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.

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.

 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.

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.
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: