Introduction to Safe Deposit Box
The Safe Deposit Box (BX) is part of the Retail Banking suite of products.
The module allows the user to manage the inventory of physical boxes and to create and service Leasing or Renting agreements (Arrangements) using the AA framework under the Safe Deposit Box Product Line.
Key features of Safe Deposit Box:
- Creation of new Safe Deposit Box arrangement
- Collection of caution or key deposit
- Collection of rent for boxes with flexible frequency options
- Collection of rent in advance and pro-rated rent calculation
- Recording customer visits
- Unlimited charge types
- Refund of caution deposit on closure
- Safe Deposit Box Property Class holds the details of the box being rented along with key details.
- SDB arrangement is the agreement between the customer and bank on the locker rental information.
- The
AA.SDB.BOX.ENTRYandAA.SDB.BOXstore the locker related information. - Each action of customer like visit to locker, key lost, etc are captured as events during servicing the SDB arrangement.
Mandatory Property Classes in Safe Deposit Box are listed below.
|
Property Classes |
Description |
|---|---|
| Account | SDB account holds the balances such as Key deposit. |
| Accounting | Defines the accounting rules for the SDB product e.g. PL for Rent. |
| Activity Mapping | Links the financial transactions, which are initiated in Temenos Transact but outside AA module and the activity which has to be processed against the arrangement (for example, Key deposit funded through teller application) |
| Customer | Specifies all involved customers of the arrangement along with their respective roles. |
| Safe Deposit Box | Specifies the physical box number, which is being leased through the arrangement |
| Payment Rules | Defines the rules by which the amount received towards the arrangement has to be appropriated against different balances for example, Receive payment towards key deposit and then against Rent due. |
| Payment Schedule | Schedules the recurrent charges and key deposit amount (for example, collect rent every year on 1, Jan, maintain key deposit amount of 200 USD on every renewal or year). |
| Payoff | Generates payoff statement at the arrangement level which includes all Principal, Interest and Charges that are due as a result of the payoff. |
| Closure | Defines the rules and behaviour for processing arrangement account closure. |
Optional Property Classes are given below.
|
Property Classes |
Description |
|---|---|
| Activity Api | Specifies any local API for any SDB customization. |
| Activity Charges | Triggers charges for an event. (for example, break open charge, charge for customer visit) |
| Activity Messaging | Sends out letters or messages to SDB customers (for example, rent due letter, SDB lease agreement). |
| Activity Restriction | Applies any restriction or property base evaluation on SDB arrangement (for example, restrict customer visit activity when the box is in repair status). |
| Activity Presentation | Version for SDB arrangement screens. |
| Charge | Defines the calculation terms for charges (for example, rent flat 100 USD) |
| Charge Override | Overrides or waives the system calculated charge amount (for example, override the default charge amount for replacing a key based on what locksmith quotes). |
| Change Product | Automatic renewal of SDB arrangement or for changing the SDB product. Possible to collect rent in every renewal |
| Balance Maintenance | For capturing or adjusting balance during migrating SDB contracts from Legacy to Temenos Transact and for waving of charges (Rent) once it is billed. |
| Dormancy | Defines different dormancy statuses based on period of inactivity (for example, the box accessed for a period of 12 months, mark is as dormant) |
| Eligibility | Defines customer eligibility conditions for a product (for example, eligible only for senior citizens, High network customers, Staff Preferences) |
| Overdue | To age the due amounts and collect penal charges (for example, collect a penal charge of 10 USD if the rent is overdue) |
| Payout Rules | Defines the rules by which the amount should be paid out from the arrangement (for example, pay out key deposit and then refund of rent if any. |
| Periodic Charges | Assesses and collects the charges based on the occurrences of an event in a given period |
| Pricing Rules | Defines the rules governing how an appropriate relationship pricing plan is selected, and also how often to update the relationship pricing adjustment on the financial arrangement. |
| Reporting | Enables IFRS accounting for amortising the charges. |
| Settlement | Defines settlement account from which the amounts such as rent, charges and key deposit can be collected. |
| Statement | Configures the Statement setup in the AA Framework. Account statements can be generated based on the setup in Account application or Arrangement Architecture. |
| Alerts | Defines the conditions for sending out alerts (for example, alert the customer when the box is accessed). |
| Constraint | Applies the restrictions on allowing backdated activities (for example, restrict backdating a ‘Customer Visit’ activity). |
| Officers | Specifies the Account aofficer or the relationship manager for the box customer. |
| Tax | Collects the service tax or VAT on the rent or other charges collected. |
| Agent Commission | Defines the agent details when safe deposit box is allocated through an agent. |
Read Safe Deposit Box Property Class user guide for more details.
Illustrating Model Parameters
Product Conditions of a Property Class are evaluated to bring out the features of the Property Class. The values in the Product Condition are made default in an arrangement during its creation. The negotiability or default values and other restrictions are also defined in the Product Condition. These product conditions with the Properties derived from the Property Classes are grouped together to build products.
Product Conditions are dated and some of them have currency as part of their ID. When currency forms part of the Product Condition ID, then the user has to create different conditions for each currency in which the product is available. When a new condition is created or an existing condition is amended, the user has to proof and publish the product to which the condition is linked.
Model parameters consists of:
Accounting
The Accounting Property Class is used by all products. Arrangement Architecture (AA) uses activity-based accounting. Each property has different actions, which require accounting. For each action, a corresponding allocation rule definition is required. Allocation rules can be defined either at Property or Property Class level. The categories to which the interest or charges have to be posted are also defined in this Product Condition. In Model Bank, the charges are amortised.
Activity Charges
The Activity Charges Property Class defines the charges that has to be applied when a particular activity is triggered on the arrangement. The applied charges can be made as due, capitalised or deferred. The user has to provide Yes in the Auto Settle field to auto settle the charges made due from unallocated credit balance.
Activity Mapping
The Activity Mapping Property Class provides the link between external applications and arrangement activities when a transaction is performed on an arrangement account. A debit or credit to an arrangement account triggers the applications such as, Funds Transfer, Teller, Clearing, etc. These applications are linked by relevant transaction codes by using this Product Condition.
Activity Presentation
The Activity Presentation is a non-mandatory Property Class that allows to define versions used for various properties during arrangement activities. These versions are defined at Property Class, Property and Activity levels.
Charge
The Charge Property Class is used for all charge calculations in AA. The primary purpose of this Property Class is to enable charge calculation and can define the currency in which the charge has to be applied. The charges defined can be scheduled charge, periodic charge or an activity based charge. Charges can be fixed or calculated based on Band or Level. The user either can waive or can define a minimum charge.
Change Product
The Change Product Property Class defines the rules and behaviour to allow and change arrangements of one product to another product. The Change Product Property can be included in a product, if arrangements are allowed to be changed to another product during its lifetime. The Property Class allows the definition of restrictions on products that change can be made to and when a scheduled change has to be applied. This Property Class can be used to define the rollover conditions for an arrangement.
Closure
The Closure Property Class is used to close an arrangement account. The Product Condition allows the user to close an arrangement account automatically or manually.
Safe Deposit Box
The Safe Deposit Box Property Class is used in Safe deposit box Product Line to define the box type and box number associated with the product.
Tax
The Tax Property Class allows the user to control and define tax that has to be calculated for various financial property. Tax definition can be done at both Property Class and Property Tax level. The tax can be attached both at TAX and TAX.GEN.CONDITION level.
Illustrating Model Products
This Product Line allows the user to create Large, Medium and Small SDB by using the AA framework under the Safe Deposit Box Product Line.
| S.No | Product Name | Product Attributes |
|---|---|---|
|
|
Safe Deposit Box |
|
In this topic