Commission Type

Commission types are used to categorize commissions according to their intended usage. For example, there are administration fee type commissions, front-end fee type commissions, payment holiday fee type commissions, return fee type commissions, and so on.

To view commission types:

  1. In the main menu, click Product Factory > Banking Product Dictionaries > Commission Type, and the Commission Types List page opens.

  2. On the Commission Types List page, as a Banking Product Admin, you can only view the predefined commission types used by Banking Product Factory.

  3. Double-click a record to view its details on the newly opened Edit Commission Type page.

  4. View the following information about the selected commission type:

    • Commission Schema - the commission schema on which this commission type is based on.

    • Name - the name of the commission type.

    • Periodicity Type - the periodicity type applicable to commissions of this type.

    • Operation Item - the operation item for which commissions of this type are applicable.

    • Mandatory For Applicant - if selected, the commissions of this type are mandatory to be paid by the applicant customer.

    • Automatic Load On Contract - if selected, the commissions of this type are automatically loaded on contracts.

    • Is For Contract Version - if selected, the commissions of this type are applicable when creating new contract versions.

    • Is For Unusage - if selected, the commissions of this type are applied to the unsused amount of contracts.

    • Is Returnable - if selected, the commissions of this type are can be returned.

    • Is Return - if selected, the commissions of this type are applied for Return Amount or Goods transactions on contracts.

      NOTE  
      The commissions created based on a specific commission type inherit the values defined at the commission type level. However, the periodicity of the commission is editable, even if its value is Once at the commission type level.

Predefined Commission Types

The following commission types are predefined for usage by the Banking Product Factory and Core Banking processes:

  • Front-End Fee - commissions of this type are applied as front-end fees and must be paid once by the customer, when the contract is created.

  • Administration Fee - commissions of this type are applied as administration fees, applicable with frequency as defined and included on repayment schedule, during the life-cycle of a contract.

  • Management Fee - commissions of this type are applied as management fees, applicable with frequency as defined and included on repayment schedule during the life-cycle of a contract.

  • Return Fee - commissions of this type are applied as return fees, applicable once for each Return Amount or Goods transaction on contracts as some form of penalty for closing the contract early. This is useful for returning amounts when goods are returned in case of BNPL and part or all of the front-end fee needs to be returned to the customer, since the return is done within agreed terms and conditions.

  • Repayment Fee - commissions of this type are applied as repayment fees, applicable once for each early repayment transactions on contracts.

  • Versioning Fee - commissions of this type are applied as versioning fees, applicable once when creating a new version of an approved contract.

  • Payment Holiday Fee - commissions of this type are applied as payment holiday transactional fees, applicable once for each Payment Holiday transaction on contracts as some form of penalty for taking a break from repaying the due installments of a contract.

  • Unusage Fee - commissions of this type are applied as unusage fees, applicable for the remaining unused amount within a contract.

  • Usage Fee - commissions of this type are applied as usage fees, applicable for the already used amount within a contract.