T2ITC - Customer - R11.

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 CUSTOMER application is central or “Core” to T24 system as all activities
are customer centric in nature. All management information and services are
organised around Customer record. Details mentioned in Customer records are
not repeated any where else, but used by all applications. Any subsequent
change in these details are hence required to be done only at CUSTOMER
application and hence it is easy to maintain.
It contains all the basic information about any entity which the bank has
dealings with. In T24, Customer record creation is not restricted to „Bank‟s
Customer‟ in the conventional sense of the word. A customer record will need
to be opened for correspondent banks, brokers, guarantors etc., as well as for
Bank‟s customers like current and savings account holders, borrowers,
depositors and the like.
Details in Customer record are descriptive in nature and not financial. For
example, it holds the occupation, residence and contact details of a Customer.
It will not hold the account numbers or balances in those accounts of a
Customer

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 All business process applications refer to the Customer record during
processing. Therefore it must be opened before any Customer business
activity.
Customer records for Banks, Correspondent Banks and Agents should ideally
be opened at the initial stage itself as this will help to minimise data input for
settlement instructions in Money Market, Foreign Exchange and Funds
Transfer applications.
Though some Banks insist that their Customers should always have an account
with them before getting into any Contractual relationship, this is not
mandatory universally. In Retail Banking, a private or corporate customer
would normally have some kind of account such as savings account, current
account or Overdrafts. Banks have Nostro Account with other Banks. But a
Customer need not be in account relationship with a Bank to do business.
Contract type transactions such as FOREX, Money Market and Securities can
still be arranged and a limit would normally be set up for a Customer for such
dealings.
T24 distinguishes its business applications as Account based and Contract
based. This comes from the underlying business of Banks which do allow
balances in accounts to switch from positive to negative sign on the one hand
and a loan remaining always a loan and a deposit always a deposit. Balances in
these contracts never switch their accounting sign

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 Customer record holds all the basic information about a Customer.
Ideally only one Customer record should exist for each Customer. This can be
created whenever a name, address and other such essential information is
obtained and is not dependent on the existence of an account.
In T24, creating a Customer record need not wait till we are ready to open an
account or till we propose to have a business transaction.
For example, a Customer record can be set up even when a Bank is
considering having any relationship. Later, when it decides to enter into any
contractual obligation, like Foreign exchange or Money Market dealings, it
can use the Customer record already created. If at any later stage, the Bank
proposed to open a current account, it need not create another record for the
Customer. It can as well use information already stored.
Once a customer record is authorised, it is not possible to reverse the record.
We can however amend any details as and when needed

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 We saw earlier that all descriptive details of Customers are stored in their Customer records.
Standard information to be filled in some fields are designed to be picked from pre-defined
information in Static tables. Information in the Static tables can be amended. If the existing
Customer records also are to get new values, then suitable changes could be done there. Static
tables are maintained using MB Admin menu in Model Bank.
INDUSTRY table holds occupation related information. Helps to identify the activity or
business of Customer is involved in.
CUSTOMER.STATUS table holds status related information like Large Corporate, Bankrupt
Company and Private Standard Client. Helps to identify the current status of Customer.
COUNTRY table holds name and important details of all countries. In a Customer record,
these values are used to indicate Nationality as well as Residence of Customers.
TARGET table defines classification of Customers from Bank‟s marketing strategy like High
net worth and Prime borrower. Useful for future marketing.
SECTOR table helps in defining grouping Customers at a top level for several purposes. This
classification can be used for areas not covered by other classifications. Sectors can be like
Private sector, Public Sector, Infrastructure sector, Banks and IT sector. We shall be seeing in
later trainings the importance of Sector as it is used in ACCOUNT.CLASS and
CUSTOMER.DEFAULT tables also. All these classifications, beside holding information,
can also be used to classify Customers for preferential treatments like interest conditions, tax
rules and concessions in charges.
DEPT.ACCT.OFFICER table contains the Departmental hierarchy in a Bank. It can go down
up to naming all the Staff individually or stop at Department level. In a Customer record, the
value indicates the Relationship manager.
Whenever there is a business dealing, then the Value from Customer record is defaulted,
unless otherwise organised. This also appears in all accounting entries so that Departmental
Assets and Liabilities or Profits could be measured.

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 Id is the numeric identification code for a Customer. Id can go from 1 to 10
digit number. It is possible to set automatic generation of Ids while opening
new records.
Mnemonic is an alternative and easy means of referencing the Customer. A
mnemonic is a memory aid. In any T24 application, it can be used instead of
customer id. System maintains information in MNEMONIC.CUSTOMER, an
internal file.
A briefer version of the name of the Customer can be defined as a short name,
which will be used for on-line enrichments, in any field where a Customer ID
or Mnemonic has been input
SECTOR Field is a Hot validate Field. It is possible to default values for
Industry, Target, Nationality, Residence, Account officer and Customer Status
of a Customer, depending on the value in this Field. To achieve this, a record
with the id of Sector in usage should have been pre-defined in
CUSTOMER.DEFAULT table.
This facility will come in handy to quickly input Customer records of select
Customers, who have more or less same values in one or more of these above
aspects. The defaulted values can also be selectively over written at individual
record level. Useful only during initial creation and not during subsequent
amendments.

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 Language for correspondence with the Customer can be chosen from any of
the pre-defined languages set in LANGUAGE static table. It may however be
noted that T24 does not act automatically as a translating software. Any text
matter that requires to be translated should have been duly pre-defined for
multi language handling capacity.
Generally Banks make it mandatory to record Customer‟s mailing address.
Hence, T24 also insists on providing proper address of a Customer. System
maintains the address in STREET field as First print address of Customer in
DE .ADDRESS. Additional mailing addresses can also be created through
DE.ADDRESS. Email address, Telephone numbers, Fax numbers can also be
mentioned in the appropriate field in the customer record.
Some Banks would like to maintain anonymity of Customer records. They
would not like to record address of Customers nor send any mails. To make the
address field as non-mandatory and purely optional, CUSTOMER.DEFAULT
table could be used. For a chosen sector, a record can be created in this static
table to indicate that while creating Customer records for people of this sector,
we need not mandatorily record their mailing address

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 Identification document details can be held for multiple identifications by
using the multi value facility. Passport, National Identification, if any can be
mentioned here.
We can indicate how an existing Customer is related to the current Customer –
who is related and how. By using the facility to multi value, we can also
indicate multiple relationships. Our Customer is Father of another existing
customer and employee of yet another existing customer. Such multiple
relationships can also be captured.
All relationships that are required to be used are pre-defined in RELATION
static table. We should also define reverse relationship code while defining the
first relationship. For example Relation code of 1 is Father and reverse
relationship of this is Child and its proposed code is 11. The System creates a
record with id 11 automatically in RELATION static table.
Role, the customer plays with this customer like authority to sign on behalf of
the company, power of attorney etc., Data entered in this field must exist on
the application EB.ROLE.
There is another field called ROLE.MORE.INFO this field is mandatory if the
ROLE selected has OTHER.INFO.REQ set to YES in the EB.ROLE table
otherwise this field may be left blank.
.

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 RELATION DELV OPTION: Used on select CUSTOMER records that are
setup as a joint customer relationship. Each of the clients has their own record
which can be linked to the relation. This field is used to specify what delivery
address is to be used for the link customer. This field is used to specify other
customers for whom a copy of the message needs to be printed.
CUSTOMER.RATING table contains various types of ratings given by various
rating agencies like standard and poor. For example AAA rating, AA+ AA- etc.
Various credit rating agencies like standard and poor rate the customer based
on their financial performance.
CUSTOMER.LIABILITY field indicates the Customer consolidation number
for credit grouping purposes and limit sharing. This is a no change field.
Changes can be done only through LIMIT.CHANGE application.
CUSTOMER application has been built to capture some information required
for CRM. Static information about the customer include Previous name, date
of changing the name, Number of dependents, spoken language, other
nationality, Domicile details, past time etc.

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 CRM or Customer Relationship Management is aimed at client-bank
relationship. It aims at bringing all customer information relating to products
used, accounts, personal details, contact details and campaigns together. CRM
includes client static data like personal details, contact information, financial
products used by them, history of interactions and transaction made by client
with Bank, future scheduled events like mortgage dues and potentiality for
availing future facilities.
For example, A Bank has sanctioned a car loan to a customer. Bank may also
cross sell its car insurance to the same customer based on the information
available with him.
CUSTOMER application has been built to capture some information required
for CRM.
Static information about the customer Employer name, salary, frequency
details of the salary, Customer interest etc. This gives a complete picture about
a customer details of his personal record.
General details regarding residential details as to the status, Type, value of the
property can also be recorded, in the residential details.
In communication details different types of communication can be recorded
like, alerts, advice or Campaign etc. User can also indicate the preferred
method of contract like branch, internet banking Email etc.

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 In contact details , the user can indicate the introducer name, date of first
contact and the secondary officer as a point of contact.
Apart from this banks are also subjected to KYC norms audit. These
information can now be recorded in called LATEST.KYC.REVIEW.DATE,
AUTO.NEXT.REVIEW.DATE and MANUAL.NEXT.REVIEW.DATE Fields .
Banks are also subjected to various AML (Anti money laundering)checks and
audit. Those details can be recorded in the following field AML.CHECK Field.
The value for the following field are yes, sent, no and null. If AML.CHECK
Field is null then the AML.RESULT Field will default null value.
If AML.CHECK Field is set to sent, then the AML.RESULT Field will be
RESULT.AWAITED. If the AML.CHECK Field is set to yes, then
AML.RESULT Field should be either positive or negative. If the result is
positive then the customer has failed in the AML check. If it negative then the
customer has passed the AML check.
TAX Id will hold the details of customer TAX/SSN Id.

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 EB.DUPLICATE.TYPE is an application where it is possible to set rules for
checking the occurrence of duplicate customer records
T24 Customer module is enabled for Duplicate data verification when a
Customer record is committed. The requirement for such duplicate verification
is updated in Customer record. The Id of EB.DUPLICATE.TYPE is now
added to the CUSTOMER.DEFAULT application in the field
DUPLICATE.CHECK. Thus while choosing the Sector Id of the customer, the
duplicate check is linked to the application correspondingly. This is because
Sector Id is used as hot validate field and data from CUSTOMER.DEFAULT
application is defaulted to the customer record based on the Sector Id
On identification of a duplicate record, the user can either accept the new
record as individual record or merge it with an existing record as a duplicate
one. The master record would hold the details of the merged record and the
merged id is available in the ALT.CUS.ID. The audit log has also the updates
when the user has rejected the merger and maintained it as individual records.
T24 also facilitates manual merger of records if required and unmerge is also
possible for mergers done in error.

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 T24 records particulars of a prospective customer, when certain basic details
are available. Prospect may or may not be allowed business activity with the
bank , based on setup in COMPANY table. PROSPECT.ALLOWED in
COMPANY when set as YES allows opening of accounts and contracts of
prospect. On opening an account for prospect, CUSTOMER.TYPE in
CUSTOMER gets automatically updated as Active. When the field is set as
NO, then T24 does not allow any business activity of prospect. In this case,
CUSTOMER.TYPE has to be set as Active manually before initiating any
activity.
Prospect record can be purged if the customer does not form a business
relationship with the bank, such as opening an account, limit or contract for a
certain period of time. This retention period of a customer as a Prospect can be
defined on the CUST.RETENTION field in COMPANY. Input should be
numeric followed by D (Days) or M (Months).
For example under the UK data protection act prospective customer details can
be held for a maximum of 6 months. A input of180D is indicated so that
prospective data will be held for 180 days before purging if no activity is
initiated.
NOTE: A Prospective CUSTOMER record can be reversed. But once the
customer forms a business relationship with the bank then the customer record
cannot be deleted.

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 Before any customer record is opened, banks undertake the responsibilities of
completing the KYC formalities. As banks are frequently subjected to various
KYC audit, there will be a separate KYC manager who will be the point of
contact. There is a mandatory field called Relationship Manager, which
indicates a descriptive nature. He will be the point of contact for all KYC
related matters. Once all details are filled up, front end user can open a
customer record and link this KYC Id to the customer record. Alternatively
this KYC Id can also be linked to any one of the existing customer record.

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 In Model Bank, Sectors 3001 (Banks) and 3002 ( Central Banks) have been
pre defined in ACCOUNT.CLASS application with BANK as Id. This helps in
validating whether a Customer used in other applications is to be treated as a
BANK or not.
For example, in FUNDS.TRANSFER application when the ordering Customer
is a Bank, the SWIFT message field would be different from another message
when the ordering Customer is not a Bank. Likewise, in other applications
also, where it is required to differentiate a Customer being a Bank or not,
System will validate only on the basis of proper usage of Sector classification
conforming to ACCOUNT.CLASS record
This is another use of SECTOR classification that should be borne in mind
while creating suitable records in SECTOR static table.
After authorisation of the Bank Customer record, a record in AGENCY table
can be set up with Id being same as this Customer Id. This table is used to
record standard settlement instructions while dealing with the concerned Bank.
Auto routing of settlement instruction can also be setup for different types of
transactions and currencies.
For example, all payment to this Bank should be routed through our Nostro
account with them, while LC payments in GBP alone should be routed through
Barclays Bank, London

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 T24 currently provides 360 degree view of customer in the form of enquiry
Customer Position. This enquiry displays the details of all limits, collateral,
loans, securities etc held by the customer with the bank. This also provides an
option to list the jointly held contracts with other customers. The User of T24
may be running a mixture of T24 modules and non-T24 systems for their
products but maintain all their customer records in T24. Thus, in such a
scenario T24‟s customer position should be showing a 360 degree view of
customer with arrangement balances from both T24 and non-T24 modules. For
external products, T24 allows user to specify a routine that gets executed to
fetch external balances and then copied into customer position file to be
displayed on screen. This requires a record with Id as „EXTERNAL‟ to be
created in CUS.POS.ENQ.PARAM file with user routine attached in this
record. In addition to the arrangement balances, 360 degree view would also
show some additional non-financial information about the customer which
may be of interest to the bank‟s user viewing the position.
EXTERNAL.ARRANGEMENT.FILE is used for the purpose of holding
external arrangement details of the customer. Manual input of data can be
made into this file now (later enhanced to accept input through OFS ). The
basic details that any non-T24 system wants to share in
CUSTOMER.POSITION will be first stored in
EXTERNAL.ARRANGEMENT.FILE

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 By using the menus for enquiries, we can get on line information on our
Customers.
Customer details gives full enquiry like details of Name, Nationality,
Residence, Sector, Account officer Mnemonic and customer Id. We can drill
down further to view Customer overview and customer details.
Prospect search gives the details of prospective customer. It gives the details of
Prospect Number, Mnemonic, Short name, street, Town Country, sector name,
Target, Nationality and Residence. We can drill down further to view the
record and activate the customer.
Customer list will show the complete list of customer wise details, indicating
customer number, name, account officer, Nationality, Residence and Customer
Type.

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 T24 is Customer centric software. Descriptive details of Customer are all
stored at one place – CUSTOMER record.
All other applications get linked to this.
By this, any change in Customer details are required to be done only at one
place.
CUSTOMER record gets pick up values from several static tables, which are
pre defined to suit individual bank‟s way of reporting or recording
information.
Reports, even when designed to pick information from business applications
can always get relevant information from underlying CUSTOMER records.
Hence, Customer wise profitability or exposure will in turn lead to industry
wise or sector wise details also.
Customer details are also useful for future marketing efforts of a Bank.

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