Loan Management 4.1

July 24th, 2023

This release of Loan Management, formerly known as Core Banking, comes with a simplified installation process thanks to the new package structure, new write-off functionality for non-performing loans, an asynchronous mode for some of the internal processes that now have a parallel processing queuing mechanism, thus greatly improving the overall performance of your system, schedule recalculation for multiple interest rates on one installment, and so much more. The third-party management features were decoupled from Loan Management and are now available through our new Distribution Management solution. Continue reading to find out details about the new features coming your way and the changes required by the mandatory changes!

Loan Management v4.1 is fully compatible with FintechOS Platform v22.1.8.

New Features

Writing Off Loan Contracts

The write-off functionality is intended for non-performing loans. Using the specific settings defined at the banking product level, Loan Management can automatically write off non-performing loan contracts, after their maturity day passes and the remaining value on the contract is under the specified threshold. Loan Management also allows you to manually perform write-off transactions, either for a partial or the full overdue amount, even if the remaining amounts on the contract are above the defined threshold. The write-off transaction takes the remaining amount from the specified internal write-off account and credits the loan's main bank account for the loan principal, respectively the product's self-bank account for all the other operation items. You can also perform write-off transactions through API integration.

Improvements

Easier Installation Process

Starting with this release, the installation process was significantly simplified, thanks to the new package structure and the pipelines used for cloud deployment.

Performance Improvements

The performance is now better thanks to the cached dictionaries.

Atomicity, Consistency, Isolation, Durability (ACID) Improvements

We’ve implemented checks and logic intended to guarantee data validity, reliability, and integrity despite errors, power failures, and other mishaps. Loan Management now ensures that a request in the contract approval, repayment notification or bank transaction flows is processed once, not duplicated, and nothing is missed.

Asynchronous Mode for Internal Processes

Starting with this release, you can opt whether the requests generated within Loan Management should be sent for processing outside of the platform or within the platform, through Job Server. Read detailed information in the user guide's dedicated topic.

Asynchronous Daily Limit Recalculation

The newly introduced AsyncLimitRecalculation Loan Management system parameter allows you to improve the performance of your system by instructing Loan Management to perform the affected limits recalculations asynchronously after a repayment event.

Formula-Based Calculation for Penalty Interest Rate

Starting now, you can define penalty interest rates using Banking Formula at the banking product level. Loan Management automatically updates the applicable penalty rate during contract creation according to the definition set at the Banking Product Factory level. For example, suppose you have a penalty interest rate calculated with a formula that uses the current applicable interest rate plus 2% and you change the interest rate on the contract. In that case, the applicable penalty interest rate is automatically updated to the new current interest's value plus 2%.

More Granular Loan Classification

We took the loan risk classification to a new level, allowing you to configure the accrual and penalty calculation processes independently, and empowering you to define delay category logic for specific banking products. Read more details on the Loan Classification page.

Actual/365 Interest Calculation Type

We've implemented the Actual/ 365 convention as an option for the Interest Calculation Type and we've implemented it in our schedule-building processes.

Schedule Recalculation for Multiple Interest Rates on One Installment

Loan Management takes into consideration and recalculates the schedule even in cases when the interest is of Collection type and there are multiple interest rates within a single repayment interval due to changes in the interest definition between due dates. In such cases, Loan Management keeps the interest accrued up until the change occurs and rebuilds the remaining repayment schedule. When different interest rates are applied during the same installment, the interest is accrued daily.

Contract Events After Importing a Schedule

Starting now, after importing a schedule on a contract in Version Draft status, the Auto disbursement field on that contract version is automatically set to False. Any future contract events must have imported schedules.

Loan Admin Officer Dashboard Improvements

You don't have to leave the dashboard anymore when seeking information about the contracts. Just double-click any of the bars within the New contracts or Closing contracts sections to open a new browser tab displaying the list of contracts that fit the selected category.

API Improvements

New Customer Collaterals Management Endpoints

We've enriched our API offering with two new endpoints serving the customer collaterals: FTOS_CB_AddUpdateCollateralDocument and FTOS_CB_AddUpdateCollateralOwner. Read about their usage in the Loan Management Developer Guide.

Endpoints for Interest Management at the Contract Level

The newly added FTOS_CB_AddUpdateContractInterestRate endpoint empowers you to manage contract-level interests through integration. We've also enriched the response for the FTOS_CB_GetContractData endpoint, allowing you to retrieve all the interest rates applicable to the specified contract.

Fixed Issues

• The FTOS_CB_AddUpdateReturnedAmountOrGoods endpoint now also works with any type of return fees, even those that are not set up as formulas.

Mandatory Changes

Within the FTOS_CB_AddUpdateContract endpoint, the contractPeriod input parameter's type changed from String to Numeric. Make sure you perform the necessary updates to your integration calls.