T24 Model Bank System Build Review

Customer

TEMENOS EDUCATION CENTRE

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Introduction

• CUSTOMER and associated tables are core applications in

Temenos T24 system
• CUSTOMER application is central to organisation of
– information
– services
– profit and loss
• In T24, Customer records are opened and maintained for
– Clients: Private, Corporate
– Agents: Other Banks, Brokers
– Counterparties: Other Banks, Retail and Corporate

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CUSTOMER application

• Establish Customer record prior to any Customer activity

– Descriptive details not financial
– Accounts and contracts link into Customer

CUSTOMER
A/C Based Transactions Contract Based Transactions

Current Account Loans and Deposits

Foreign Exchange
Savings Account

Nostro Account Money Market

Over drafts Securities

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Purpose of Customer record

• Contains all the basic information about any Customer the bank
deals with
• Ideally, only one record should exist for each Customer
• Customer record can be created as soon as Name, address and
other relevant information is obtained
– Need not wait till opening of an account or input of any
business transaction

• Customer record, once created, remains for ever

– Not possible to reverse an authorised Customer record

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Customer related Static Tables

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Static tables used in
CUSTOMER

SECTOR
INDUSTRY

RELATION

CUSTOMER COUNTRY

TARGET

DEPT ACCT OFFICER

CUSTOMER STATUS

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Customer Static Tables - SECTOR

• Top level grouping of customers

– Public Corporations, Banks, IT Sector etc
• Useful for financial reporting
– Current account balances of different sectors reported
separately in Financial statements like General ledger
• Useful for applying preferential charges
• A component of ACCOUNT.CLASS to help validation of specific
classes like Bank, Nostro, Vostro etc

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Customer Static Tables -
SECTOR

• Model bank has a list of standard sector codes from which

selection can be made. New codes can also be added
• Within the model Bank, similar sectors have been grouped into
ranges. This facilitates easier grouping of sectors in enquiries
and reports.
– Individuals within the range of 1000 to 1499
– Corporate within the range 2000 to 2999
– Recommended to use the set of ranges established
• ID: Maximum of 4 digits
– DESCRIPTION field value is used as enrichment
– SHORT.NAME field provides abbreviated form used in
reporting
• New records created by using MB Admin Menu – Core – Sector

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Customer Static Tables -
INDUSTRY

• Next level of grouping of Customers

– Occupation related information
– Useful for financial reporting
– Useful for applying preferential charges
• Useful for credit risk management by monitoring limits usage for
an industry or group of industries
– COMMODITY Field in LIMIT is defaulted from Customer’s
Industry
– It is possible to define and monitor Limits for a Commodity or
group of Commodities in LIMIT.COMMODITY application
• Central Bank normally supplies the industry codes to be used in
financial reporting

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Customer Static Tables -
INDUSTRY

• The values provided in the model bank are quite generic and
banks may utilise some of these values or amend the descriptive
text to provide a description which is in line with regional
standards
• Within the model Bank, similar industries have been grouped
into ranges. This facilitates easier grouping for enquiries and
reports.
– New industries can be included within the ranges of similar
industries
• ID: Maximum 4 digits
– DESCRIPTION field value is used as enrichment

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Customer Static Tables -
TARGET

• Classification of Customers for marketing purposes

– High net worth, Corporate entity, etc.
• Model bank has customers classified by marketing groups which
can be selected
• ID: Maximum 4 digits
– DESCRIPTION field value is used as enrichment
– SHORT.NAME field provides abbreviated form used in
reporting

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Customer Static Tables –
CUSTOMER.STATUS

• Status of Customer could be indicated using this table

– Corporate Medium, Bankrupt company, Deceased Individual
etc.
• Like TARGET, classification available in the model bank for
selection
– Usage could be bank dependent
• ID: Maximum 4 digits
– DESCRIPTION field value is used as enrichment
– SHORT.NAME field provides abbreviated form used in
reporting

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Customer Static Tables -
RELATION

• Used to record relationships between customers

– Parent and child
– Head office and its branch
– Spouse and spouse
• ID : Maximum 3 digits
– DESCRIPTION field value is used as enrichment
• Mandatory to indicate code of Reverse Relationship. System
automatically creates the record for reverse relationship

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Customer Static Tables -
POSTING.RESTRICT

• Different types of restrictions to be imposed are defined here –

on Debits, or Credits or All
– Post no debits, Post no credits, Whereabouts not known,
Pending closure etc
• Posting Restriction codes may be assigned to Customers and /
or Accounts as required. Any entry meeting the specified
condition will require an override to be duly approved
• Certain ranges of Codes have predefined purpose and should
not be used for anything else.
– 80-89 to indicate PENDING CLOSURE types. Accounts which
will be closed soon, but not to be closed automatically.
– 90-99 to indicate AUTOMATIC CLOSING types. Accounts which
should be closed automatically as soon as Balances are zero

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Customer Static Tables -
POSTING.RESTRICT

• Id can be upto a 2 digit number

• Model bank has a list of available types of posting restriction
– Selection could be made from out of these
• For creating a new one, ID to be used is recommended between
13 to 79
– DESCRIPTION field value is used as enrichment
• RESTRICTION.TYPE field accepts value as DEBIT/CREDIT/ALL
• Could also be applied to or exempted from specific transactions
indicated in ALLOW.TXN and TXN.CODE fields

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Department Hierarchy and Account Officers
DEPT.LEVEL DEPT.ACCT.OFFICER

20-Divisional 2100-Treasury 2500-Customer

Services

30-Departmental 2510-Retail
Banking

40-Managerial 2-John

Accounting
Customer
entries
record

Accounts Contracts

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Customer Static Tables -
DEPT.LEVEL

• Provides a structure for the organisational hierarchy

– Department/cost centres within the bank
– Extensively used in MI to consolidate data at various levels
• ID: 2 digits between 00 and 99
– 00 is the highest level and smaller the ID, higher the level
– Recommended to increment in units of 10
• DESCRIPTION field value is used as enrichment
• Each level will be assigned to a group or individual officer

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Customer Static Tables - DEPT.ACCT.OFFICER

• Defines Departments and Officers in the Bank

– Codes used to identify the department/business area
– Required for allocation of costs for MIS purpose
– Each Customer, Account, Contract linked to a
DEPT.ACCT.OFFICER
– If not indicated specifically in Accounts and Contracts, then
defaulted from the respective CUSTOMER record
• Sample structure available in model bank which could be
retained if a Bank does not have any other specific requirement
– Where need be, new records can be added

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Customer Static Tables - DEPT.ACCT.OFFICER

• ID: Maximum 4 digits

– NAME field value is used as enrichment
• The level and sub departments of the officer could be defined
through
– DEPT.LEVEL field to identify the level in the hierarchy
– DEPT.PARENT field to identify the parent department/officer
– ALT.DEPT.LEVEL and ALT.DEPT.PARENT fields to indicate
position in an alternative hierarchy

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Workshop - 1

• Using the MB Admin Menu - Retail Administration – Customer

create the following:
• Check the DEPT.ACCT.OFFICER record ID: 2500 and ensure
that its DEPT.LEVEL is 20
• Input a new DEPT.ACCT.OFFICER record (use the ID from 101),
with DEPT.LEVEL: 50 and DEPT.PARENT:2500 which is higher
in DEPT.LEVEL hierarchy

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Workshop – 1
Solution

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Customer records creation

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Static tables linked in
CUSTOMER

SECTOR
DEPT ACCT OFFICER

INDUSTRY COUNTRY

TARGET

CUSTOMER STATUS

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Customer Basic Input - Important
fields

• ID
– Unique and upto 10 digits
– Model Bank has been set to generate this automatically
• CUSTOMER MNEMONIC
– Is a memory aid and hence unique
– Can be used instead of Id, wherever the Customer Id is
required in any T24 application
• SHORT NAME
– Multi lingual. Used for online enrichment

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Basic Input - Important fields

• SECTOR
– Top level grouping. Useful for reporting and applying
preferential charges.
• This field in Customer record is a Hot validate Field
– After inputting value when the cursor is moved away from the
field, connectivity is established with Server for validation and
suitable action
– For a given Sector, it is possible to default values into
ACCOUNT OFFICER, INDUSTRY, TARGET and NATIONALITY
fields in Customer record if pre-defined suitably in
CUSTOMER.DEFAULT
– For this reason, this field has been designed as a Hot validate
field to facilitate quick input of data

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Basic Input - Important fields

• LANGUAGE
– Helps identify language used while corresponding with
Customer
• Correspondence Details
– STREET/NUMBER is mandatory
• Can be made non mandatory by using CUSTOMER DEFAULT
– Other correspondence details such as Town, Country, Phone
Numbers and Email Address are optional and can be captured
through respective multi valuable fields
• System maintains Street, Town and Country details as First print
address of Customer in DE ADDRESS

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Workshop - 2

• Open a Customer record for yourself, by using Customer Menu

– Open Individual Customer sub menu
• Use Basic Input tab and input relevant details of yourself
• Account officer as the record created earlier and SECTOR 1001
• Change defaulted value in the following fields
– Nationality and Residence as applicable to you
• Choose a suitable Industry
• Input address details
• Commit and get this authorised

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Workshop – 2
Solution

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Customer
Links
Dept/officer Sector

Industry
Liability
Residence
Customer
CUSTOMER Relationship
Target Customer
Nationality
Address Savings accounts

Status etc Current accounts

Limits
Profitability
Loans
Exposure
Mortgages
Marketing
FX
Deposits
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Summary

• We have so far seen

– the dependencies and linkages between the CUSTOMER table

and other applications

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