Predefined Banking Products
When you decide to offer your customers new products, you can benefit from a faster time to market by using our sample banking products that come along with the accelerators. You can also use the sample banking products to test them out in digital journeys before modifying and transforming them into your very own products, ready to be launched on the market.
The Mobile Retail Loan Origination solution comes with a series of pre-configured, ready to use banking products, as follows: Classic, Flexible, Savvy, Smart, and Basic. These products are set up as unsecured term loans, with minor differences in their interest rates, commissions, loan amount range, included insurances or discounts, benefits, and product destination types. Additionally, two credit card banking products were predefined for your customer's needs: Shopping Credit Card and Flying Credit Card. The credit cards are also quite similar to each other, with differences in their benefits and product features.
Use these products as they are if you find they fill your business needs, or use them as starting points for your custom products to define tailored offerings for your customers. Based on your business requirements, modify the existing products by versioning them or create new products by duplication, so that they are ready to be used in your journeys.
Classic
The Classic banking product was configured as an Unsecured Term Loan product type for retail customers, with fixed repayments and included life insurance. Customers can take up loans ranging between EUR 10,000 and 30,000 with no advance, for periods of 1 to 60 months.
To ease the servicing processes for this loan, the disbursement was set to be automatically performed at the contract approval. The loan is non-revolving, doesn't allow refinancing, doesn't require guarantees, but it accepts up to 10 co-debtors. The repayment schedule is set for equal installment monthly payments, and it allows grace periods for both the interest and the principal, if the customer should ever need it.
To speed up development and implementation time, as well as increase flexibility, use the predefined interest and commissions lists. These are automatically loaded at the contract level, where you can apply the desired ones. To provide predictability of the loan costs, we've implemented a Fixed type interest in the list, with a value of 7%, and very convenient zero analysis and monthly fees are automatically loaded on contracts.
On contract creation, a discount of 1 point on interest can be applied for the customer that receives an income. For your customer's peace of mind, the loan contains a mandatory life insurance, payable directly with the loan installments, with a value of 0.1% of the loan amount. Thus, your customers can see up-front the projected costs of the financed loan, knowing that the reimbursed amounts stay the same.
There are no readily available questions linked to the product, but if you need to use such questions in the eligibility and underwriting processes, for example, for filtering out customers with County Court sentences or bankruptcy within a set period of time, you can add as many as you wish. Approve them, then start using them in your journeys to filter out ineligible customers.
To further service your launched loan product in contracts using Loan Management's capabilities, we recommend using the following allowed transactions, which are already linked to the sample product: disbursement, early repayment, payment holiday, reschedule overdues, and reschedule debt. For a friction-free contract management process, the product is set up for automatic contract closure after full repayment. The reconciliation account is configured at the banking product level, while the payment allocation settings specify that the payments should be performed automatically debiting the settlement account. More servicing settings for your products can be defined as described here.
A series of benefits, display conditions, and product destination types are already inserted and ready to be used in your origination journeys.
Flexible
The Flexible banking product was also configured an Unsecured Term Loan product type for retail customers and is quite similar to the Classic
There are no discounts, questions, or insurances attached, making this product very flexible. To speed up development and implementation time, as well as increase flexibility, use the predefined interest and commissions lists. These are automatically loaded at the contract level, where you can apply the desired ones. To provide predictability of the loan costs, we've implemented a Fixed type interest in the list, with a very low value of 2%, and two commissions: a EUR 50 one-time front-end analysis fee, and a EUR 5 monthly administration fee included in the repayment schedule, both automatically loaded on contracts.
Shopping Credit Card
A credit card is one of the simplest way to have access to funds across multiple geographies and you can consider it a safety net for your customers. With proper planning, the customer might even use less amounts than with a full fledged loan, while your financial institution has attracted a new customer, fully on-boarded with potential for other future business.
The Shopping Credit Card banking product was configured as a Credit Card product type for retail customers with shopping benefits such as 2% cash back and free 2-day shipping on certain e-commerce sites. Customers can spend amounts ranging between EUR 500 and 5,000, for a negotiable number of months.
The credit card doesn't allow refinancing or any co-debtors, and doesn't require guarantees. The repayment schedule is set for monthly payments, with no grace periods.
To speed up development and implementation time, as well as increase flexibility, use the predefined interest and commissions lists. These are automatically loaded at the contract level, where you can apply the desired ones. To provide predictability of the credit card costs, we've implemented a Fixed type interest in the list, with a value of 7%, and no commissions. You can set up commissions as you wish, for example for monthly card administration fees or for cash withdrawal. Thus, your customers can see up-front the projected costs of the amounts spent from the credit card.
There are no readily available questions linked to the product, but if you need to use such questions in the eligibility and underwriting processes, for example, for filtering out customers with County Court sentences or bankruptcy within a set period of time, you can add as many as you wish. Approve them, then start using them in your journeys to filter out ineligible customers.
For a friction-free contract management process, the product is set up for automatic contract closure after full repayment. More servicing settings for your products can be defined as described here.