Introduction to TBC for Multi-Currency Accounts

The Deposit Temenos Banking Capability (TBC) provides the functionality for multi-currency (MCY) accounts with the following key features:

• Create a multi-currency account arrangement
• Create and link multiple sub-accounts with a single base currency account at any time
• Define base currency and allowed currencies
• Perform credit transactions for the MCY account
• Route funds to proper currency accounts based on the payment currency
• Supports single or multiple ownership for the MCY account
• Combined statement generation.

The functionality of MCY accounts in Deposit TBC is provided by the following features:

• Creation of a multi-currency account – Supports the opening of MCY accounts for a customer. Customers are maintained in the Party TBC, reference and market data are maintained in the Reference data and Market data TBCs, respectively.
• Sub-accounts in a multi-currency account – Supports creating sub-accounts under an MCY account. There can be more than one sub-account under a MCY account but there can be only one sub-account per currency. These sub-accounts are created on the customer’s request. The sub-accounts are created in the product defined in the Sub-Arrangement Rules definition.
• Sub-arrangement rules – Defines the information related to the customer, currency and product of the sub-accounts created under the MCY account using the Sub Arrangement Rules definition.
• Maintenance of a multi-currency account – Throughout the life of a MCY account, the customer or the bank can initiate changes in the account related information. These changes are handled through the provided APIs and the system publishes events to notify other systems for further processing.
• Transaction Processing in multi-currency accounts – Financial transactions in an MCY account can be initiated from any external payment system.
  • The credit check for transactions in an MCY account is performed at the MCY account level.
  • Based on the currency of the transaction, the transaction is routed to the corresponding sub-account at the Generic Accounting Interface (GAI) layer. The transaction is processed in the sub-account, based on the Activity Mapping setup.
  • If there is no sub-account in the currency of the transaction, it is treated as an FCY transaction, posted to the base currency sub-account.
  • As the credit check is at the MCY account level, it is possible that the debit transactions posted to the sub-account may result in a debit balance at the sub-account. In such situations, the system can be configured to automatically transfer the funds from another currency sub-account and clear the debit balance.
  • When the transaction is posted successfully, the TBC emits an event, which can be consumed by an external GL system, for the accounting/balance updates to be completed.
• Charges in multi-currency accounts – Deposits TBC supports levying of charges on MCY accounts. The charges in an MCY account can be a scheduled charge or a charge triggered on the occurrence of a specific activity or when the rule is broken.
• Change Product – Banks can upgrade or downgrade an MCY structure, by performing a change product activity. When the product of a MCY account is changed, the sub-accounts also undergo a product change to the sub-account product specified in the sub-arrangement rules of the new MCY product.
• Combined Statement - Statement conditions can be configured for combined statements at the MCY level and handed off to the delivery system for a print carrier.
• Multi-currency account closure – Based on the customer’s request or the bank’s requirement, it is possible to close a specific currency sub- account or more than one sub-account or the multi-currency arrangement itself.
• Migration of multi-currency accounts - MCY accounts, along with their sub-accounts, can be migrated from any legacy system to TBC.

Features such as Eligibility, Delivery, Correspondence, and Activity messaging are not supported in the TBC. These are handled by external systems.

• Eligibility - The eligibility criteria for opening a multi-currency account can be handled in an external component, either Temenos’ solution, such as TEP (Temenos Enterprise Pricing), or a third-party solution, such as the bank’s onboarding solution.
• Alerts - Alerts can be configured in the Deposit TBC at the MCY account level or sub-account level, based on the business requirement. The alert messaging content is handed off as an event to the delivery system associated with the Deposit TBC in a preconfigured format.
• Accounting - Deposit TBC uses soft accounting to update the balances for the transactions in the MCY account within the TBC. The actual accounting entries themselves are handed off using the accounting events raised as part of every transaction which could be consumed by any external accounting system which handles/maintains the General Ledger (GL).