Preferential Pricing
The Preferential Pricing Property Class allows configuration of the Preferential Pricing adjustments that is available for the financial arrangement of customers who have a certain relationship with the bank.
It defines the rules for benefits that the customer gets for his relationship with the bank.
Charges, Interest, Periodic Charges and Bonus (Charges paid to Customers) Property Classes can have preferential pricing using the Preferential Property Class attributes.
For example, if the customer qualifies for a SENIOR.CITIZEN plan, he could get a 0.50% enhanced interest rate on Deposits.
Product Lines
The following Product Lines use the Preferential Pricing Property Class:
- Relationship Pricing
- Regional Variations
Property Class type
The Preferential Pricing Property Class uses the following Property Class Types:
- Dated
- Merging
- Tracking
- Variations Supported
Property Type
The Preferential Pricing Property Class is associated with the Variations Supported Property.
Balance Prefix and Suffix
The Preferential Pricing Property Class is not associated with balance prefix and suffix.
Attributes
The following section decribes the related attributes
Defining Preferential Pricing Conditions at Product Level
Preferential Pricing defines the rules based on customer eligibility based on customer static information or dynamic information like customers relationship with the bank.
There are three individual multi-value set of attributes available for Charges, Bonus and Interest in this Property Class. Each of these has two distinct sections:
Product Scope—The first four attributes are used to specify the Product or variations the subsequent pricing is applied. Values can be input in the following combinations.
|
Product Line |
Product Group |
Product |
Variation |
Result |
|---|---|---|---|---|
| - | - | - | - | Preferential Pricing for Interest, Charges and Bonus applies to all Products. |
|
DEPOSITS |
Preferential pricing rates for Interest, Charges and Bonus applies to all Products under Deposit Product line. | |||
| DEPOSITS | TERM.DEPOSITS | Preferential pricing rates for Interest, Charges and Bonus applies to all Products under TERM.DEPOSITS Product group. | ||
| DEPOSITS | TERM.DEPOSITS | 90D.DEPOSIT | Preferential Pricing rates for Interest, Charges and Bonus applies to 90D Term deposit Product. | |
| DEPOSITS | TERM.DEPOSITS | 90D.DEPOSIT | INTERNET | Preferential pricing rates for Interest, Charges and Bonus applies to 90D Term deposit Product for Internet variation |
A specific definition (Line, Group, Product and Variation) is used before a generic definition (Product Line only). Additionally, each set of values should be unique in each of these three sections. For example, DEPOSITS->TERM.DEPOSITS->90D.DEPOSIT->INTERNET can be input only once for Charge, once for Bonus and once for Interest.
Property Scope Attributes
The first two attributes of the sub-valued sets allow the user to specify the Properties and Currencies the preferential pricing applies to.
Property is considered to be more specific of the two and is given higher priority. The following example illustrates how the system interprets these attributes in AA, when determining if there is any preferential pricing to be applied to a Property:
|
Property |
Currency |
Interpretation |
|---|---|---|
|
- |
- | Preferential Pricing is applicable for all properties and all currencies of Interest, Charges and Bonus |
| - | USD | Preferential Pricing is applicable for all properties of USD Arrangements. |
| NEWARRFEE | - | Preferential Pricing is applicable for all New Arrangement Fees for which a currency specific definition is not available |
| NEWARRFEE | GBP | Preferential Pricing is applicable for New Arrangement fees of GBP Arrangements |
| DEPOSITINT | USD | Preferential Pricing is applicable for Deposit Interest of USD Arrangements |
Priority order to determine Preferential Pricing
The following table displays the priority order that AA uses when determining if an Arrangement Property (charge or interest) has preferential pricing. It passes through the Property, Arrangement Currency and Product ID or Variation. Based on these three parameters it searches matching preferential pricing according to the following order. If none of these 32 combinations exist then no preferential pricing is applied to the specific Property.
| # | Product Scope | Property Scope | Meaning | ||||
|---|---|---|---|---|---|---|---|
| Line | Group | Product | Var. | Property | Currency | ||
| 1 | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | Currency specific Property for a specific Product Variation |
| 2 | ✔ | ✔ | ✔ | - | ✔ | ✔ | Currency specific Property for a specific Product |
| 3 | ✔ | ✔ | ✔ | ✔ | ✔ | - | Specific Property for a specific Product Variation |
| 4 | ✔ | ✔ | ✔ | - | ✔ | - | Specific Property for a specific Product |
| 5 | ✔ | ✔ | - | ✔ | ✔ | ✔ | Currency specific Property for a specific Variation of All Products of a Group |
| 6 | ✔ | ✔ | - | - | ✔ | ✔ | Currency specific Property for All Products of a Group |
| 7 | ✔ | ✔ | - | ✔ | ✔ | - | Specific Property for a specific Variation of All Products of a Group |
| 8 | ✔ | ✔ | - | - | ✔ | - | Specific Property for All Products of a Group |
| 9 | ✔ | - | - | ✔ | ✔ | ✔ | Currency specific Property for a specific Variation of All Products of a Line |
| 10 | ✔ | - | - | - | ✔ | ✔ | Currency specific Property for All Products of a Line |
| 11 | ✔ | - | - | ✔ | ✔ | - | Specific Property for a specific Variation of All Products of a Line |
| 12 | ✔ | - | - | - | ✔ | - | Specific Property for All Products of a Line |
| 13 | - | - | - | ✔ | ✔ | ✔ | Currency specific Property for a specific Variation for All Products |
| 14 | - | - | - | - | ✔ | ✔ | Currency specific Property for All Products |
| 15 | - | - | - | ✔ | ✔ | - | Specific Property for a specific Variation for All Products |
| 16 | - | - | - | - | ✔ | - | Specific Property for All Products |
| 17 | ✔ | ✔ | ✔ | ✔ | - | ✔ | All Currency specific Properties for a specific Product Variation |
| 18 | ✔ | ✔ | ✔ | - | - | ✔ | All Currency specific Properties for a specific Product |
| 19 | ✔ | ✔ | ✔ | ✔ | - | - | All Properties for a specific Product Variation |
| 20 | ✔ | ✔ | ✔ | - | - | - | All Properties for a specific Product |
| 21 | ✔ | ✔ | - | ✔ | - | ✔ | All Currency specific Properties for a specific Variation of All Products of a Group |
| 22 | ✔ | ✔ | - | - | - | ✔ | All Currency specific Properties for All Products of a Group |
| 23 | ✔ | ✔ | - | ✔ | - | - | All Properties for a specific Variation of All Products of a Group |
| 24 | ✔ | ✔ | - | - | - | - | All Properties for All Products of a Group |
| 25 | ✔ | - | - | ✔ | - | ✔ | All Currency specific Properties for a specific Variation of All Products of a Line |
| 26 | ✔ | - | - | - | - | ✔ | All Currency specific Properties for All Products of a Line |
| 27 | ✔ | - | - | ✔ | - | - | All Properties for a specific Variation of All Products of a Line |
| 28 | ✔ | - | - | - | - | - | All Properties for All Products of a Line |
| 29 | - | - | - | ✔ | - | ✔ | All Currency specific Properties for a specific Variation of All Products |
| 30 | - | - | - | - | - | ✔ | All Currency specific Properties for All Products |
| 31 | - | - | - | ✔ | - | - | All Properties for a specific Variation of All Products |
| 32 | - | - | - | - | - | - | All Properties for All Products |
Pricing Adjustment Options
The following pricing adjustment options are available in Temenos Transact.
- Charge higher than base Product price.
- Lower bonus or charges.
- Set an adjustment amount for bonus or charges.
- Set a flat rate which overrides the base Product interest rate.
These options are used while setting up Regional, Package and Relationship Pricing.
Support for Pricing Options
Interest, Charges and Periodic Charges Arrangement Conditions store the details of pricing plans and benefits.
Attributes in Charges and Periodic Charges are:
| Attribute | Description |
|---|---|
| Adj Operand | It is used to specify the Adjustment Operand that is, whether the specified Adjustment Amount or Adjustment Percentage is added to, subtracted from, or multiplied with the calculated charge amount. |
| Adj Amt | It is used to specify the Relationship pricing adjustment amount that is added to, subtracted from, or multiplied with the charge amount. |
| Amount | It is a flat amount evaluated by the relationship of the customer with the bank. |
| Pricing Benefit | It is used to specify the name of the benefit the customer is provided and updated with the Pricing Name specified in Pricing Rules. |
| Adj Operand | It is used to specify the Adjustment Operand that is, whether the specified Pricing Rules Adjustment Amount or Adjustment Percentage is added or subtracted or multiplied to the calculated charge amount. |
| Adj Percentage | It is used to specify the Pricing Rules Adjustment Percentage, by which the charge amount is Increased, Decreased, or Multiplied based on the operand. |
| Adj Amt | It is used to specify the Pricing Rules adjustment amount that needs to be added to, subtracted from, or multiplied with the charge amount. |
| Amount | It is used to specify the Actual Charge Amount that is, the amount specified here is the final charge amount and no calculation is done based on the actual condition or discount rules. |
The system stores the benefits passed to the customer and records the discount information pertaining to all types of waivers in AA.CHARGE.DETAILS.
| Attribute | Description |
|---|---|
| Activity | The arrangement activity ID of the Activity, which raised this charge for the Arrangement. |
| BENEFIT.TYPE | It is used to specify the reduction type. Possible types are User Discount, Charge Override, Pricing Rules, Regional Pricing, Relationship Pricing and Bill Adjustment. |
| ADJUSTMENT.REASON | It is used to specify the reduction reason for the reduction type. Possible reasons re User Discount, Charge Override, Pricing Rules, Regional Pricing, Relationship Pricing and Bill Adjustment. |
| Adj Amt | It is the reduction amount corresponding to the reduction type and reason. |
The following table lists the attributes used in Interest.
| Attribute | Description |
|---|---|
| Fixed Rate | It specifies the overriding Relationship Pricing fixed rate, which replaces the evaluated rate. |
| Pricing Benefit | It specifies the benefit provided to the customer and updates the Pricing Name that is specified in Pricing Rules. |
| Fixed Rate | It specifies the overriding Pricing Rules fixed rate to replace the evaluated rate. |
| Margin | It specifies the Pricing Rules Margin by which the rate is Increased, Decreased, or Multiplied based on the operand. |
| Operand | It specifies the Adjustment Operand, that is, whether the specified Pricing Rules Adjustment Amount or Adjustment Percentage is added or subtracted or multiplied to the calculated charge amount. |
Periodic Attribute Classes
There are no periodic classes associated with Preferential Pricing Property Class.
Actions
The Preferential Pricing Property Class supports the following actions:
| Action Name | Description |
|---|---|
| UPDATE | The update action allows modification and creation of a new PREFERENTIAL.PRICING property for an arrangement. It can be performed as part of the NEW-ARRANGEMENT and UPDATE-PREFERENTIAL.PRICING activities. |
Accounting Events
The Preferential Pricing Property Class does not perform any actions that generate accounting events.
Limits Interaction
The Preferential Pricing Property Class does not perform any actions that impact the limits system.
In this topic