can be increased up to the maximum value specified at
banking product level.
l The Current Account attached to the loan contract can be changed to any other
active account belonging to the customer.
l Product Interest can be changed to any other type set at banking product level.

l Schedule Type can be changed with any other type set at banking product level.

l Contract Period cannot exceed the maximum period set at banking product
level.
l Repayment Due Date can be changed with any value between 1-31.

l Grace Period can be changed up to the maximum number of months set at

banking product level.
After any of the above changes, in order to approve the new version of contract, the
Contract Repayment Schedule must be recalculated.

Viewing a Contract's History

You can view the versions of the contract, along with workflow status and the user
who modified the record, in the contract's History tab.

CONTRACTS 345
CORE BANKING USER GUIDE

A contract can have only one Draft version, one Current version, but it may have
multiple History versions, which are displayed in this section. Here you can track the
contract's life cycle and view older versions that are no longer active. Double-click a
version in the list to view its details.

Viewing a Contract's Accounting Entries

You can view all the accounting entries, accounting totals, and accruals and provisions
recorded for a contract within the Accounting Entries tab of the contract. These
records are automatically generated by the system, after performing transactions for
an approved contract.

View Accruals and Provisions

To view the records containing daily accrual and provisions, generated

automatically by the system respecting the definition of the contract,
product dimensions, system parameters and jobs, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accruals and

Provisions section.

CONTRACTS 346
CORE BANKING USER GUIDE

2. View the information displayed for each accrual and provision entry:
l Classification - The classification of the accrual and provision
entry. The classification is determined based on the records
created in the Loan Classification menu. These records classify
transactions based on the number of days since a repayment
notification is overdue.
l Contract - The number of the current contract.

l Calculation Date - The date when the accrual and provision

calculation was performed.
l Daily Accrual Interest - The amount of interest accrued on that
day.
l Accumulated Interest Accrual - The total amount of interest
accrued until that day.
l Daily Interest Provision - The amount of interest provisioned on
that day.
l Accumulated Interest Provision - The total amount of interest
provisioned until that day.
l Daily Fee Accrual - The amount of fees and commissions accrued
on that day.
l Accumulated Fee Accrual - The total amount of fees and
commissions accrued until that day.
l Principal Provision - The amount of principal provisioned.

l Previous Principal Provision - The previous amount of principal

provisioned.
l Process Days - The number of days processed.

View Accounting Totals on Contract

CONTRACTS 347
CORE BANKING USER GUIDE

To view an overview of the total amounts specified in accounting records

generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accounting Totals

on Contract section.

2. View the information displayed for each total amount:

l Account - The account where the operation was performed.

l Total Debit - The amount which was debited from the account.

l Total Credit - The amount which was credited to the account.

View Accounting Entries

To view the accounting for the transactions related to the loan contract
generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accounting Entries

section.

CONTRACTS 348
CORE BANKING USER GUIDE

2. View the information displayed for each accounting entry:

l Name - The id of the accounting entry.

l Accounting Date - The date when the entry was generated.

l Accounting Value - The value of the accounting entry.

l Analytic Credit Account Code - The code of the analytic credit

account.
l Analytic Debit Account Code - The code of the analytic debit
account.
l Currency - The currency of the accounting entry.

l Equivalent Value - The equivalent value of the accounting entry

expressed in the contract's currency.
l Exchange Rate - The exchange rate between the accounting entry
currency and the contract currency.
l Description - The description of the accounting operation.

Deposits
A deposit account is a saving product that allows the customer to place funds for a
period of time initially established and collect an interest for the funds. Core Banking
enables you to create contracts based on deposit products and to manage such

CONTRACTS 349
CORE BANKING USER GUIDE

contracts. Read about the operations that you can perform for deposit contracts in
the following pages:

Deposit Cont ract Life Cycle and St at es 350

Creat ing a Deposit Cont ract 354
Approving a Deposit 365
Reject ing a Deposit 369
Working wit h Covenant s 371
Working wit h Part icipant s 375
Working wit h Cont ract Classificat ion 377
Applying Fees and Com m issions 378
Working wit h Docum ent s 381
Deposit s, Wit hdrawals and Transfers 385
Changing Int erest Rat es on Act ive Deposit Cont ract s 396
Processing Int erest Capit alizat ion and Paym ent 398
Liquidat ing a Deposit 402
Closing a Deposit Cont ract 410
Creat ing N ew Versions of Exist ing Deposit Cont ract s 412
Viewing a Cont ract 's Hist ory 413
Viewing a Cont ract 's Account ing Ent ries 414

Deposit Contract Life Cycle and States

The four-eyes principle is applicable for all contracts in FintechOSCore Banking,
meaning that a record should be approved by a second financial institution employee,
with higher authorization rights. This is enabled via approval task High Productivity
Fintech Infrastructure capabilities and thus it is also a financial institution's
responsibility to set proper security roles and access rights to its users, in order to
make sure that the same user can't insert and also authorize the same record.
A contract record has the following business workflow statuses:

CONTRACTS 350
CORE BANKING USER GUIDE

l Draft - the status of a newly created contract record that was not yet sent for
approval. While in this status, you can edit some fields, but you can't add events
(payments) to it. Send the record to approval after editing all the necessary
details.
l Pending - this is a system status applied to contracts sent for approval, but not
yet approved. No updates are available in this system status.
l Approved - the status of a contract record after being authorized by a user with
contract approval competencies. While in this status, you cannot edit the
record's details, but you can add events to it within the Payments tab. If you
need to alter the contract's details, create a new version based on the current
contract.

NOTE
Each event must also be approved by a user with contract approval
competencies, otherwise, the transaction is not performed by the system.
New contract approval is blocked by Core Banking if the customer has
overdue days >= the value of the
DelayDaysForBlockNewContractApproval parameter.

l Closed - the last status of a contract, after manually closing it or after creating a
new version based on the current version. No updates are allowed on the
record.
l Canceled - the status of a contract after manually canceling it straight from the
Draft status. No updates are allowed on the record.

NOTE
Change the contract's status to Approved so that the customer can use the contract
and in order to apply transactions to it.

Contract Versioning

Core Banking allows you to create new versions for an existing contract if you need to
modify an existing approved contract. New versions are automatically created when
the payment schedule is modified - that implies any increase/ decrease, change of
costs, reschedule or payment holiday transactions.

CONTRACTS 351
CORE BANKING USER GUIDE

A contract version can have the following statuses:

l Contract Version Draft - the status of a newly created contract version record
that was not yet sent for approval. While in this status, you can edit some fields,
but you can't add events (payments) to it. Send the record to approval after
editing all the necessary details.
l Approved - the status of a contract version record after being authorized by a
user with contract approval competencies. While in this status, you cannot edit
the record's details, but you can add events to it within the Payments tab.
l Contract Version Closed - the last status of a contract version, after manually
closing it or after creating another new version based on the current version. No
updates are allowed on the record.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event outside
regular schedule is approved for that contract.

Changing Contract Statuses

You can manage a contract's life cycle by changing its status from the top right corner
of the screen.

The contract status transitions are illustrated below:

CONTRACTS 352
CORE BANKING USER GUIDE

Note that:

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live contract, you must create a new contract
version.

l When you create a new contract version, the current version is retired and moved to
history; no updates are allowed on the retired version.

l Every contract version starts in a draft state and must go through an approval process
before going live.

l Only one version of a contract can be live at one time.

NOTE
As a best practice, new records or new versions of existing records created on a
specific day should be approved on the same day.

CONTRACTS 353
CORE BANKING USER GUIDE

Creating a Deposit Contract

A deposit account is a saving product that allows the customer to place funds for a
period of time initially established and collect an interest for the funds.
Before creating a deposit contract, make sure that:
l the customer is recorded in Core Banking,

l and a settlement account (a current account contract for the same customer) is
set up for the desired currency.
To create a new contract:

1. Add Minimum Contract Data

1. Open the Contracts page as described in the Managing Contracts
section.

2. Click the Insert button to display the Add Contract page is displayed,
the initial page when you insert any type of contract.

3. Fill in the following fields:

l Customer Type - Optionally, select the type of the customer for the
contract, to filter the displayed customers in the next field.
l Customer - Select from the list the customer for whom you are creating
a contract.
l Product Type - Select from the list the product type to filter the list of
banking products accordingly.
l Banking Product - Select from the list the desired banking product.

CONTRACTS 354
CORE BANKING USER GUIDE

NOTE
Be careful when choosing the values for the previously mentioned fields
because you can't modify them after saving the contract!
Make sure that you select Deposit in the Product Type field and a
Deposit banking product in the Banking Product field.

4. Click the Save and Reload button.

Core Banking saves the contract in Draft status, with minimum default
information, such as an auto-generated contract number, created by, version
and version number. The previously provided details are kept on screen in
the General Data section, but they are no longer available for update. The
Currency has been updated from the banking product level.

Proceed to the next steps where the details about the contract are captured
and validated against the underlying product, setting the basic elements for
the creation of a contract such as current account, interest rate, participants,
fees, and contract covenants, within the newly displayed Overview tab.

2. Add General Data to the Contract

CONTRACTS 355
CORE BANKING USER GUIDE

1. Fill in or modify the following information:

l Current Account - Select a current account from the list of
current accounts that have the same currency as the contract and
belong to the customer. The selected current account is debited
for constituting the deposit account. If there are not enough
funds in the current account, a specific message is displayed
when trying to approve the contract. The same account is used
for transferring the interest if the banking product is without
capitalization and, at maturity, it is automatically credited with
the deposit amount if the deposit was opened without auto-
rollover.
l Amount - Enter the amount used to constitute the deposit. There
is a validation when approving the contract, so the amount must
be between the minimum and maximum values set on the
banking product.
l Sales Channel - Select the channel through which the contract is
created.

2. Optionally, fill in or modify the following information:

l Contract ID - Enter a contract ID other than the contract number
generated automatically by Core Banking when you saved the
contract.

CONTRACTS 356
CORE BANKING USER GUIDE

l Activation Date - It is automatically completed with the system

date.
l Managing Branch - This represents the branch of the
organization where the contract was created. Suppose you work
in a branch or credit center, and you need cases to be linked to a
specific location so that you can properly allocate them for
further actions. It is automatically completed at contract saving
time, but you can select another branch from the list.
l Direct Debit Settlement Account - Select this checkbox if the
direct debit settlement account functionality is turned on at the
contract level. The value of the checkbox was set at the banking
product level, but it can be modified at the contract level. The
checkbox can be edited in all the statuses of a contract except
Version Closed, Closed, and Canceled.

NOTE The Direct Debit Settlement Account

setting at the customer level takes precedence over the
setting at the contract level when creating new contracts.
For existing contracts, Core Banking applies the setting
configured within the
CustomerToContractDirectDebitSettlementAcc
system parameter.

3. Enter Repayment Information for the Contract

In the Repayment Overview section you should enter the contract period
and the first due date so that Core Banking can properly build the repayment
schedule.

CONTRACTS 357
CORE BANKING USER GUIDE

1. Fill in or modify the following information specific to the contract's

repayment schedule:
l Contract Period - This field is automatically completed with the
maximum contract period as it was defined at banking product
level. Edit this value as long as it remains between the minimum
and maximum limits set on the banking product. The contract
period is used together with Contract Period Type and Periodicity
Type.
l Contract Period Type - This field is automatically completed with
the contract period type as it was defined at banking product
level. You can't edit this value.
l Maturity Date - This field is automatically completed with the
contract maturity date, calculated based on the values of the
Contract Period, Contract Period Type, Due Date and Activation
Date. You can't edit this value.
l Due Day - Enter the exact day of month for repayment. If it is set
to 31, then the system takes the last day of month. If the
periodicity and the repayments are set to every 30 days, Core
Banking defaults the due date based on the activation date.

2. Click the Save and Reload button.

4. Manage Product Interest Rate for the Contract

Enter the details about the Product Interest Rate applied to the deposit.
Depending on the product definition again, you have a list of interest
definitions that you can bring along to the contract.

To manage the product interest rate as it must be applied to this contract:

1. Fill in or modify the following fields:

CONTRACTS 358
CORE BANKING USER GUIDE

l Interest Commission Item - This field is automatically completed with

the interest & commission item defined at the product level, if only one
item is found at the product level. If the selected product has more
items, you must select one from the list.
l Product Interest - Select from the interest to be applied for this
contract. Only the interests associated to the selected banking product
are displayed within the list. Penalty interests cannot be selected here.
l Date for Review Interest Rate - Enter the date for reviewing the
interest rate applicable for the remaining amount. This date must be
between Activation Date and Maturity Date, otherwise, an
error is displayed.
For variable interest, this field is automatically completed with the
Reference Rate Date + Reference Interest Period of the
underlying interest definition, from the base type interest attached to
variable interest. You can edit this field. For months where the date is
overlapped, the last day of the month is used for the calculation.

2. If the underlying interest definition has referenced a variable interest

rate, the details included other fields for you to complete:
l Margin – The margin applicable on top of the variable interest rate.

l Reference Rate Date – The date to be considered in order to arrive to

the applicable rate for the underlying variable interest (EURIBOR as of
30th June 2022).
l Reference Rate – The underlying rate for the variable interest as
captured in Core Banking for the date above.

3. Click the Save and Reload button.

NOTE
Fill in any other mandatory fields from the General Data and Repayment
Overview sections, otherwise you can't successfully save the contract.

5. Manage Contract Level Interest & Penalty Interest

Rates

CONTRACTS 359
CORE BANKING USER GUIDE

Define the information about the contract interest rate in a table format, in
the section Contract Interest Rate section, which appears only after saving
the selected product interest rates.
You can edit the table cells, so you can customize the interest rates selected
at the product level, if the interest and commission list was defined as
negotiable, to obtain the desired interest rates configuration at the
contract level. You can also add or delete interest rates, using the Add
Interest Rate, respectively the Delete buttons above the tables. Thus, the
table enables you to work with multiple interest rates at the contract level.

NOTE
The information disappears if you change the product interest, tenor, first
due date, maturity date, contract period, or activation date. In this case,
save the contract again to display the updated information.

To customize the information specific to each of the contract's interest rates:

1. In the Contract Interest Rate section, edit the existing information that
was automatically completed based on your product interest rate
selections:
l Interest - Automatically completed with the interest selected in the
previous Product Interest Rate section. You can select from the drop-
down list the interest to be applied for this contract. Only the interests
associated to the selected banking product are displayed within the
list. Penalty and overdraft interests cannot be selected here.
Depending on the selected interest, other fields can be displayed to be
filled in.
l Start Date - The interest's start date, automatically completed with the
contract's activation date.

CONTRACTS 360
CORE BANKING USER GUIDE

l End Date - The interest's end date, automatically completed with the
contract's maturity date.
l Minimum Amount - The minimum amount of the contract for which
the interest is applied.
l Maximum Amount - The maximum amount of the contract for which
the interest is applied.
l From Installment - The first installment for which this interest is
applied to the contract.
l To Installment - The last installment for which this interest is applied to
the contract.
l Minimum Interest Rate - This read-only cell is automatically completed
with the minimum interest rate applicable for the contract, defined at
the banking product level.
l Fixed Rate - The fixed rate of the interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.
l Margin - This cell is automatically completed with the margin of the
previously selected product interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.
If the product interest was not selected, you can manually enter the
margin.
l Reference Rate - This read-only cell is automatically completed with
the interest type's definition's reference rate valid at the previously
selected date.
l Total Interest Rate - This read-only cell is automatically completed with
the calculated total interest rate of the previously selected product
interest and any values entered for margin and reference rate. If the
product interest was not selected or if the interest at the banking
product level was marked as Is Negociable, you can manually enter
the interest rate.
l Past Unnotified - This is read-only cell read-only checkbox. For
contracts in Version Draft status, it shows whether there are days
that already passed from the current month's not yet notified
installment, days for which you can't change the interest rate.

CONTRACTS 361
CORE BANKING USER GUIDE

2. After performing the desired changes, make sure that the interest rate
(s) cover the entire tenor of the contract, from activation date until
maturity date, and there are no overlapping intervals, otherwise an
error prevents you from approving the contract.

3. Click the Save and Reload button.

6. Amend Closure Settings

If allowed from the product definition, you can amend the closure settings of
the contract, the way Core Banking should behave once the deposit is
liquidated and the contract can be closed. Most of the times this is not
something that you have to access, but it adds extra flexibility at the contract
level. This may prove useful if you suspect there may be reasons to keep a
contract open for some time post recovering all amounts for instances when
there may appear claims of funds (SEPA DD) or other similar cases.
The Closure Settings section is only displayed for contracts based on banking
products having the Closing Is Flexible = True setting.

To amend the closure settings brought from product level here at the
contract level:

1. Fill in or modify the following fields:

l Automatic Closure – If selected, Core Banking automatically
closes the contract once all other conditions are met. This field is
automatically completed with the value defined at the banking
product level, but you can modify it.
l Select this checkbox to instruct Core Banking to close the
contract automatically when the available amount becomes
zero and there are no further amounts to be recovered,
and after the number of days set as buffer before closure
pass and Closure Date = Current Date.

CONTRACTS 362
CORE BANKING USER GUIDE

l Deselect it to instruct Core Banking to keep the contract

open, regardless of the fulfillment of its maturity and
balance criteria, waiting to be manually closed by changing
its status to Closed.

NOTE
You can perform contracts events as specified in the
Allowed Transactions section of the banking
product, plus manual closure while the contract is
pending closure. Performing any other transactions
displays an error message.

l Real Time Closure – If you select this checkbox, when the

amounts become zero and the deposit is not a automatically
renewed at maturity, the contract is closed automatically. If Real
Time Closure = True, then Buffer Close Days = 0 and
Automatic Closure = True. For more details about the real-
time closure, see Close Contracts RealTime(CB) Job.
l Buffer Close Days - Enter the number of days used as buffer
before automatically closing the contract. If Buffer Close
Days > 0, then Real Time Closure = False. Core Banking
waits the entered number of days after the contract's balances
reach zero, and at the end of that day the contract is closed.
l Balance Off Date – This is a system maintained field and it is
populated with the date on top of which Core Banking adds the
Buffer Close Days to arrive to the Closure Date.
l Closure Date – This is a system maintained field and holds the
date when the contract is closed. For automatic closure, the date
is calculated by Core Banking as Balance Off Date + Buffer Close
Days.

2. Click the Save and Reload button.

CONTRACTS 363
CORE BANKING USER GUIDE

7. Check Other Details Pre-Filled Based on Product

Definition
Once you defined the mandatory details, then saved and reloaded the
contract, Core Banking updates some of the next sections on the page, based
on product definitions:

Core Banking brings the Contract Participants, the Borrower being also
Beneficiary of the funds. If needed, you can add other participants to the
contract, like Guarantors, Co-Debtors, etc. There may be cases when some
roles are mandatory for a product. Those are detailed in a separate section. If
there is a mandatory role defined in the banking product definition, Core
Banking displays an error on trying to approve the contract.

CONTRACTS 364
CORE BANKING USER GUIDE

Another important section brought from the product definition is the Fees &
Commissions. Depending on the system setup, you are allowed or not to
amend fees and commissions in this section.
Contract Covenants section displays the covenants that applicants must
abide by after approving the contract, configured at the product level. Such
conventions are usually applicable for corporate clients that must meet
certain requirements in order to continue to receive disbursements and not
only: submit balance sheet every x months, have account turnover of at least
x percent from average monthly turnover, provide other relevant documents
from authorities. In this section, you can manage covenants for the contract.
These covenants would need to be monitored procedurally; Core Banking
doesn't have the logic in place to implement automated processes.
You can use the Contract Classifications section to capture various
classifications that might be relevant for the financial institution for that
contract at a moment in time. It is a placeholder for such details and there is
no automated logic in place to update them. In implementation this can be
used for other developments if required.

After defining the relevant details of the contract, proceed to contract approval.

Approving a Deposit
You can perform the approval either from a digital journey flow via API integration or
from the Core Banking user interface.
After defining the relevant details of the contract, proceed to contract approval:

CONTRACTS 365
CORE BANKING USER GUIDE

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Approved.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Approved.

CONTRACTS 366
CORE BANKING USER GUIDE

Automated Actions After Contract Approval

The Main Bank Account is created automatically for the bank defined as Main within
the Core Banking Operational > Bank menu. In order for Core Banking to generate an
account number, a rule must be defined during the implementation phase (example:
branch code + incremental sequence number). The amount of the deposit is
automatically transferred from the specified current account of the same customer
into this new account associated with the deposit contract. You can see the details of
the account and its balance clicking the pencil icon next to the Main Bank Account
field in the contract's Overview tab.

On the Payments tab you can see the bank account operation that was generated
following the approval of the deposit contract,.

CONTRACTS 367
CORE BANKING USER GUIDE

NOTE
The tab Payments has no information to display while the contract is in the Draft
status. You must approve the contract to perform any contract event. Meaningful
payment information is displayed in this tab only after performing transactions on
the contract.

You can also check the Current Account transaction. On the contract's Overview tab,
click on the pencil next to the Current Account:

In the displayed window, view the details of the current account from where the
funds were transferred and its new balance.

CONTRACTS 368
CORE BANKING USER GUIDE

Rejecting a Deposit
You can reject a deposit, canceling it, when the deal with the customer drops. You can
perform the cancellation either from a digital journey flow via API integration or from
the Core Banking user interface.
Follow these steps to cancel the contract:

CONTRACTS 369
CORE BANKING USER GUIDE

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Canceled.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Canceled.

CONTRACTS 370
CORE BANKING USER GUIDE

NOTE
You can't further use a canceled contract. Create a new contract, if you need to.

Working with Covenants

The covenants are conventions that applicants must abide by after the approval of a
contract. Such conventions are usually applicable for corporate clients that must meet
certain requirements in order to continue to receive disbursements and not only:
submit balance sheet every x months, have account turnover of at least x percent
from average monthly turnover, provide other relevant documents from authorities.
Covenants are configured at the product level.
While creating a contract, Core Banking brings the covenants to the contract level, in
the Contract Covenant section of the Overview tab. There you also add, delete or
export covenants for the contract.

Upon adding a covenant to a contract, you must activate it. After approving the
contract, when it reaches the covenant's review date, you must perform the review of
the covenant. If the conditions are not met, then you can mark the covenant for
blocking further disbursements of the contract. Further implementation is needed if
you want automatic processes to take care of contracts with breached covenants.

Adding & Activating Covenants

1. To add a covenant to a contract, click Insert in the Contracts Covenant section

of a contract in Draft or Version Draft status.

2. On the newly displayed Contract Covenant page, fill in the following fields:

CONTRACTS 371
CORE BANKING USER GUIDE

l Covenant - Select the desired covenant from the list of possible values:
l Borrowers should perform tax obligations: the lenders
expect the borrowers to perform their tax obligations to both the
business and towards their employees. This covenant is of type
affirmative.
l Lender can monitor borrower's current ratio: the
lender may continuously monitor the borrower's current ratio to
ensure it stays relatively attractive and promising. This covenant is
of type financial.
l Lender posses the right to prevent merges or
acquisitions: a clear stipulation that the lender possesses the
right to prevent merges of acquisitions without proper notification
or full knowledge of the process. This covenant is of type negative.
Core Banking automatically fills in the covenant type.
l Value - Enter the numeric value of the covenant, if applicable.

l Review Frequency (Months) - Enter the number of months after which

the covenant has to be reviewed.
l Review Date - Enter the date when the covenant has to be reviewed.

3. Click the Save and Reload button. The covenant is displayed in the list of
covenants in the Contracts Covenant section, in Draft status.

4. Activate the covenant record by changing its status to Active and confirming

CONTRACTS 372
CORE BANKING USER GUIDE

your action.

5. Click the Save and Close button. The covenant's status changes to Active.

Reviewing Covenants
Core Banking allows you to add details about the process of reviewing a covenant for
an approved contract.

1. To review an active covenant for an approved contract, double-click the desired

covenant in the Contracts Covenant section of the contract's Overview tab.

2. On the newly displayed Contract Covenant page, change the covenant's status
to Review and confirm your action.

The covenant's status changes to Review and the page reloads with new fields.

3. Fill in the following fields with the results of the covenant review process:

CONTRACTS 373
CORE BANKING USER GUIDE

l Grace Period (Months) - Enter a grace period in month for the fulfillment
of the covenant, if needed.
l Resolution - Select from the list the actual resolution of the covenant. Add
a new covenant resolution, if you can't find a match in the list.
l Resolve Date - Enter the date when the covenant is considered as
resolved.
l End Date - Enter an end date for the covenant, if needed.

l Start Early Termination - If the covenant's terms are not met, then you
can check this field to mark the covenant for contract early termination.
l Block Disbursement - If the covenant's terms are not met, then you can
check this field to mark the covenant for blocking further disbursements
of the contract.

4. Click the Save and Reload button.

5. If the covenant's terms are met, change the covenant's status to Active and
confirm your action.
If the covenant's terms are not met, change the covenant's status to Breached
and confirm your action.

6. Click the Save and Close button. The covenant's status changes to Active or
Breached, according to your previous choice.

NOTE Further implementations are needed in order for Core Banking to manage
contracts with breached covenants if you need actions enforced at the contract
level.

CONTRACTS 374
CORE BANKING USER GUIDE

Working with Participants

The participants to a contract are those legal or individual persons who have a role to
play during the life-cycle of the contract. They can be the person who borrows the
funds, the actual beneficiary of the funds, the company administrator of the legal
person, a notary, and so on. Another example are the agents, brokers, insurers, or
merchants who participate in contracts as third-party entities, and they may get
commissions according to third-party agreements. They must be recorded in contracts
as contract participant with the specified role in order to qualify for the commissions
stated in the agreement pricing records added to an agreement.
While creating a contract, Core Banking automatically populates the Contract
Participants section within the Overview tab of the contract with the customer's
information as both Borrower and Beneficiary of the funds, for loan contracts. If the
customer is a legal entity, all the company’s already entered legal representatives
such as administrators, affiliates, owners, or other key contact persons are displayed
in this list. In the Contract Participants section, you can add other participants to the
contract, like Guarantors, Co-Debtors, etc, even after approval, delete, block, or
export customers who participate in a contract.

There may be cases when some roles are mandatory for a product. If there is a
mandatory role defined in the banking product definition, Core Banking displays an
error on trying to approve the contract without a customer mentioned in the contract
with that specific role.

CONTRACTS 375
CORE BANKING USER GUIDE

Adding Participants

1. To add a participant, click Insert in the Contract Participants section of contract

in Draft, Version Draft, or Approved status.

2. On the newly displayed Participant page, fill in the following fields:

l Participant - Select from the list the name of the customer who can access
the contract.
l Role - Select from the list the role in the contract of the previously
selected customer.
l Blocking Reason - Leave this empty if you don't want to limit the
customer's access to the contract.

3. Click the Save and Close button.

IMPORTANT!
For legal entity customers, add the participant with the Company Administrator
role, otherwise, the loan contracts cannot be approved. This is not the case for
current account contracts.

CONTRACTS 376
CORE BANKING USER GUIDE

Blocking Participants
If you need to block an existing participant's access to the contract for various
reasons, such as the person left the company who is the beneficiary of the contract,
follow these steps:

1. Double-click an existing participant in the Contract Participants section of

contract in Draft, Version Draft, or Approved status.

2. On the displayed Participant page, in the Blocking Reason field, choose the
reason for blocking the selected participant from accessing the contract.

3. In the Block Role Date field, select the starting date for blocking the
participant's access to the contract.

4. Select the Block Disbursement checkbox to instruct Core Banking to stop

disbursements on the contract, if needed.

5. Click the Save and Close button.

Working with Contract Classification

Financial institutions may classify their contracts for organization purposes, or to mark
some contracts as to belonging to a specific category or another. Core Banking brings
the classifications defined at the product level to the contract level when creating a
contract.

NOTE
For information about the automatic loan classification performed by Core Banking
based on DPD, please read the "Loan Classification" on page 40 topic.

You can manage a contract's classification within the Contract Classifications section
on the Overview tab. Here you can insert, delete or export classifications for the
contract.

CONTRACTS 377
CORE BANKING USER GUIDE

Adding Classifications to a Contract

1. To add a classification to a contract, click Insert in the Contract Classifications

section of a contract.

2. On the newly displayed Add Contract Classification page, fill in the following
fields:

l Classification - Select the desired classification for the contract from the
list of classifications associated with the banking product.
l Description - Enter a description for the contract classification.

3. Click the Save and Close button.

Applying Fees and Commissions

The financial institutions take commissions and fees for offering a product or service
such as opening an account, for cash withdrawals, for transfers, for making payments
in certain countries, for exchanging currencies, for emitting debit cards, for handling
documents etc. These commissions are set at the product level and vary from
institution to institution, based on their policy.
In the Fees & Commissions section within the Overview tab of the contract, you can
view all the fees and commissions configured at the product level that have the
Automatic Load on Contract checkbox set to True. After the first saving
operation, Core Banking display all the fees that are defined as values. The fees

CONTRACTS 378
CORE BANKING USER GUIDE

defined as percentages are displayed after completing all the values of the contract.
Read more about the commissions automatically inserted and calculated in the below
section. You can also add, delete or export fees and commissions for the contract.

Automatic Insertion and Calculation of Commissions

Core Banking automatically inserts/ updates commissions in the Fees &

Commissions section depending on the life cycle and status of the contract:
l Creating a new contract: Core Banking automatically inserts active
commissions associated to the banking product, within their defined
validity period, with Automatically load on contract = True,
with Is For Unusage = False, and Commission value is
percentage = False.
If Commission value is percentage = True, then the
commission is only inserted if the amount value was previously
inserted.
l Updating a contract in Draft status: Core Banking automatically
inserts active commissions associated to the banking product, within
their defined validity period, with Automatically load on
contract = True, with Is For Unusage = False. If a
commission with Commission value is percentage = True was
already inserted, then the commission's value is updated according to
the contract's financed amount. If the value of a commission with
Commission value is percentage = True was manually
modified (for negotiable commissions), then the new value is
calculated based on the modified percentage.
l Creating a new version for a contract: Core Banking automatically
inserts all the commissions already present in the contract.
Additionally, all commissions specifically created for contract version
(Is For Contract Version = True) are added as well.

CONTRACTS 379
CORE BANKING USER GUIDE

NOTE
If a version for a contract is created more than once on the same
day, then all commissions with Is For Contract Version =
True that were not notified yet for each previous version are
deleted. At the end of the day, there is only one commission for
the latest version.

l Updating a contract in Contract Version Draft status: Core

Banking only updates the percentage commissions that are not already
notified.
For percentage commissions (with Commission value is percentage
= True), the financed amount of the contract is used to calculate the
commission value based on the percentage. The calculation method differs
depending on the contract type:
l For contracts based on Term Loan,Mortgage or Overdraft banking
products:
l If the commission is applied to amount, then the financed
amount = amount due;
l If the commission is applied to financed amount, then the
financed amount = amount due - advance amount;
l If the commission is applied to remaining value and the contract
is in Contract Version Draft status, then financed amount
= (-1) * main bank account balance. If the result is a negative
value, then financed amount = null. In all the other cases,
financed amount = null, which is the default value.
l For contracts based on Bank Account with Overdraft banking products:
l If the commission is applied to overdraft limit amount, then the
financed amount = overdraft limit amount;

CONTRACTS 380
CORE BANKING USER GUIDE

l If the commission is applied to used amount and the

commission's period type is Once, then the financed amount =
overdraft limit amount - available amount for overdraft. In all the
other cases, financed amount = null, which is the default value.

Adding Fees

1. To add a fee for this contract, click Insert in the Fees & Commissions section of
a contract in Draft or Version Draft status.

2. On the newly displayed Contract Fee page, fill in the following fields:

l Fee - Select a commission from the list of commissions defined for the
banking product used when creating the contract.
l Fee Date - Specify which value of the commission is to be used by
selecting the date of the commission.

3. Optionally, check the rest of the fields, automatically filled in by Core Banking:
contract number, currency, periodicity type of the selected fee, the fee
percentage or value applicable for the selected date. You can't change these
values.

4. Click the Save and Close button.

Working with Documents

Core Banking allows you to manage all the documents related to a contract in one
place, in the contract's Contracts & Documents tab. The tab is meant to be the
electronic folder of the contract. It displays a list of the document records for the
current contract, with details such as document name, type, status, number, whether

CONTRACTS 381
CORE BANKING USER GUIDE

the record was added through the user interface (Is manual = True) or through
API integration (Is manual = False), and download options for the attached files.
Contract documents have a dedicated business workflow, thus you can transition
them through a series of statuses.

In the Contracts & Documents tab, you can: add a new contract document record,
edit or delete a record in Draft status, view the details for records in Signed or
Canceled status, or download the initial or the signed document, if it exists, by clicking
the Initial document, respectively the Signed document button next to the record.
Open the downloaded file to view its content.

NOTE
Users with the associated predefined security roles of Corporate Credit Officer and
Retail Credit Officer can perform contract document-related operations such as
adding, updating, and deleting records or changing their statuses.

Contract Document Statuses

A contract document record has the following statuses, visible in the top left
corner of the Add Contract Document page, after saving the record:
l Draft - the status of a newly created contract document record that
was not yet authorized (marked as Signed). While in this status, you
can edit some fields and you can delete the uploaded documents.
Change its status to Signed after editing all the necessary details and
uploading the Signed Document file. Change its status to Canceled if
the document is not to be used within the contract.
l Signed - the status of a contract document record after being
authorized. You cannot edit any of the record's details. You can change
the status of the record to Canceled, if needed.

CONTRACTS 382
CORE BANKING USER GUIDE

l Canceled - the status of a contract document after being canceled.

Once Signed, a contract document should be canceled if the document
is not to be used within the contract. You cannot edit any of the
record's details. There is no further transition from this status. Contract
document records created through integration (having their Is
manual field = False) can't be canceled.

Adding Contract Documents

1. To insert a document to the contract, click the Insert button in the Contract
Document section.
The Add Contract Document page is displayed, with the Document Name field
automatically completed with the name of the document.

NOTE
You can't add documents to contracts in Contract Closed or Contract
Version Closed statuses.

2. Fill in the following fields:

l Document type - Select the type of the document.

l Description - Enter the description of the document.

l Number - Enter the number of the document, if the document has an

external identifier number.
l Initial document - Insert the file containing the initial, unsigned
document.
Click the Select file button under this field, navigate to the desired file,

CONTRACTS 383
CORE BANKING USER GUIDE

select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.
l Signed Document - Insert the file containing the final, signed document, if
available.
Click the Select file button under this field, navigate to the desired file,
select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.

NOTE
To change the status of the contract document record to Signed, a
signed document file must exist within the record.

3. Click the Save and Close button.

NOTE
You can also add, update, and approve contract document records through API
integration, using the AddUpdateContractDocument and
ApproveContractDocument endpoints. Read more details in the Core Banking
Developer Guide.
Contract document files added through integration cannot be deleted and those
records can't be canceled!

Automatic Contract Document Validations

Core Banking performs the following validations for contract document

records:
l The uploaded files' specifications follow High Productivity Fintech
Infrastructure's settings and restrictions regarding size and format,
allowing
.pdf,.doc,.docx,.els,.jpg,.jpeg,.xlsx,.dll,.ppt,.pptx,.txt,.png,.ttf,.xml file
formats.
l If the contract document record is in Signed status, the record can't be
deleted or updated, nor can its files be deleted.

CONTRACTS 384
CORE BANKING USER GUIDE

l The name of the contract document record is unique, automatically

generated by Core Banking. The naming convention is "the contract
name + '-' + the selected document type + '-' + a unique document
increment". For example, 5203 - Income Statement - 60.
l The names of the selected files are not validated for uniqueness.

Deposits, Withdrawals and Transfers

You can find all the existing transactions, bank account operations, and payments for
a contract on the Payments tab. The tab has no information to display for contracts in
Draft status. Approve the contract to perform any transactions on the contract.

CONTRACTS 385
CORE BANKING USER GUIDE

The Bank Account Operations section contains details about each account operation
performed on the deposit after its approval, starting with the transfer from the
current account to the deposit account of the funds specified for constituting the
deposit.

The following sections show you how to perform the usual transactions available on
deposit contracts during the duration of the deposit.

NOTE
For information about liquidating a deposit, either on maturity or before, read the
"Liquidating a Deposit" on page 402 topic.

Topping Up an Approved Deposit Contract

A top-up transaction on a deposit represents adding amounts to the deposit
to increase the deposit balance.
You can add top-up transactions to an approved contract via Core Banking's
user interface or through API calls, using the Core Banking endpoints. Read
more about these endpoints in the Core Banking Developer Guide.
In order to add a top-up transaction to a deposit contract through the menus
available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

CONTRACTS 386
CORE BANKING USER GUIDE

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Top Up Account

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance is automatically calculated, and you can't edit
it.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is added to the deposit
account.

7. Enter the Source Account for the respective amount, the account from
where the funds are taken to perform the top-up.

NOTE
Core Banking actually uses the financial institution's
reconciliation account as a source bank account.

CONTRACTS 387
CORE BANKING USER GUIDE

8. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds specified in the event
value from the source account into the deposit account.
The transaction is visible in the Transactions section, and you can also
see the account operation in the Bank Account Operations section.

CONTRACTS 388
CORE BANKING USER GUIDE

11. View the balance of the account after approving the transaction,
clicking the pencil icon next to the Main Bank Account field in the
contract's Overview tab:

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Withdrawing Funds from an Approved Contract

A withdrawal transaction on a deposit contract represents removing a part of
the funds available on the deposit, without terminating the deposit contract.
This operation may affect the interest calculation.
You can add withdrawal transactions to an approved contract via Core
Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.

CONTRACTS 389
CORE BANKING USER GUIDE

In order to add a withdrawal transaction to a deposit contract through the

menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Withdraw transaction

type. If you can't find it, then the transaction type is not
associated with the banking product which is at the base of the
contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance, the interest to recover, and available amount
on the deposit are automatically calculated, and you can't edit them.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is removed from the
account.

CONTRACTS 390
CORE BANKING USER GUIDE

NOTE
Core Banking actually uses the financial institution's
reconciliation account as a destination bank account.

7. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

8. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

9. Confirm the change of status in the Confirmation window, clicking Yes.

The event is now in Approved status and Core Banking applies the
transaction to the contract, removing the funds specified in the event
value from the current account.
The transaction is visible in the Transactions section, and you can also
see the account operation in the Bank Account Operations section.

CONTRACTS 391
CORE BANKING USER GUIDE

10. View the balance of the deposit account after approving the
transaction, clicking the pencil icon next to the Main Bank Account
field in the contract's Overview tab:

NOTE
All existing versions of the contract in Contract Version Draft status are

CONTRACTS 392
CORE BANKING USER GUIDE

automatically changed to Contract Version Closed when a payment event

is approved for that contract.

Transferring Funds from a Deposit into Another of

the Customer's Accounts
A transfer between my bank accounts transaction on a deposit
represents the process of moving funds from the deposit contract into
another of the customer's bank accounts.
You can add transfer transactions to an approved contract via Core Banking's
user interface or through API calls, using the Core Banking endpoints. Read
more about these endpoints in the Core Banking Developer Guide.
In order to add a transfer transaction to a deposit contract through the
menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Transfer between my

bank accounts transaction type. If you can't find it, then the
transaction type is not associated with the banking product which
is at the base of the contract.
Other values are automatically completed: contract, customer, and
currency.

CONTRACTS 393
CORE BANKING USER GUIDE

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance, the interest to recover, and the available
deposit amount are automatically calculated, and you can't edit them.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is added to the
account.

7. Select the Destination Account where the respective amount should be

transferred into. You can choose from the list of accounts that belong
to the contract's customer and have the same currency.

8. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

CONTRACTS 394
CORE BANKING USER GUIDE

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds specified in the event
value from the current account into the destination account of the
same customer.
The transaction is visible in the Transactions section, and you can also
see the account operation in the Bank Account Operations section.

11. View the balance of the deposit account after approving the
transaction, clicking the pencil icon next to the Main Bank Account
field in the contract's Overview tab:

CONTRACTS 395
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Changing Interest Rates on Active Deposit Contracts

Once a contract is approved, hence active, you can't edit the interest rates. However,
in certain cases, you might have to change the interest rates due to inflation,
renegotiation of the contract, and so on. For such cases, follow these general steps:

CONTRACTS 396
CORE BANKING USER GUIDE

1. Select and open an Approved contract.

2. Create a new version for the contract, as described on the "Creating New
Versions of Existing Deposit Contracts" on page 412 page.

3. Edit the values within the Contract Interest Rate section in the Overview tab of
the contract in Contract Version Draft status according to your needs.

IMPORTANT!
You can change the contract interest rates only if the product interest was
defined with Is Negotiable = True.

Read more about the fields that you can modify in the "5. Manage Contract
Level Interest & Penalty Interest Rates" on page 359 section of this user guide.

4. Approve the contract version, as described on the "Approving a Deposit" on

page 365 page.
Core Banking calculates the interest capitalization according to the interest
rates found on the approved contract version.

CONTRACTS 397
CORE BANKING USER GUIDE

5. You can view the previous interest rates accessing the History tab and viewing
the older contract information, as described on the "Viewing a Contract's
History" on page 413 page.

Processing Interest Capitalization and Payment

Core Banking calculates the accrued interest for each deposit while running its Start
of Day scheduled job. The interest calculation depends on the contract and banking
product configuration, as follows:

For Interest Payment Type = Maturity at the

banking product level
If the deposit is liquidated at maturity date, which means that the customer
receives the total interest accumulated for the period during which the
deposit was made, or the sight interest if other transactions like transfer or
withdrawal occurred in the period between activation and maturity date.
If the deposit is liquidated before maturity date, the customer receives only
the sight interest and only if a sight interest is configured on the banking
product. If there is no sight interest configured, the customer receives only
the initial amount.
If a withdrawal or transfer transaction occurs during the deposit contract's
life cycle (possible only if the checkbox Allow withdraws is selected on the
banking product configuration), the sight interest is paid (if there is a sight
deposit configured on the banking product) and calculated taking into
account the amount and the period of time the funds were in the account.
If one or more top-up transactions occur during the deposit contract's life
cycle (possible only if the checkbox Allow top-ups is selected on the banking
product configuration), the total interest rate is paid, calculated taking into
account the amount and the period of time the fund were in the account.

For Interest Payment Type = any other value

except Maturity at the banking product level

CONTRACTS 398
CORE BANKING USER GUIDE

If the interest payment type is set to Monthly, Yearly, Daily or

Quarterly then the interest is calculated and paid taking into account this
periodicity, on the date specified in the deposit contract.
If the deposit reaches maturity, the total interest rate is paid according to the
periodicity and the date specified on the contract, in the current account or
in the deposit account, depending on how the deposit banking product was
configured.
If the deposit contract doesn’t reach the maturity because it is liquidated in
advance, but one or more interest payments were already made, Core
Banking recovers the interest paid from the deposit amount. The interest
recovery is made if the deposit contract reaches maturity, but during the
deposit contract's life cycle, at least one withdrawal or transfer transaction
was made (possible if Allow withdraws is checked on the banking product
configuration).

If the DepositAggregateItemValues Core Banking system parameter's value is set to

False, Core Banking recovers the entire interest paid until that moment and after that
the sight interest from the beginning until the transaction date is paid (if a sight
interest is configured on the banking product). If the
DepositAggregateItemValuesCore Banking system parameter's value is set to True,
the system recovers the difference between the paid interest and the sight interest
that should be paid (if there is a sight interest configured on the banking product).
The interest to recover value affects the deposit amount or the interest
amount, depending on the deposit banking product configuration: with interest
capitalization or not, with interest payment on the maturity date or on a specific
interval.
If the deposit is without capitalization, which means the interest is paid in the current
account, in case a withdrawal transaction occurs, the interest already paid is
recovered from the deposit amount.

CONTRACTS 399
CORE BANKING USER GUIDE

For example, if a deposit is open for a period of 3 months with a monthly interest
payment and the customer orders a withdrawal after the first month, the interest
already paid in the current account is recovered from the deposit amount.
If the deposit is with capitalization, the interest is paid in the deposit account, so in
case a withdrawal occurs, the interest is recovered from the deposit amount
containing the initial value + the interest already paid, which means the initial amount
is not affected.
The Generate Deposit Payments scheduled job performs the payments for the
calculated interests on the deposit's maturity date. You can view the paid interest for
a deposit in the Payments section:

CONTRACTS 400
CORE BANKING USER GUIDE

Open the payment record to view more relevant details:

The interest is paid into the current account specified during deposit creation:

CONTRACTS 401
CORE BANKING USER GUIDE

Liquidating a Deposit
You can leave a deposit contract to reach its maturity and allow Core Banking to
liquidate it automatically. In this case, the balance available on the deposit is
transferred to the current account selected during contract creation and the contract
is closed, along with its associated account.

CONTRACTS 402
CORE BANKING USER GUIDE

You can also liquidate a deposit on request, either at maturity, with the full payment
of interest, or before the deposit's term is up, with possible penalty applied to the
accrued interest. This can be especially useful for deposit contracts with automatic
roll-over setting at the banking product level. Core Banking offers you two predefined
contract transactions that aid you in liquidating a deposit, as follows:

Liquidating a Deposit Contract

A Deposit Liquidation transaction represents the way of closing the
deposit account, so the entire amount is transferred in the current account.
If the liquidation occurs at the maturity date, the interest is also paid. If the
liquidation occurs on any other day except the maturity date, the customer
receives the sight interest, if a sight interest was configured.
You can add deposit liquidation transactions to an approved contract via
Core Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.
In order to add a deposit liquidation transaction to a deposit contract
through the menus available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Deposit Liquidation

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

CONTRACTS 403
CORE BANKING USER GUIDE

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance, available deposit amount, the calculated
interest to recover at the current date, event value, and event date are
automatically calculated, and you can't edit them.

5. Fill in the external identifier of the transaction, if available.

6. Select from the list the Destination Account for the respective amount,
the account where the all the funds from the deposit should be moved
by Core Banking after approving the liquidation transaction. The list
contains all the active accounts in the system. You should select an
account belonging to the same customer as the deposit, opened in the
same currency.

7. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

CONTRACTS 404
CORE BANKING USER GUIDE

8. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

9. Confirm the change of status in the Confirmation window, clicking Yes.

The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds calculated in the
liquidation event value from the deposit account into the selected
destination account.
The transaction is visible in the Transactions section, and you can also
see the account operation in the Bank Account Operations section.

10. The deposit account's balance is now zero. View the balance of the
account after approving the transaction, clicking the pencil icon next to
the Main Bank Account field in the contract's Overview tab:

CONTRACTS 405
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

The liquidated deposit contract, with zero available balance, is now ready to
be closed. Depending on its closure settings, it is either picked up by Core
Banking and automatically closed, or you can close it manually.

Terminating a Deposit Contract before Maturity

An Early Termination Deposit transaction represents the way of
closing the deposit account before its maturity, so the entire amount is
transferred in the current account. Because the liquidation occurs before
maturity date, the customer receives the sight interest, if a sight interest was
configured, or the interest accrued to the date with possible penalty applied.

CONTRACTS 406
CORE BANKING USER GUIDE

In order to add an early termination transaction to a deposit contract, follow

these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Early Termination

Deposit transaction type. If you can't find it, then the transaction
type is not associated with the banking product which is at the
base of the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance, available deposit amount, the calculated
interest to recover at the current date, event value, and event date are
automatically calculated, and you can't edit them.

5. Fill in the external identifier of the transaction, if available.

CONTRACTS 407
CORE BANKING USER GUIDE

6. Select from the list the Destination Account for the respective amount,
the account where the all the funds from the deposit should be moved
by Core Banking after approving the liquidation transaction. The list
contains all the active accounts in the system. You should select an
account belonging to the same customer as the deposit, opened in the
same currency.

7. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

8. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

9. Confirm the change of status in the Confirmation window, clicking Yes.

The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds calculated in the early
termination event value from the deposit account into the selected
destination account.
The transaction is visible in the Transactions section, and you can also
see the account operation in the Bank Account Operations section.

CONTRACTS 408
CORE BANKING USER GUIDE

10. The deposit account's balance is now zero, as you can see in the
contract's Overview tab.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

The terminated deposit contract, with zero available balance, is now ready to
be closed. Depending on its closure settings, it is either picked up by Core
Banking and automatically closed, or you can close it manually.

CONTRACTS 409
CORE BANKING USER GUIDE

Closing a Deposit Contract

Liquidated deposit contracts with zero available balance can be closed. Depending on
their closure settings, such contracts are either picked up by Core Banking and
automatically closed through scheduled jobs, or you can close them manually.
There are cases when you might expect the deposit to get closed once all amounts
transferred (either at maturity or after performing a liquidation or an early
termination transaction) and the deposit is not configured with automatic roll-over, or
you might want such contracts to be closed after a certain number of days, allowing
for possible reconciliations, or even leave them to be manually closed or with a
localized job. All this is enabled from product level and, if set as negotiable, you can
also change the default at contract level. You might need such settings if you work
with direct debit and need to allow for the number of days the direct debit can
bounce to pass before you really close the deal.
You can configure the closure settings during product definition, in the Lean Contract
Settings' tab -> Closing Contract Settings section, as described in the Banking Product
Factory user guide:

If allowed from the product definition, you can amend the closure settings of the
contract, the way Core Banking should behave once the deposit's balance is zero and
the contract can be closed. Perform these configurations in the Closure Settings
section of the Overview tab, during contract creation, for contracts based on banking
products having the Closing Is Flexible = True setting:

Depending on the real time closure setting, Core Banking uses the one following
scheduled jobs to close the contracts automatically:

CONTRACTS 410
CORE BANKING USER GUIDE

l Close Contracts (CB) Job - this job closes automatically all contracts with
Automatic Closure = True and Real Time Closure = False, with
zero available amount and with no further amounts to be recovered, that have
Balance Off Date filled in and Closure Date = Current Date.
l Close Contracts RealTime(CB) Job - this job closes automatically all
contracts with Automatic Closure = True and Real Time Closure =
True, with zero available amount and with no further amounts to be recovered.

You can see the list of contracts that are ready to be closed in the Closure of
Contracts report:

You can also use the GetClosureOfContracts endpoint to fetch the same
information within your own API integration.

Manually Closing a Contract

If you opted to close a contract with all the obligations met manually, and
not automatically, then follow these steps:

1. Double-click to open an approved deposit contract with zero balance,

that was already liquidated.

2. Change the contract's Next Status into Closed.

CONTRACTS 411
CORE BANKING USER GUIDE

If Core Banking performs all the validations and finds that the financial
obligations are met and there are no more amount to be recovered,
then the contract's status becomes Closed. You can't perform any
other operations on this contract.

Any existing versions of the contract are also automatically closed, as

you can see in the History tab.

Creating New Versions of Existing Deposit Contracts

In Core Banking, the contracts are set up for versioning. Thus, if you want to update
the details of an approved contract, then you must create a new version of the record.
To create a new version for a record with the Approved status, follow these steps:

CONTRACTS 412
CORE BANKING USER GUIDE

1. While in the Contract page of the record selected for updates, click the New
Version button.

2. View the new version of the contract created by Core Banking, with Contract
Version Draft status.

3. Edit the desired fields in the Overview tab. You can only edit a set of fields for
contracts based on specific banking products.

4. Click the Save and Reload button.

If you approve the contract in Contract Version Draft status, then the original record
transitions into the Contract Version Closed status and the secondary version
becomes the Approved currently active contract record.
Read more details about versioning a record on the How to Version an Entity Record
page.

Viewing a Contract's History

You can view the versions of the contract, along with workflow status and the user
who modified the record, in the contract's History tab.

CONTRACTS 413
CORE BANKING USER GUIDE

A contract can have only one Draft version, one Current version, but it may have
multiple History versions, which are displayed in this section. Here you can track the
contract's life cycle and view older versions that are no longer active. Double-click a
version in the list to view its details.

Viewing a Contract's Accounting Entries

You can view all the accounting entries, accounting totals, and accruals and provisions
recorded for a contract within the Accounting Entries tab of the contract. These
records are automatically generated by the system, after performing transactions for
an approved contract.

View Accruals and Provisions

CONTRACTS 414
CORE BANKING USER GUIDE

To view the records containing daily accrual and provisions, generated

automatically by the system respecting the definition of the contract,
product dimensions, system parameters and jobs, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accruals and

Provisions section.

2. View the information displayed for each accrual and provision entry:
l Classification - The classification of the accrual and provision
entry. The classification is determined based on the records
created in the Loan Classification menu. These records classify
transactions based on the number of days since a repayment
notification is overdue.
l Contract - The number of the current contract.

l Calculation Date - The date when the accrual and provision

calculation was performed.
l Daily Accrual Interest - The amount of interest accrued on that
day.
l Accumulated Interest Accrual - The total amount of interest
accrued until that day.
l Daily Interest Provision - The amount of interest provisioned on
that day.
l Accumulated Interest Provision - The total amount of interest
provisioned until that day.
l Daily Fee Accrual - The amount of fees and commissions accrued
on that day.
l Accumulated Fee Accrual - The total amount of fees and
commissions accrued until that day.
l Principal Provision - The amount of principal provisioned.

CONTRACTS 415
CORE BANKING USER GUIDE

l Previous Principal Provision - The previous amount of principal

provisioned.
l Process Days - The number of days processed.

View Accounting Totals on Contract

To view an overview of the total amounts specified in accounting records

generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accounting Totals

on Contract section.

2. View the information displayed for each total amount:

l Account - The account where the operation was performed.

l Total Debit - The amount which was debited from the account.

l Total Credit - The amount which was credited to the account.

View Accounting Entries

To view the accounting for the transactions related to the loan contract
generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

CONTRACTS 416
CORE BANKING USER GUIDE

1. Navigate to the contract's Accounting Entries tab > Accounting Entries

section.

2. View the information displayed for each accounting entry:

l Name - The id of the accounting entry.

l Accounting Date - The date when the entry was generated.

l Accounting Value - The value of the accounting entry.

l Analytic Credit Account Code - The code of the analytic credit

account.
l Analytic Debit Account Code - The code of the analytic debit
account.
l Currency - The currency of the accounting entry.

l Equivalent Value - The equivalent value of the accounting entry

expressed in the contract's currency.
l Exchange Rate - The exchange rate between the accounting entry
currency and the contract currency.
l Description - The description of the accounting operation.

CONTRACTS 417
CORE BANKING USER GUIDE

Current Accounts
A current account is a bank account where you can store and withdraw money, enable
it for debit/ credit transactions internally (disburse/ repay loan, transfer between
accounts) or via integrated solutions for card management or payments. Core Banking
enables you to create contracts based on current account products and to manage
such contracts. Read about the operations that you can perform for the current
accounts with or without the overdraft functionality.

Current Account Cont ract Life Cycle and St at es 419

Creat ing a Current Account 422
Approving a Current Account 440
Reject ing a Current Account 442
Working wit h Covenant s 444
Working wit h Part icipant s 448
Working wit h Cont ract Classificat ion 450
Applying Fees and Com m issions 451
Working wit h Docum ent s 454
Perform ing Transact ions on Current Account s 458
Processing Overdraft Repaym ent s 470
M anually Capt ure N ot ificat ions 491
Closing a Current Account 496
Creat ing N ew Versions of Exist ing Current Account Cont ract s 501
Viewing a Cont ract 's Hist ory 503
Viewing a Cont ract 's Account ing Ent ries 504

CONTRACTS 418
CORE BANKING USER GUIDE

Current Account Contract Life Cycle and States

The four-eyes principle is applicable for all contracts in FintechOSCore Banking,
meaning that a record should be approved by a second financial institution employee,
with higher authorization rights. This is enabled via approval task High Productivity
Fintech Infrastructure capabilities and thus it is also a financial institution's
responsibility to set proper security roles and access rights to its users, in order to
make sure that the same user can't insert and also authorize the same record.
A contract record has the following business workflow statuses:
l Draft - the status of a newly created contract record that was not yet sent for
approval. While in this status, you can edit some fields, but you can't add events
(payments) to it. Send the record to approval after editing all the necessary
details.
l Pending - this is a system status applied to contracts sent for approval, but not
yet approved. No updates are available in this system status.
l Approved - the status of a contract record after being authorized by a user with
contract approval competencies. While in this status, you cannot edit the
record's details, but you can add events to it within the Payments tab. If you
need to alter the contract's details, create a new version based on the current
contract.

NOTE
Each event must also be approved by a user with contract approval
competencies, otherwise, the transaction is not performed by the system.
New contract approval is blocked by Core Banking if the customer has
overdue days >= the value of the
DelayDaysForBlockNewContractApproval parameter.

l Closed - the last status of a contract, after manually closing it or after creating a
new version based on the current version. No updates are allowed on the
record.

CONTRACTS 419
CORE BANKING USER GUIDE

l Canceled - the status of a contract after manually canceling it straight from the
Draft status. No updates are allowed on the record.

NOTE
Change the contract's status to Approved so that the customer can use the contract
and in order to apply transactions to it.

Contract Versioning

Core Banking allows you to create new versions for an existing contract if you need to
modify an existing approved contract. New versions are automatically created when
the payment schedule is modified - that implies any increase/ decrease, change of
costs, reschedule or payment holiday transactions.
A contract version can have the following statuses:
l Contract Version Draft - the status of a newly created contract version record
that was not yet sent for approval. While in this status, you can edit some fields,
but you can't add events (payments) to it. Send the record to approval after
editing all the necessary details.
l Approved - the status of a contract version record after being authorized by a
user with contract approval competencies. While in this status, you cannot edit
the record's details, but you can add events to it within the Payments tab.
l Contract Version Closed - the last status of a contract version, after manually
closing it or after creating another new version based on the current version. No
updates are allowed on the record.

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event outside
regular schedule is approved for that contract.

Changing Contract Statuses

You can manage a contract's life cycle by changing its status from the top right corner
of the screen.

CONTRACTS 420
CORE BANKING USER GUIDE

The contract status transitions are illustrated below:

Note that:

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live contract, you must create a new contract
version.

l When you create a new contract version, the current version is retired and moved to
history; no updates are allowed on the retired version.

l Every contract version starts in a draft state and must go through an approval process

CONTRACTS 421
CORE BANKING USER GUIDE

before going live.

l Only one version of a contract can be live at one time.

NOTE
As a best practice, new records or new versions of existing records created on a
specific day should be approved on the same day.

Creating a Current Account

A current account is a bank account where you can store and withdraw money, enable
it for debit/ credit transactions internally (disburse/ repay loan, transfer between
accounts) or via integrated solution for card management or payments.
A current account with an attached overdraft functionality allows customers to
withdraw funds from the account even if the available balance goes below zero. If
there is a prior agreement with the account provider for an overdraft, and the amount
overdrawn is within the authorized overdraft limit, then interest is normally charged
at the agreed rate. If the negative balance exceeds the agreed terms, then additional
fees may be charged and higher interest rates may apply. The customer may use the
account beyond their available balance (credit balance) and may have a debit balance
as low as the approved overdraft/ limit. The overdraft can be added on top of existing
current accounts.
The overdraft feature of the current account may expire, in which case the contract
continues to function as a current account. If needed, the overdraft feature can be
reactivated in the future within the same contract by editing the contract and creating
a new version. If the overdraft feature is extended by creating a new version of the
contract, the repayment schedule is also updated. In cases when the feature is
extended after a period of expiry, then the repayment schedule has a missing period
equivalent with the period when overdraft was expired. All overdue amounts from
previous overdraft notifications generated for the same current account contract are
covered automatically, decreasing the balance and available limit amount of the new
overdraft. The overdraft amount can fluctuate seasonally or be reduced or increased
according to a schedule, defined in the Contract Reevaluation Plans section of the
contract.

CONTRACTS 422
CORE BANKING USER GUIDE

NOTE
Before creating a current account contract, make sure that the customer is recorded
in Core Banking.

To create a new contract:

1. Add Minimum Contract Data

1. Open the Contracts page as described in the Managing Contracts
section.

2. Click the Insert button to display the Add Contract page is displayed,
the initial page when you insert any type of contract.

3. Fill in the following fields:

l Customer Type - Optionally, select the type of the customer for the
contract, to filter the displayed customers in the next field.
l Customer - Select from the list the customer for whom you are creating
a contract.
l Product Type - Select from the list the product type to filter the list of
banking products accordingly.
l Banking Product - Select from the list the desired banking product.

NOTE
Be careful when choosing the values for the previously mentioned fields
because you can't modify them after saving the contract!
Make sure that you select Current Account in the Product Type field
and a Current Account banking product in the Banking Product field. If
you want to use the overdraft functionality now or sometime in the future
for this current account contract, select Current Account Overdraft

CONTRACTS 423
CORE BANKING USER GUIDE

in the Product Type field and a Current Account with Overdraft

banking product in the Banking Product field.

4. Click the Save and Reload button.

Core Banking saves the contract in Draft status, with minimum default
information, such as an auto-generated contract number, created by, version
and version number. The previously provided details are kept on screen in
the General Data section, but they are no longer available for update. The
Currency has been updated from the banking product level.

Proceed to the next steps where the details about the contract are captured
and validated against the underlying product, setting the basic elements for
the creation of a contract such as customer, banking product, activation date,
interest rate, fees, and contract classification, within the newly displayed
Overview tab.

2. Add General Data to the Contract

CONTRACTS 424
CORE BANKING USER GUIDE

1. Fill in or modify, or view the following information:

l Contract ID - Enter a contract ID other than the contract number
generated automatically by Core Banking when you saved the
contract.
l Main Bank Account - When the contract is approved, this
account is created automatically for the bank defined as Main in
Core Banking, within the Core Banking Operational > Bank menu.
In order to generate an account number, a rule must be defined
during the Core Banking implementation phase (example: branch
code + incremental sequence number). Until contract approval,
no information is displayed here, and you can't edit the field.
l Managing Branch - This represents the branch of the
organization where the contract was created. Suppose you work
in a branch or credit center, and you need cases to be linked to a
specific location so that you can properly allocate them for
further actions. It is automatically completed at contract saving
time, but you can select another branch from the list.
l Direct Debit Settlement Account - Select this checkbox if the
automated settlement of repayment notifications (the direct
debit settlement account) functionality is turned on at the
contract level. The value of the checkbox was set at the banking
product level, but it can be modified at the contract level. The
checkbox can be edited in all the statuses of a contract except
Version Closed, Closed, and Canceled.

CONTRACTS 425
CORE BANKING USER GUIDE

NOTE The Direct Debit Settlement Account

setting at the customer level takes precedence over the
setting at the contract level when creating new contracts.
For existing contracts, Core Banking applies the setting
configured within the
CustomerToContractDirectDebitSettlementAcc
system parameter.

l Sales Channel - Select the channel through which the contract is

created.

2. Click the Save and Reload button.

3. Manage Product Interest Rate for the Contract

Enter the details about the Product Interest Rate applied to the contract.
Depending on the product definition again, you have a list of interest
definitions that you can bring along to the contract.

To manage the product interest rate as it must be applied to this contract:

1. Fill in or modify the following fields:

l Interest Commission Item - This field is automatically completed with

the interest & commission item defined at the product level, if only one
item is found at the product level. If the selected product has more
items, you must select one from the list.

CONTRACTS 426
CORE BANKING USER GUIDE

l Product Interest - Select from the interest to be applied for this

contract. Only the interests associated to the selected banking product
are displayed within the list. Penalty interests cannot be selected here.
l Date for Review Interest Rate - Enter the date for reviewing the
interest rate applicable. For variable interest, this field is automatically
completed with the Reference Rate Date + Reference
Interest Period of the underlying interest definition, from the base
type interest attached to variable interest. You can edit this field. For
months where the date is overlapped, the last day of the month is used
for the calculation.

2. Click the Save and Reload button.

NOTE
Fill in any other mandatory fields from the General Data and Repayment
Overview sections, otherwise you can't successfully save the contract.

4. Manage Contract Level Interest & Penalty Interest

Rates
Define the information about the contract interest rate (or rates, if you
selected a Collection type interest rate in the previous Product Interest
Rate section) in a table format, in the section Contract Interest Rate section,
which appears only after saving the selected product interest rates.
You can edit the tables cells, so you can customize the interest rates selected
at the product level, if the interest and commission list was defined as
negotiable, to obtain the desired interest rates configuration at the
contract level. You can also add or delete interest rates, using the Add
Interest Rate, respectively the Delete buttons above the tables. Thus, the
tables enables you to work with multiple interest rates at the contract level.

CONTRACTS 427
CORE BANKING USER GUIDE

NOTE
The information disappears if you change the product interest, tenor, first
due date, maturity date, contract period, or activation date. In this case,
save the contract again to display the updated information.

To customize the information specific to each of the contract's interest rates:

1. In the Contract Interest Rate section, edit the existing information that
was automatically completed based on your product interest rate
selections:
l Interest - Automatically completed with the interest (or interests, for
Collection type product interest rate) selected in the previous
Product Interest Rate section. You can select from the drop-down list
the interest to be applied for this contract. Only the interests
associated to the selected banking product are displayed within the
list. Penalty and overdraft interests cannot be selected here.
Depending on the selected interest, other fields can be displayed to be
filled in.
l Start Date - The interest's start date, automatically completed with the
contract's activation date.
l End Date - The interest's end date, automatically completed with the
contract's maturity date.
l From Installment - The first installment for which this interest is
applied to the contract.
l To Installment - The last installment for which this interest is applied to
the contract.
l Minimum Interest Rate - This read-only cell is automatically completed
with the minimum interest rate applicable for the contract, defined at
the banking product level.
l Fixed Rate - The fixed rate of the interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.
l Margin - This cell is automatically completed with the margin of the
previously selected product interest. You can only change it if the
interest at the banking product level was marked as Is Negociable.

CONTRACTS 428
CORE BANKING USER GUIDE

If the product interest was not selected, you can manually enter the
margin.
l Reference Rate - This read-only cell is automatically completed with
the interest type's definition's reference rate valid at the previously
selected date.
l Total Interest Rate - This read-only cell is automatically completed with
the calculated total interest rate of the previously selected product
interest and any values entered for margin and reference rate. If the
product interest was not selected or if the interest at the banking
product level was marked as Is Negociable, you can manually enter
the interest rate.
l Notified - This is a read-only checkbox. For contracts in Version
Draft status, it shows you whether the installments range shown on
this table line was already notified or not.
l Past Unnotified - This is read-only cell read-only checkbox. For
contracts in Version Draft status, it shows whether there are days
that already passed from the current month's not yet notified
installment, days for which you can't change the interest rate.

2. After performing the desired changes, make sure that the interest rate
(s) cover the entire tenor of the contract, from activation date until
maturity date, and there are no overlapping intervals, otherwise an
error prevents you from approving the contract.

3. Click the Save and Reload button.

5. (Only for Current Accounts with Overdraft) Enter

Overdraft Information for the Contract
For current accounts with overdraft functionality, in the Overdraft section
you should enter the overdraft limit amount and expiation date, in the
Overdraft Interest section select an interest applicable for the overdraft
amount, and then in the Overdraft Interest Rate section amend the
overdraft interest rates applicable for this contract, so that Core Banking can
properly build the repayment schedule.

CONTRACTS 429
CORE BANKING USER GUIDE

1. In the Overdraft section, fill in or modify the following information

specific to the contract's overdraft functionality:
l Overdraft Limit Amount - Enter the limit for the overdraft
amount applicable for this contract. If the overdraft limit amount
is greater than 0, then all the fields related to the overdraft
interest rate are mandatory to be completed, as well as a newly
displayed field, Start Calculation Date For Amount Unused, back
in the General data section.
l Expire Date for Overdraft - Enter the date until when the
overdraft functionality is active for this contract. On the expiry of
the overdraft limit, any used amount and the underlying interest
becomes due. A repayment notification is generated in case the
current account does not hold enough balance to cover the
interest.

NOTE
The due dates of all installments within the repayment
schedule of current account with overdraft contracts fall
before the expire date for overdraft.

l Date for Review Overdraft Interest Rate - Optionally, enter the

date for reviewing the interest rate applicable for the overdraft.

CONTRACTS 430
CORE BANKING USER GUIDE

2. In the Overdraft Interest section, select from the list the overdraft
interest to be applied for the overdraft amount of this contract. Only
the interests marked as Is For Overdraft are displayed within the
list.

3. Click Save And Reload to view or change the overdraft interest rate
plan.

4. In the Overdraft Interest Rate section, configure the contract's

overdraft interest rate in a table format, similar to the one in the
Contract Penalty Interest Rate section.

NOTE
The information disappears if you change the overdraft interest.
In this case, save the contract again to display the updated
information.

You can edit the tables cells, so you can customize the overdraft
interest rates, if the interest and commission list was defined as
negotiable. You can also add or delete overdraft interest rates, using
the Add Overdraft Interest Rate, respectively the Delete buttons
above the tables. Thus, the tables enables you to work with multiple
overdraft interest rates at the contract level.
To customize the information specific to each of the contract's
overdraft interest rates, edit the existing information that was
automatically completed based on your overdraft interest rate
selection:
l Interest - Automatically completed with the interest (or interests, for
Collection type product interest rate) selected in the previous
Overdraft Interest section. You can select from the drop-down list the

CONTRACTS 431
CORE BANKING USER GUIDE

overdraft interest to be applied for this contract. Only the overdraft

interests associated to the selected banking product are displayed
within the list.
l Start Date and End Date - The overdraft interest's start and end
date, automatically completed with the contract's activation,
respectively maturity date.
l Minimum and Maximum Amount - The overdraft interval to
which the overdraft interest is applicable.
l Minimum Interest Rate - This read-only cell is automatically
completed with the minimum interest rate applicable for
overdraft amounts for this contract, defined at the banking
product level.
l Fixed Rate - The fixed rate of the overdraft interest. You can only
change it if the interest at the banking product level was marked
as Is Negociable.
l Margin - This cell is automatically completed with the margin of
the previously selected overdraft interest. You can only change it
if the overdraft interest at the banking product level was marked
as Is Negociable. If the overdraft interest was not selected,
you can manually enter the margin.
l Reference Rate - This read-only cell is automatically completed
with the overdraft interest type's definition's reference rate valid
at the previously selected date.
l Total Interest Rate - This read-only cell is automatically
completed with the calculated total overdraft interest rate of the
previously selected overdraft interest and any values entered for
margin and reference rate. If the overdraft interest was not
selected or if the overdraft interest at the banking product level
was marked as Is Negociable, you can manually enter the
overdraft interest rate.

CONTRACTS 432
CORE BANKING USER GUIDE

After performing the desired changes, make sure that the overdraft
interest rate(s) cover the entire tenor of the contract, and there are no
overlapping intervals, otherwise an error prevents you from approving
the contract.

5. Back up in the General Data section, in the newly displayed Start

Calculation Date For Amount Unused field, select the date when the
amount not drawn from the overdraft limit amount starts to be
calculated. This field is displayed and required to be filled in only when
the Overdraft Limit Amount value is >0.

6. Click the Save and Reload button.

6. Enter Repayment Information for the Contract

In the Repayment Overview section you should enter term and schedule
type so that Core Banking can properly build the repayment schedule.

1. Fill in or modify the following information specific to the contract's

repayment schedule:
l Schedule Type - Select the payment schedule type to be used to
calculate the installments of this contract. You can select one of
the payment schedule types associated to the underlying banking
product in the Details tab > Associated Payment Schedule Types
list. Core Banking uses the schedule type to build the repayment
plan with equal installments or linear payments, include fees on
the schedule and arrive to the day basis to be used for interest
calculation (30/360).
l Contract Period - Edit the term of the contract that was
automatically completed with the number defined at banking
product level, according to your needs. The contract period is
used together with Contract Period Type and Periodicity Type.

CONTRACTS 433
CORE BANKING USER GUIDE

They all need to be in sync and also in sync with the schedule
definition itself, and if there are multiple definitions allowed on
the product, make sure to pick those working together.
l Contract Period Type - This field is automatically completed with
the contract period type as it was defined at banking product
level. You can't edit this value.
l Maturity Date - This field is automatically completed with the
calculated contract maturity date.
l Initial Principal Value - This field is automatically completed with
the value of the principal within an installment. The field is
displayed and can be filled in if the selected schedule type is of
type Equal Principal. You can edit this value. If at the
selected payment schedule type's level the Installment
Value Custom field is False, then the Initial Principal
Value field at the contract level is read only.
l Repayment at end of month - If you select this checkbox, then
the due day of the contract is automatically set to the last day of
the month, and the repayment schedule is calculated with an
installment in the last day of month.

2. Click the Save and Reload button.

7. Amend Closure Settings

If allowed from the product definition, you can amend the closure settings of
the contract, the way Core Banking should behave once any due amounts are
repaid and the contract can be closed. Most of the times this is not
something that you have to access, but it adds extra flexibility at the contract
level. This may prove useful if you suspect there may be reasons to keep a
contract open for some time post recovering all amounts for instances when
there may appear claims of funds (SEPA DD) or other similar cases.
The Closure Settings section is only displayed for contracts based on banking
products having the Closing Is Flexible = True setting.

CONTRACTS 434
CORE BANKING USER GUIDE

To amend the closure settings brought from product level here at the
contract level:

1. Fill in or modify the following fields:

l Automatic Closure – If selected, Core Banking automatically
closes the contract once all other conditions are met. This field is
automatically completed with the value defined at the banking
product level, but you can modify it.
l Select this checkbox to instruct Core Banking to close the
contract automatically when the available amount becomes
zero and there are no further amounts to be recovered,
and after the number of days set as buffer before closure
pass and Closure Date = Current Date.
l Deselect it to instruct Core Banking to keep the contract
open, regardless of the fulfillment of its maturity and
balance criteria, waiting to be manually closed by changing
its status to Closed.

NOTE
You can perform contracts events as specified in the
Allowed Transactions section of the banking
product, plus manual closure while the contract is
pending closure. Performing any other transactions
displays an error message.

l Real Time Closure – If you select this checkbox, when the

amounts become zero and the product is not a revolving one, the
contract is closed automatically. If Real Time Closure =
True, then Buffer Close Days = 0 and Automatic
Closure = True. For more details about the real-time closure,

CONTRACTS 435
CORE BANKING USER GUIDE

see Close Contracts RealTime(CB) Job.

l Buffer Close Days - Enter the number of days used as buffer
before automatically closing the contract. If Buffer Close
Days > 0, then Real Time Closure = False. Core Banking
waits the entered number of days after the contract's balances
reach zero, and at the end of that day the contract is closed.
l Balance Off Date – This is a system maintained field and it is
populated with the date on top of which Core Banking adds the
Buffer Close Days to arrive to the Closure Date.
l Closure Date – This is a system maintained field and holds the
date when the contract is closed. For automatic closure, the date
is calculated by Core Banking as Balance Off Date + Buffer Close
Days.

2. Click the Save and Reload button.

8. Check Other Details Pre-Filled Based on Product

Definition
Once you defined the mandatory details, then saved and reloaded the
contract, Core Banking updates some of the next sections on the page, based
on product definitions:

CONTRACTS 436
CORE BANKING USER GUIDE

Core Banking brings the Contract Participants, where you can add
participants to the contract, like Guarantors, Co-Debtors, etc. There may be
cases when some roles are mandatory for a product. Those are detailed in a
separate section. If there is a mandatory role defined in the banking product
definition, Core Banking displays an error on trying to approve the contract.
Contract Tranches is a section where you can implement progressive access
to the funds. This is valuable in case of loans granted for investment projects
where you can know upfront that there is a plan for the project and
payments need to happen for each stage of the project, those stages being
known from the start.
Another important section brought from the product definition is the Fees &
Commissions. Depending on the system setup, you are allowed or not to
amend fees and commissions in this section.

CONTRACTS 437
CORE BANKING USER GUIDE

Contract Covenants section displays the covenants that applicants must

abide by after getting the contract, configured at the product level. Such
conventions are usually applicable for corporate customers that must meet
certain requirements in order to continue to receive disbursements and not
only: submit balance sheet every x months, have account turnover of at least
x percent from average monthly turnover, provide other relevant documents
from authorities. In this section, you can manage covenants for the contract.
These covenants would need to be monitored procedurally; Core Banking
doesn't have the logic in place to implement automated processes.
You can use the Contract Classifications section to capture various
classifications that might be relevant for the financial institution for that loan
at a moment in time. It is a placeholder for such details and there is no
automated logic in place to update them. In implementation this can be used
for other developments if required.

9. (Only for Current Accounts with Overdraft) Define

Overdraft Limit Reevaluation Plans
For current account contracts with overdraft functionality, in the Contract
Reevaluation Plans section, you can define the increase or decrease of the
overdraft limit amount and of the customer limit attached to the contract,
according to the customer's seasonal needs. For example, for an approved
overdraft limit for 12 months, after 6 months the limit has to be decreased
because the customer does not need the entire limit and wants to reduce the
costs of the overdraft functionality. Similarly, the overdraft limit can be
increased, for example for a working capital requirement, the bank can grant
the limit in January, but the company works in tourism and the cash flow
needs are higher in summer, thus the bank needs to increase the overdraft.

CONTRACTS 438
CORE BANKING USER GUIDE

To add a reevaluation plan to a contract based on a current account with

overview, follow these steps:

1. Click Insert to open the Contract Reevaluation Plan page.

2. Fill in the following fields:

l Amount - Enter the amount with which the overdraft limit has to
increase or decrease. Use negative values for decrease and
positive values for increase. This field cannot be filled in if the
Percentage field was completed.
l Percentage - Enter the percentage with which the overdraft limit
has to increase or decrease. Use negative values for decrease and
positive values for increase. This field cannot be filled in if the
Amount field was completed.
l Start date - Enter the start date when the overdraft limit increase
or decrease should be performed.
l Periodicity type - Select the periodicity type for applying the
overdraft limit increase or decrease. The possible values are:
Once, Weekly, Monthly, Bimonthly, 4 Weeks, Trimestrial,
Semestrial and Annual.
l Number of times - Enter how many times the overdraft limit
increase or decrease should be performed.
l Holiday shift method - Select the desired holiday shift method
from the possible values: Forward or Backward.

3. Click the Save and Close button.

When the utilized amount is greater that the resulted available limit, a
new repayment schedule detail is added to the repayment notification,
displaying the difference between utilized amounts – available limit
amount on the Principal column of the notification. The repayment
notification notifies the principal amount and tries to collect it.

CONTRACTS 439
CORE BANKING USER GUIDE

4. Click the Projection Plan button to view the projection of the overdraft
limit reevaluation plan. A .pdf file containing a detailed overview of
the overdraft limit fluctuations in time is automatically downloaded by
your browser.

After defining the relevant details of the contract, proceed to contract approval.

Approving a Current Account

You can perform the approval either from a digital journey flow via API integration or
from the Core Banking user interface.
After defining the relevant details of the contract, proceed to contract approval:

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Approved.

3. Click Yes to confirm your action.

CONTRACTS 440
CORE BANKING USER GUIDE

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Approved and Core Banking automatically generates the current
account number, displaying it in the Main Bank Account field.

Automated Actions After Contract Approval

The Main Bank Account is created automatically for the bank defined as Main within
the Core Banking Operational > Bank menu. In order for Core Banking to generate an
account number, a rule must be defined during the implementation phase (example:
branch code + incremental sequence number).

CONTRACTS 441
CORE BANKING USER GUIDE

On the Payments tab you can see the repayment schedule that was generated based
on the commissions with Commission Undrawn Amount (overdraft) type, if
any.

NOTE The tab Payments has no information to display while the contract is in the
Draft status. You must approve the contract to perform any contract event.
Meaningful payment information is displayed in this tab only after performing
transactions on the contract.

Rejecting a Current Account

You can reject a current account contract, canceling it, when the deal with the
customer drops. You can perform the cancellation either from a digital journey flow
via API integration or from the Core Banking user interface.
Follow these steps to cancel the contract:

CONTRACTS 442
CORE BANKING USER GUIDE

1. Select a contract in Draft (or Version Draft) status.

2. Change its status into Canceled.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
contract changes to Canceled.

CONTRACTS 443
CORE BANKING USER GUIDE

NOTE You can't further use a canceled contract. Create a new contract, if you
need to.

Working with Covenants

The covenants are conventions that applicants must abide by after the approval of a
contract. Such conventions are usually applicable for corporate clients that must meet
certain requirements in order to continue to receive disbursements and not only:
submit balance sheet every x months, have account turnover of at least x percent
from average monthly turnover, provide other relevant documents from authorities.
Covenants are configured at the product level.
While creating a contract, Core Banking brings the covenants to the contract level, in
the Contract Covenant section of the Overview tab. There you also add, delete or
export covenants for the contract.

Upon adding a covenant to a contract, you must activate it. After approving the
contract, when it reaches the covenant's review date, you must perform the review of
the covenant. If the conditions are not met, then you can mark the covenant for
blocking further disbursements of the contract. Further implementation is needed if
you want automatic processes to take care of contracts with breached covenants.

Adding & Activating Covenants

1. To add a covenant to a contract, click Insert in the Contracts Covenant section

of a contract in Draft or Version Draft status.

2. On the newly displayed Contract Covenant page, fill in the following fields:

CONTRACTS 444
CORE BANKING USER GUIDE

l Covenant - Select the desired covenant from the list of possible values:
l Borrowers should perform tax obligations: the lenders
expect the borrowers to perform their tax obligations to both the
business and towards their employees. This covenant is of type
affirmative.
l Lender can monitor borrower's current ratio: the
lender may continuously monitor the borrower's current ratio to
ensure it stays relatively attractive and promising. This covenant is
of type financial.
l Lender posses the right to prevent merges or
acquisitions: a clear stipulation that the lender possesses the
right to prevent merges of acquisitions without proper notification
or full knowledge of the process. This covenant is of type negative.
Core Banking automatically fills in the covenant type.
l Value - Enter the numeric value of the covenant, if applicable.

l Review Frequency (Months) - Enter the number of months after which

the covenant has to be reviewed.
l Review Date - Enter the date when the covenant has to be reviewed.

3. Click the Save and Reload button. The covenant is displayed in the list of
covenants in the Contracts Covenant section, in Draft status.

4. Activate the covenant record by changing its status to Active and confirming

CONTRACTS 445
CORE BANKING USER GUIDE

your action.

5. Click the Save and Close button. The covenant's status changes to Active.

Reviewing Covenants
Core Banking allows you to add details about the process of reviewing a covenant for
an approved contract.

1. To review an active covenant for an approved contract, double-click the desired

covenant in the Contracts Covenant section of the contract's Overview tab.

2. On the newly displayed Contract Covenant page, change the covenant's status
to Review and confirm your action.

The covenant's status changes to Review and the page reloads with new fields.

3. Fill in the following fields with the results of the covenant review process:

CONTRACTS 446
CORE BANKING USER GUIDE

l Grace Period (Months) - Enter a grace period in month for the fulfillment
of the covenant, if needed.
l Resolution - Select from the list the actual resolution of the covenant. Add
a new covenant resolution, if you can't find a match in the list.
l Resolve Date - Enter the date when the covenant is considered as
resolved.
l End Date - Enter an end date for the covenant, if needed.

l Start Early Termination - If the covenant's terms are not met, then you
can check this field to mark the covenant for contract early termination.
l Block Disbursement - If the covenant's terms are not met, then you can
check this field to mark the covenant for blocking further disbursements
of the contract.

4. Click the Save and Reload button.

5. If the covenant's terms are met, change the covenant's status to Active and
confirm your action.
If the covenant's terms are not met, change the covenant's status to Breached
and confirm your action.

6. Click the Save and Close button. The covenant's status changes to Active or
Breached, according to your previous choice.

NOTE Further implementations are needed in order for Core Banking to manage
contracts with breached covenants if you need actions enforced at the contract
level.

CONTRACTS 447
CORE BANKING USER GUIDE

Working with Participants

The participants to a contract are those legal or individual persons who have a role to
play during the life-cycle of the contract. They can be the person who borrows the
funds, the actual beneficiary of the funds, the company administrator of the legal
person, a notary, and so on. Another example are the agents, brokers, insurers, or
merchants who participate in contracts as third-party entities, and they may get
commissions according to third-party agreements. They must be recorded in contracts
as contract participant with the specified role in order to qualify for the commissions
stated in the agreement pricing records added to an agreement.
While creating a contract, Core Banking automatically populates the Contract
Participants section within the Overview tab of the contract with the customer's
information as both Borrower and Beneficiary of the funds, for loan contracts. If the
customer is a legal entity, all the company’s already entered legal representatives
such as administrators, affiliates, owners, or other key contact persons are displayed
in this list. In the Contract Participants section, you can add other participants to the
contract, like Guarantors, Co-Debtors, etc, even after approval, delete, block, or
export customers who participate in a contract.

There may be cases when some roles are mandatory for a product. If there is a
mandatory role defined in the banking product definition, Core Banking displays an
error on trying to approve the contract without a customer mentioned in the contract
with that specific role.

CONTRACTS 448
CORE BANKING USER GUIDE

Adding Participants

1. To add a participant, click Insert in the Contract Participants section of contract

in Draft, Version Draft, or Approved status.

2. On the newly displayed Participant page, fill in the following fields:

l Participant - Select from the list the name of the customer who can access
the contract.
l Role - Select from the list the role in the contract of the previously
selected customer.
l Blocking Reason - Leave this empty if you don't want to limit the
customer's access to the contract.

3. Click the Save and Close button.

IMPORTANT!
For legal entity customers, add the participant with the Company Administrator
role, otherwise, the loan contracts cannot be approved. This is not the case for
current account contracts.

CONTRACTS 449
CORE BANKING USER GUIDE

Blocking Participants
If you need to block an existing participant's access to the contract for various
reasons, such as the person left the company who is the beneficiary of the contract,
follow these steps:

1. Double-click an existing participant in the Contract Participants section of

contract in Draft, Version Draft, or Approved status.

2. On the displayed Participant page, in the Blocking Reason field, choose the
reason for blocking the selected participant from accessing the contract.

3. In the Block Role Date field, select the starting date for blocking the
participant's access to the contract.

4. Select the Block Disbursement checkbox to instruct Core Banking to stop

disbursements on the contract, if needed.

5. Click the Save and Close button.

Working with Contract Classification

Financial institutions may classify their contracts for organization purposes, or to mark
some contracts as to belonging to a specific category or another. Core Banking brings
the classifications defined at the product level to the contract level when creating a
contract.

NOTE
For information about the automatic loan classification performed by Core Banking
based on DPD, please read the "Loan Classification" on page 40 topic.

You can manage a contract's classification within the Contract Classifications section
on the Overview tab. Here you can insert, delete or export classifications for the
contract.

CONTRACTS 450
CORE BANKING USER GUIDE

Adding Classifications to a Contract

1. To add a classification to a contract, click Insert in the Contract Classifications

section of a contract.

2. On the newly displayed Add Contract Classification page, fill in the following
fields:

l Classification - Select the desired classification for the contract from the
list of classifications associated with the banking product.
l Description - Enter a description for the contract classification.

3. Click the Save and Close button.

Applying Fees and Commissions

The financial institutions take commissions and fees for offering a product or service
such as opening an account, for cash withdrawals, for transfers, for making payments
in certain countries, for exchanging currencies, for emitting debit cards, for handling
documents etc. These commissions are set at the product level and vary from
institution to institution, based on their policy.
In the Fees & Commissions section within the Overview tab of the contract, you can
view all the fees and commissions configured at the product level that have the
Automatic Load on Contract checkbox set to True. After the first saving
operation, Core Banking display all the fees that are defined as values. The fees

CONTRACTS 451
CORE BANKING USER GUIDE

defined as percentages are displayed after completing all the values of the contract.
Read more about the commissions automatically inserted and calculated in the below
section. You can also add, delete or export fees and commissions for the contract.

Automatic Insertion and Calculation of Commissions

Core Banking automatically inserts/ updates commissions in the Fees &

Commissions section depending on the life cycle and status of the contract:
l Creating a new contract: Core Banking automatically inserts active
commissions associated to the banking product, within their defined
validity period, with Automatically load on contract = True,
with Is For Unusage = False, and Commission value is
percentage = False.
If Commission value is percentage = True, then the
commission is only inserted if the amount value was previously
inserted.
l Updating a contract in Draft status: Core Banking automatically
inserts active commissions associated to the banking product, within
their defined validity period, with Automatically load on
contract = True, with Is For Unusage = False. If a
commission with Commission value is percentage = True was
already inserted, then the commission's value is updated according to
the contract's financed amount. If the value of a commission with
Commission value is percentage = True was manually
modified (for negotiable commissions), then the new value is
calculated based on the modified percentage.
l Creating a new version for a contract: Core Banking automatically
inserts all the commissions already present in the contract.
Additionally, all commissions specifically created for contract version
(Is For Contract Version = True) are added as well.

CONTRACTS 452
CORE BANKING USER GUIDE

NOTE
If a version for a contract is created more than once on the same
day, then all commissions with Is For Contract Version =
True that were not notified yet for each previous version are
deleted. At the end of the day, there is only one commission for
the latest version.

l Updating a contract in Contract Version Draft status: Core

Banking only updates the percentage commissions that are not already
notified.
For percentage commissions (with Commission value is percentage
= True), the financed amount of the contract is used to calculate the
commission value based on the percentage. The calculation method differs
depending on the contract type:
l For contracts based on Term Loan,Mortgage or Overdraft banking
products:
l If the commission is applied to amount, then the financed
amount = amount due;
l If the commission is applied to financed amount, then the
financed amount = amount due - advance amount;
l If the commission is applied to remaining value and the contract
is in Contract Version Draft status, then financed amount
= (-1) * main bank account balance. If the result is a negative
value, then financed amount = null. In all the other cases,
financed amount = null, which is the default value.
l For contracts based on Bank Account with Overdraft banking products:
l If the commission is applied to overdraft limit amount, then the
financed amount = overdraft limit amount;

CONTRACTS 453
CORE BANKING USER GUIDE

l If the commission is applied to used amount and the

commission's period type is Once, then the financed amount =
overdraft limit amount - available amount for overdraft. In all the
other cases, financed amount = null, which is the default value.

Adding Fees

1. To add a fee for this contract, click Insert in the Fees & Commissions section of
a contract in Draft or Version Draft status.

2. On the newly displayed Contract Fee page, fill in the following fields:

l Fee - Select a commission from the list of commissions defined for the
banking product used when creating the contract.
l Fee Date - Specify which value of the commission is to be used by
selecting the date of the commission.

3. Optionally, check the rest of the fields, automatically filled in by Core Banking:
contract number, currency, periodicity type of the selected fee, the fee
percentage or value applicable for the selected date. You can't change these
values.

4. Click the Save and Close button.

Working with Documents

Core Banking allows you to manage all the documents related to a contract in one
place, in the contract's Contracts & Documents tab. The tab is meant to be the
electronic folder of the contract. It displays a list of the document records for the
current contract, with details such as document name, type, status, number, whether

CONTRACTS 454
CORE BANKING USER GUIDE

the record was added through the user interface (Is manual = True) or through
API integration (Is manual = False), and download options for the attached files.
Contract documents have a dedicated business workflow, thus you can transition
them through a series of statuses.

In the Contracts & Documents tab, you can: add a new contract document record,
edit or delete a record in Draft status, view the details for records in Signed or
Canceled status, or download the initial or the signed document, if it exists, by clicking
the Initial document, respectively the Signed document button next to the record.
Open the downloaded file to view its content.

NOTE
Users with the associated predefined security roles of Corporate Credit Officer and
Retail Credit Officer can perform contract document-related operations such as
adding, updating, and deleting records or changing their statuses.

Contract Document Statuses

A contract document record has the following statuses, visible in the top left
corner of the Add Contract Document page, after saving the record:
l Draft - the status of a newly created contract document record that
was not yet authorized (marked as Signed). While in this status, you
can edit some fields and you can delete the uploaded documents.
Change its status to Signed after editing all the necessary details and
uploading the Signed Document file. Change its status to Canceled if
the document is not to be used within the contract.
l Signed - the status of a contract document record after being
authorized. You cannot edit any of the record's details. You can change
the status of the record to Canceled, if needed.

CONTRACTS 455
CORE BANKING USER GUIDE

l Canceled - the status of a contract document after being canceled.

Once Signed, a contract document should be canceled if the document
is not to be used within the contract. You cannot edit any of the
record's details. There is no further transition from this status. Contract
document records created through integration (having their Is
manual field = False) can't be canceled.

Adding Contract Documents

1. To insert a document to the contract, click the Insert button in the Contract
Document section.
The Add Contract Document page is displayed, with the Document Name field
automatically completed with the name of the document.

NOTE
You can't add documents to contracts in Contract Closed or Contract
Version Closed statuses.

2. Fill in the following fields:

l Document type - Select the type of the document.

l Description - Enter the description of the document.

l Number - Enter the number of the document, if the document has an

external identifier number.
l Initial document - Insert the file containing the initial, unsigned
document.
Click the Select file button under this field, navigate to the desired file,

CONTRACTS 456
CORE BANKING USER GUIDE

select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.
l Signed Document - Insert the file containing the final, signed document, if
available.
Click the Select file button under this field, navigate to the desired file,
select it and click Open. The selected file's name is displayed here. You
can delete it by clicking the x next to the file name.

NOTE
To change the status of the contract document record to Signed, a
signed document file must exist within the record.

3. Click the Save and Close button.

NOTE
You can also add, update, and approve contract document records through API
integration, using the AddUpdateContractDocument and
ApproveContractDocument endpoints. Read more details in the Core Banking
Developer Guide.
Contract document files added through integration cannot be deleted and those
records can't be canceled!

Automatic Contract Document Validations

Core Banking performs the following validations for contract document

records:
l The uploaded files' specifications follow High Productivity Fintech
Infrastructure's settings and restrictions regarding size and format,
allowing
.pdf,.doc,.docx,.els,.jpg,.jpeg,.xlsx,.dll,.ppt,.pptx,.txt,.png,.ttf,.xml file
formats.
l If the contract document record is in Signed status, the record can't be
deleted or updated, nor can its files be deleted.

CONTRACTS 457
CORE BANKING USER GUIDE

l The name of the contract document record is unique, automatically

generated by Core Banking. The naming convention is "the contract
name + '-' + the selected document type + '-' + a unique document
increment". For example, 5203 - Income Statement - 60.
l The names of the selected files are not validated for uniqueness.

Performing Transactions on Current Accounts

You can find all the existing transactions, payments, penalties, bank account
operations, repayment schedules, schedule versions, repayment notifications for a
contract on the Payments tab. The tab has no information to display for contracts in
Draft status. Approve the contract to perform any transactions on the contract.

CONTRACTS 458
CORE BANKING USER GUIDE

The following sections show you how to perform the usual transactions available on
current account contracts:

Topping Up an Approved Contract

A top-up transaction represents adding amounts to the account before the
value drains down to zero.
You can add top-up transactions to an approved contract via Core Banking's
user interface or through API calls, using the Core Banking endpoints. Read
more about these endpoints in the Core Banking Developer Guide.
In order to add a top-up transaction to a contract through the menus
available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Top Up Account

transaction type. If you can't find it, then the transaction type is
not associated with the banking product which is at the base of
the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance is automatically calculated, and you can't edit

CONTRACTS 459
CORE BANKING USER GUIDE

it.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is added to the
account.

7. Enter the Source Account for the respective amount, the account from
where the funds are taken to perform the top-up.

NOTE
Core Banking actually uses the financial institution's
reconciliation account as a source bank account.

8. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

CONTRACTS 460
CORE BANKING USER GUIDE

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds specified in the event
value from the source account into the current account.
The transaction is visible in the Transactions section.

NOTE
For approved transactions on current accounts, Core Banking
updates the repayment schedule when running the End of Day
job on the last day of the month.

11. View the balance of the account after approving the transaction,
clicking the pencil icon next to the Main Bank Account field in the
contract's Overview tab:

CONTRACTS 461
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Withdrawing Funds from an Approved Contract

A withdrawal transaction represents removing funds from a bank account.
You can add withdrawal transactions to an approved contract via Core
Banking's user interface or through API calls, using the Core Banking
endpoints. Read more about these endpoints in the Core Banking Developer
Guide.

CONTRACTS 462
CORE BANKING USER GUIDE

In order to add a withdrawal transaction to a contract through the menus

available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Withdraw transaction

type. If you can't find it, then the transaction type is not
associated with the banking product which is at the base of the
contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance is automatically calculated, and you can't edit
it.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is removed from the
account.

7. Enter the Destination Account for the respective amount, the account
where the funds are being moved to.

CONTRACTS 463
CORE BANKING USER GUIDE

NOTE
Core Banking actually uses the financial institution's
reconciliation account as a destination bank account.

8. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
transaction to the contract, removing the funds specified in the event
value from the current account.
The transaction is visible in the Transactions section.

CONTRACTS 464
CORE BANKING USER GUIDE

NOTE
For approved transactions on current accounts, Core Banking
updates the repayment schedule when running the End of Day
job on the last day of the month.

11. View the balance of the account after approving the transaction,
clicking the pencil icon next to the Main Bank Account field in the
contract's Overview tab:

CONTRACTS 465
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Transferring Funds between the Customer's Accounts

A transfer between my bank accounts transaction represents the
process of moving funds between the same customer's bank accounts.
You can add transfer transactions to an approved contract via Core Banking's
user interface or through API calls, using the Core Banking endpoints. Read
more about these endpoints in the Core Banking Developer Guide.

CONTRACTS 466
CORE BANKING USER GUIDE

In order to add a transfer transaction to a contract through the menus

available in Core Banking, follow these steps:

1. In FintechOS Portal, select a contract with Approved status and double-

click to open it.

2. Navigate to the contract's Payments tab and click the Insert button
above the Transactions section. The Event page is displayed.

3. Fill in the following fields:

l Event Date - This is pre-filled with the current date.

l Transaction Type - Select from the list the Transfer between my

bank accounts transaction type. If you can't find it, then the
transaction type is not associated with the banking product which
is at the base of the contract.
Other values are automatically completed: contract, customer, and
currency.

4. Click the Save and Reload button.

The event is saved in Draft status and a transaction number is
automatically generated for it. The Edit Contract Event page
corresponding to the selected transaction type is displayed. The
account's actual balance is automatically calculated, and you can't edit
it.

5. Fill in the external identifier of the transaction, if available.

6. In the Event Value field, enter the amount that is added to the
account.

7. Select the Destination Account where the respective amount should be

transferred into. You can choose from the list of accounts that belong
to the contract's customer and have the same currency.

CONTRACTS 467
CORE BANKING USER GUIDE

8. Click the Save and Reload button.

If the event value meets the business requirements defined within Core
Banking, the event is saved. Otherwise, an error message appears.
Change the values as instructed in the message and try saving the
event again.
While the event is in Draft status, you can modify all the event's fields
except Transaction Type. The event value is not applied to the contract
while the event is still in this status.

9. Approve the event by changing its status to Approved in the upper left
corner of the Event page.

10. Confirm the change of status in the Confirmation window, clicking Yes.
The event is now in Approved status and Core Banking applies the
transaction to the contract, moving the funds specified in the event
value from the current account into the destination account of the
same customer.
The transaction is visible in the Transactions section.

CONTRACTS 468
CORE BANKING USER GUIDE

NOTE
For approved transactions on current accounts, Core Banking
updates the repayment schedule when running the End of Day
job on the last day of the month.

11. View the balance of the account after approving the transaction,
clicking the pencil icon next to the Main Bank Account field in the
contract's Overview tab:

CONTRACTS 469
CORE BANKING USER GUIDE

NOTE
All existing versions of the contract in Contract Version Draft status are
automatically changed to Contract Version Closed when a payment event
is approved for that contract.

Processing Overdraft Repayments

Based on defined product pricing and established parameters, financial institutions
can manage the billing and collection process on a current account with overdraft
contract fully automatically. Once the withdraw from the overdraft amount is
performed, Core Banking keeps track of the amounts and on the end of the month it

CONTRACTS 470
CORE BANKING USER GUIDE

updates the repayment schedule and generates underlying notifications. When

generating the notification, the system checks if the amounts are fully or partially
available on the overdraft and uses them to settle the notification. Otherwise, the
amounts are pending recovery on the notification. They will be recovered if and when
the amounts are available on the account. If funds are not available, overdue amounts
and days are calculated and penalties applied. Read about repayment notifications in
the Managing Repayment Notifications topic.
Once a current account with overdraft approved and used, you can check the
repayment schedule built based on contract details, on the Payments tab's Contract
Repayment Schedule section, as described in the Viewing a Contract's Repayment
Schedule topic.
When the system reaches the dates that appear on schedule projections, the amounts
resulting are made due, and Core Banking automatically triggers the notifications.
Depending on the availability of funds in the current account and the direct debit
setup, Core Banking settles those notifications, marking them with the Recovered
status. Any amount that is not recovered on due date stays on the notification, and
when funds become available, Core Banking automatically recovers and allocates
them to the pending notifications based on the Payment Allocation Method setup at
the product level, in the Lean Core tab. When the notifications are recovered, you can
see the underlying debit transactions on the bank account – there is always such
traceability of the funds.
Payment Schedule Types, defined at the Banking Product Factory level, define how
Core Banking handles the following:
l How the overdraft interest is calculated (day basis: 30/360, actual/ 360, etc).

l Fees you want to include in the repayment schedule.

l Frequency of the installment (monthly, every 30 days, etc).

When amounts are not available to cover notified amounts and there is a penalty
interest defined for the product, the missed amounts are subject to automatic penalty
calculation. Core Banking calculates and notifies the penalty interest daily. All the
penalties applied by automated processes at the contract level are visible on the
Payments tab, in the Penalties section, as described in the Viewing a Contract's
Penalties topic. When the penalty interest is defined, there are specific Operation
Items linked to it so that the system knows what types of amounts are subject to

CONTRACTS 471
CORE BANKING USER GUIDE

penalty: overdue principal, interest, commissions. Alternatively, the penalty interest

can be applied to all missed payments. Penalty interest is defaulted from the product
level and, if allowed, it can also be amended at contract level.

You can find all the existing transactions, payments, penalties, bank account
operations, repayment schedules, schedule versions, repayment notifications for a
contract on the Payments tab. The tab has no information to display for contracts in
Draft status. Approve the contract to perform any transactions on the contract.

Managing a Contract's Transactions

Contract transactions are events/ changes performed at the Approved
contract's level. Such events are top-ups, withdrawals, and transfers between
the customer's accounts. Read more information about the available

CONTRACTS 472
CORE BANKING USER GUIDE

transaction types in the "Transaction Types Used in Core Banking" on page 68

topic.
The Transactions section within the Payments tab holds all the transactions
performed at the contract level, in any status. This section only has
information if the contract is in Approved status and transactions were
already created.

Event Statuses
An event (transaction) record has the following statuses, visible in
the top left corner of any Event page:
l Draft - the status of a newly created event record that was not
yet sent for approval. The event value is not applied to the
contract while the event is still in this status. While in this
status, you can edit some fields. Approve after editing all the
necessary details.
l Approved - the status of an event record after being
authorized. The event value is applied to the contract and you
cannot edit any of the event's details. There is no further
transition from this status.
l Canceled - the status of an event record after being canceled.
The event value is not applied to the contract and you cannot
edit any of the event's details. There is no further transition
from this status.

NOTE
As a best practice, new records or new versions of existing
records created on a specific day should be approved on the
same day.

CONTRACTS 473
CORE BANKING USER GUIDE

Viewing Existing Events

To view the events on a contract, follow these steps:

1. In FintechOS Portal, select a contract with Approved status

and double-click to open it.

2. Navigate to the contract's Payments tab and view the list of

events displayed in the Transactions section.

Here you can see only basic information about the

transactions, such as event number, status, date, transaction
type, value and the user who created it.

3. To view detailed information about the transaction, double-

click the event record to open the Event page:

You can't edit the information displayed on this page.

4. View the following information displayed about each event,

with some variations depending on the event type:
l Transaction status, contract number, customer name,
transaction number, type, and currency, all displayed in
the header of the page.
The following details are displayed in the body of the page:
l Event date and value. Contract events added through
API integration also contain an external identifier.
l Contract's actual amounts and source/ destination
accounts.

CONTRACTS 474
CORE BANKING USER GUIDE

Managing Repayment Notifications

Core Banking automatically generates notifications for each installment that
has to be paid for existing contracts with overdrawn amounts. There can be
various types of notifications generated for fees, commissions, and so on.
Core Banking also assists you reconcile wrongly processed cases and other
situations resulted from delayed processing/ wrong updates. Thus,
depending on your user rights, you can manually add notifications for an
active contract, or add notifications for amounts to be recovered even if
there is no active contract. Core Banking includes all such manual
notifications in the recovery processes.
All the repayment notifications that are not paid in full after their maturity
dates are subject to automated penalty calculation processes performed by
Core Banking. Thus, for repayment notifications linked to a contract, Core
Banking uses the penalty interests defined within the interests list attached
at the banking product level, and for repayment notifications not linked to a
contract, it uses the penalty interest list specified in a system parameter.

NOTE
All the Front-End Fee commission types with Once periodicity type
applied to a contract are notified and must be paid when the contract is
approved. The Core Banking system parameter FrontEndFee defines the
type of commission that is automatically notified at the contract approval.

CONTRACTS 475
CORE BANKING USER GUIDE

Repayment Notification Statuses

A repayment notification record has the following business
workflow statuses:
l Draft - the status of a newly created repayment notification
record, either automatic or manual.
l Approved - the status of a manual repayment notification
record after being authorized by a user with notification
approval competencies. While in this status, you cannot edit
the record's details. From this status, the record is picked up
by a scheduled job and its status is automatically changed,
depending on the direct debit settlement settings. If the
Direct Debit Settlement Account field at the contract
level = True, then the manual notification's status changes to
In Recovery, otherwise it changes to Pending Recover.

CONTRACTS 476
CORE BANKING USER GUIDE

l Canceled - the status of a manual repayment notification after

canceling it straight from the Draft status. You can only cancel
a manual notification if its Total Amount = Remaining
Value.
l Pending Recover - this is a system status applied to
repayment notification when Direct Debit Settlement
Account at the contract level is set to False. No updates are
available in this system status.
l In Recovery - this is a system status applied to repayment
notification when Direct Debit Settlement Account
at the contract level is set to True. No updates are allowed on
the record.
l Recovered - the last status of a repayment notification, after
the complete recovery of the notification's debt. No updates
are allowed on the record.
The repayment notification status transitions are illustrated below:

Accessing Repayment Notifications

Core Banking enables you to access notifications in several places,
for your convenience.

Accessing a contract's repayment

notifications

CONTRACTS 477
CORE BANKING USER GUIDE

To view the notifications generated for a specific contract,

follow these steps:

1. On the Contract page, navigate to the Payments tab

> Repayment Notifications section.

2. View all the repayment notifications generated for

the contract. This section only has information if the
contract is in Approved status and disbursements
were already performed.

Repayment notifications highlighted in blue are

already paid, allocated or closed to payment, while
the ones not highlighted remain to be paid.

3. View the information is displayed about each

notification:
l Number, date, and status of the notification

l Customer and currency of the contract

l Amount of the installment for which the

notification was generated
l Remaining amount from the installment to be
paid
l Maturity date of the notification, automatically
calculated adding the value of the Grace

CONTRACTS 478
CORE BANKING USER GUIDE

period for repayment field at the banking

product level to the notification date.

Accessing all the repayment notifications

generated by Core Banking
To access all the notifications created in Core Banking,
follow these steps:

1. In the FintechOS Portal, click the main menu icon and

expand the Core Banking Operational menu.

2. To access only manually captured notifications, click

Manual Repayment Notification menu item to open
the Manual Repayment Notifications page.

3. To access automatic and manual notifications, click

Repayment Notification menu item to open the
Repayment Notifications List page.

Viewing Repayment Notifications

CONTRACTS 479
CORE BANKING USER GUIDE

1. To view the details of a repayment notification, double-click

the desired record. The Edit Repayment Notification page is
displayed for automatically generated notifications, or the Edit
Manual Repayment Notification page for manual
notifications, both presenting the repayment notification
details.

NOTE
Automatically generated notifications can't be edited!
You can only edit the details of manual notifications in
Draft status.

2. View notification specific data in the Repayment Notification

section:

CONTRACTS 480
CORE BANKING USER GUIDE

l Repayment Notification No. - The number of the

repayment notification record.
l Customer - The customer for whom the notification was
generated.
l Currency - The currency of the notification.

l Contract - The number of the contract for which the

notification was generated.
l Notification Date - The date when the notification was
generated.
l Maturity Date - The maturity date of the notification.
This is calculated by adding the value of the Grace
period for repayment field at the banking product
level to the notification date.
l Source Bank Account - The bank account from where
the notified amount should be allocated.
l Total Amount - The total amount to be paid within the
notification (the sum of all the details' values).
l Repayment Description - A description of the manual
notification.

3. View details (lines) of the notification in the Repayment

Notification Details section:
l Operation Item - The operation item for which the
notification detail is generated.
l Value - The value of the notification detail.

l Remaining Value - The remaining value still to be paid

from the notification value.
l Is Paid - This checkbox is automatically marked as true
when the full amount is allocated to the detail value.
You cannot change this value.

CONTRACTS 481
CORE BANKING USER GUIDE

NOTE
Notification details are automatically marked as
paid when a repayment transaction performed
and approved for the contract is allocated by the
system to cover the value of the notification
detail.

4. To view more information about a notification detail, double-

click it to open the Repayment Notification Details page:

5. View information about the payments allocated for the

notification details in the Payment Allocation section:
l Payment No. - The number of the payment.

l Payment Date - The date when the payment was

performed.
l Operation Item - The operation item from the
notification for which the payment was allocated.
l Allocated Amount - The amount allocated from the
payment.
l Due Date - The due date of the notification.

CONTRACTS 482
CORE BANKING USER GUIDE

l Delays (days) - The number of days passed since the

notification's due date.

6. To view more information about a payment allocation,

double-click it to open the Edit Payment Allocation page:

You cannot edit any of the fields from this page.

NOTE
The operation item is used in the payment allocation
process. If the repayment notification is not linked to a
contract, then Core Banking takes the operation item
value from the allocation method configured within the
ManualAllocationMethod system parameter. If a
repayment notification is created for a contract with
Closed status, then Core Banking takes the operation
item value from the allocation method selected at the
banking product level.

7. View information about the penalties calculated for the

manual repayment notifications that were not paid in full until
their maturity date in the Viewing Notification Penalties
section:

CONTRACTS 483
CORE BANKING USER GUIDE

All the repayment notifications that are not paid in full after
their maturity dates are subject to automated penalty
calculation processes performed by Core Banking. Thus, for
repayment notifications linked to a contract, Core Banking
uses the penalty interests defined within the interests list
attached at the banking product level. For repayment
notifications which are not linked to a contract, Core Banking
uses the penalty interest list specified in the
ManualPenaltyInterestList system parameter.
Each penalty displays information about the penalized item,
the penalty date, the number of penalty notification, the
number of overdue days after the repayment notification's
maturity date, the penalty amount, a description, and whether
the penalty was pad or not.

8. To view more information about a correction entry, double-

click it to open the Edit Contract Penalty Detail page:

You can't edit any of the fields from this page.

CONTRACTS 484
CORE BANKING USER GUIDE

9. View information about any correction entries created for the

notification in the Viewing Corrections section. Contract
correction entries are automatically generated, for
notifications that are overdue, when creating a Reschedule
Overdue transaction type contract event. Here you can see
information about the customer of the contract, the date and
currency of the correction entry, and the total amount of the
correction (the sum of all the correction details' values).

10. To view more information about a correction entry, double-

click it to open the Edit Contract Correction Entry page:

l Repayment Notification - The repayment notification

number.
l Contract - The contract number associated with the
notification.
l Currency - The currency of the notification.

l Customer - The customer associated with the

notification.
l Correction Date - The date when the correction was
created.
l Total Correction - The sum of all correction entry detail
records associated with the current correction entry.

11. Additionally, you can view information about each detail

within the correction:

CONTRACTS 485
CORE BANKING USER GUIDE

l Operation Item - The operation item of the transaction

for which the correction entry detail was inserted.
l Correction Value - The value of the correction entry
detail, in the correction entry's currency.

Understanding Automated Settlement of

Repayment Notifications (Direct Debit
Settlement Account)
The automated settlement of repayment notification, or direct debit
settlement account, is the functionality whereby, if funds are
available on the settlement account and the contract has repayment
notifications pending for recovery, Core Banking automatically uses
the available balance up to full settlement of repayment
notifications.
When you have restrictions of any kind on the settlement account
or the allocation simply needs to be done as per a legal authority
instructions, you can turn off the automated settlement of
Installment type repayment notifications functionality (the
payment allocation) at the contract level using the Direct Debit
Settlement Account checkbox. Deselecting the checkbox leads
to the underlying amounts on notifications pending recovery not
being retrieved automatically even if there are available funds in
settlement account. Thus, financial institution can manage the
contracts in case of blocked accounts and control the allocation of
funds to outstanding Installment type notifications in case of
need to impose a block on the settlement account, or manage the
settlement of multiple loans from the same settlement account
when short on funds and exceptional rules might apply.
This parametrization is available at product level, you can it
amended at the contract level, and it is also available at customer
level with a system parameter to instruct Core Banking if the
customer level setup should impact underlying contracts or not.
Thus, you can manage the Direct Debit Settlement Account
setting at the customer level. The customer level setting takes

CONTRACTS 486
CORE BANKING USER GUIDE

precedence over the setting at the contract level when creating new
contracts. For existing contracts, Core Banking applies the setting
configured within the
CustomerToContractDirectDebitSettlementAcc system
parameter.
If the automated settlement of repayment notification functionality
is turned off, the contract is pending for manual repayment. You can
turn it back on as required, when required, and allow Core Banking
to allocate the funds according to its automated processes, using
any funds that become available in the settlement account in order
to cover pending notifications. When the functionality is turned on
or off, the notifications already processed remain unchanged. You
can turn the automated settlement functionality on or off even after
the maturity of a contract, as long as the contract is not closed.
The following validations are performed for the Direct Debit
Settlement Account field at the contract level:

l If Direct Debit Settlement Account = True and new

Installment type repayment notifications are generated, the
system automatically tries to recover the values from Settlement
Amount. When the repayment notification is fully paid, Core
Banking automatically changes the Installment type repayment
notification's status to Recovered.

l If Direct Debit Settlement Account = True and old unpaid

Installment type repayment notifications already exist, the
system tries to create recover debt records for the remaining
amount for all unpaid Installment type repayment notifications,
and changes their status to In recovery.

l If Direct Debit Settlement Account = False and new

Installment type repayment notifications are generated, the

CONTRACTS 487
CORE BANKING USER GUIDE

system doesn't register any debt to recover, and changes the

notification's status to Pending Recover.

l if Direct Debit Settlement Account = False and old

Installment type repayment notifications are generated, the
system removes debts to recover from the Settlement Account, and
changes the status to Pending Recover.

Viewing a Contract's Penalties

You can view the penalty interest already notified for the contract in the
Penalties section of the Payments tab. These penalties are automatically
calculated by Core Banking for an approved contract based on all the
interests with selected Is Penalty checkbox that are applied to this contract.
To view the penalties applied to a contract, follow these steps:

1. On an approved contract's Payments tab, navigate to the Penalties

section. If any penalty interest was calculated for the contract, they are
displayed here:

2. View basic information about the penalties in the list, such as penalty
date, amount, notification number and whether it was paid or not.
Payed penalties are also highlighted in blue, for your convenience.

CONTRACTS 488
CORE BANKING USER GUIDE

3. To see detailed information about one of the applied penalties, double-

click on the desired penalty record. The Contract Penalty page is
displayed with the selected penalty's details:

You can't edit the information displayed on this page.

4. View the information in the Contract Penalty section, as displayed:

l Contract - The number of the contract for which the penalty is
applied.
l Customer - The customer for whom the contract was created.

l Is Paid - A checkbox indicating whether the penalty was already

paid through a payment allocation or not.
l Name - The name of the penalty.

l Notification - The number of the notification where the penalty is

included.
l Penalty Amount - The amount of the penalty expressed in the
contract's currency.
l Penalty Date - The date when the penalty was calculated.

CONTRACTS 489
CORE BANKING USER GUIDE

5. View the information in the Contract Penalty Details section, as

displayed:
l Penalized Notification - The notification which was not paid in
time and for which the penalty is calculated.
l Penalized Item - The item to which the penalty interest was
applied.
l Overdue Days - The number of days since the notification was
overdue for payment.
l Penalty Amount - The calculated amount of the penalty.

l Loan Item - The loan item which is used to calculate the penalty
interest.
l Description - The description of the contract penalty detail. It
contains the total penalty value, the penalty percent or value
applied to the number of overdue, and the delay days for
calculation.

6. Double-click a detail record to view the details of the penalty on a

separate page, Edit Contract Penalty Detail:

You can't edit the information displayed on this page.

CONTRACTS 490
CORE BANKING USER GUIDE

Manually Capture Notifications

Apart from the notifications automatically generated by Core Banking for each
installment that has to be paid for existing contracts that disbursed various amounts
to customers, Core Banking also assists you reconcile wrongly processed cases and
other situations resulted from delayed processing/ wrong updates. Thus, depending
on your user rights, you can manually add notifications for an active contract based on
lending product types, term loans, and mortgages, or add notifications for amounts to
be recovered even if there is no active contract. Core Banking includes all such manual
notifications in the recovery processes.

NOTE
Core Banking enables you to manage manual repayment notification via the user
interface or via integration through APIs. For information about the available
endpoints, please visit the Core Banking Developer Guide.
For information about managing manual repayment notification via the user
interface, continue reading this page.

NOTE
You need one of the Corporate Credit Officer, Retail Credit Officer, or Loan Admin
Officer security roles to view, create, delete, and update manual repayment
notifications.
You need the Loan Admin Officer security role to update their status to Approved.

Adding Repayment Notifications

Follow these steps to manually add a repayment notification:

1. In the FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

CONTRACTS 491
CORE BANKING USER GUIDE

2. Click Manual Repayment Notification menu item to open the Manual

Repayment Notifications page.

Or, click Repayment Notification menu item to open the Repayment

Notifications List page.

Within the list, the notifications highlighted in blue are already paid, allocated,
or closed to payment, while notifications not highlighted (displayed on a white
background) remain to be paid.

3. On the Manual Repayment Notifications page, click Insert to open the Add
Manual Repayment Notification page.

4. Fill in the following details regarding the notification:

CONTRACTS 492
CORE BANKING USER GUIDE

l Customer - Select the customer for whom the notification is created.

l Contract - Select the number of the contract for which the notification is
generated. You can choose from the approved and closed contracts of the
selected customer. The currency and the source bank account are
automatically filled in using the values from the selected contract. If the
notification is not linked to an active contract, you must select a source
bank account.
l Source Bank Account - Automatically filled in if the contract was selected.
Select the bank account from where the notified amount should be
allocated. After selecting a source bank account, the currency is changed
with the bank account's currency.
l Notification Date - Select the date when the notification is created.

NOTE
You can also add manual repayment notification from the contract
level's Payments tab, clicking Insert within the Repayment
Notification section. In the displayed Add Manual Repayment
Notification page, some of the fields are automatically filled in
based on the contract's information and can't be modified.

5. Optionally, view or edit the following details:

l Currency - Automatically filled in with the currency of the notification, if
the contract or the source bank account was selected.
l Total Amount - This read-only field holds the total amount to be paid
within the notification, calculated as the sum of all the details' values.
l Maturity Date - This field is automatically filled in with the maturity date
of the notification, calculated by adding the value of the Grace period
for repayment field at the banking product level to the notification
date. If no contract is selected, hence there is grace period to consider
from the banking product level, then the ManualGraceRepayment Core
Banking system parameter is used for maturity date calculation.
l Repayment Description - Enter a description for the manual notification.

CONTRACTS 493
CORE BANKING USER GUIDE

6. Click the Save and Reload button. The manual notification is saved by Core
Banking in Draft status. You can now continue by adding repayment
notification details to it.
You can view the notifications generated for a specific contract on the Contract
page, in the Payments tab > Repayment Notifications section:

NOTE
Once the repayment notification is in Draft status, you can edit the currency and
the source bank account only if there are no notification details created for it.

Adding Repayment Notification Details

Follow these steps to manually add a repayment notification detail:

1. On the Edit Manual Repayment Notifications page, click Insert to open the Add
Manual Repayment Notification Detail page. The page already has the currency
of the notification and the remaining value still to be paid from the notification
value completed. When you create the notification detail, Remaining Value
= Value.

2. Fill in the following details regarding the notification detail:

l Operation Item - Select the operation item for which the notification detail is created.
The operation item is used in the payment allocation process. If you select an
operation item that is not included in the allocation method used for manual
notifications (stored in the ManualAllocationMethod system parameter), then Core

CONTRACTS 494
CORE BANKING USER GUIDE

Banking displays a warning message.

l Value - Enter the value of the notification detail. It must be must be greater
than 0.

3. Click the Save and Close button. The notification detail is saved by Core
Banking. You can add as many details as needed to a manual repayment
notification in Draft status.

NOTE
For the payment allocation job to process the details, you must first approve the
manual repayment notification record.

Approving Manual Repayment Notifications

After adding all the details you need to a manual repayment notification, make sure
you approve it by changing its status to Approved. Otherwise, the payment allocation
automated jobs don't process it.
Core Banking performs the following validations before approving a manual
repayment notification:
l The Total Amount of the repayment notification must be greater than 0;

l The Value fields at the details level must be greater than 0;

l The operation items selected at details level must be included in the allocation
method used for manual notifications (stored in the
ManualAllocationMethod system parameter).
After approval, Core Banking automatically transitions manual repayment
notifications from the Approved status into Pending Recover or In Recovery statuses,
using the Auto Process Manual Repayment Notifications scheduled job.
Further, the automated settlement of repayment notification takes the notification
and processes it, allocating funds from the source bank account to settle the debt.

CONTRACTS 495
CORE BANKING USER GUIDE

Closing a Current Account

Current account contracts with all their financial obligations met can be closed. Core
Banking enables you to close these contracts automatically through scheduled jobs or
manually, according to a series of settings defined at the banking product and at the
contract level. The automatic closure of contract is triggered whenever the maturity
date of the contract is reached and there are no overdue amounts on the contract, or
according to the closure settings.
There are cases when you might expect the account to get closed once all amounts
recovered, maturity date reached, or you might want such contracts to be closed after
a certain number of days, allowing for possible reconciliations, or even leave them to
be manually closed or with a localized job. All this is enabled from product level and, if
set as negotiable, you can also change the default at contract level. You might need
such settings if you work with direct debit and need to allow for the number of days
the direct debit can bounce to pass before you really close the deal.
You can configure the closure settings during product definition, in the Lean Contract
Settings' tab -> Closing Contract Settings section, as described in the Banking Product
Factory user guide:

If allowed from the product definition, you can amend the closure settings of the
contract, the way Core Banking should behave once there are no more due amounts
and the contract can be closed. Perform these configurations in the Closure Settings
section of the Overview tab, during contract creation, for contracts based on banking
products having the Closing Is Flexible = True setting:

Depending on the real time closure setting, Core Banking uses the one following
scheduled jobs to close the contracts automatically:

CONTRACTS 496
CORE BANKING USER GUIDE

l Close Contracts (CB) Job - this job closes automatically all contracts with
Automatic Closure = True and Real Time Closure = False, with
zero available amount and with no further amounts to be recovered, that have
Balance Off Date filled in and Closure Date = Current Date.
l Close Contracts RealTime(CB) Job - this job closes automatically all
contracts with Automatic Closure = True and Real Time Closure =
True, with zero available amount and with no further amounts to be recovered.

You can see the list of contracts that are ready to be closed in the Closure of
Contracts report:

You can also use the GetClosureOfContracts endpoint to fetch the same
information within your own API integration.

Manually Closing Current Account without Overdraft

Contracts
If you opted to close a contract with all the obligations met manually, and
not automatically, before its maturity date, then follow these steps:

1. Double-click an approved contract with zero amounts to be recovered

and zero available balance, opening it for editing.
This example shows you a current account with its balance = 0 and no
overdraft:

CONTRACTS 497
CORE BANKING USER GUIDE

2. Change the contract's Next Status into Closed.

If Core Banking performs all the validations and finds that the financial
obligations are met and there are no more amounts to be recovered or
to be transferred out, then the contract's status becomes Closed. You
can't perform any other operations on this contract.

CONTRACTS 498
CORE BANKING USER GUIDE

Any existing versions of the contract are also automatically closed, as

you can see in the History tab.

Manually Closing Current Account with Overdraft

Contracts

IMPORTANT!
When you plan to close a current account with an attached overdraft
functionality, first you have to settle the costs linked to the overdraft,
transfer any remaining balance to another account, and only then you can
proceed to close the account.

If you opted to close a current account with overdraft contract with all the
obligations met manually, and not automatically, before its maturity date,
then follow these steps:

1. Create a new version of the Approved contract.

CONTRACTS 499
CORE BANKING USER GUIDE

2. Scroll down in the new version's Overview tab and fill in a

Versioning Reason.

3. Change the Maturity Date of the contract to an agreed upon date.

4. If the Expire Date for Overdraft was not reached yet, then you
must also change it to the same date as you did for Maturity Date.

5. Go to the contract's Payments tab and double-click the repayment

schedule to open it. Click Recalculate for Core Banking to perform a
recalculation of the repayment plan, to have the last installment due
on the new maturity date, with all the accrued amount added into the
designated columns.

6. Approve the contract version.

CONTRACTS 500
CORE BANKING USER GUIDE

7. At the end of that day, Core Banking notifies the installment.

Whenever a due amount is notified before the expiration date of the
overdraft, the balance of the current account is credited with the
notification amount when running the Core Banking End Of Day
scheduled job. When the expiration date of the overdraft is reached,
any due amounts are moved to the last, expiration installment of the
repayment schedule, on the principal, and the balance, the overdraft
limit amount and the overdraft available amount are zeroed. The
expiration installment amount can be covered with a top-up or a new
overdraft on the same current account.

8. The next day, settle the last installment, performing a top-up.

9. Close the current account manually, performing the same steps

described in the "Manually Closing Current Account without Overdraft
Contracts" on page 497 section.

Creating New Versions of Existing Current Account

Contracts
In Core Banking, the contracts are set up for versioning. Thus, if you want to update
the details of an approved contract, then you must create a new version of the record.
To create a new version for a record with the Approved status, follow these steps:

1. While in the Contract page of the record selected for updates, click the New
Version button.

CONTRACTS 501
CORE BANKING USER GUIDE

2. View the new version of the contract created by Core Banking, with Contract
Version Draft status.

3. Edit the desired fields in the Overview tab. You can only edit a set of fields for
contracts based on specific banking products.

4. Select a versioning reason in the newly displayed editable Versioning Reson

section.

NOTE Select the Closure of current account reason when closing

the current account with overdraft contract, as it signals Core Banking to
perform the procedures needed in order to settle all the costs of the
overdraft and of the current account.

5. Click the Save and Reload button.

If you approve the contract in Contract Version Draft status, then the original record
transitions into the Contract Version Closed status and the secondary version
becomes the Approved currently active contract record.
Read more details about versioning a record on the How to Version an Entity Record
page.

CONTRACTS 502
CORE BANKING USER GUIDE

Possible Changes on New Current Account with Overdraft Contract Versions

l The Financed Amount value can either be increased or decreased. The amount
can be decreased with a number smaller than or equal to the Available amount.
Financed amount can be increased up to the maximum value specified at
banking product level.
l The Current Account attached to the contract can be changed to any other
active account belonging to the customer.
l Product Interest can be changed to any other type set at banking product level.

l Schedule Type can be changed with any other type set at banking product level.

l Contract Period cannot exceed the maximum set at banking product level.

l Interest Grace Period can be changed up to the maximum number of months

set at banking product level.
After any of the above changes, in order to approve the new version of contract, the
Contract Repayment Schedule must be recalculated.

Viewing a Contract's History

You can view the versions of the contract, along with workflow status and the user
who modified the record, in the contract's History tab.

CONTRACTS 503
CORE BANKING USER GUIDE

A contract can have only one Draft version, one Current version, but it may have
multiple History versions, which are displayed in this section. Here you can track the
contract's life cycle and view older versions that are no longer active. Double-click a
version in the list to view its details.

Viewing a Contract's Accounting Entries

You can view all the accounting entries, accounting totals, and accruals and provisions
recorded for a contract within the Accounting Entries tab of the contract. These
records are automatically generated by the system, after performing transactions for
an approved contract.

View Accruals and Provisions

To view the records containing daily accrual and provisions, generated

automatically by the system respecting the definition of the contract,
product dimensions, system parameters and jobs, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accruals and

Provisions section.

CONTRACTS 504
CORE BANKING USER GUIDE

2. View the information displayed for each accrual and provision entry:
l Classification - The classification of the accrual and provision
entry. The classification is determined based on the records
created in the Loan Classification menu. These records classify
transactions based on the number of days since a repayment
notification is overdue.
l Contract - The number of the current contract.

l Calculation Date - The date when the accrual and provision

calculation was performed.
l Daily Accrual Interest - The amount of interest accrued on that
day.
l Accumulated Interest Accrual - The total amount of interest
accrued until that day.
l Daily Interest Provision - The amount of interest provisioned on
that day.
l Accumulated Interest Provision - The total amount of interest
provisioned until that day.
l Daily Fee Accrual - The amount of fees and commissions accrued
on that day.
l Accumulated Fee Accrual - The total amount of fees and
commissions accrued until that day.
l Principal Provision - The amount of principal provisioned.

l Previous Principal Provision - The previous amount of principal

provisioned.
l Process Days - The number of days processed.

View Accounting Totals on Contract

CONTRACTS 505
CORE BANKING USER GUIDE

To view an overview of the total amounts specified in accounting records

generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accounting Totals

on Contract section.

2. View the information displayed for each total amount:

l Account - The account where the operation was performed.

l Total Debit - The amount which was debited from the account.

l Total Credit - The amount which was credited to the account.

View Accounting Entries

To view the accounting for the transactions related to the loan contract
generated by the Generate Accounting Entries service in the Core Banking
END OF DAY (CB) daily job, follow these steps:

1. Navigate to the contract's Accounting Entries tab > Accounting Entries

section.

CONTRACTS 506
CORE BANKING USER GUIDE

2. View the information displayed for each accounting entry:

l Name - The id of the accounting entry.

l Accounting Date - The date when the entry was generated.

l Accounting Value - The value of the accounting entry.

l Analytic Credit Account Code - The code of the analytic credit

account.
l Analytic Debit Account Code - The code of the analytic debit
account.
l Currency - The currency of the accounting entry.

l Equivalent Value - The equivalent value of the accounting entry

expressed in the contract's currency.
l Exchange Rate - The exchange rate between the accounting entry
currency and the contract currency.
l Description - The description of the accounting operation.

CONTRACTS 507
CORE BANKING USER GUIDE

Credit Facilities
A credit facility is a grouping of multiple credit products that a customer has arranged
with a financial institution under a single credit limit. Financial institutions can offer
companies a credit limit for the company as a whole, and the company can then take
on different loan products without the need for separate risk assessments. This
simplifies access to funds for companies and greatly reduces time-to-cash. Credit
facilities also create operational efficiencies for the financial institution, because
individual loans no longer need separate risk assessments.
FintechOS Core Banking allows financial institutions to create credit facility
agreements for their customers based on approvals.

IMPORTANT!
Credit facility management is available via the Core Banking Corporate 3.3 package,
which has to be installed on top of the Core Banking 3.3 package.

Credit Facility Implementation Notes

l The credit facility approval is made according to the specifications of the
financial institution set during the implementation process.

Business Logic
Let's say a financial institution approves a credit facility for a group or a customer up
to EUR 100.000, to be used by the credit facility participants among various
currencies:
l guarantees allowed in EUR and USD;

l term loans allowed in EUR and GBP;

l overdrafts allowed in EUR.

CREDIT FACILITIES 508

CORE BANKING USER GUIDE

First, an agreement is made between a financial institution and a customer (total

exposure limit). This limit is used while creating the credit facility, making sure that
the credit facility limit amount does not exceed the total exposure limit of the
customer. The approval can be revolving or non-revolving, thus both limit and facility
have the same nature.
The credit facility holds details about:
l Allowed banking products, with their preset currency;

l Allowed customers, if the facility is granted for a specific group of customers;

l Covenants, if needed;

l Prices:
l Unused amount fee, as a percentage to be applied to daily unused
amount. The fee is collected from current/ servicing account with a given
frequency/ periodicity;
l Interest and commission related elements, for negotiable product costs.

Loan contracts are entered whenever the customer asks for disbursements, according
to the credit facility setup.

Managing Credit Facilities

To manage credit facilities:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.

2. Click Credit Facility menu item to open the Credit Facility page.

CREDIT FACILITIES 509

CORE BANKING USER GUIDE

On the Credit Facility page, you can create a new credit facility, search, edit, or delete
existing ones in Draft status.

Credit Facility Life Cycle and States

Credit facilities are complex agreements between a bank and its customers. Therefore
the four-eyes principle is applicable here, meaning that a record should be approved
by a second bank employee, with higher authorization rights.
A credit facility record has the following business workflow statuses:
l Draft - the status of a newly created credit facility record that was not yet sent
for approval. While in this status, you can edit the fields from the record's
Credit Facility tab, but you can't add utilizations to it. Send the record to
approval after editing all the necessary details.
l Pending - a system status applied to credit facilities sent for approval, but not
yet approved. You can't perform any updates in this system status.
l Approved - the status of a credit facility record after being authorized by a user
with credit facility approval competencies. While in this status, you can't edit
the record's details, but you can add utilizations to it within the Credit Facility
Utilizations tab. If you need to alter the credit facility's details, create a new
version based on the current credit facility.

NOTE
Each facility utilization must also be approved by a user with credit facility

CREDIT FACILITIES 510

CORE BANKING USER GUIDE

utilization approval competencies, otherwise, the disbursement of the

utilization is performed by Core Banking.

l Unapproved - the last status of a credit facility, after manually canceling it

directly from Draft status. You can't perform any updates on the record.
l Closed - the last status of a credit facility, after manually closing it or after
creating a new version based on the current version. You can't perform any
updates on the record.

IMPORTANT!
In order to use the credit facility, it must be in the Approved status.

Credit Facility Versioning

Core Banking allows you to create new versions for an existing credit facility if you
need to modify an existing approved one.
A credit facility version can have the following statuses:
l Version Draft - the status of a newly created credit facility version record that
was not yet sent for approval. While in this status, you can edit some fields, but
you can't add utilizations to it. Send the record to approval after editing all the
necessary details.
l Approved - the status of a credit facility version record after being authorized
by a user with credit facility approval competencies. While in this status, you
cannot edit the record's details, but you can add utilizations to it.
l Version Closed - the last status of a credit facility version, after manually closing
it or after creating another new version based on the current version. You can't
perform any updates on the record.

CREDIT FACILITIES 511

CORE BANKING USER GUIDE

Credit Facility Life Cycle

First, an agreement is made between a financial institution and a customer - usually, a
legal entity, for the customer to have easy access to funds whenever in whichever
banking product they need it. The amount cannot exceed the customer's approved
Total Exposure type limit.
This agreement is recorded in the financial institution's system by a clerk, in the form
of a credit facility. All details of the agreement are captured while creating the credit
facility record: who are the participants with access to funding, what's the usable
amount in the chosen currency, what products can be used within this agreement,
when is the agreement applicable, under which conditions, whether the facility's
amount increases or decreases over time, and so on. The clerk fills in all the
mandatory details, saves the record still in Draft status, and then sends it for
approval.
Another employee of the financial institution, with higher authorization rights and
with credit facility competencies, consults the record and approves or rejects the
credit facility, depending on the details entered before by the creator of the record. If
rejected, the credit facility's status becomes Closed.
If approved, the credit facility, now in Approved status, can be used by the customer
to access funds. Its details cannot be altered anymore, but the clerk can add
utilizations to it up until the credit facility's maturity date, in the form of contracts for
banking products listed in the credit facility.
These utilizations, being in fact banking contracts, after creation are still in Draft
status, and thus have to be further approved by a second employee of the bank, with
corresponding contract approval rights. After being approved, a utilization disburses
its amount in the customer's account. This amount is taken from the credit facility,
thus the available amount is lowered with the sum of the approved utilization.

NOTE
The total amount of approved utilizations, in any of the banking products'
currencies, cannot exceed the amount approved in the credit facility, calculated in
the facility's currency based on the exchange rate valid on each day.

Fee values and accruals are calculated for the approved utilizations and displayed in
the Credit Facility Utilizations tab, along with any repayment notifications.

CREDIT FACILITIES 512

CORE BANKING USER GUIDE

You can manually close credit facilities if needed. Records in Closed status cannot be
altered in any way.
If you have to update the details of an approved credit facility, then you must create a
new version of the record. The new version of the record is created in Draft status,
thus restarting the life cycle.

Changing Credit Facility Statuses

You can manage a credit facility's life cycle by changing its status from the top right
corner of the screen.

The credit facility status transitions are illustrated below:

Note that:

CREDIT FACILITIES 513

CORE BANKING USER GUIDE

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live credit facility, you must create a new credit
facility version.

l When you create a new credit facility version, the current version is retired; no updates
are allowed on the retired version.

l Every credit facility version starts in a draft state and must go through an approval
process before going live.

l Only one version of a credit facility can be live at one time.

NOTE
As a best practice, new records or new versions of existing records created on a
specific day should be approved on the same day.

Creating Credit Facilities

A credit facility is a grouping of multiple credit products that a customer has arranged
with a financial institution under a single credit limit.
Before creating a credit facility, make sure that:
l the customer is recorded in Core Banking,

l a settlement account (a current account contract for the same customer) is set
up for the desired currency,
l and the limits are configured according to Core Banking's setup.

To create a new credit facility:

1. Add Details

CREDIT FACILITIES 514

CORE BANKING USER GUIDE

1. Open the Credit Facility page as described in the Managing Credit

Facilities section.

2. Click the Insert button to display the Add Credit Facility page.
The Credit Facility tab requires the basic elements for the creation of a
credit facility such as customer, facility amount and currency, period,
attached customer limit. Other important details such as participants,
products, plans, fees, and contract covenants are captured in
specialized sections of the same tab.

3. Fill in the following fields, also available for completion when updating
a record in Draft status:

l Customer - Select from the list the name of the customer with
whom the financial institution agreed upon the credit facility.
Changing the selected customer at a later point of the record
creation process leads to emptying the Current Account and
Customer Limit fields, if these were already selected.
l Currency - Select from the list the currency of the credit facility.
If the banking products attached to the credit facility are defined
in different currencies, then their values are converted in this
currency when calculating the facility's available amount.
Changing the selected currency at a later point of the record
creation process leads to emptying the Current Account field,
if this was already selected.
l Facility Amount - Enter the amount agreed upon to grant within
the credit facility, expressed in the currency selected above.

CREDIT FACILITIES 515

CORE BANKING USER GUIDE

The facility amount cannot exceed the selected customer limit's

value.
l Facility Date - Select the date when the facility becomes active.
The maturity date is automatically calculated following the
formula: Facility Date + (Period * Period Type).
l Period Type - Select from the list the period type for the facility's
validity.
l Period - Enter the number of periods during which the facility is
valid.
l Customer Limit - Select a customer limit from the list of limits
approved for the chosen customer. The list is already filtered to
display only the selected customer's already approved Total
Exposure type limits that have Is Revolving = True at the
limit level.

NOTE
The previously entered facility amount cannot exceed the
selected customer limit's value.

l Current Account - Select the customer's bank account where the

credit facility amount can be disbursed. The list is already filtered
to display only the selected customer's bank accounts in the
currency selected before for the credit facility.

4. Optionally, view or fill in the following fields:

l Approval Date - This is the date when the credit facility record is
approved by a user with credit facility approval competencies.
This date is automatically displayed when the record's status
changes to Approved.
l Review Date - Enter the date when the credit facility's amount
should be reviewed for possible adjustments.

CREDIT FACILITIES 516

CORE BANKING USER GUIDE

l Maturity Date - This is the automatically calculated maturity date

of the credit facility. You can modify this date from the attached
calendar, if needed.
l Is Revolving - Select this checkbox to mark the credit facility as
revolving. This means that the customer can borrow money
repeatedly up to the entered facility amount while repaying a
portion of the current balance due in regular installments. Each
payment, minus the interest and fees charged, replenishes the
available amount.
l Interest - Select from the list the interest applicable for the credit
facility amount. The list is already filtered to display only the
interests defined in the selected currency.
l Margin - Enter a margin for the credit facility amount.

l Max Utilization Date - Select from the calendar the maximum

date when the credit facility's available amount can be disbursed
through utilizations.
l Available Amount - This is the amount still available in the credit
facility after disbursing the amounts specified in the approved
utilizations, expressed in the facility's currency.
At creation time, Available Amount = Facility Amount.

5. Click the Save and Reload button.

NOTE
When creating a credit facility, fill in all the mandatory fields. After saving
the credit facility, all the other sections of the Credit Facility page become
visible and can be completed.

2. Insert Participants
You can insert, delete, or export customers who can participate in this credit
facility within the Credit Facility Participants section. After the first save
operation, Core Banking adds the customer as the main facility participant. If
the customer is a group, then all the group members are also added.

CREDIT FACILITIES 517

CORE BANKING USER GUIDE

To add a participant, follow these steps:

1. Click the Insert button to display the Credit Facility Participant page.

2. Fill in, modify or view the following fields:

l Customer - Select from the list the name of the customer who
can participate to the selected credit facility.
l Customer Facility Amount - This is automatically filled with the
facility amount. You can modify the amount that this specific
participant can use within the credit facility. The entered amount
cannot exceed the available amount of the facility.
l Available Amount - This read-only field displays the available
amount of the facility.

3. Click the Save and Close button.

NOTE
For information purposes, the Credit Facility Participant page also displays
the Facility Utilizations section, containing a list with all the credit facility
utilizations corresponding to the selected customer. You cannot perform
any action on the records within this list.

3. Associate Banking Products

You can insert, delete or export banking products which can be utilized
through this credit facility in the Credit Facility Products section.

CREDIT FACILITIES 518

CORE BANKING USER GUIDE

To add a banking product, follow these steps:

1. Click the Insert button to display the Credit Facility Products page.

2. Fill in, modify or view the following fields:

l Product Facility Amount - This is automatically filled with the
facility amount. You can modify the amount that can be
disbursed through the use of this product within the credit
facility's utilizations. The entered amount cannot exceed the
facility amount.
l Available Amount - This read-only field displays the available
amount of the facility.
l Allowed Customer - Select from the list the customers who is
allowed to use this banking product through credit facility
utilizations, if the use of this banking product has to be restricted
to certain customers. The list is already filtered to display only
the customers defined as participants in this credit facility record.
l Banking Product - Select from the list the banking product that
can be used through credit facility utilizations.
l Is revolving - Select this checkbox to mark the banking product
used through the credit facility utilizations as revolving. This
means that the customer can borrow money repeatedly up to the
entered product facility amount while repaying a portion of the
current balance due in regular installments. Each payment, minus
the interest and fees charged, replenishes the available amount.

3. Click the Save and Close button.

NOTE
For information purposes, the Credit Facility Products page also displays

CREDIT FACILITIES 519

CORE BANKING USER GUIDE

the Facility Utilizations section, containing a list with all the credit facility
utilizations already created for the selected banking product. You cannot
perform any action on the records within this list.

4. Create Plans
You can insert, delete or export plans for the increase or decrease of the
facility amount during the credit facility's duration in the Credit Facility Plans
section.

To add a plan, follow these steps:

1. Click the Insert button to display the Credit Facility Plans page.

2. Fill in, modify or view the following fields:

l Amount - Enter the amount which affects the credit facility plan.
Use negative values if you wish to decrease the facility amount.
Positive values increase the facility amount. This field is
mandatory only if Percent is not filled in, otherwise, it can't be
completed.
l Periodicity Type - Select from the list the periodicity type
applicable for the facility plan. The possible values are
Semestrial, Weekly, Monthly, Annual, Bimonthly,
Trimestrial, Once, 4 Weeks.
l No Times - Enter the number of times the plan should increase or
decrease of the facility amount, until the credit facility's maturity
date.

CREDIT FACILITIES 520

CORE BANKING USER GUIDE

l Percent - Enter the percent of facility amount which affects the

credit facility plan. Use negative percent values if you wish to
decrease the facility amount. Positive percent values increase the
facility amount. Mandatory only if Amount is not filled in,
otherwise, it can't be completed.
l Start Date - Select from the calendar the first date when the plan
should be executed. Depending on the periodicity type and
number of times already completed for plan execution, the
maturity date of the plan is calculated. The plan's maturity date
cannot exceed the credit facility's maturity date.
l Maturity Date - This read-only field displays the plan's maturity
date based on the start date, periodicity type and number of
times already completed for plan execution.

3. Click the Save and Close button.

5. Enter Contract Covenants

You can insert, delete or export covenants, certain conventions that
customers must abide by after getting the facility in the Contract Covenants
section.

To add a covenant, follow these steps:

1. Click the Insert button to display the Contracts Covenant page.

2. Fill in, modify or view the following fields:

CREDIT FACILITIES 521

CORE BANKING USER GUIDE

l Covenant - Select from 3 possible covenants:

l Borrowers should perform tax obligations - the lenders expect
the borrowers to perform their tax obligations to both the
business and towards their employees. This covenant is of
affirmative type.

l Lender can monitor borrower's current ratio - the lender may

continuously monitor the borrower's current ratio to ensure it
stays relatively attractive and promising. This covenant is of
financial type.

l Lender posses the right to prevent merges or acquisitions - a

clear stipulation that the lender possesses the right to prevent
merges of acquisitions without proper notification or full
knowledge of the process. This covenant is of negative type.
l Value - Enter the value for the covenant.

l Covenant Type - This field displays the type of the selected

covenant. You can edit it, selecting one the possible values:
Financial, Affirmative, or Negative.
l Review Frequency (Months) - Enter the number of months
applicable for the covenant review frequency.
l Review Date - Enter the date when the covenant should be
reviewed.
l Customer - Select the customer who must abide by the
covenant's terms. The list is already filtered to display only the
customers defined as participants in this credit facility record.

3. Click the Save and Reload button.

Core Banking displays a series of fields after the save operation.

4. Fill in the following fields:

CREDIT FACILITIES 522

CORE BANKING USER GUIDE

l Grace Period (Months) - Enter the number of months acting as

grace period for this covenant's resolution, if applicable.
l Resolution - Select from the list the resolution of this covenant, if
applicable.
l Resolve Date - Enter the date when the covenant is achieved, if
applicable.
l End Date - Enter the last day when this covenant is applicable.

l Start Early Termination - If you select this checkbox, then the

credit facility agreement is terminated before its maturity date.
l Block Disbursement - If you select this checkbox, then Core
Banking blocks any further disbursements if the covenant is not
achieved after end date.

5. Activate the covenant by changing its status to Active.

6. Click the Save and Close button.

6. Add Fees
You can insert, delete or export fees or commissions that are added to this
credit facility in the Credit Facility Fees section.

To add a fee, follow these steps:

1. Click the Insert button to display the Credit Facility Fees page.

2. Fill in, modify or view the following fields:

CREDIT FACILITIES 523

CORE BANKING USER GUIDE

l Credit Facility - This read-only field displays the id of the selected

credit facility record.
l Start Calculation Date - Enter the start date for fee calculation.

l Fee - Select a fee to apply to the credit facility from the list of
defined fees & commissions.
l Fee Value, Fee Percentage, and Fee Periodicity - These read-only
fields display the value, the percentage, and the periodicity of the
selected fee, as defined in Core Banking.
l Use specific day for aggregation - Enter a day of the month when
the fee accrual should be aggregated.
l Use End Of Month for Aggregation - Select the checkbox to mark
the last day of the month as aggregation day for the fee accrual.
Mandatory only if the Use specific day for aggregation
field is not completed.

3. Click the Save and Reload button.

A new list, Credit Facility Fee Values, is displayed for viewing after the
save operation, containing the calculated fee values for the saved fee.
The list displays the fee name, date, value and currency.

After filling in all the mandatory details in the Credit Facility tab, the record is still in
Draft status. Change its status to Send to Approved to send it for approval.

NOTE
You can add utilizations only for credit facility records with Approved status.

Sending Credit Facilities for Approval

After creating a new credit facility and filling in all the mandatory details within the
Credit Facility tab, the record is still in Draft status. In this status, the customer
cannot access any funding through utilizations (the term for contracts opened for

CREDIT FACILITIES 524

CORE BANKING USER GUIDE

banking products attached to the facility).

You must first send the record for approval to an employee of the financial institution
with corresponding competencies, following the 4-eyes principle.
As a clerk, you should change the credit facility's status to Send to Approved. Core
Banking automatically sends the record for approval to users with credit facility
approval competencies.
For more details on how to perform a change of status, read the Changing Credit
Facility Statuses section.

Approving Credit Facilities

Credit facility records in Draft status must be approved in order to add utilizations to
it. The record's status can be changed to Approved by users with credit facility
approval competencies.
To approve a credit facility:

1. Log into FintechOS Portal with a user with credit facility approval competencies.

2. Access Main menu > Approval Tasks > My Approval Tasks to view your list of
approval tasks.

3. Find the desired Credit Facility record in the Approval Tasks List page and
double-click it to open.

4. Click the Approve button.

Follow the steps described on the Approve Workflow Transitions page for more
detailed instructions.

CREDIT FACILITIES 525

CORE BANKING USER GUIDE

After approving a credit facility, you can't edit the record's details, but you can add
utilizations to it within the Credit Facility Utilizations tab. If you need to alter the
credit facility's details, create a new version based on the current credit facility.
For more details, read about user competencies and workflow transition approvals.

Adding Utilizations to Credit Facilities

A credit facility utilization is a contract opened for banking products attached to the
facility. You can add utilizations to a credit facility record when the record has the
Approved status.
Follow these steps to add utilizations to a credit facility record:

1. On the Credit Facility page, double-click the desired credit facility with
Approved status to edit it.

2. Select the Credit Facility Utilizations tab.

3. Click the Insert button in the Facility Utilizations section to open the Insert
credit Utilization page.

4. Fill in the following fields:

l Customer - Select the customer who becomes the owner of this
utilization. The list is already filtered to display only the customers
entered as participants in the credit facility.
l Banking Product - Choose the banking product which is the object of this
credit facility utilization. The list is already filtered to display only the
banking products attached to the credit facility.
l Contract - You can select an existing contract of the same customer
containing the selected banking product where you can attach this credit
facility utilization. The list is already filtered to display only the selected
customer's contracts that contain that same banking product.
If no contract is selected, Core Banking automatically creates a new
contract for this credit facility utilization.

CREDIT FACILITIES 526

CORE BANKING USER GUIDE

NOTE
The contract's start date cannot precede the utilization's start date.

l Currency, Exchange Rate - These read-only fields display the selected

banking product's defined currency, respectively exchange rate for that
currency.
l Utilization amount - Enter the amount to be disbursed through this
utilization, expressed in the selected banking product's currency.
l Utilization In Facility Currency - This read-only field displays the
utilization amount expressed in the credit facility's currency, calculated
using the exchange rate displayed above.
l Facility Documents - Add any credit facility utilization documents needed
in this field, either by dragging and dropping the file, or by clicking the
Add file button and selecting the desired file.

5. Click the Save and Reload button.

After saving the credit facility, other fields of the Insert credit Utilization page
become visible and can be completed.

6. Fill in the following fields in the Utilization details section:

CREDIT FACILITIES 527

CORE BANKING USER GUIDE

l Product Interest - Select the product interest applicable for this

utilization. The list is already filtered to display only the interests defined
for the selected banking product.
l Total Interest Rate - This field displays the total interest rate of the
utilization, as it was calculated for the selected banking product. You can
edit the value.
l Minimum Interest Rate - Enter a minimum interest rate applicable for this
utilization, if needed.
l Margin - Enter a margin applicable for this utilization, if needed.

l Reference Rate Date - Select from the calendar the date for the exchange
reference rate to be used for utilization amount calculation, when the
selected banking product was defined with a currency different from the
credit facility's currency.
l Reference Rate - This field displays the value of the selected exchange
reference rate. You can edit the value.
l Contract Period - This field displays the contract period in days, as it was
defined for the selected banking product. You can edit the value.
l Schedule Type - Select the schedule type applicable for this utilization.
The list is already filtered to display only the schedule types defined for
the selected banking product.
l Repayment Due Day - This field displays the day in the month when the
repayment is due, as it was defined for the selected banking product. You
can edit the value.
l Installment Method - This field displays the installment calculation
method, as it was defined for the selected banking product. You can edit
the value, selecting one of the possible values:
l Actual Period - The first installment should be paid on this month's
repayment due date.

l Next Period - The first installment should be paid on the next month's
repayment due date.

CREDIT FACILITIES 528

CORE BANKING USER GUIDE

l Current account - Select the current account for disbursing the amount for this
utilization. The list is already filtered to display only the bank accounts opened in
the facility’s currency for the selected customer.

7. Click the Save and Close button.

The utilization record is saved in Draft status.

8. Double-click the utilization and send it to approval by changing its status to

Send to Approved.
For more details on how to perform a change of status, read the Changing Credit
Facility Statuses section.

IMPORTANT!
Each facility utilization must be approved by a user with credit facility utilization
approval competencies, otherwise, Core Banking doesn't perform the disbursement
of the utilization.

At any given time, the available amount of the credit facility = the facility amount -
(the sum of all approved utilizations expressed in the facility's currency).

Approving Utilization Requests

Credit facility utilization records (contracts opened based on the selected credit
facility) in Draft status must be approved before the utilization's amount can be
disbursed in the customer's account. The utilization record's status can be changed to
Approved by users with credit facility utilization approval competencies.

CREDIT FACILITIES 529

CORE BANKING USER GUIDE

To approve a credit facility utilization:

1. Log into FintechOS Portal with a user with credit facility utilization approval
competencies.

2. Access Main menu > Approval Tasks > My Approval Tasks to view your list of
approval tasks.

3. Find the desired Credit Facility Detail record on the Approval Tasks List page
and double-click it to open.

4. Click the Approve button.

Follow the steps described on the Approve Workflow Transitions page for more
detailed instructions. For more information, read about user competencies and
workflow transition approvals.
After approving a credit facility utilization, you can't edit the utilization's details.
An approved utilization disburses its amount in the customer's account. Core Banking
takes this amount from the credit facility, thus the facility's available amount is
lowered with the sum of the approved utilization.

NOTE
The total amount of approved utilizations, in any of the banking products'
currencies, can't exceed the amount approved in the credit facility, calculated in the
facility's currency based on the exchange rate valid on each day.

Fee values and accruals are automatically calculated by Core Banking for the approved
utilizations, and displayed in the Credit Facility Utilizations tab, along with any
repayment notifications. Read the "Managing Credit Facility Utilization Details" on the
next page for more details.

CREDIT FACILITIES 530

CORE BANKING USER GUIDE

Managing Credit Facility Utilization Details

A credit facility utilization is a contract opened for banking products attached to the
facility.
You can find the details of the credit facility such as facility utilizations, fee values,
accruals and repayment notifications in a credit facility record's Credit Facility
Utilizations tab. There is no information here to display for records in Draft status.
You can add utilizations only after the record reaches Approved status.
Here are the actions that you can perform on utilizations already added to a credit
facility record:

View & Update Utilizations

You can view, insert or export contracts based on the banking products
added to this credit facility in the Facility Utilizations section within a credit
facility record's Credit Facility Utilizations tab. These contracts are known as
utilizations.

To add a utilization, perform the steps described on the Adding Utilizations

to Credit Facilities page.
The already added utilizations are displayed in a list with the following fields:
l Customer - The name of the customer who is the owner of this
utilization.
l Banking Product - The banking product which is the object of this
credit facility utilization.

CREDIT FACILITIES 531

CORE BANKING USER GUIDE

l Contract - The number of the contract holding this credit facility

utilization, either selected when adding the utilization, or automatically
created by Core Banking.
l Utilization in Facility Currency - The amount specified in the credit
facility utilization, expressed in the credit facility's currency.
l Status - The status of the credit facility utilization record. The possible
values are:
l Draft - The utilization was created, but it needs further approval.

l Approved - The utilization was approved and its amount was disbursed
in the customer's designated current account.

l Closed - The utilization reached its final unalterable status either by

being rejected during the utilization approval process, or manually by
changing the record's status.

To update a utilization in Draft status:

1. Double-click to open the Credit Utilization page.

2. Update the editable fields of the utilization according to your needs.

3. Click the Save and Close button.

IMPORTANT!
Approve credit facility utilizations to instruct Core Banking to disburse the
amount of the contract in the customer's account.

View Fee Values

You can see or export the fee values already applied to this credit facility in
the Credit Facility Fee Values section within the Credit Facility Utilizations
tab.

CREDIT FACILITIES 532

CORE BANKING USER GUIDE

To view the details of a fee:

1. Double-click the fee to display the Credit Facility Fee Value page.

2. View the following information regarding the fee:

l Credit Facility - The id of the selected credit facility record.

l Fee - The fee applied to the credit facility.

l Date Fee - The date when the fee was applied to the credit
facility.
l Customer - The customer who must pay the fee value.

l Currency - The currency of the fee.

l Repayment Notification - The number of the repayment

notification automatically generated by Core Banking.
l Loan Item - The type of the fee.

l Value - The value of the fee, expressed in the fee's currency.

3. Click the Save and Close button.

View Accruals
You can see or export the values of the accrual automatically calculated by
Core Banking for this credit facility in the Credit Facility Accruals section of
the Credit Facility Utilizations tab.

CREDIT FACILITIES 533

CORE BANKING USER GUIDE

Each accrual lists the following information:

l Accrual Date and Accrual Value - The date and the value of the accrual
calculation, expressed in the credit facility's currency.
l Fee - The fee or commission based on which the accrual was
calculated. This is only displayed on the Credit Facility Accrual page,
opened if you double-click an accrual record for viewing purposes.

View & Correct Repayment Notifications

You can see, update or export the repayment notifications automatically
issued by Core Banking for this credit facility in the Repayment Notifications
section of the Credit Facility Utilizations tab.

Each repayment notification lists the following information: number,

issuance date, the customer participant to the credit facility for whom the
repayment notification was issued, the amount, the currency, and the due
date of the notification, as well as the amount that remains to be paid by the
customer for this repayment notification.
To update a repayment notification:

CREDIT FACILITIES 534

CORE BANKING USER GUIDE

1. Double-click a record to open the Edit Repayment Notification page.

2. View the details of the repayment notification.

3. If needed, insert corrections by clicking the Insert button next to the

Corrections section.

4. On the newly displayed Add Contract Correction Entry page, view in

the following details: repayment notification number, contract,
currency, the name of the customer, the date when the correction
entry is saved, and the sum of values entered for in the correction
entry details section.

5. In the Contract Correction Entry Details section, fill in the following

details:
l Repayment Notification Detail - Select the repayment
notification detail to be corrected.
l Operation Item - Select the operation item.

l Correction Value - Enter the desired value.

6. The correction entries must be approved in order to be processed.

Change the record's status to Approved.

7. Click the Save and Reload button after performing the desired updates.

The repayment notification is automatically marked as paid (the IsPaid

checkbox in the Repayment Notification details section is selected) after the
payment is processed, either by a Core Banking process or by adding a
manual correction.

CREDIT FACILITIES 535

CORE BANKING USER GUIDE

Creating New Versions of Existing Credit

Facilities
In Core Banking, the credit facilities are set up for versioning. Thus, if you want to
update the details of an approved credit facility, then you must create a new version
of the record.
To create a new version for a record with the Approved status, follow these steps:

1. While in the Credit Facility List page, double-click the credit facility record
selected for updates.

2. Click the New Version button in the top right corner of the page.

A new version of the credit facility is created, with Version Draft status, thus
restarting the life cycle.

3. Edit the desired fields in the Credit Facility tab.

4. Click the Save and Reload button.

CREDIT FACILITIES 536

CORE BANKING USER GUIDE

If you approve the draft version, then the original record transitions into the Version
Closed status and the secondary version becomes the Approved currently active
credit facility record.
Read more details about versioning a record on the How to Version an Entity Record
page.

Viewing a Credit Facility's History

You can view the versions of the credit facility, their workflow status and the user who
modified the record, in the credit facility's History tab.

Here you can track the record's life cycle and review older versions that are no longer
active (for details, see Credit Facility Statuses).
There are no edits allowed in this tab. Double-click a version in the list to view its
details.

CREDIT FACILITIES 537

CORE BANKING USER GUIDE

Third-Party Management
The third-party management functionality of Core Banking refers to third-party
entities (agents, brokers, insurers, etc.) registered with the financial institution to
intermediate the selling of various banking products to customers. For their work, the
third-party entities are compensated with fees payable for each new contract, based
on a pricing agreement with the financial institution. Core Banking facilitates the
management of third-party agreements, the linkage of contracts to third-parties, and
the configuration of the commissioning processes through dedicated menus. A third-
party invoicing process also takes care of the transfer part of the payments related
with these third-party entities.
FintechOS Core Banking allows banks to create third-party agreements based on
approvals.

IMPORTANT!
The third-party management features are available via the Third-Party Management
v3.3 package, which has to be installed on top of the Core Banking 3.3 package.

Business Logic
Let's say a third-party entity (an agent, a broker, an insurer, or a merchant) agrees
with a financial institution to intermediate the selling of various banking products to
customers, for a fee. Thus, an agreement is recorded in Core Banking, containing all
the pricing information needed to compensate the third-party. Specific commissioning
configurations must be in place to be then applied to the agreements. Whenever the
third-party entity intermediates the selling of a contract to a customer, specifying in
the contract the entity and their role, the entity should be compensated with the
commissions mentioned in the agreement. The payments are performed based on
automatic or manual invoicing processes. Agreement records must be approved
before being used for invoice generation. You can create invoices and attach invoice
details for an agreement for each currency mentioned in the pricing details, that are
automatically processed for payment by Core Banking. An automated process running

THIRD-PARTY MANAGEMENT 538

CORE BANKING USER GUIDE

once each night creates third-party invoices and payments for the combination of
third-party entity/ agreements currency, during the validity of the agreement, on the
Payment Day of each agreement, excluding any invoice details already created on a
manual invoice. The payments for the invoices are performed for unallocated or
partially allocated payments.

Managing Third-Party Agreements

To manage third-party agreements:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational > Third-Party Agreements menu.

2. Click the Agreements menu item to open the Agreements page.

On the Agreements page, you can create a new agreement, search, edit, or delete
agreements in Draft status.

IMPORTANT!
Users with the associated role of Loan Admin Officer or Retail Credit Officer can
view, insert, update, or delete third-party agreement records. Users with the other
associated Core Banking security roles can only view such records.

HINT
You can also manage agreements in the Third-Party Agreements dashboard.
Agreements that remain in Draft status for a predefined number of days can be
purged within the Records To Be Purged dashboard's Agreements tab.

THIRD-PARTY MANAGEMENT 539

CORE BANKING USER GUIDE

Third-Party Configurations
This page contains a series of topics that explain the configurations needed by Core
Banking regarding the setup of commissions for third-party management:
l Third-Party Commission Schema

l Third-Party Commission Type

l Third-Party Commission

Third-Party Commission Schema

Third-party commission schema records are commission schemas that can be used
only for the third-party management processes within Core Banking. They are used to
categorize third-party commission types. For example, there are two schemas that
come out-of-the-box with Core Banking: Third Party and Third Party
Clawback.

IMPORTANT!
You can add other schemas if needed, just bear in mind that the business logic must
also be implemented for your new schemas. By default, the scripts are written to
treat only the schemas that come out-of-the-box with the Core Banking packages,
Third Party for commissions types given to the third-party entity, and Third
Party Clawback for commissions types reclaimed from the third-party entity.

To manage third-party commission schemas:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.

THIRD-PARTY MANAGEMENT 540

CORE BANKING USER GUIDE

2. Click the Third-Party Commission Schema menu item to open the Third-Party
Commission Schema page.

On the Third-Party Commission Schema page, you can create a new third-party
commission schema, search, edit or delete an existing one. You can't delete schemas
already used to define commissions.

NOTE
Users with the associated role of Loan Admin Officer or Retail Credit Officer can
insert, update, or delete third-party commission schema records. Users with the
other associated Core Banking security roles can only view such records.

Creating Third-Party Commission Schemas

Follow these steps to create new third-party commission schema records:

1. In the FintechOS Portal, click the Insert button on the top right side of the Third-
Party Commission Schema page. The Add Third-Party Commission Schema
page is displayed.

2. Fill in the Name field with the name of the third-party commission schema.

3. Click the Save and Reload button. The new third-party commission schema is
created and ready to be used.

THIRD-PARTY MANAGEMENT 541

CORE BANKING USER GUIDE

Third-Party Commission Type

Third-party commission types are used to categorize third-party commissions
according to their intended usage. For example, there are third-party type
commissions and third-party clawback type commissions.

IMPORTANT!
You can add other third-party commission types if needed, with the desired
periodicity, just bear in mind that the business logic must also be implemented for
your new third-party commission types. To benefit from the implemented business
processes, we recommend you to select one of the following options for periodicity:
Once, Monthly, or Annual.

To manage third-party commission types:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.
2. Click the Third-Party Commission Type menu item to open the Third-Party
Commission Type page.

On the Third-Party Commission Type page, you can create a new third-party
commission type, search, edit, or delete an existing one. You can't delete commission
types already used to define commissions.

NOTE
Users with the associated role of Loan Admin Officer or Retail Credit Officer can
insert, update, or delete third-party commission type records. Users with the other
associated Core Banking security roles can only view such records.

THIRD-PARTY MANAGEMENT 542

CORE BANKING USER GUIDE

Creating Third-Party Commission Types

Follow these steps to create new third-party commission type records:

1. In the FintechOS Portal, click the Insert button on the top right side of the Third-
Party Commission Type page. The Add Third-Party Commission Type page is
displayed.

2. Fill in the following fields from the Commission Type section:

l Commission Schema - Select the schema where this third-party
commission type belongs.
l Name - Enter the name of the third-party commission type.

l Periodicity type - Select a periodicity from the drop-down. To benefit

from the implemented business processes, we recommend you to select
one of the following options: Once, Monthly, or Annual.

NOTE
The periodicity type can only be Once and it cannot be changed if
Commission Schema = Third Party Clawback.
For example, this is the case for a list of commissions that are
applied at a contract's approval. These commissions are applied only
once per contract.

3. Click the Save and Close button at the top right corner of the page. The new
third-party commission type is created and ready to be used.

THIRD-PARTY MANAGEMENT 543

CORE BANKING USER GUIDE

Third-Party Commission
Third-party commissions are the fees paid by the bank or the financial institution to
third-party entities (agents, brokers, etc.) for intermediating the selling of a product
or service to a customer. There may also be commissions paid by the third-party
entity to the financial institution, for example for accessing the financial institution's
crediting platforms, or even agreement management commissions paid periodically to
the financial institution. These third-party commissions vary from bank to bank, based
on their policy.
To prevent losing profits, there may be situations when the financial institution claims
back all or some of the commission already paid out to third-party entities, because
the affected contracts were closed before their due date.
Core Banking has a dedicated menu for managing third-party commissions. These
third-party commissions are attached to agreements with third-party entities.

IMPORTANT!
Third-party commissions cannot be used in contracts for customer.
They are not displayed in Banking Product Factory's Commissions menu and they
can't be selected in Commission Lists.
Third-party commissions and third-party commission types can't be used in Payment
Schedule Type Details.

To manage third-party commissions:

1. In FintechOS Portal, click the main menu icon and expand the Admin
Configurations menu.
2. Click the Third-Party Commission menu item to open the Third-Party Commission
page.

THIRD-PARTY MANAGEMENT 544

CORE BANKING USER GUIDE

On the Third-Party Commission page, you can create a new third-party commission,
search, edit, or delete an existing one. You can't delete commissions already used by
other records.

IMPORTANT!
The value of a third-party commission used in active contracts can't be edited.
Instead, you can modify the value's validity and add a new value with a future
validity period. For details, see the Editing The Value Of A Commission Already In
Use section.

NOTE
Users with the associated role of Loan Admin Officer or Retail Credit Officer can
insert, update, or delete third-party commission records. Users with the other
associated Core Banking security roles can only view such records.

Creating Third-Party Commissions

Follow these steps to create new third-party commission records:

1. Add Commission Details

1. In the FintechOS Portal, click the Insert button on the top right side of
the Third-Party Commission page. The Add Third-Party Commission
page is displayed.

2. Fill in the following fields from the Commission section:

THIRD-PARTY MANAGEMENT 545

CORE BANKING USER GUIDE

l Name - Enter the name of the commission.

l Commission Type - Choose one from the following third-party

commission types:
l ThirdParty (out-of-the-box third-party commission type)

l ThirdParty Clawback (out-of-the-box third-party

commission type, defined for clawback commissions)

l Other third-party commission types defined by your users.

NOTE
The types have a periodicity already set: once/ monthly/
trimester etc.
For ThirdParty Clawback commission type,
Periodicity Type = Once.

l Currency - Select the currency of the commission from the drop-down.

l Accept Clawback - Select this checkbox if the commission accepts a

clawback commission during agreement pricing definition.

l Commission Percent Applied To - Only displayed if you select the

checkbox next to the Commission Value Is Percentage field.
Choose one of the following:

l Remaining value - the percentage applies to the contract's

remaining to be repaid value .

l Financed value - the percentage applies to the contract's

financed value.

THIRD-PARTY MANAGEMENT 546

CORE BANKING USER GUIDE

l Paid value - the percentage applies to the anticipated

payment performed on the contract.

l Unused amount - the percentage applies to the contract's

unused amount from the granted value.

l Used amount - the percentage applies to the contract's used

amount from the granted value.

l Overdraft limit amount - the percentage applies to the

contract's overdraft limit amount.

l Amount - the percentage applies to the contract's amount.

For Term Loan, Mortgage or Overdraft banking products the

calculation method is as follows:
If percentAppliedTo = financedAmount, then
financedAmount = amountDue - advanceAmount;
If percentAppliedTo = amount, then financedAmount =
amountDue;
If percentAppliedTo = remainingValue, then, if
Contract Status = ContractVersionDraft, then
financedAmount = (-1) * mainBankAccountBalance. No
negative values are allowed, so if the result is negative, then
financedAmount = null.
Default value financedAmount = null.
For Current Account with Overdraft banking products the
calculation method is as follows:
If percentAppliedTo = overdraftLimitAmount, then
financedAmount = overdraftLimitAmount;
If percentAppliedTo = usedAmount, then if (periodType
== Once), financedAmount = overdraftLimitAmount -
availableAmountForOverdraft, else financedAmount =
null.
Default value financedAmount = null.

3. Optionally, view or edit the following fields:

THIRD-PARTY MANAGEMENT 547

CORE BANKING USER GUIDE

l Periodicity type - Automatically filled-in when you choose the

commission type. You can't change this value.
l Commission Value Is Percentage - Select this checkbox if the
commission is measured by percentage, not as a fixed value.

4. Click the Save and Reload button.

2. Add Commission Values

After saving the commission record, you should define the actual values of
the third-party commission. These values are later displayed on the Edit
Third-Party Commission page's Commission Value section.

To add a new commission value, follow these steps:

1. Click the Insert button above the Commission Value section within the
Add Third-Party Commission page.

2. Fill in the following fields in the newly opened Add Commission Value
page:

l Commission Value - Enter the value of the commission.

l Valid From and Valid To - Select the interval during which the
commission value is applicable.

THIRD-PARTY MANAGEMENT 548

CORE BANKING USER GUIDE

l Commission Percent - This is the percent representing the

commission. If the commission percentage > 100, Core Banking
displays a warning message.

3. Click the Save and Close button.

Third-Party Agreements Life Cycle and

States
Third-party agreements are complex agreements between a financial institution and
third-party entities such as agents or brokers, who intermediate the creation of
contracts with customers, in exchange of a payment previously negotiated with the
financial institution. Therefore the four-eyes principle is applicable here, meaning that
a record should be approved by a second financial institution employee, with higher
authorization rights. This is enabled via approval task High Productivity Fintech
Infrastructure capabilities and thus it is also a financial institution's responsibility to
set proper security roles and access rights to its users, in order to make sure that the
same user can't insert and also authorize the same record.
A third-party agreement record has the following business workflow statuses:
l Draft - the status of a newly created third-party agreement record that was not
yet sent for approval. While in this status, you can edit the fields from the
record's Agreement tab, but Core Banking doesn't attach any invoices to it.
Send the record to approval after editing all the necessary details and adding at
least one agreement pricing record.
l Pending - this is a system status applied to records sent for approval, but not
yet approved (when the four-eyes approval process is implemented). You can't
perform any updates in this system status.
l Approved - the status of a third-party agreement record after being authorized
by a user with approval competencies. While in this status, you can't edit the
record's details, but the invoice details are automatically added through the
Core Banking invoicing processes. If you need to alter the record's details,

THIRD-PARTY MANAGEMENT 549

CORE BANKING USER GUIDE

create a new version based on the current agreement.

l Closed - the last status of a third-party agreement, after manually closing it or
after creating a new version based on the current version. You can't perform
any updates on the record.
l Canceled - the status of a record after manually canceling it straight from the
Draft status. You can't perform any updates on the record.

Third-Party Agreements Versioning

Core Banking allows you to create new versions for an existing agreement if you need
to modify an existing approved record.
A third-party agreement version can have the following statuses:
l Version Draft - the status of a newly created agreement version record that was
not yet sent for approval. While in this status, you can edit some fields. Send the
record to approval after editing all the necessary details.
l Approved - the status of an agreement version record after being authorized by
a user with approval competencies. While in this status, you can't edit the
record's details.
l Version Closed - the last status of an agreement version, after manually closing
it or after creating another new version based on the current version. You can't
perform any updates on the record.

Changing Third-Party Agreement Statuses

You can manage a third-party agreement's life-cycle by changing its status from the
top right corner of the screen.

THIRD-PARTY MANAGEMENT 550

CORE BANKING USER GUIDE

The third-party agreement status transitions are illustrated below:

Note that:

l Once a record is live, its settings can no longer be modified.

l If you want to update the details of a live agreement, you must create a new
agreement version.

l When you create a new agreement version, the current version is retired; no updates
are allowed on the retired version.

l Every agreement version starts in a Draft state and must go through an approval
process before going live.

l Only one version of an agreement can be live at one time.

THIRD-PARTY MANAGEMENT 551

CORE BANKING USER GUIDE

NOTE
As a best practice, new records or new versions of existing records created on a
specific day should be approved on the same day.

Creating Agreements For Third-Parties

Third-party agreements are complex agreements between a financial institution and
third-party entities such as agents or brokers, who intermediate the creation of
contracts with customers, in exchange of a payment previously negotiated with the
financial institution.
Before creating an agreement for a third-party entity, make sure that:
l the third-party roles and the role-based limits are set up according to your
financial institution's needs,
l the third-party entity is recorded as a customer in Core Banking,

l the third-party has the desired role associated within its customer record,

l a settlement account (a current account contract for the same third-party

entity) is set up for the desired currency.
To create a new third-party agreement:

1. Add Agreement Details

1. Open the Agreements page as described in the Managing Third-Party
Agreements section.

2. Click the Insert button to open the Agreement page, with the first tab
displayed, the Agreement tab.

THIRD-PARTY MANAGEMENT 552

CORE BANKING USER GUIDE

The fields displayed here are also available for completion when
updating a record in Draft status.

3. Fill in the following fields in the General Data section:

l Agreement Date - This is the date of the agreement,
automatically filled-in with the system's date. You can change
this value.
l Currency - Select from the list the currency of the agreement.
This is the currency for settling the included commissions. Make
sure the third-party has a current account in the selected
currency.
l External Identifier - Enter an external identifier of the agreement
record, if available.

4. In the Agreement Validity section, fill in the following fields:

l Agreement Period (Months) - Enter the number of months for
the agreement's validity.
If you modify the Valid To date, then the value of Agreement
Period (Months) is recalculated, rounding up the fractions of
a month to 1 whole month.
l Valid From - Select the date when the agreement becomes
active. This field is automatically completed with the system's
current date. You can modify this date from the attached
calendar, if needed.
The maturity date is automatically calculated following the
formula: Facility Date + (Period * Period Type).

THIRD-PARTY MANAGEMENT 553

CORE BANKING USER GUIDE

l Valid To - The date until when the agreement is valid. This field is
automatically completed with the date calculated as the system's
current date + the number of months entered in the Agreement
Period Months field. You can modify this date from the
attached calendar, if needed, but it must be greater than or equal
with Valid From. If you modify this date, then the value of
Agreement Period (Months) is recalculated, rounding up the
fractions of a month to 1 whole month.

5. In the Third-Party section, fill in the following fields:

l Role - Select from the drop-down the role of the entity with
whom the agreement is created. The roles are listed in the
ThirdPartyRoleCore Banking system parameter. The default
roles are: Agent, Broker, Insurer, and Merchant.
l Agent/ Broker/ Insurer/ Merchant - Select from the list the
name of the customer with whom the agreement is created. This
is the entity who should be mentioned in contracts as contract
participant with the specified role in order to qualify for the
commissions stated in the agreement pricing records added to
this agreement. The list is already filtered, displaying only the
customers that have the same role as the one selected in the
Role field.

NOTE
Once an agreement is saved, you can only change the Role
and Agent/ Broker/ Insurer/ Merchant fields if you create
a new version for the agreement.

l Settlement Account - Select the entity's bank account that acts

as settlement account, where the commissions payable based on
this agreement should be disbursed and/ or from where the
financial institution should subtract the amounts to recover. The
list is already filtered to display only the selected customer's

THIRD-PARTY MANAGEMENT 554

CORE BANKING USER GUIDE

current accounts in Open status, in the currency selected

previously for the agreement.

6. In the Agreement Payment Settings section, fill in the following fields:

l Payment Periodicity - Select from the list the periodicity for
processing the payments calculated based on this agreement.
The possible values are:
l Daily - the payments are performed each day. If you select this
option, the Payment is in Real Time field is displayed.

l Weekly - the payments are performed once a week. If you select

this option, the Week Day field is displayed.

l Monthly - the payments are performed once a month. If you

select this option, the Day of Payment field is displayed.

l Payment is in Real Time - Only displayed if Payment Periodicity

= Daily. If you select the checkbox, then the payment is processed in
real-time.

l Week Day - Only displayed if Payment Periodicity = Weekly.

Select the day of the week when the payment should be processed.

l Day of Payment - Only displayed if Payment Periodicity =

Monthly. Enter the day of the month when the payment should be
processed, with values between 1 and 31. The default value is 31, the
last day of the month.

l Conditions - Enter any other conditions applicable to the agreement.

7. Click the Save and Reload button.

After saving the agreement, a unique identifier is generated based on
the increment number and is displayed as the name of the agreement
at the top of the page, along with the versioning information. All the

THIRD-PARTY MANAGEMENT 555

CORE BANKING USER GUIDE

other sections of the Agreement page (Agreement Pricing and

Invoices) become visible after saving the record, so that you can fill
them in.
The record is still in Draft status and you should define at least one
pricing record before you change its status to Approved. You or Core
Banking's automatic process can create invoices only for agreement
records with Approved status.

2. Define Agreement Pricing

You can insert, update, delete or export pricing records for an agreement in
Draft status in the Agreement Pricing section, displayed after saving the
agreement,

The section displays information about the pricing's commission and its
currency, the clawback commission, if applicable, and the products for which
the pricing was set up. You can add as many pricing records as you need for
an agreement.
To add a pricing record, follow these steps:

1. Click the Insert button to display the Agreement Pricing page.

2. Fill in or view the following fields in the Commission Settings section

within the newly opened page:

THIRD-PARTY MANAGEMENT 556

CORE BANKING USER GUIDE

l Commission - Select from the list the third-party commission to

be applied for the agreement pricing. The list is filtered to display
only commissions with ThirdParty commission schema.
l Commission Currency - This field is automatically completed with
the selected commission's currency. You can't change this value.
l Commission Payment Type - Select the type of payment to be
performed for the commission:
l Payment In - for payments from the third-party's settlement
account into the financial institution's reconciliation account

l Payment Out - for payments from the financial institution's

reconciliation account into the third-party's settlement account.

3. In the Agreement Pricing Object section, fill in the following fields:

l Product Type or Product - Select the product type or the product
that must be present in a contract in order for the agreement
pricing to be applicable.

NOTE
If you are planning to use the clawback settings, make sure
that you mark the desired transaction types with Is
Clawback Transaction = True, and those
transaction types are selected at the banking product type
level.

l Has Clawback - This checkbox is displayed only if the selected

commission was defined with Accept Clawback = True.
If you select this checkbox, then the pricing has a clawback
commission attached to it. The fields within the Clawback
Settings section are displayed only if Has Clawback = True.
Default value: False.

THIRD-PARTY MANAGEMENT 557

CORE BANKING USER GUIDE

4. To prevent losing profits, there may be situations when the financial

institution claims back all or some of the commission already paid out
to third-party entities, due to the fact that the affected contracts were
closed before their due date through certain contract events that
determine the clawback (for example, Early Repayment or Returned
Amount or Goods events).
In the Clawback Settings section, fill in or view the following fields:
l Clawback Commission - If displayed, select from the list the
third-party clawback commission to be applied for the agreement
pricing. The list is filtered to display only commissions with
ThirdParty Clawback commission schema.
l Clawback Commission Currency - If displayed, this field is
automatically completed with the selected clawback
commission's currency. You can't change this value.
l Clawback Payment Type - If displayed, select the type of
payment to be performed for the clawback commission:
l Payment In - for payments from the third-party's settlement
account into the financial institution's reconciliation account;

l Payment Out - for payments from the financial institution's

reconciliation account into the third-party's settlement account.

l Clawback Period Type - If displayed, select from the list the period
type for the clawback commission.

l Clawback Period - If displayed, enter the number of periods during

which the clawback commission can be reclaimed by the financial
institution in case a contract subject to the agreement pricing was
closed earlier or a transaction type marked as clawback transaction
type was performed on such a contract.

l Clawback Transaction Types - Select the transaction types for which

the clawback commission should be applied.

THIRD-PARTY MANAGEMENT 558

CORE BANKING USER GUIDE

You can choose from the list of transaction types with Is Clawback
Transaction = True, and are listed at the banking product type
level, if the Product Type field is selected, or are listed at the
banking product level, if the Product field is selected.

l Block After Clawback - Select the checkbox to mark the contract as

blocked for further agreements after performing a clawback payment.
If True, which is the default value, when a clawback commission is
paid for this contract, no other commission found on the contract can
be invoiced by Core Banking.

5. Click the Save and Close button.

After defining the relevant details of the agreement and at least one pricing record,
proceed to agreement approval.

IMPORTANT!
You or Core Banking's automatic process can create invoices only for agreement
records with Approved status. These invoices are later used for paying out the
commissions to the third-party entity and/ or the financial institution.

Approving a Third-Party Agreement

You can perform the approval either from a digital journey flow via API integration or
from the Core Banking user interface.
After defining the relevant details of the agreement and at least one pricing record,
proceed to agreement approval:

THIRD-PARTY MANAGEMENT 559

CORE BANKING USER GUIDE

1. Select an agreement in Draft (or Version Draft) status.

2. Change its status into Approved.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
agreement changes to Approved. While in this status, you can't edit the record's
details, but the invoice details are automatically added through the Core Banking
invoicing processes. If you need to alter the record's details, create a new version
based on the current agreement.

NOTE
Core Banking validates the existence of a setting for a reconciliation account for a
specific currency upon third-party agreement or agreement version approval. It also
checks whether the reconciliation account setting has continuity for the entire
validity period of the agreement.

THIRD-PARTY MANAGEMENT 560

CORE BANKING USER GUIDE

Rejecting a Third-Party Agreement

You can reject an agreement, canceling it, when the deal with the third-party entity
drops. You can perform the cancellation either from a digital journey flow via API
integration or from the Core Banking user interface.
Follow these steps to cancel the agreement:

1. Select an agreement in Draft (or Version Draft) status.

2. Change its status into Canceled.

3. Click Yes to confirm your action.

If Core Banking performs all the validations successfully, then the current status of the
agreement changes to Canceled.

NOTE You can't further use a canceled agreement. Create a new agreement, if you
need to.

THIRD-PARTY MANAGEMENT 561

CORE BANKING USER GUIDE

Creating New Versions Of Third-Party

Agreements
The third-party agreements are set up for versioning. Thus, if you have to update the
details of an approved agreement, then you must create a new version of the record.
To create a new version for a record with the Approved status, follow these steps:

1. Double-click the agreement record selected for updates.

2. Click the New Version button in the top right corner of the page.

A new version of the agreement is created, with Version Draft status, thus
restarting the life-cycle.

3. Edit the desired fields in the Agreement tab.

4. Click the Save and Reload button.

THIRD-PARTY MANAGEMENT 562

CORE BANKING USER GUIDE

If the Version Draft record is approved, then the original record transitions into the
Version Closed status and the secondary version becomes the Approved currently
active agreement record.
Read more details about versioning a record on the How to Version an Entity Record
page.

Viewing a Third-Party Agreement's History

You can view the versions of the agreement, their workflow status, the version
creation date, and the user who modified the record, in the third-party agreement's
History tab. This tab only appears after saving the agreement record.

Here you can track the record's life-cycle and review older versions that are no longer
active (for details, see Third-Party Agreements Statuses).
There are no edits allowed in this tab. To view a version of the record, double-click it.

Working with Third-Party Invoices

Third-party invoices are the invoices that track the incomes and expenses resulted
from contracts based on the bank or financial institution's agreements with third-
party entities (agents, brokers, etc.) . Core Banking has a dedicated menu for

THIRD-PARTY MANAGEMENT 563

CORE BANKING USER GUIDE

managing third-party invoices. These third-party invoices are attached to agreements

with third-party entities. You can create invoices manually, or allow Core Banking to
create the invoices automatically, using a dedicated scheduled job.

Managing Invoices For Third-Parties

To manage third-party invoices:

1. In FintechOS Portal, click the main menu icon and expand the Core Banking
Operational menu.
2. Click the Invoice menu item to open the Invoices page.

On the Invoices page, you can create a new invoice manually, search, edit, or delete
an existing third-party invoice in Draft status.

NOTE
Core Banking can also create the invoices automatically, using the TPM Invoices
(TPM) scheduled job. This job runs once each night and creates third-party invoices
and payments, for the combination of third-party entity/ agreements currency,
during the validity of the agreement, on the Payment Day of each agreement, as
defined in the third-party agreement's Payment Periodicity (daily, monthly, or
weekly).

NOTE
Users with the associated role of Loan Admin Officer or Retail Credit Officer can
insert, update, or delete third-party invoice records. Users with the other associated
Core Banking security roles can only view such records.

THIRD-PARTY MANAGEMENT 564

CORE BANKING USER GUIDE

Third-Party Invoices Life Cycle and States

The four-eyes principle is applicable for status transitions of a third-party invoice,
meaning that a record should be approved by a second financial institution employee,
with higher authorization rights. This is enabled via approval task High Productivity
Fintech Infrastructure capabilities and thus it is also a financial institution's
responsibility to set proper security roles and access rights to its users, in order to
make sure that the same user can't insert and also authorize the same record.
A third-party invoice record has the following business workflow statuses:
l Draft - the status of a newly created invoice record that was not yet sent for
approval. While in this status, you can edit the fields from the record's Invoice
and Invoice Details tabs, but no payments can be processed yet. Send the
record to approval after editing all the necessary information and adding at
least one invoice detail record.
l Approved - the status of an invoice record after being authorized by a user with
approval competencies. While in this status, you can't edit the record's details.
If you need to alter the record's details, change its status back to Draft.
l Not Paid - the status of an invoice record after approval and before actually
performing the bank account transactions for the due payments.
l Paid - the last status of an invoice record after performing the bank account
transactions for the due payments. No other transitions are allowed from this
status.
l Canceled - the last status of a record after manually canceling it straight from
the Draft status. No updates are allowed on the record. No other transitions are
allowed from this status.

Changing Third-Party Invoice Statuses

You can manage a third-party invoice's life-cycle by changing its status from the top
left corner of the screen.

THIRD-PARTY MANAGEMENT 565

CORE BANKING USER GUIDE

The third-party invoice status transitions are illustrated below:

Creating Third-Party Invoices

Third-party invoices are the invoices that track the incomes and expenses resulted
from contracts based on the bank or financial institution's agreements with third-
party entities (agents, brokers, etc.) . You can allow Core Banking to create the
invoices automatically, or you can create invoices manually.

Automatically Create Invoices

Core Banking automatically creates invoices for approved third-party
agreements, using a dedicated scheduled job, both for PaymentOut and for
PaymentIn. The automatic invoices contain the same information as the
manually added ones, with the difference that Start Period = End
Period = current system date. The job runs once each night and
creates third-party invoices, for the combination of third-party entity/
agreements currency, during the validity of the agreement, on the Payment

THIRD-PARTY MANAGEMENT 566

CORE BANKING USER GUIDE

Day of each agreement, as defined in the third-party agreement's Payment

Periodicity (daily, monthly, or weekly). The job also creates invoice detail
records.
To prevent losing profits, there may be situations when the financial
institution claims back all or some of the commission already paid out to
third-party entities, due to the fact that the affected contracts were closed
before their due date. Core Banking automatically identifies the contract
events that determine the clawback (for example, Early Repayment events).
To make use of the clawback settings, make sure that you mark the desired
transaction types with Is Clawback Transaction = True, and those
transaction types are selected at the banking product type level or at the
banking product level, depending on your agreement pricing definition. Core
Banking calculates the clawback commission for each contract and inserts a
corresponding invoice detail for the invoice generated for the third-party
entity. If no invoice was yet generated for the third-party entity, a new
invoice is created, and the invoice details are included there.

NOTE
If a contract is marked as blocked for further agreements after performing
a clawback payment (Block After Clawback = True), when a
clawback commission is paid for this contract, no other third-party
commission found on the contract can be invoiced by the system, hence,
for the same agreement pricing, no future invoice details are generated.

For any type of transaction performed on the contracts subject to

agreements that have Has Clawback = True, if the Clawback Period
covers the date of the transaction and the contracts are closed, then the
system automatically generates an invoice so that the broker is charged.

Example
Let's say you have a transaction that has Has Clawback = True,
it is included in the product that is captured in the Agreement
Pricing Object section of the agreement, and it is also captured in
the Clawback Settings' Clawback transaction types field.
When a contract is created for one of these products including the
specified transaction, Core Banking commissions the third-party

THIRD-PARTY MANAGEMENT 567

CORE BANKING USER GUIDE

entity as defined within the agreement. If the transaction targeted

for clawback happens within the time frame resulting from clawback
period type and period, Core Banking automatically generates an
invoice for the clawback commission.

For a setup like the above, if all the conditions are met and a
contract for a Buy Now Pay Later product type is included in the
invoice for the agreement and if an Early Repayment transaction is
performed within the first 3 months from creating the contract/
generating the initial commission, then Core Banking triggers the
clawback automatically.

Manually Create Invoices

Using Core Banking's user interface, you can create third-party invoices from
a dedicated menu item, or directly from an approved agreement's page, with
a few differences for each method, as follows:

Creating Invoices Using a Dedicated Menu

Follow these steps to create new third-party invoice records for any
approved agreement:

1. In the FintechOS Portal, click the Insert button on the top right
side of the Invoices page. The Add Invoice page is displayed.

THIRD-PARTY MANAGEMENT 568

CORE BANKING USER GUIDE

2. In the General Data section of the newly displayed page, fill

in, view or modify the following fields:
l Name - Automatically filled in with the name of the
invoice record, after saving the record. You can't modify
this field.
l External Identifier - Enter an external identifier for the
invoice, if needed.
l Invoice Date - Automatically filled in with the current
date of the system. You can modify this date.

3. In the Period section, fill in the following fields:

l Start Period and End Period - Select the starting and the
ending date of the interval during which Core Banking
filters the contracts that are subject to invoicing. The
Start Period must be <= End Period.

4. In the Payment Data section, fill in or view the following

fields:
l Currency - Select the currency in which the invoice is to
be paid.
l Total Amount To Pay and Total Amount To Recover -
The total amounts to pay to and to recover from the
third-party, expressed in the selected currency. You
can't modify these fields. T hey are automatically

THIRD-PARTY MANAGEMENT 569

CORE BANKING USER GUIDE

calculated by Core Banking based on the invoice details

entered later, after saving the invoice record.

5. In the Account Data section, fill in the following fields:

l Agent/ Broker/ Insurer/ Merchant - Select the third-
party entity for whom you are creating the invoice.
l Bank Account - Select the third-party entity's settlement
account. You can only choose from the list of the entity's
accounts opened in the selected currency.
l Reconciliation Account - Select the financial institution's
reconciliation account. You can only choose from the list
of the accounts opened in the selected currency.

6. Click the Save and Reload button.

After saving the invoice record, the Invoice page also displays
the Invoice Details section, containing a list with all the
invoice details attached to the invoice, and the Payments
section, containing information about the payments
performed by Core Banking.

7. Continue with adding an invoice detail to the invoice in Draft

status. Click Insert within the Invoice Details section on the
Invoice page.
The Invoice Detail page is displayed.

THIRD-PARTY MANAGEMENT 570

CORE BANKING USER GUIDE

8. On the Invoice Detail page's General Data section, fill in or

view the following fields:
l Name - Automatically filled in with the name of the
invoice detail record, after saving the record. You can't
modify this field. This is the contract number.
l Invoice - Automatically filled in with the name of the
invoice record. You can't modify this field.
l Agreement - Select the agreement for which you are
inserting the invoice detail. You can only choose from
the list of agreements with Approved status created for
the third-party mentioned in the invoice record.
l Detail Type - Select the type of payment to be
performed for the invoice detail:
l Payment In - for payments from the third-party's
settlement account into the financial institution's
reconciliation account;

l Payment Out - for payments from the financial

institution's reconciliation account into the third-
party's settlement account.

9. In the Settings section, fill in the following fields:

l Commission - Select the commission to be applied for
this invoice detail. You can only choose from the list of
commissions mentioned in the selected agreement, that
have a valid value during the invoice's period.

THIRD-PARTY MANAGEMENT 571

CORE BANKING USER GUIDE

NOTE
If the selected commission is of Third-Party
Clawback commission type, then Detail Type
= Payment In.

l Contract - Select the contract that is the object of the

invoice detail. You can only choose from the list of
contracts with the third-party having the role specified
in the selected agreement, and having the activation
date during the period of the invoice, for commissions
with Once periodicity type.
For clawback commissions, the list is also filtered to
display only the contracts having an event selected as
Clawback Transaction Types selected earlier in
the Agreement Pricing Detail section, within the
clawback period.
If the commission is applied to contract installments,
than the due date of the installment must be within the
period of the invoice.

NOTE
For commissions with Once periodicity type, the
contract can't be attached to an invoice detail
more than once.

l Contract Event - Select the contract event that is the

object of the invoice detail. You can only choose from
the list of contracts events from the selected contract.

THIRD-PARTY MANAGEMENT 572

CORE BANKING USER GUIDE

10. In the Payment Data section, view in the following

automatically filled in fields:
l Currency - The currency selected at the commission
level. You can't modify this field.
l Exchange Rate - The exchange rate for Commission
Currency to Invoice Currency valid on the date of the
invoice, or the latest exchange rate recorded for
Commission Currency to Invoice Currency. You can't
modify this field.

11. In the Values section, view in the following automatically filled

in fields:
l Value - The commission value for the selected contract
at the current date, calculated by Core Banking. You
can't modify this field.
l Equivalent Value - The commission's equivalent value in
the invoice's currency, calculated by Core Banking as
(Exchange Rate * Value). You can't modify this
field.

NOTE
Equivalent Value is summed up to Total
Amount To Pay if Detail Type = Payment
Out.
Equivalent Value is summed up to Total
Amount To Recover if Detail Type =
Payment In.

12. Click the Save and Close button.

13. Change the status of the invoice record to Approved to allow

Core Banking to automatically process the payments.

THIRD-PARTY MANAGEMENT 573

CORE BANKING USER GUIDE

NOTE
You can create as many invoice details as needed for an invoice,
but you can create only one invoice detail for the combination
between a contract, a commission and a detail type. Core
Banking prevents you to create duplicate invoice detail records
containing the same combination of Contract, Commission,
and Detail Type values.

Creating Invoices Using the Agreement Page

Follow these steps to create new third-party invoice records directly
within the Agreement page of an approved agreement record:

1. Open an agreement in Approved status and scroll to its

Invoices section. Here you can insert, delete or export invoices
for the selected agreement.

The section displays information about the invoice: name,

third-party, currency, start and end period, total amount to
pay to the third-party and to recover by the financial
institution, record's business status.

2. Click Insert to display the Add Invoice page:

THIRD-PARTY MANAGEMENT 574

CORE BANKING USER GUIDE

3. In the General Data section of the newly displayed page, fill

in, view or modify the following fields:
l Name - Automatically filled in with the name of the
invoice record, after saving the record. You can't modify
this field.
l External Identifier - Enter an external identifier for the
invoice, if needed.
l Invoice Date - Automatically filled in with the current
date of the system. You can modify this date.

4. In the Period section, fill in the following fields:

l Start Period and End Period - Select the starting and the
ending date of the interval during which Core Banking
filters the contracts that are subject to invoicing. The
Start Period must be <= End Period.

5. In the Payment Data section, fill in or view the following

fields:
l Currency - Select the currency in which the invoice is to
be paid.
l Total Amount To Pay and Total Amount To Recover -
The total amounts to pay to and to recover from the
third-party, expressed in the selected currency. You
can't modify these fields. T hey are automatically
calculated by Core Banking based on the invoice details
entered later, after saving the invoice record.

6. In the Account Data section, view or fill in the following fields:

l Agent/ Broker/ Insurer/ Merchant - Automatically filled
in with the third-party entity for whom you are creating
the invoice. You can't modify this field.

THIRD-PARTY MANAGEMENT 575

CORE BANKING USER GUIDE

l Bank Account - Select the third-party entity's settlement

account. You can only choose from the list of the entity's
accounts opened in the selected currency.
l Reconciliation Account - Select the financial institution's
reconciliation account. You can only choose from the list
of the accounts opened in the selected currency.

7. Click the Save and Reload button.

After saving the invoice record, the Invoice page also displays
the Invoice Details section, containing a list with all the
invoice details attached to the invoice, and the Payments
section, containing information about the payments
performed by Core Banking.

8. Continue with adding an invoice detail to the invoice in Draft

status. Click Insert within the Invoice Details section on the
Invoice page.
The Invoice Detail page is displayed.

9. On the Invoice Detail page's General Data section, fill in or

view the following fields:

THIRD-PARTY MANAGEMENT 576

CORE BANKING USER GUIDE

l Name - Automatically filled in with the name of the

invoice detail record, after saving the record. You can't
modify this field. This is the contract number.
l Invoice - Automatically filled in with the name of the
invoice record. You can't modify this field.
l Agreement - Select the agreement for which you are
inserting the invoice detail. You can only choose from
the list of agreements with Approved status created for
the third-party mentioned in the invoice record.
l Detail Type - Select the type of payment to be
performed for the invoice detail:
l Payment In - for payments from the third-party's
settlement account into the financial institution's
reconciliation account;

l Payment Out - for payments from the financial

institution's reconciliation account into the third-
party's settlement account.

10. In the Settings section, fill in the following fields:

l Commission - Select the commission to be applied for
this invoice detail. You can only choose from the list of
commissions mentioned in the selected agreement, that
have a valid value during the invoice's period.

NOTE
If the selected commission is of Third-Party
Clawback commission type, then Detail Type
= Payment In.

THIRD-PARTY MANAGEMENT 577

CORE BANKING USER GUIDE

l Contract - Select the contract that is the object of the

invoice detail. You can only choose from the list of
contracts with the third-party having the role specified
in the selected agreement, and having the activation
date during the period of the invoice, for commissions
with Once periodicity type.
For clawback commissions, the list is also filtered to
display only the contracts having an event selected as
Clawback Transaction Types selected earlier in
the Agreement Pricing Detail section, within the
clawback period.
If the commission is applied to contract installments,
than the due date of the installment must be within the
period of the invoice.

NOTE
For commissions with Once periodicity type, the
contract can't be attached to an invoice detail
more than once.

l Contract Event - Select the contract event that is the

object of the invoice detail. You can only choose from
the list of contracts events from the selected contract.

11. In the Payment Data section, view in the following

automatically filled in fields:
l Currency - The currency selected at the commission
level. You can't modify this field.
l Exchange Rate - The exchange rate for Commission
Currency to Invoice Currency valid on the date of the
invoice, or the latest exchange rate recorded for

THIRD-PARTY MANAGEMENT 578

CORE BANKING USER GUIDE

Commission Currency to Invoice Currency. You can't

modify this field.

12. In the Values section, view in the following automatically filled

in fields:
l Value - The commission value for the selected contract
at the current date, calculated by Core Banking. You
can't modify this field.
l Equivalent Value - The commission's equivalent value in
the invoice's currency, calculated by Core Banking as
(Exchange Rate * Value). You can't modify this
field.

NOTE
Equivalent Value is summed up to Total
Amount To Pay if Detail Type = Payment
Out.
Equivalent Value is summed up to Total
Amount To Recover if Detail Type =
Payment In.

13. Click the Save and Close button.

14. Change the status of the invoice record to Approved to allow

Core Banking to automatically process the payments.

NOTE
You can create as many invoice details as needed for an invoice,
but you can create only one invoice detail for the combination
between a contract, a commission and a detail type. Core
Banking prevents you to create duplicate invoice detail records
containing the same combination of Contract, Commission,
and Detail Type values.

THIRD-PARTY MANAGEMENT 579

CORE BANKING USER GUIDE

Managing Automatic Invoice Payments

Core Banking identifies the invoices that are not paid on the day of payment specified
in the agreement, using the Charge Not Paid Invoices service within the TPM Invoices
(TPM) scheduled job. The system can automatically generate and process the
payments for the invoices. The method of operating these payments depends on the
setting of the ThirdPartyPaymentIsNet system parameter. The value of the
parameter specifies whether Core Banking should generate one or two bank account
transactions and payments for a third-party agreement invoice when the invoice's
status is changed from Approved to Unpaid.

IMPORTANT!
Depending on the Third Party Invoice transaction type's Real Time
Process field's value, the transactions made on bank accounts are processed in
real-time, when the transaction is approved, or at a later time, after being placed in
a queue and taken for processing by a specialized scheduled job.

ThirdPartyPaymentIsNet = False
If ThirdPartyPaymentIsNet =False, when the invoice's status is
changed from Approved to Unpaid, Core Banking generates one or two bank
account transactions with the corresponding payments, as follows:
l If Total Amount To Recover > 0, one bank account transaction is
generated, with source account = Settlement Account and
destination account = Reconciliation Account with the value of
Total Amount To Recover, and with status Approved. A payment
is generated.
l If Total Amount To Pay > 0, another bank account transaction
with source account = Reconciliation Account and destination
account = Settlement Account with the value of Total Amount
To Pay, and with status Approved. A second payment is generated.

THIRD-PARTY MANAGEMENT 580

CORE BANKING USER GUIDE

NOTE
When Total Amount To Pay > 0 , Total Amount To Recover >
0 , and both payments' statuses become Allocated, the invoice's status
becomes Paid.

ThirdPartyPaymentIsNet = True
If ThirdPartyPaymentIsNet =True, when the invoice's status is changed
from Approved to Unpaid, Core Banking calculates the difference between
Total Amount To Recover and Total Amount To Pay. Only one bank
account transaction is generated and only one payment, representing the
non-zero value between the Total Amount To Recover and the Total
Amount To Pay, as follows:
l If Total Amount To Recover - Total Amount To Pay > 0, a
new bank account transaction is generated with source account =
Settlement Account and destination account = Reconciliation
Account, and a payment is generated for the invoice.
l If Total Amount To Recover - Total Amount To Pay = 0, a
bank account transaction is generated, and the transaction's status
changes to Paid.
l If Total Amount To Recover - Total Amount To Pay < 0, a
new bank account transaction is generated with source account =
Reconciliation Account and destination account = Settlement
Account, and a payment is generated for the invoice.

NOTE
When the payment's status becomes Allocated, the invoice's status
becomes Paid.

After automatically creating the payment records, Core Banking displays them for
each invoice in the Invoice page's Payments section:

THIRD-PARTY MANAGEMENT 581

CORE BANKING USER GUIDE

Each payment record in the list displays information about the payment number,
payer's bank account name, transaction date, currency, payment amount, allocated
amount, remaining payment amount, total payment amount, and status.
In the Payments section, you can search and open for viewing existing payment
records, or delete payments in Draft status.

NOTE
You can't edit any of the fields of a payment.
Any payment with a status different than Draft cannot be deleted

Viewing Third-Party Invoice Payments

To view a third-party invoice payment record, follow these steps:

1. On the Invoice page's Payments section, double-click the desired

payment. The Payment page is displayed.

THIRD-PARTY MANAGEMENT 582

CORE BANKING USER GUIDE

2. View the following information about the selected payment:

l Payment No - The number of the payment.

l Customer - The name of the third-party entity associated with

the payment.
l Payer Name - The number of the payer bank account.

l IBAN - The IBAN of the account where the money is being paid.

l Transaction Date - The date of the payment transaction.

l Currency - The currency of the payment.

l Bank Reference - The bank reference for the payment.

l Bank Charge - The amount charged by the bank for performing

this transaction.
l Total Payment Amount - The sum of the payment amount and
the bank charge value.
l Payment Amount - The amount of the payment.

l Allocated Amount - The amount that was already allocated as a

contract's repayment for a notification for the selected customer.
l Unallocated Amount - The amount that remains to be allocated
as a contract's repayment for a notification for the selected
customer.
l Comments - Any comments referring to the payment.

THIRD-PARTY MANAGEMENT 583

CORE BANKING USER GUIDE

Dashboards and Reports

Core Banking facilitates user interaction with a series of in-built dashboards and
reports. According to their specific destination, they aid the bank employees in their
daily tasks, displaying important, up-to-date information on the statuses of different
contracts, events, limits, needed approval tasks, generating reports or offering easy
navigation through a button to record creation pages.
These dashboards can be accessed from the FintechOS Portal's Home page in
accordance with each user's specific access rights.
The following dashboards and reports come along with your Core Banking package:
l Contracts - displays a list of the contracts along with a pie-chart specifying the
number of contracts in each business status, a list of contract approval requests
and a button to access the Add Contract page.
l Customer Limits - displays a list of the existing customer limit records, a list of
the customer limit approval requests and a button for adding new customer
limits.
l Soon to Expire Overdrafts - displays a list of contracts based on current
accounts with overdraft banking products whose overdraft functionality
is about to expire.
l Credit Facility Dashboard - displays a list of the credit facility records along with
a pie-chart specifying the number of credit facilities in each business status,
separate lists of credit facility approval requests, utilizations and utilizations
approval requests, and a button to access the Create Credit Facility page.
l Reports - contains links to a series of reports such as repayment notifications
past due, collaterals in default, limits, closure of contracts, future installments
or past due installments.
l Records To Be Purged - displays the list of records in Draft status that are
scheduled to be deleted at the current day's end, grouped on tabs specific for
each transaction type: disbursement, early repayments, top-ups, early
termination for deposits, loan contracts, payment holidays, reschedule overdue,
withdraws, transfers, returned amount or goods, or agreements. Also displays
tabs with agreement records in Draft status that are scheduled to be purged.

DASHBOARDS AND REPORTS 584

CORE BANKING USER GUIDE

l Third Party Agreements - displays a list of the third-party agreements created in

the system along with a pie-chart specifying the number of agreements in each
business status, and a button to access the Creating Agreements For Third-
Parties page.
l Loan Admin Officer Dashboard - focuses on improving users’ experience and
productivity for users with the associated role of Loan Admin Officer in day-to-
day tasks, displaying important notices, overview information about contracts,
customers, collateral evaluations, credit facilities, third-party agreements, the
user's upcoming tasks, calendar, as well as an integrated chat with colleagues.

Contracts
The Contracts dashboard displays a list of the contracts created in the system
and a list of contract approval requests. The lists can be filtered on every
column. Access records from the lists by double-clicking them.
The Add Contract button facilitates your access to the Create Contract page,
where you can create new contracts.
The dashboard also shows a visual of the contracts within the system,
displaying a pie-chart that specifies the number of contracts in each status:
Contract Draft, Contract Closed, Contract Approved ,
Contract Pending and Contract Canceled.

DASHBOARDS AND REPORTS 585

CORE BANKING USER GUIDE

This dashboard can be accessed by users with the following predefined

security roles, but note that some actions may be limited according to the
role setup:
l Loan Admin Officer

l Supervisor Corporate Officer

l Supervisor Retail Loans Officer

l Corporate Credit Officer

l Retail Credit Officer

l Supervisor Risk Officer

l Risk Officer.

Customer Limits
The Customer Limits dashboard displays a list of the customer limit records
created in the system and a list of customer limit approval requests. The lists
can be filtered on every column. Access records from the lists by double-
clicking them.
The Add New Customer Limit button helps you add new customer limits.

DASHBOARDS AND REPORTS 586

CORE BANKING USER GUIDE

This dashboard can be accessed by users with the following predefined

security roles, but note that some actions may be limited according to the
role setup:
l Loan Admin Officer

l Supervisor Corporate Officer

l Corporate Credit Officer

l Supervisor Risk Officer

l Risk Officer.

Soon to Expire Overdrafts

The Soon to Expire Overdrafts dashboard displays a list of the contracts
created in the system based on current account with overdraft
banking products whose overdraft functionality is about to expire. The Core
Banking system parameter CurrentAccount_WithOverdraft_
DaysBeforeExpire determines the number of days before overdraft
expiration when the contract can be displayed in this dashboard.

DASHBOARDS AND REPORTS 587

CORE BANKING USER GUIDE

The lists can be filtered on every column. Access records from the lists by
double-clicking them.

This dashboard can be accessed by users with the following predefined

security roles, but note that some actions may be limited according to the
role setup:
l Loan Admin Officer

l Supervisor Corporate Officer

l Supervisor Retail Loans Officer

l Corporate Credit Officer

l Retail Credit Officer

l Supervisor Risk Officer

l Risk Officer.

Credit Facility Dashboard

The Credit Facility dashboard displays a list of the credit facility records
created in the system. It also displays separate lists of credit facility approval
requests, utilizations and utilizations approval requests. The lists can be
filtered on every column. Access records from the lists by double-clicking
them.
The Add Credit Facility button facilitates your access to the Create Credit
Facility page, where you can create new credit facilities.

DASHBOARDS AND REPORTS 588

CORE BANKING USER GUIDE

The dashboard also shows a visual of the credit facilities within the system,
displaying a pie-chart that specifies the number of records in each status:
Credit Facility Draft, Credit Facility Closed, and Credit
Facility Approved.

This dashboard can be accessed by users with the following predefined

security roles, but note that some actions may be limited according to the
role setup:
l Loan Admin Officer

l Supervisor Corporate Officer

l Corporate Credit Officer

l Supervisor Risk Officer

l Risk Officer.

Reports
The Reports dashboard contains links to a series of reports:

DASHBOARDS AND REPORTS 589

CORE BANKING USER GUIDE

l Report Days Past Due - Click this link to display the report of
repayment notifications past due date.
l Collaterals in Default - Click this link to display the report of collateral
records in default.

l Limit Report - Click this link to display the report of limits records in
Core Banking. The report displays different sections for expired limits,
limits with available amount lower than 0, limits about to expire and
limits to be reviewed, the latest two with the option to select the
desired interval of dates. The reports are run automatically with a
default value defined in the DefaultIntervalLimitsReport Core
Banking system parameter, but you can change the intervals according
to your needs directly from the report.

DASHBOARDS AND REPORTS 590

CORE BANKING USER GUIDE

l Future Installments - Click this link to display the list of installments

that are due in the following X number of days from the current date. X
represents a default value taken from the
DaysFutureInstallmentsReport Core Banking system parameter.
You can generate the report for a different number of days simply by
changing the value of the Future days field within the Future
Installments Report page. The report displays the following
information about the future installments: customer name, contract
number, currency, due date, installment value, installment number,
maturity date, interest, principal, outstanding value, total penalty value
and total penalty unpaid.

DASHBOARDS AND REPORTS 591

CORE BANKING USER GUIDE

l Past Due Installments - Click this link to display the list of installments
that were due but not have been fully paid, no matter their origin -
normal installments, penalties, transaction fees, etc, - in the last Y
number of days from the current date. Y represents a default value
taken from the DaysPastDueInstallmentsReport Core Banking
system parameter. You can generate the report for a different number
of days simply by changing the value of the Past due days field within
the Past Due Installments Report page. The report displays the
following information about the past due installments: customer name,
contract number, currency, installment total value, due date, unpaid
amount, maturity date, interest, principal, outstanding value, total
penalty value and total penalty unpaid.

l Closure of Contracts - Click this link to display the list of contracts that
are ready to be closed because they meet the following conditions: the
contracts are in Approved status, their maturity date < the current
system date, their loan balance = 0, and the remaining amount for all
their notifications = 0. The report displays the following information
about the contracts that can be closed: contract number, customer

DASHBOARDS AND REPORTS 592

CORE BANKING USER GUIDE

name, product, currency, amount, balance off date, closure date, and
maturity date.

You can also use the GetClosureOfContracts endpoint to fetch the

same information within your own API integration.
The lists can be filtered on every column. Access records from the lists by
double-clicking them.
The charts can be downloaded by clicking the Chart context menu in the top
right corner of each chart and selecting the desired format: PNG or JPEG
image, PDF document or SVG vector image.
The reports can be accessed by users with the following predefined security
roles, but note that some actions may be limited according to the role setup:
l Loan Admin Officer

l Supervisor Corporate Officer

l Corporate Credit Officer

l Supervisor Risk Officer

l Risk Officer.

The Future Installments and the Past Due Installments reports can also be
accessed by users with Supervisor Retail Officer and Retail Credit Officer
roles.

Records To Be Purged

DASHBOARDS AND REPORTS 593

CORE BANKING USER GUIDE

The Records To Be Purged dashboard displays the records in Draft status

that are due be purged on the current day and have their transaction type's
To Be Purged field marked as True.

NOTE
In order to be purged on the current day, the record's Created On date +
the value of the Purge Number of Days parameter at transaction type
level must be equal with the current date. If the Purge Number of Days
parameter at transaction type is null, then the value of the
DaysBeforePurge system parameter is considered instead.

The job performing the deletion is Delete Purged Entries and it should
be scheduled at the bank's level. The lists can be filtered on every column.
You can select to display only the records created on a specific day from the
calendar button next to the Created On column.
The following tabs are available to display the records to be purged, based on
their transaction type:
l Disbursements - displays all the disbursement type transactions in
Draft status which are due to be purged on the current system date;
l Early Repayment - displays all the early repayments type transactions
in Draft status which are due to be purged on the current system
date;
l Top-Ups - displays all the top-up account type transactions in Draft
status which are due to be purged on the current system date;
l Early Termination Deposit - displays all the early termination deposits
type transactions in Draft status which are due to be purged on the
current system date;
l Loan Contract - displays all the contracts in Draft status created based
on Term Loan banking products which are due to be purged on the
current system date;
l Payment Holidays - displays all the payment holidays type transactions
in Draft status which are due to be purged on the current system
date;

DASHBOARDS AND REPORTS 594

CORE BANKING USER GUIDE

l Reschedule Overdues - displays all the reschedule overdues type

transactions in Draft status which are due to be purged on the current
system date;
l Withdraws - displays all the withdraw type transactions in Draft
status which are due to be purged on the current system date;
l Transfers - displays all the transfer type transactions in Draft status
which are due to be purged on the current system date.
l Return Fees - displays all the Returned Amount of Goods type
transactions in Draft status which are due to be purged on the current
system date.
l Agreements - displays all the Agreement type transactions in Draft
status which are due to be purged on the current system date.

NOTE
For each transaction type that can be purged (marked with Yes in the
Predefined Transaction Types table's Can Be Purged column), Core
Banking displays a tab in the Records To Be Purged dashboard only if their
To Be Purged field is marked as True.

For each record, the following information is displayed: name, business

status, creation date and transaction type.
The example below shows the Loan Contract tab, which displays all the
contracts in Draft status created based on Term Loan banking products and
which are due to be purged on the current system date.

This dashboard can be accessed by users with the Loan Admin Officer
predefined security role.

DASHBOARDS AND REPORTS 595

CORE BANKING USER GUIDE

Third-Party Agreements
The Third-Party Agreements dashboard displays a list of the third-party
agreements created in the system. The list can be filtered on every column.
Access records from the lists by double-clicking them.
The Add Agreement button facilitates your access to the Creating
Agreements for Third-Parties page, where you can create new agreements.
The dashboard also shows a visual of the agreements within the system,
displaying a pie-chart that specifies the number of agreements in each status:
Draft, Closed, Approved , and Canceled.

Users with the associated role of Loan Admin Officer or Retail Credit Officer can view,
insert, update, or delete third-party agreement records. Users with the other
associated Core Banking security roles can only view such records.

Loan Admin Officer Dashboard

The Loan Admin Officer Dashboard aims to be the main overview page for
users with the associated role of Loan Admin Officer in their day-to-day
tasks. It offers in a glimpse the important notices, overview information
about contracts, customers, collateral evaluations, credit facilities, third-
party agreements, the user's upcoming tasks, calendar, as well as an

DASHBOARDS AND REPORTS 596

CORE BANKING USER GUIDE

integrated chat with colleagues, while also enabling users to access record
creation or viewing pages without having to navigate to the corresponding
menu items.

DASHBOARDS AND REPORTS 597

CORE BANKING USER GUIDE

DASHBOARDS AND REPORTS 598

CORE BANKING USER GUIDE

The operations available for each user depend on their role and permissions,
but users associated with the out-of-the box Loan Admin Officer security role
can perform all the actions available on the dashboard.
The lists can be filtered on every column. Access records from the lists by
double-clicking them.
The default number of days used to generate the reports can be configured
through the DashboardDefaultLastXDays Core Banking system
parameter. You can modify the number within each section of the
dashboard, using the up and down arrows next to Last x days, or entering
the desired number.

The dashboard contains the following sections dedicated to different

processes:
l Important Notice - The information displayed here is dependent on the
Core Banking implementation. If the functionality was implemented,
the section displays important notifications. This is where the financial
institutions can set reminders to their employees.

l Contracts Overview - It displays a pie-chart that specifies the number

of contracts in each status: Contract Draft, Contract Closed,
Contract Approved , Contract Pending and Contract
Canceled. It also shows the number of active contracts, the amount of
total exposure of these contracts, and the total overdue amount, both
amounts converted into the currency specified in the
DashboardCurrency Core Banking system parameter.

DASHBOARDS AND REPORTS 599

CORE BANKING USER GUIDE

l New Contracts - It displays a bar chart with the approved contracts

created through different sales channels, during the last x days based
on activation date, where x represents the configured default number
of days.

DASHBOARDS AND REPORTS 600

CORE BANKING USER GUIDE

l Closing Contracts - It displays a bar chart with the contracts closed

through different sales channels, during the last x days based on
closing date, where x represents the configured default number of
days.

DASHBOARDS AND REPORTS 601

CORE BANKING USER GUIDE

l Last Updated Contracts - It displays a list of the contracts updated in

the system during the last x days, where x represents the configured
default number of days. Click the Add Contract button to open the Add
Contract page, where you can create new contracts.

DASHBOARDS AND REPORTS 602

CORE BANKING USER GUIDE

l Customer Core - It displays a list of the customers created in the

system. Click the Add Customer button to open the Add Customer
page, where you can create new customers.

l Collateral Evaluations - It displays a list of the collaterals with the next

evaluation date within x days, where x represents the configured
default number of days. You can also select to view the collaterals with
the evaluations due this week, next week, this month, or next month.
Click the Register a new Collateral button to open the Add Collateral
Register page, where you can register new collaterals.

DASHBOARDS AND REPORTS 603

CORE BANKING USER GUIDE

l Credit Facility - This section is displayed if the UseCF Core Banking

system parameter is set to True. It displays lists of the credit facility
and utilizations records created in the system in the last x days based
on the credit facility date, where x represents the configured default
number of days. It also displays a pie-chart that specifies the number of
records in each status: Credit Facility Draft, Credit
Facility Closed, and Credit Facility Approved. Click the
Add Credit Facility button to open the Create Credit Facility page,
where you can create new credit facilities.

l Third Party Agreements - This section is displayed if the UseTPM Core

Banking system parameter is set to True. It shows a list of the
agreements defined within the system in last x days based on the

DASHBOARDS AND REPORTS 604

CORE BANKING USER GUIDE

agreement date, where x represents the configured default number of

days. It also displays a pie-chart that specifies the number of
agreements in each status: Draft, Closed , and Approved. Click the
Add Agreement button to open the Creating Agreements for Third-
Parties page, where you can create new agreements.

l Chat - The information displayed here is dependent on the Core

Banking implementation. If the functionality was implemented, this
section contains a chat communication channel with your colleagues.
You can start a new discussion by clicking New chat or search in the
chat for a person. You can search for chats with Customers or Team by
clicking one of the buttons.

DASHBOARDS AND REPORTS 605

CORE BANKING USER GUIDE

l Activities - The information displayed here is dependent on the Core

Banking implementation. If the functionality was implemented, this
section displays the activities assigned to you, filtered by active,
returned, closed, unallocated, and leads.

DASHBOARDS AND REPORTS 606

CORE BANKING USER GUIDE

l My calendar - The information displayed here is dependent on the

Core Banking implementation. If the functionality was implemented,
the section displays the upcoming tasks filtered by month from the top
right-hand corner of the screen. You can filter them by Operational or
Business & Personal tasks, and you can add tasks.

DASHBOARDS AND REPORTS 607

CORE BANKING USER GUIDE

DASHBOARDS AND REPORTS 608