Product Settings
Product settings allow you to configure the option sets available in your Product Templates for selecting product features like payment schedules, types of collateral, insurance perils, types of fees, interest indexes, etc.
Payment Schedule Type
A payment schedule represents the complete table of periodic loan payments, showing the amount of principal and interest that comprise each level payment until the loan is paid off at the end of its term.
The payment schedules are a quintessential part of a loan. Below you can see how to configure the installments, dates and calculations.
Adding Payment Schedule Types
In FintechOS Studio, payment schedule types come with a business workflow attached in order to block changes to schedule types that are actively used on banking products. Read more about Business Workflows.
Follow the steps below to create a new payment schedule type:
- In the main menu, select Products > Settings > Payment Schedule Type, and the Payment Schedule Types List page opens, showing all the already created schedule types.
- Click Insert to add a new type.
- In the newly opened Add Payment Schedule Type page, fill in the following fields:
- Name: Insert a suggestive name for the type.
- Payment schedule code: Insert a code for the type to keep track of them.
- Banking Product Type: Select a product type to associate with the payment schedule type. Depending on the Product Type, different calculation rules are triggered. For example, the product type
Overdraft has only the payment at maturity. - Interest Calculation Type: Select from the list a type of calculation for the interest.
When an annual interest rate is specified, in order to calculate the Installment for an interval of days, first the annual interest rate should be transformed into a daily base. To make this transformation, there are some accepted conventions. FintechOS Studio implemented the following conventions: 30/360, 30/365, Actual/ Actual, where Actual for years can be either 365 or 366. Other schedule interest calculation types can also be defined, as needed. In practice may be also encountered the Actual/ 360 or Actual/ 365. Here are some of the implemented schedule interest calculation types:- Equal Installment Monthly 30/360 - this generates a payment schedule of equal installments where every period is a month of 30 days, and every year has 360 days;
- Equal Installment Monthly 30/365 - this generates a payment schedule of equal installments where every period is a month of 30 days, and every year has 365 days;
- Equal Installment Monthly 30/366 (30/Actual) - this generates a payment schedule of equal installments where every period is a month of 30 days, and every year has 366 days;
- Equal Installment Monthly Actual/365 - this generates a payment schedule of equal installments where every period is a month with actual days (28,29, 30, or 31 days), and every year has 365 days;
- Equal Installment Monthly Actual/366 (Actual/Actual) - this generates a payment schedule of equal installments where every period is a month with actual days (28,29, 30, or 31 days), and every year has 366 days;
- Equal Principal Monthly 30/360 - this generates a payment schedule of equal principal where every period is a month of 30 days, and every year has 360 days;
- Equal Principal Monthly 30/365 - this generates a payment schedule of equal principal where every period is a month of 30 days, and every year has 365 days;
- Equal Principal Monthly 30/366 (30/Actual) - this generates a payment schedule of equal principal where every period is a month of 30 days, and every year has 366 days;
- Equal Principal Monthly Actual/365 - this generates a payment schedule of equal principal where every period is a month with actual days (28,29, 30, or 31 days), and every year has 365 days;
- Equal Principal Monthly Actual/366 (Actual/Actual) - this generates a payment schedule of equal principal where every period is a month with actual days (28,29, 30, or 31 days), and every year has 366 days.
NOTE
The payment schedule projection takes into consideration both the payment schedule type defined at the banking product level, and whether to collect the interest accrued on the contract until the date of an early repayment event, thus repaying the accrued interest, or not, thus adding the accrued interest to the repayment amount. Set the Collect accrued interest field in the Event page at the contract level to False to add the accrued interest to the repayment amount.
- Click Save and reload.
- In the newly displayed Payment Schedule Type Details section, fill in the fields below. Note that the fields change according to the selection of Column Type and Calculation Method.
- If you selected Fee Dimension, then fill in the following fields: Fee, Fee Type or Source.
- If you selected Insurance Dimension, then fill in the following fields: Insurance class or Source.
- Click Save and close. Repeat to add more details.
NOTE
The first installment can be adjusted in situations when the algorithm forces an equal installment, by adjusting the Principal paid in the first interval.
For a Payment Schedule with equal installments, the first installment interest is calculated for the number of days between Activation Date and First Installment Date.
In general, for this first installment, the number of days can be lower or higher than the normal interval, so the Interest calculated makes the first installment to be different than the others.
The following picture illustrates the payment schedule type and the details defined for Credit Card Installments calculation:
Schedule Type Column
To configure the calculation steps, use the Schedule Type Column option in the Settings menu. The order of the steps is determined by the Calculation column.
- In the main menu, click Products > Settings > Schedule Type Columns, and the Schedule Type Column List page opens, showing all the already created schedule type columns.
- Click Insert to add a new column type.
- In the newly opened Add Schedule Type Column page, select a Column Type from the list: Payment Schedule Dimension, Fee Dimension or Insurance Dimension.
- Enter a Name for the column.
- Click Save and reload.
- The Payment Schedule Types section is displayed after saving, showing all the payment schedule types using this column, with the following information:
- Name: The name of the Payment Schedule element.
- Column Type: The column type: Payment Schedule Dimension, Fee Dimension or Insurance Dimension.
- Payment Schedule Code: The code of the payment schedule.
- Calculation: The calculation method.
- Operation Item: Select an operation item for this schedule type.
Schedule Element Class
- In the main menu, click Products > Settings > Schedule Element Class, and the Schedule Element Classes list page opens.
- Click Insert to add a new class.
- In the newly opened Add Scheduled Element Class, select an Element Type: Insurance or Commission.
- Add a name for the element class.
- Select an Operation Item.
- Modify the default values filled in for the following fields:
- Mandatory for Applicant - If selected, the schedule element class is applicable to the applicant customer. Default value:
True. - Mandatory for Debtor - If selected, the schedule element class is applicable to the debtor. Default value:
False.
- Click Save and close. Repeat as many times as needed.
NOTE
FintechOS Studio uses the values of a saved schedule element class record to automatically fill in the fields of an
insurance during the creation of a new record.
Loan Periodicity
Loan periodicity is the dictionary used to define the regularity of payments. For example, payments related to loan contracts, commissions, or installments can be performed once, daily, monthly, yearly, and so on.
To manage loan periodicity records:
- In the main menu, click Products > Settings > Loan Periodicity, and the Loan Periodicity page opens.
- On the Loan Periodicity page, you can add new loan periodicity record or search, edit, and delete existing ones.
Create Loan Periodicity Records
- Click Insert on the Loan Periodicity page. The Add Loan Periodicity page is displayed.
- Fill in the following fields from the Loan Periodicity section:
- Name: Enter the name of the periodicity.
- Periodicity: Enter the number of measurement units for the periodicity.
- Measurement Unit: Select the measurement unit applicable for the periodicity from the drop-down. Possible values:
Days, Weeks, Months, Years, and Once.
- Click Save and Reload. The new loan periodicity is created and ready to be used.
Collateral Type
The Collateral Type dictionary is used to define the types of collateral used in the banking products' definition.
To manage collateral type records:
- In the main menu, click Products > Settings > Collateral Type, and the Collateral Type List page opens.
Or you can manage collateral types from FintechOS Portal's Core Banking Operational > Collateral Type menu.
- On the Collateral Type List page, you can add new allocation methods or search, edit, and delete existing ones.
Follow these steps to create new collateral type records:
- Click Insert on the Collateral Type List page, and the Add Collateral Type page is displayed.
- Fill in the following fields:
- Name: Enter the name of the collateral type.
- Code: Enter the code of the collateral type.
- Adjust Percent: Enter the adjusted value of the collateral type.
NOTE
When a collateral type is defined, you can set an adjustment percent. The adjustment percent is a customization applied for that collateral. Further, when a collateral is linked to a secured loan contract, its market value is automatically adjusted by Loan Management using the adjustment percent.
- Priority: Enter the priority of the collateral type to be considered within a contract.
- Click Save and Reload.
In the newly displayed Banking Products section, you can see the banking products that have this collateral type associated.
Banking Product Document
This section allows you to track all the documents that have been set up in various banking Product Templates to be requested from or provided to banking customers, such as identification documents or Terms and Conditions.
Insurance Peril
An Insurance Peril, or condition - for example earthquake, car accident, tornados, theft, death, or disability, informs about the type of coverage for a particular insurance product, or product item (coverage). You can define perils independently from products, so that they can be used in conjunction with multiple insurance product templates. Depending on your product, you can attach one or multiple perils, or conditions to it.
Add Perils
In FintechOS Studio, you can find an overview of all the insurance perils registered in your system - your nomenclature of perils, or conditions. You can also create and configure new records. Follow the steps below to add a new peril record.
- In the main menu, navigate to Products > Settings > Insurance Peril. The Insurance Peril List is displayed, containing all the existing records.
- Click Insert to add a new peril.
- Fill in the following fields to configure the peril:
- Insurance Peril Name: Name of the insurance peril.
- Max Notify Period: Maximum period for the notification of the peril.
- Event Count Limit: Number of events covered by the policy.
- Implicit Reserve: Amount of the prudential reserve to be deposited for the current policy.
- Implicit Reserve Currency: Currency of the prudential reserve.
- Click Save and Close. You can view the newly created record in the Insurance Peril List.
Insurance Document
This section allows you to track all the documents that have been set up in various insurance Product Templates to be requested from or provided to insurance customers, such as identification documents or Terms and Conditions.
Lexicon Term
Lexicon terms are parameters (like the debt-to-income ratio, credit score, current credit amount, risk zone, etc.) used in the context of specific Product Templates for rules, data sets, or formulas. Lexicon terms are the building blocks of product evaluations, such as requiring an insurance, calculating a price, offering a discount, or determining eligibility.
To set up the lexicon terms that are available for your products, in FintechOS Studio, go to Main Menu > Products > Settings > Lexicon Term.
Each lexicon term has the following parameters:
| Name |
Name of the lexicon term. |
| Type |
Data type of the lexicon term.- Boolean - A selection between two mutually exclusive choices. Can be used for terms such as whether or not an applicant is an existing customer of if an insured house has or doesn't have an alarm system.
- Date - A calendar date. Can be used for terms such as birth dates.
- Numeric - A numeric value. Can be used for terms such as a credit amount or insured value.
- Text - An alphanumeric value. Can be used for terms such as license plate numbers or VINs.
- Value list - A set of values. Can be used for terms such as home types, engine displacement ranges, or risk zones.
|
| Status |
- Draft - The lexicon term hasn't been used yet and can still be edited.
- Active - The lexicon term is currently in use. It can no longer be modified.
- Inactive - The lexicon term is suspended from use.
|
| Description |
Enter a description of the lexicon term. This explanation is visible when designing a product and selecting the lexicon term. |
| Context Enriched Before |
- First choice of a boolean lexicon term (e.g.: is, has, agrees with). If selected, this choice is displayed before the lexicon term name (e.g.: is in accordance with GDPR).
- For non-boolean lexicon terms, this is an optional text displayed before the term (typically a verb), e.g.: is, has, covers. You can combine it with the Context Enriched After parameter to create complex syntax such as: covers ... % of the total surface.
|
| Context Enriched After |
- Second choice of a boolean lexicon term (e.g.: is not, doesn't have, doesn't agree with). If selected, this choice is displayed before the lexicon term name (e.g.: is not in accordance with GDPR).
- For non-boolean lexicon terms, this is an optional text displayed after the term (typically a descriptor), e.g.: meters long, % of the total surface, consecutive days. You can combine it with the Context Enriched Before parameter to create complex syntax such as: covers ... % of the total surface.
|
| Lexicon Term Values |
Value list lexicon terms only.
Use this grid to configure the values that are available in the list. |
| Lexicon Context |
Use this list to set up the Product Templates where the lexicon term is available. |
Fee Types
To set up the fee types that are available for your products, in FintechOS Studio:
- Go to Main Menu > Products.
- Click Settings.
- Select Fee Types.
Each type of fee has the following parameters:
| Commission Schema |
Indicates the conditions under which the fee is applied.
- Administration Fee - Management fee.
- Commission Unusage - Fee applied for the amount unused from the contract's amount. Usually this is applied for unused overdraft amounts.
- Commission Usage - Fee applied for the amount used from the contract's amount.
- Front-end Fee - Fee paid at the beginning of the loan agreement to cover the costs of underwriting, evaluating, and processing the loan application. E.g.: loan origination fees, application fees, credit check fees.
- Management Fee - Fee paid for administering and managing the loan throughout its duration, to cover operational costs such as regulatory compliance, maintaining the loan account, or providing ongoing customer support.
- Payment Holiday - Fee charged when the borrower requests to temporarily suspend or defer making regular loan payments for a specific period.
- Repayment Fee - Fee for repaying the loan in full or making larger payments than scheduled before the loan's maturity date.
- Reschedule - Fee applied when the borrower seeks to modify the original repayment schedule, loan duration, or other terms specified in the loan agreement.
- Return Fee - Fee charged when the borrower's payment is returned or cannot be processed.
- Versioning Fee - Fee applied once when creating a new version of an approved contract.
|
| Name |
Type a name for the fee. |
| Periodicity Type |
How often the fee is charged. Either only once or at regular intervals (annually, bimonthly, trimestrial, weekly, etc.). |
| Mandatory for Applicant |
This fee must be payed by the applicant. |
| Automatic Load on Contract |
If selected, this fee is automatically loaded on contracts. |
| Is for Contract Version |
Fee applied when creating a new contract version. |
| Is for Unusage |
Fee for when an account or credit line remains unused or inactive for an extended period of time. |
| Is Returnable |
Fee is refundable if the loan application is denied. |
|
Is Return
|
Fee applied for Return Amount or Goods transactions on contracts.
|
Interest Indexes
The Interest Indexes option allows you to track all the individual interests that have been set up in various banking Product Templates. To see the interests, in the FintechOS Studio main menu, go to Products > Settings > Interest Indexes.
Insured Objects
IMPORTANT!
For future use. Do not change.
This item allows you to see the that can be covered in various insurance product templates.
Underwriting Data Set Values
This item allows you to define lists of terms that constitute valid terminology for the Approved, Derogation, and Rejected underwriting outcomes. For each outcome, you can provide the corresponding terms separated by commas:
| Approved |
Approved, Passed |
| Derogation |
Derogation, Manual Analysis |
| Rejected |
Rejected, Not Passed |
