Overview

FintechOS Distribution Management helps you manage third-party entities (agents, brokers, insurers, etc.) registered with your institution to intermediate the selling of various products to customers. For their work, the third-party entities are compensated with fees payable for each new sale, based on a pricing agreement with your institution. Distribution Management facilitates the creation and management of third-party agreements based on approvals, the linkage of contracts/ deals to third-parties, and the configuration of the commissioning processes through dedicated menus. A third-party invoicing process also takes care of the transfer part of the payments related with these third-party entities.

All the features in Distribution Management are built using the capabilities of FintechOS Studio, and you can access its menus and dashboards when logged in FintechOS Portal.

Business Logic

Let's say a third-party entity (an agent, a broker, an insurer, or a merchant) agrees with an institution to intermediate the selling of various products to customers, for a fee. Thus, an agreement is recorded in Distribution Management, containing all the pricing information needed to compensate the third-party. Specific commissioning configurations must be in place to be then applied to the agreements. Whenever the third-party entity intermediates the selling of a product to a customer, specifying in the contract the entity and their role, the entity should be compensated with the commissions mentioned in the agreement. The payments are performed based on automatic or manual invoicing processes. Agreement records must be approved before being used for invoice generation. You can create invoices and attach invoice details for an agreement for each currency mentioned in the pricing details, that are automatically processed for payment by Distribution Management. An automated process running once each night creates third-party invoices and payments for the combination of third-party entity/ agreements currency, during the validity of the agreement, on the Payment Day of each agreement, excluding any invoice details already created on a manual invoice. The payments for the invoices are performed for unallocated or partially allocated payments.

Availability & Main Features

Distribution Management is available either as a stand-alone solution, decoupled from any specific business, or as an add-on for banking-specific business, installed on top of the FintechOS Loan Management package.

The diagram below exhibits the main features of Distribution Management, along with a series of configurations and dictionaries used to automate the complex processes performed by the system. Distribution Management uses the banking products defined within Banking Product Factory. Distribution Management records can be further used by Subledger to generate ledger entries.

Banking Product Factory

This is a powerful automation processor accessible in the FintechOS Studio that builds the products to be used in a customer journey, configures the interest, commissions and the life cycle of a product. Those products are later introduced into a customer journey or, when used in conjunction with Loan Management, they associate the products with transaction types. For more information, see Banking Product Factory.

Subledger

Based on the transactions performed in Distribution Management, Subledger logs, along with a company’s financial transactions, details that enable the system to build ledger entries. For more information, see Subledger.

Loan Management

Loan Management, accessible in the FintechOS Portal, controls the major banking processes and configurations that support your banking products, such as limits, collateral, groups, or contracts. For more information, see Loan Management.