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Introduction to T24 Arrangement Architecture
Agenda 3
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
3
Product Designing & Servicing 4
Traditionally banking solutions contain product silos Functionality and product features exist within these silos
Siloed Product Architecture Accounts
Mortgages Product Definition
Product Definition
Product Servicing
Product Servicing
Deposits
Consumer loans
Product Definition
Product Definition
Product Servicing
Product Servicing
Reusability is limited Innovation is difficult
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T24 – Past, till Arrangement Architecture 5
T24 supported financial products with purpose built Silo
Siloed Product Architecture AC
MG MG.PARAMETER, MG.TXN.TYPE.CONDITION
Group Condition Tables
MG.MORTGAGES
ACCOUNT
MM/LD
AZ
LMM.INSTALL.CONDS/ D.TXN.TYPE.CONDITIONS
AZ.PRODUCT.PARAMETER
MM.MONEY.MARKET/ LD.LOANS.AND.DEPOSITS
AZ.ACCOUNT
Multiple modules implemented to service the same product . Customisation involved additional local dev. 7
An Alternative Approach 6
Current Accounts Account
Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Saving Accounts Account
Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Term Deposits Account Attributes
Account
Actions
Accounting Attributes
Actions
Term Amount Attributes
Attributes
Actions
Attributes
Actions
Payment Schedule Attributes
Actions
Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Etc…. Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Attributes
Actions
Limit Actions
Settlement Attributes
Actions
Cards
Term Amount
Actions
Limit Attributes
Attributes
Interest
Actions
Payment Schedule Attributes
Actions
Charge
Actions
Interest Attributes
Attributes
Accounting
Actions
Charge Attributes
Lending
Actions
Attributes
Settlement Attributes
Actions
Settlement Attributes
Actions
Settlement
Actions
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Attributes
Actions
Settlement Attributes
Actions
Settlement Attributes
Actions
Components act Transversally 7
Current Accounts Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Saving Accounts Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Term Deposits
AccountAccount (BALANCE) Account
Attributes
Attributes Actions
Attributes Actions Attributes Actions
Actions
Attributes Actions
Actions
Charge
Actions Attributes
Interest
Interest Attributes
Actions Attributes
Charge
Charge Attributes
Actions
Interest
Actions Attributes
Actions
Payment Schedule Payment Schedule Repayment Schedule Attributes
Actions Attributes
Term Amount
Attributes Actions
Actions
Cards A Component
– build once, reuse in any product
Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Etc…. Account Attributes
Actions
Accounting Attributes
Actions
Charge Attributes
Actions
Interest Attributes
Actions
Payment Schedule Attributes
Actions
Term Amount
Actions
Limit
Attributes
Actions
Limit Actions
Settlement Attributes
Actions Attributes
Accounting (POSITION KEEPING) Accounting Accounting Attributes
Attributes Attributes
Lending
Actions
Attributes
Settlement Attributes
Actions
Settlement Attributes
Actions
Settlement
Actions
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Attributes
Actions
Settlement Attributes
Actions
Settlement Attributes
Actions
Product Designing & Servicing - AA 8
Product design and servicing are enterprise level functions Functionality is encapsulated in a set of common product components Each component has its own Attributes (data) and Actions (methods) Product Design & Definition
Product Components Customer Attributes
Actions
Activity Restriction Attributes Actions ATTRIBUTES
•Rate Term Amount Attributes •Margin Actions Interest •Day Basis Attributes Actions •Accrue Method Change Product ……etc . Attributes Actions
Officer Attributes
Actions
Activity Mapping Actions ACTIONS •Change Payment Schedule Attributes •AccrueActions Charge •Capitalise Attributes Actions •Reset Closure .......etc Attributes Actions Attributes
Limit Attributes
Account Actions
Activity Presentation Attributes
Actions
Payment Rules Attributes
Actions
Activity Charge Attributes
Actions
Activity Messaging Attributes
Actions
Overdue Attributes
Actions
Accounting Attributes
Attributes
Actions
Attributes
Actions
Settlement Actions
Actions
Activity API Attributes
Actions
Payoff Attributes
Payout Rules
Actions
Alerts Attributes
Attributes
Actions
Tax Attributes
Actions
Periodic Charges Attributes
Actions
User Activities are constructed by linking Actions from multiple components
Availability Attributes
Actions
Interest Compensation Attributes
Actions
Bundle
Attributes
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Actions
Eligibility
Attributes
Actions
Preferential Pricing
Attributes
Actions
Product Building – Components to Product Lines 9
Product Lines are constructed by combining components Product Design & Definition Lending
Product Lines
Accounts
Term Deposits
Product Bundles
Relationship Pricing
Product Components Customer Attributes
Actions
Activity Restriction Attributes
Actions
Term Amount Attributes
Actions
Interest Attributes
Actions
Change Product Attributes
Actions
Availability Attributes
Actions
Officer Attributes
Actions
Activity Mapping Attributes
Actions
Payment Schedule Attributes
Actions
Charge Attributes
Actions
Limit Attributes
Activity Presentation Attributes
Actions
Actions
Actions
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Actions
Activity Messaging Attributes
Actions
Overdue Attributes
Actions
Actions
Attributes
Actions
Settlement
Actions
Accounting Attributes
Actions
Eligibility Attributes
Actions
Actions
Activity API Attributes
Actions
Payoff Attributes
Payout Rules Attributes
Bundle Attributes
Attributes
Actions
Alerts Attributes
Pricing Rules Attributes
Actions
Activity Charge Attributes
Interest Compensation Attributes
Actions
Payment Rules Attributes
Closure Attributes
Account Actions
Actions
Tax Attributes
Actions
Periodic Charges Attributes
Actions
Preferential Pricing Attributes
Actions
Financial Products 10
Product Line (Lending) Product Groups
Product Derivatives
Mortgages Home Loans
Personal Line of Loans Credit
3 Year Fixed
Home Auto Equity LOC Loans
Non Revolving
5 year Fixed
Home Improver
Revolving
Teacher Loans
Secured Credit Loans Cards Secured LOC
10 Year Fixed
Student Loans
Small Business Loans
Visa Gold
University Loan
Visa Platinum
Study Loan Business Foreign Expander Currency
Start Up Loan
Secured LOC
Sole Trader
Base Rate Tracker Floating
Arrangement Architecture
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Agenda 11
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
13
Property Class 12
Property Class is Component having common Attributes and Actions across different Products Property Class is released only by Temenos
Vehicle components
Banking Product components
Engines
Term amount
Transmission lines
Payment schedule
Wheels
Interest
Body styles
Charges
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Properties vs Property Classes 13
PROPERTY - Named instance or copy of a property Class Users can create new property from Temenos created Property class
Front Wheel
Type = Radial Radius = 7”
Wheel
Principal Interest
Type = Fixed Rate = 5%
Interest
Rear Wheel
Type = Radial Radius = 8”
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Penalty Interest
Type = Fixed Rate = 6%
Product Conditions 14
A Property is a copy of its Property class. To distinguish between the properties created, we must assign Product Condition to it Each Property must have a Product Condition assigned to it Product Conditions define default values for Arrangements. Also, Whether a defaulted value can be modified at the Arrangement level If modifiable, then, with what restrictions Interest Interest Type (attribute)
Fixed (value)
Rate (attribute)
5 (value)
Other attributes
Their values 14
Product Lines and Property Classes 15
PRODUCT LINE
PROPERTY CLASS 1
PROPERTY CLASS 3
Examples of different Product Lines in the Banking Industry would be
PROPERTY CLASS 2
Loans, Deposits and Accounts
Examples of different Property classes for Loan Product Line would be
Interest, Term amount and Charges
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Product Line - Product Groups - Products 16
Loan Product Line
Business Loan Product Group
Mortgage Product Group
Annuity Mortgage
Linear Mortgage
Term Loan
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Working Capital Loan
Proofing and Publishing Products 17
A product must be Proofed and Published.
Product Management
Proof Create
Proofed Products
Product Designer Fix
Modify
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Publish
Product Catalog
Building Blocks 18
Property Class
• Component having common Attributes and Actions across different Products • Temenos Released • Defined as mandatory or optional component at product line level
Property
• Named Instance or copy of Property class • User Defined • Defined as mandatory or Optional component at product group level
Product Condition
• Linked at the product level to the Property • User Defined • Assigns default values to the attributes of the Property • Also sets if the default values can be modified or not
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Agenda 19
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
21
AA Product builder - Navigation 20
Understand these icons
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Workshop 21
Use Admin menu to navigate to Product Builder 1. View Lending Product Line. What is it made of? 2. View Home Equity Product Group under Lending. What do you see in the Product Group? 3. View the Home Equity Loan. Understand the contents of the different tabs
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Product Definition - Summary 22
TEMENOS Maintained
Product Line
Property Class
Property Class Attributes
Named types of
Product Group
Property Specific values of Sub set of
Product
Property
Product Condition
User Definable All share a common set of attributes 24
Agenda 23
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
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Products and Arrangements 24
Customer
Product
Arrangement
An Arrangement is an instance of a Product for a Customer Product conditions could be Negotiated with Customer, if allowed
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Arrangements 25
Product
Customer
Agreement Date
Arrangement
Currency Account
Arrangement Condition
Arrangement is an Agreement with a Customer for the Bank’s Product
It has an Agreement date.
Currency, if line attribute is CCY and an associated Account for lending product line
Body of the Arrangement is a set of Arrangement conditions, one per Property of the Product
Arrangement is spread across multiple records. Easier to use the Enquiries and Composite screens provided 27
AA Navigation – Creating an Arrangement 26
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AA Navigation – Creating an Arrangement 27
The various Properties in the Product
Enter values as required
Schedule is defaulted as once every month. From where are these values obtained? 29
AA Navigation – Creating an Arrangement 28
Note the AAACT-ID, AA-ID, ACCOUNT-ID
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AA Navigation – Creating an Arrangement 29
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AA Navigation – Creating an Arrangement 30
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Workshop - Create an Deposits Arrangement 31
Menu Navigation
Use User Menu > Product Catalog > Deposits > Term Deposits > Short Term Deposit
Instructions
Create an Arrangement for your Customer for the above Product Commit the Arrangement and get it authorised View the arrangement in the table AA.ARRANGEMENT and view the ECB record of the underlying account
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Solution 32
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Solution 33
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Solution 34
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Agenda 35
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
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Activities in Arrangements 36
Every Operation on an Arrangement is an ‘Activity’
Activity Class defines a behaviour – released by Temenos Activity can be created by user or automatically generated by T24 itself
Activities act on Arrangements - both online and during COB – stored in AA.ACTIVITY.HISTORY
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Activities in Arrangements 37
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Activities in Arrangements 38
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Workshop - Activity 39
Instructions
Use command line View the records of AA.ACTIVITY.CLASS View the records of AA.ACTIVITY Now view the Activity log for an arrangement using AA.ACTIVITY.HISTORY Try to understand what is Activity reference ID View any of the activity reference in AA.ARRANGEMENT.ACTIVITY
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Solution 40
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Solution 41
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Solution 42
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Reverse and Replay – Effective Dated Processing 43
Activities can be reversed and replayed for a (back) effective date. Line Attribute of Product Line should be set with REPLAY option Financial Position and related calculations based on value date
Reverses all related activities backwards from today to back valued date
Current back valued entry triggered
Replays activities from back date to today
Full History of the arrangement conditions should be available
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Reverse and Replay – Effective Dated Processing 44
Transaction
Transaction Date
ARRANGEMENT CREATION
1st Jan
500T
500T
Increase commitment
31st Jan
50T
550T
Decrease commitment
15th Feb
100T
450T
Today 20th Feb
-
450T
Position
Transaction Amount
44
Commitment Balance
Reverse – Effective Dated Reversal for back valued increase 45
Transaction
Transaction Date
Transaction Amount
Commitment Balance
ARRANGEMENT CREATION
1st Jan
500T
Back valued increase
15th Jan
150T
Increase commitment
31st Jan
50T Reversed
500T
Decrease commitment
15th Feb
100T Reversed
550T
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500T
Replay – Effective Dated Reversal for back valued increase 46
Transaction
Transaction Date
ARRANGEMENT CREATION
1st Jan
500T
500T
Back valued increase
15th Jan
150T
650T
Increase commitment
31st Jan
50T Replayed
700T
Decrease commitment
15th Feb
Position
Transaction Amount
100T Replayed
Today 20th Feb
-
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Commitment Balance
600T
600T
Agenda 47
1.
Learning Objectives
2.
Design & Servicing
3.
Product Organisation
4.
Building Blocks
5.
Navigation
6.
Arrangement
7.
Activities in Arrangements
8.
Simulation
49
Simulation - Overview 48
Simulation is the process of replicating real time scenario
For a new or existing arrangement for a set of conditions
Repayment for changes in principal, interest rate, tenor, charges, etc.
Checks conditions, negotiation rules, generates override / error messages
Calculates maturity date, charges, repayment amounts
Prepares repayment schedule
Option to convert simulation activity into live
Through enquiries, simulated data can be viewed
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Quiz 49
Do you know???
What is Property Class, Property and how is product condition related to these?
Who creates Product line, Product Group, Product? What are they made of?
What is an arrangement?
What are activities?
What is the Reverse Replay?
What is simulation?
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Conclusion
What Did We Learn? 50
Designing & Servicing in AA Product Organization in AA Building Blocks of AA Navigation in AA Arrangement Activities Simulation
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