Allocation Method

The Allocation Method menu stores information about the details and the banking products using those specific definitions in their setup. In FintechOS, allocation methods are used to determine the order in which credit items are prioritized when repaying loans, credit accounts, and so on. Simply put, it represents the order in which a bank proportionally allocates a portion of the payment to either fees, commissions, interest, and other credit items associated with the account, with the aim of closing the loan principal.

 To manage allocation methods, follow these steps:

  1. Log into FintechOS Portal.

  2. Click the main menu icon at the top left corner.

  3. In the main menu, expand the Admin Configuration menu.

  4. Click the Allocation Method menu item to open the Add Allocation Method page.

HINT
In the Add Allocation Method page, users can add new allocation methods or search, edit, and delete existing ones.

Creating Allocation Methods

Allocation methods are created manually in FintechOS Portal, in the Add Allocation Method page.

  1. To create a new allocation method, click the Insert button on the top right side of the Allocation Method page. The Add Allocation Method page is displayed.

  1. Fill in the following field:

    Field Mandatory Data Type Details
    Name No Text The name of the allocation method.

  1. Click the Save and Reload button at the top right corner of the page. The Allocation Method Details and the Banking Products sections are displayed.

  2. In the newly displayed Allocation Method Details section, click the Insert button. The Add Allocation Method Details page opens.

  3. Fill in the following fields:

    Field Mandatory Data Type Details
    Credit Item No Lookup

    The credit item of the allocation method.

    IMPORTANT!
    When editing credit items, the IncludeInPenaltyCalculation bool is available. If selected, the penalty amount is taken out of the account first. For more details, see FTOS_CB_OperationItem.
    Minimum Overdue days No Whole Number The minimum overdue days of the credit item.
    Maximum Overdue days No Whole Number

    The maximum overdue days of the credit item.

    IMPORTANT!
    The maximum and minimum number of overdue days is relevant when creating allocation methods as an account can have one or more loan principals. If, for example, there are two loan principals, the allocation method is applied based on the oldest one. Thus, depending on the date, the installment is allocated to the oldest loan principal and then moving to the other credit items.

  4. Click the Save and Close button at the top right corner of the page.

HINT
Users can insert, delete, or export the allocation method details.

Banking Products

Banking products are used in FintechOS digital journeys for cash management processes such as loan origination. The Banking Products menu displays the banking products associated with the allocation method previously created.

In addition, banking products are used when managing loans after the loan origination process is closed:

  • open loan contract,

  • loan disbursement,

  • schedule projection creation,

  • make due amounts according to the schedule projection.

To create a banking product, click the Insert button under the Banking Products section. For more details on how to create banking products, see Managing Banking Products.