Getting Started with Loan Management

Follow these steps to configure the settings needed by Loan Management:

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. Configure the external request processing flows.
   To improve the platform's overall performance through parallel processing, Loan Management sends by default the requests generated for processing outside of the platform.

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

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

5. Manage allocation methods.
   Loan Management 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 Allocation Method menu.

6. 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.

7. 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.

8. 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.

9. 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.

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

11. 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 bank collaborates, using the Loan Management Operational > Bank menu. Add external bank accounts within these banks.

12. 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 Loan Management within a given period.

13. 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, Loan Management identifies the fee list and fee values and applies them considering the current date of the transaction.

14. Define sales channels for your contracts.
    You can create contracts through different channels:, such as the dedicated Loan Management menus in FintechOS Portal, API integration calls, or various customer 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.

15. 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 Loan Management with all the functionality of any other default limit type.

16. Make sure a JobServer is up and running.
    To perform the processes within Loan Management, a JobServer must be up and running. Manage server jobs as described here. Learn here about Loan Management's scheduled jobs.

17. Create users and allocate them appropriate security roles.
    For appropriate access and rights within Loan Management, create users and allocate them appropriate Loan Management security roles. The following pages contain information related to this topic: Adding Users, Editing Users, and Security Roles.

18. Configure Subledger. The Subledger Add-On, installed over the Loan Management 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.

Use Product Factory to create the banking products that your financial institution wants to offer to their customers via contracts. Loan Management integrates directly with Product Factory, thus all the banking products with Active status are automatically available for you to use in Loan Management, when you create contracts. Don't forget to define a service configuration for each product before using them to create contracts.

Before using a product to create contracts, indicate Loan Management a series of configurations regarding bank accounts to be used for that product, closure options, allowed transactions, and so on. Create such product admin configuration records for each banking product you intend to use. Only products with approved product admin configuration can be selected when creating contracts.

You are ready to use the main features available in Loan Management, as described in the following steps:

1. Log into FintechOS Portal using a user with an associated Loan Management security role.
   Insert the user name and the password associated with it to log into the FintechOS Portal.

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 Loan Management, 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 Loan Management.

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 Loan Management, 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 Loan Management, you can create contracts for your financial institution's customers based on approvals. Read about contracts in the Contracts page.

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.