Financial Services Product Management
Savings (share) Accounts
Current (checking/share draft) Accounts
Term Deposit Accounts
Collateral Loans
Savings Secured Loans
Agriculture Loans
Open End/Top Up/Line of Credit Loans
Incremental Disbursement Loans
Village/Group Lending
Solidarity Group Lending
Loan Approval Process
Loan Products
Savings secured loans – this feature looks as though it is well fleshed out in the jira and is in development. It is expected to ship in xx release.
Variable rate loans. This may be somewhat tied to the above Automatic Rate Adjustments. Specifications for this need to be written.
Loan Product Configuration
Amortization
Repayment Types/Schedules
Repayment Frequency
Interest Rate Calculation Methods
- Flat
- Declining Balance
- Declining Balance - Interest Recalculation (Daily, Weekly, Monthly)
- Automatic Rate Adjustments. e.g. savings = 6%, loan is 5% higher. Savings dividend changes to 7%, loan rates must adjust. This requires development. Exact specifications must be written for development.
Interest Calculation Frequency
Payment Year
Payment Processing Strategy
Grace Period Support
Savings Products
Passbook Savings
COMPLETE
Mifos X has full support for basic passbook savings at the client, group, and center levels. Each passbook savings account has the same flexible account parameters that be configured at the product level including the specification of the interest rate, its compounding period, its posting period, balances used for interest calculation as well as the number of days in a year. A minimum opening balance
Current Accounts COMPLETE
In Mifos X, you can create a current account (zero-interest savings account) that allow you to specify an overdraft limit enabling the account to be used as a current or transactional account in which loan payments/fees can be automatically be deducted. These current accounts fully utilize the standing instruction functionality found in Mifos X.
- IN DEVELOPMENT Making these a distinct product (separate from savings products) in the Product Administration section of the Community App is still being worked on.
Shares Management
SCHEDULED IN ROADMAP
Recurring Deposits
IN DEVELOPMENT
Fixed Deposits
- IN DEVELOPMENT Configurable Interest Rate Bands based on Amount Deposited
Pensions
FUTURE ENHANCEMENTS
Dividend Calculation and Payment. This topic needs significate data collection from cooperatives. The existing core system properly handles regular recurring interest (dividend) payment. For example, savings account earns 3% dividends (interest) per month calculated on average daily balance. What we need to learn is how financial co-ops desire to payout "bonus" dividends. This may fall into custom reports.
- Recurring Deposits
- Current Account
- Term Deposits
Savings Account Management
- Transfers
- Standing Instructions
- Linkage Between Loan & Savings Accounts
Savings Product Configuration
Interest Calculation - Mifos X supports calculation of interest balance on daily or average daily balance with the ability to specify the compounding period daily, weekly, monthly, quarterly, or annually and the posting period, weekly, monthly, quarterly or annually. There is also the ability to manually to control the date of both posting and calculation of interest.
Lock-in Period - Mifos X supports a lock-in period where you can freeze an account upon opening for a certain number of days, months, weeks, or years.
Mobile Payments and Transfers
Penalties, Fees, and Charges
Membership Fees. Nearly every cooperative collects a membership fee and/or requires a minimum balance to remain an active member of the cooperative. To date, an awkward method of opening a “dummy” account is being used. For good internal control, this method is not recommended. The system must be able to collect fees at the client level before any sort of account is opened. Accounts may be not opened until the individual is approved for membership. If the applicant is not approved for membership, the fee may be returned. By having fee collection at the client level, fees can be tracked, properly credited to the potential member then held in a suspense general ledger account until the member is approved where the funds would then transfer into a fee income account, or if denied, returned to the applicant.
Insurance