Core Banking 4.0

November 28th, 2022

This major release of FintechOS Core Banking comes with improved performance and long-awaited features such as banking formula-ready third-party commissioning processes, contract-level management of the penalty interest rates, and others. The API ecosystem was enriched with newly created third-party management endpoints. Read along for detailed information about the exciting features coming your way!

Core Banking v4.0 is fully compatible with FintechOS Platform v22.1.4.

Improvements

Performance Improvements

Starting with this release, you can transfer the activities happening at contract approval into an asynchronous queue. The queue can be later processed by any job-like technology, such as any FintechOS job server, Apache Camel, Azure Functions, and others. The Core Banking package comes with the Async Contract Approval (CB) schedule job for asynchronous processing of the contract approval-related activities.

Formula Engine for Third-Party Agreement Pricing Definitions

We've enabled complex logic for commissioning third-party entities. Through the introduction of banking formula usage and consumption within third-party agreements and invoices, we've added new possibilities for commissioning and also allowed for prorated clawback commissions. For example, using the Is For Transaction checkbox, you can specify whether a commission should be applied when approving a transaction at the contract level, or when approving the contract. Read about the definition of third-party commissions and the pre-built formulas coming with the Third-Party Management package on the Third-Party Commission page.

The commissions applicable to agreement pricings are automatically calculated by the system as pre-invoice details. The calculation is triggered either when a disbursement event is approved at the contract level (for pricings with For Disburse = True), or when the contract itself is approved (for pricings with For Disburse = False). The commission is not calculated at that moment, instead, the event's information is recorded in a queue. From here, a specialized job processes each queue record and writes the results as pre-invoice details. These pre-invoice details are automatically added to the invoices when the system creates invoices, or you can add them manually to invoices.

Penalty Interest Rates Managed at the Contract Level

For full flexibility in cost management, you can now amend the penalty interest rates at the loan contract level. For interest and commission lists set as negotiable, you can change the values of penalty rates, and the new rates only impact future penalty calculations.

Days Past Due Reset at Contract Closure

Starting now, after the due amounts are paid and the loan contract is closed, either automatically or manually, Core Banking automatically resets the DPD days to zero.

Sealed Digital Assets

The digital assets within the Core Banking package are exported as sealed, with dependency on the 22.1.4 version of FintechOS Platform, for compatibility reasons. This means that you cannot make any changes to assets on the environment in which they are deployed.

API Improvements

New Third-Party Management Endpoints

We've enriched our offering for seamless API integration with three new endpoints serving the third-party management functionality: FTOS_TPM_GetAvailableDetails, FTOS_TPM_InsertInvoiceDetails, and FTOS_TPM_DeleteInvoiceDetails. Read about their usage in the Core Banking Developer Guide.

Currency Validation for Contracts

The FTOS_CB_AddUpdateContract endpoint now has a validation verifying that the contract's currency matches the currency of the specified current account.

Fixed Issues

• There were cases when top-up or withdrawal transactions performed on contracts were not reflected in the underlying banking product's reconciliation account. We fixed the issue causing such behavior.

Breaking Changes

Due to the numerous changes performed on the banking product type dictionaries coming with Banking Product Factory v4.0 we had to create copies of our existing repayment schedules. After installing Core Banking, you'll notice that some repayment schedules are split into Secured and Unsecured Loan banking product types. Make sure you verify each repayment schedule definition and see to which banking product type it is applicable.