Target release

16.03

Epic MIFOSX-2242 - Getting issue details... STATUS
Document statusDRAFT
Document owner

Dayna Harp (Unlicensed)

Designer
Developers
QA

Goals

  • To allow a financial institution manage inactive savings accounts.

Background and strategic fit

Nearly every country has banking regulations regarding the manner in which inactive savings accounts are managed by a financial institution.  The terms used to describe these accounts include the words "inactive," "dormant," "unclaimed property", "inoperative".  Regardless of the terms used by the various central banks, the financial institution has a fiduciary responsibility to manage these funds in certain ways from account holder notification to turning the funds over to an unclaimed property account generally management by the region's regulatory agency.

Assumptions

  • Savings account does not have deposit or withdrawal for a predetermined period of time, in this example, we'll use 1 year.
  • The account moves to an inactive status
  • The account continues to receive interest, if applicable.  Interest postings do not activate the account
  • The customer is contacted to activate the account
  • The customer has no reply - the account moves to dormant status at a set point in time, we'll use 2 years.
  • The financial institution has the option to apply an inactive account fee (this does not activate the account)
  • At a period of time dictated by the country, the remaining inactive account balance may have to be escheated to a government agency that handles unclaimed property.  This varies by country.

Requirements

#TitleUser StoryImportanceNotes
1Last Deposit or Withdrawal on AccountSystem must track last transaction made by customerMust Have

The transaction may be electronic or in person and must be a deposit or withdrawal

2Exclude Interest PaymentsAccount will continue to earn interest while in an inactive statusMust HaveInterest payments do not activate the account
3Inactive Account FeeAccounts may be charged a fee when the account becomes in active for a set period of timeMust HaveThe inactive account fee does not activate the account
4Inactive Account ReportsMust be able to pull an inactive account report either on-demand or in the month-end job queueMust HaveThe inactive report must list customer name, account number, contact information, date of last activity, total days inactive
5Dormant Account ReportMust be able to pull a dormant account report either on-demand or in the month-end job queueMust HaveThe Dormant Account report lists the above details for accounts xx years old or more.
6Escheat FundsMany FIs will be required to turn abandoned property over to a regulatory body. Must have the ability to debit client account/credit Abandoned Property GL.  

User interaction and design

Savings Account Creation Screen:

 

Fee Creation

Reports

Tran

 

Questions

Below is a list of questions to be addressed as a result of this requirements document:

QuestionOutcome

What happens to accounts which have -ve balance (overdraft) but fit the definition of inactive/dormant/escheat?
That will be determined by the FI. These typically become a loss to the FI.
Overall there will be 3 new status for an account, inactive/dormant/escheated, please confirm.yes. Typically an account first becomes inactive. Then it becomes dormant. Finally it moves to an escheat status when the proceeds are turned over to a regulatory body.
Fee applicable would be flat or can be % as well?That will be determined by the FI. There should be a choice
Abandoned property account would be an expense or liability type account?abandoned savings is a liability
Fee collected would get into what type of account?Fee collected would go to an income account - typically a sub-heading below Fee Income
Is deposit/withdrawal/fund transfers allowed when account is in inactive status?Yes - the financial transaction reactivates the account
Is deposit/withdrawal/fund transfers allowed when account is in dormant status?Yes - the financial transaction reactivates the account

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