Management Information Systems Implementation for Financial Institution- RFP Template

KEY Importance to Bank M Must Have N Nice to Have B Bells & Whistles Requirement Met? 2 Perfect 1 Met - Modifications Required 0 Not Met

1.0
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12

OPERATIONS - GENERAL
Ability to do accruals automatically for user-defined periods Ability to make adjustments to standing data whilst maintaining adequate audit trail. Ability to maintain dual custody throughout system. Ability to provide batch printing of cheques via all modules. Ability to modify the layout of advices and statements. Ability to modify the data set used on an advice template. Ability to modify the data set used on a statement template. Ability to generate one advice for a liability assigned to multiple assets. Ability to generate one cheque from multiple client accounts. Should not be limited by account type. Ability to generate cheques for multiple payees per transaction. Ability to select cheque details from a pending cheque queue when generating cheques. Ability to associate the cheque reference number with a transaction number from a single drill-down inquiry, i.e. no screen switching. Ability to generate multiple payment methods per transaction. Ability to generate multiple settlements from multiple accounts through one transaction. M M M M M M M M M M M M

1.13 1.14

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1.15

1.16

1.17 1.18 1.19 1.20 1.21

1.22

1.23 1.24 1.25 1.26 1.27 1.28 1.28.1 1.29 1.29.1 1.29.2 1.29.3 1.29.4

1.29.5

1.29.6

1.29.7

1.29.8

Ability to hold funds on uncleared items. Ability to handle variable clearing periods per currency and settlement type automatically. Ability to configure uncleared funds functionality so that it acts as a control for: - Client access to funds - Nostro Account/Cash Flow Management Ability to automatically effect Standing Order instructions across products. Specify expiry date. Ability to integrate with the wire services provided by the organisations commercial bank. Ability to generate receipts with appropriate details re transaction. Ability to handle multiple payment methods per receipt transaction. Ability to display securities details on advices generated for matched liabilities. Should also provide information across multiple assets for a specific liability. Ability to have teller access transactional information booked in non-teller areas and update with settlement details. Electronic signature imprint to advices. Must be PW protected. Ability to inquire on amortisation schedule for a loan or investment online. Ability to automatically process fees, taxes and penalties across all products. Ability for system to notify/alert account officers of maturity/expiration dates Ability for system to notify/alert clients of maturity/expiration dates via email Automated Nostro Reconciliation - Ability to do auto reconciliation of accounts. Data Entry / G/L Maintenance - Ability to enter a description during the data entry process. - Ability to generate batch reports (showing batch totals) at the end of each day. - Ability to delete incorrect entries at the field level. - Ability to generate transaction journal before and after batches are authorised, (this will facilitate easier check-back of items posted next day). - Ability to select from a pick-list or quick search the customer account number associated with a transaction. - Ability to enter the transaction rate versus using the system rate for the day during data entry. - Ability to handle rate and date changes on contracts with appropriate audit trail and dual custody control.. - Ability to view the transaction date and the

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1.29.10

1.30 1.30.1 1.30.2 1.30.3 1.30.4 1.30.5 1.30.6 1.30.7 1.30.8 1.30.9 1.30.10 1.30.11 1.30.12 1.30.13 1.30.14 1.30.15 1.30.16 1.30.17 1.30.18 1.30.19 1.30.20 1.30.21

1.30.22 1.30.23 1.30.24 1.30.25 1.30.26

value date when querying transactions. Ability to do batch rate changes on contracts and generate automatically adjusted schedules. - Ability to pick the contracts from a list and apply the rate change across them even if the user selected list is across products and clients. Key System Result Areas Reports: - Loans Pending Payment - Maturities Reports - Non Productive Loans - Extended Loans/Investments - Unallocated Report - Allocations Report - Certificate Reprint - Expired Allocations - Commission Reports - Interest Cost - Interest Revenue - Ability to generate a cost of funds report. Ability to have it monitored online, real-time - Withholding Tax Reports - Tax Exemptions based on Client Profile, i.e. exemptions are not at the product level - Interest Type Reports Interest by category by tenure by currency - Accrual Reports - Guarantee Reports (by currency, client, credit) - Arrears Reports aging arrears report - Transaction Journal - Loans and Investments Balances Report - Threshold Report showing all Investments/ Loans over a specified amount (convert currencies to base currency) - Threshold Report showing all withdrawals over a specified amount - All renegotiated loans - All Investments/Loans sorted by currency and time buckets - Maturities profile report remaining maturities report - Loans by industry -

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2.0
2.1 2.1.1 2.1.2 2.1.3

FINANCIAL CONTROL
General - Must offer support for amounts up to xxx,xxx,xxx,xxx.xxxx (limitless) - Support for interest rates in the amount of xxx,xxx.xxxxxx - Handle exchange rates to six decimal places of precision M M M

2.1.4 2.1.5

2.1.6

2.1.7

2.1.8 2.1.9 2.1.10 2.1.11

2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5

Must have support for multiple levels/segments within the G/L account codes. - Descriptions for the G/L account segments should be definable by the user e.g. company (separate legal entities) -> branch -> department -> account -> sub account - Must be able to store descriptions for each account with ability to accommodate characters of at least (this needs discussion with Mimics) - Must be able to capture additional information field that can be used to store alternate account/reference numbers (i.e. for use in migration from old account structure on existing system to this one) - Ability to support multiple reporting hierarchies within the G/L - Ability to generate reports across branches and companies. - Ability to create new branches/account etc based on an existing G/L structure. - Flexibility to adjust MGMT accounts when necessary in terms of new account number and or structure. Multi Currency Support - Must support transactions in an unlimited number of currencies. - One currency should be designated as the home currency - Transaction information must be captured in the source currency - Automatically calculate and book currency gains/losses according to GAAP/IAS - Offers GAAP options for currency reporting

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2.3 2.3.1

2.4 2.4.1 2.4.2

2.4.3 2.4.4 2.5 2.6 2.7 2.8 2.9 2.10

Allocation - Should be able to set up automatic allocation accounts with the allocations based on: - Defined ratios - Proportionate balances based on other accounts (i.e. based on departmental sales percentage by department) - Non-accounting entries (e.g. square footage) Budget Support - Ability to define budgets and maintain history of prior year/period budgets - Ability to implement budgetary limits/controls and override functions. Ability to incorporate these into general workflow - Budget monitoring should be at the Financial Statement level versus the GL level. - Ability to monitor budget variances Ability to drill down on accounts from P&L and Balance Sheet online. Ability to maintain multiple balance sheets by currency. Ability to review audit trail for each transaction online (drill down review of action to the account level). Ability to generate reports. Ability to generate reports across branches and companies. Ability to integrate with Data Warehousing systems.

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3.0
3.1

OPERATIONS INVESTMENT/RISK MGMT

Ability to do match many assets to many securities. That is: - Ability to match one security certificate to one asset - Ability to match one security certificate to many assets - Ability to match many securities to one asset - Ability to match many securities to many assets Ability to do partial allocation of security blocks as per rule above. That is, the ability to break up a securities block into subsets based on certificate denomination. For example a block of $20 Million Treasury Bills may be transferred to 10 certificates of $2 Million Each. Certificates are allocated to clients. A client may be the beneficiary of the full certificate or partial certificate. Partial allocations are transacted through use of a legal document called a Transfer Form. Ability to generate advices associated with security management and modify via Word Processor. For example cover letters, transfer forms and routing M

3.2

3.3

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3.6 3.7

3.8

3.9

3.10

3.11 3.12

3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20

3.21 3.22

3.23

slips. Ability to easily identify the asset or liability transaction associated with a specific security. Ability to maintain valid security accounts inclusive of data such as security name, security type, registrar, transfer agent, issuer, investment type, dividend rate, dividend date. Ability to hypothecate client Investment funds against loans. Ability to provide a listing of all the loans that have been paid down and may require review of hypothecation status. Ability to track asset value used for security as a percentage of market value based on the asset type. This percentage should be user-defined and usermaintainable with override provided at transaction level. For example 75% of the market value of Real Estate should be booked as security for a loan. Ability to revalue security value based on market feeds, automatic and manual. This is applicable to equities and bonds. Ability to provide vault management functionality for tracking security items (e.g. Titles, Treasury Bills, Promissory Notes). This includes securities held in an electronic depository and paper- based securities. Ability to track the relationship between assets and liabilities and securities. Ability to generate advices based on action taken with respect to a security, e.g. Discharge Form, Cover Letters, Security Confirmation. Ability to send reminders for outstanding collateral to Account Officers Ability to generate an exception report re outstanding collateral. Ability to generate loan status reports based on user defined rules for automatic status. Ability to monitor banks exposure due to outstanding collateral. Ability to restrict disbursement of funds until collateral has been fully established on system. Ability to track online real-time the assets that are available for allocation to new investments. Ability to prepare and distribute Security Routing instructions via the system. Ability to view assets available for allocation to new investments. Information should be available via query, report and within the transaction workflow. Ability to handle exchange of securities transaction type. Ability to differentiate between blocks of securities and the break-down to specific certificate denominations. System should allow for manual update of denomination break-down because these details are available a fortnight following the purchase

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3.25

3.26

3.27

3.28 3.29 3.30 3.31 3.32

3.33 3.34

transaction. System should provide an exception list for all security items that have not been updated (recd/delivered) with certificate breakdown within a specified period after the transaction date. Ability to provide information on the availability of the certificates for allocation to Asset Sale or Repo transactions. Ability to ensure increased system controls with respect to securities via a dual custody mechanism for transactions. Ability to automatically remove items from the Reminder view when documents are received and entered. Ability to generate one advice across multiple security items, e.g. discharge and cover letters. Ability to print transfer forms from the system. Ability to imprint electronic signature on the transfer forms. Ability to generate envelopes automatically. Ability to have multiple values on a security item. Namely: Market Value, Collateral Value and True Value. Ability to view vault entries on-line Ability to electronically integrate with security vaults offered by statutory bodies and other financial institutions.

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4.0
4.1 4.2

MUTUAL FUNDS
Ability to manage various Fund types: Ability to validate transaction based on the following: - Client number - Account number - Security account - Investment type - Transaction type Validate redemptions against certificate registration. Ability to automatically update the Net Asset Value (NAV) for each fund from Portfolio Management system. Ability to automatically generate the new Fund Price based on NAV. Facilitate posting adjustments of distributions. Facilitate verifying commission amounts before payout. Ability to sort and total by broker. Show certificate numbers on the relevant transactions. Facilitate purchases for same unit-holder across multiple funds, from a single purchase request i.e. without exiting the purchase entry mode Facilitate redemptions from same unit-holder across multiple funds, from a single redemption request i.e. M M

4.3 4.4

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4.5 4.6 4.7 4.8 4.9 4.10

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4.11

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4.13 4.14 4.15

4.16

4.17 4.18

4.19 4.20 4.21 4.22 4.23

4.24 4.25

4.26 4.27 4.28 4.29

4.30

4.31 4.32

without exiting the redemption entry mode. Allow for controlled reversal of authorized transactions i.e. in the event of a returned cheque or units credited/debited across incorrect accounts. Process standing / settlement instructions, example: - Pay dividend to a/c, individual, third party Provide the inability to cancel certificates on which liens are held (to the amount of units held for lien) Provide the ability to set a lien based on dollar amount versus number of units. The lien units should be calculated automatically and reviewed automatically as the units are revalued. Ability to specify a parameter which determines the percentage of the (total units - lien units) that may be redeemed. Provide authorised access to remove liens placed on certificates prior to end of tenure. Ability to amalgamate certificates i.e. multiple certificates for units merged as one certificate per fund. Ability to split certificates. Provide for deferred (xxxdays) settlement capability. Facilitate holding securities in different currencies. Facilitate fund in different currencies. Maintain history of certificates issued to each unitholder account, indicating status of each e.g. active; cancelled. Ability to provide a history of Unit Prices for each Fund. Maintain and track orders based on: - Order number/Contract Number - Date order placed - Number of units - Price of units - Broker number - Settlement Date - Company selling / company buying Ability to provide electronic output for use by registrar to generate certificates. Ability to generate Withholding Tax Certificates for Fund encashments. Ability to define new Funds. Ability to define and maintain a Fund geared at the International market and with client access via Internet. Ability to modify the tax parameters in an existing fund. The tax changes should be allowed retroactively. Tax calculation should also change based on the applicable start date. Ability to monitor securities and assets related to fund portfolio. Ability to generate customer statements with details regarding: - transaction history - link encashments to a specific fund certificate

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4.38 4.39 4.40 4.41 4.42

4.43 4.44 4.45 4.46 4.47 4. 47.1 4. 47.2 4. 47.3

4. 47.4

(that is, showing the relationship) ability to see relationship between the original fund certificate and the balance certificates resulting from partial encashments. - provide a consolidated customer statement across funds - provide fund growth and client portfolio growth on statement Ability to generate mailing labels. Ability to value the asset portfolio. Ability to issue provisional and non-provisional units. Ability to handle Standing Instructions for purchase of Units. Ability to price Units and administer fees and taxes. Include preliminary fees and rebates. These fees should be parameterised based on fund, value of transaction. Provide ability to waive fees at the transaction level. Provide ability to waive fees at the client level. Ability to transfer units from one holder to another across funds. Ability to provide for input of dividend payment dates and rates. Ability to generate receipts and cheques with multiple payees and payment methods per transaction. Automatically calculate and allot dividend amounts for unit-holder accounts as due. Calculate withholding tax on dividends paid. Ability to book asset values and accrue for appreciation over the period. Ability to capture expenses paid and expenses accrued. Outputs and Inquiries Cheques & Cheque Register Receipts & Receipt Register Daily Transaction Register. Sequenced by transaction number or value date or transaction date and including: - Transaction number - Transaction type - Unit trust fund name - Unit holder number & name - $ amount - Number of units - Contract number/transfer number - Value date - Transaction date - Charges applied Daily Transfers. Sequenced by transaction number and including: - Transaction number - From unit holder details such as: o Account number & name o Fund name -

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4. 47.6

4. 47.7

4. 47.8

4. 47.9

o $ amount o Certificate numbers o No. of units transferred o Unit price o Units remaining - To unit holder account details such as: o Account number & name o Fund name o $ amount o Certificate numbers o No. of units received o Total units Unit holder Register. Sequenced by Unit Trust number X unit-holder account number and including - Fund name - unit-holder account number & name & address - joint holders names - no. of units per certificate - certificate numbers - issue date of certificate - redemption date of certificate - quantity of unit redeemed per certificate - available balance per certificate Summary Reports for user specified period including: - Categories such as encashments/ purchases/ transfers/amalgamation - Totals on each category - Transaction date - Number of units - Unit price - $ amount Management Analysis Report for each fund. Should be produced for user specified and predetermined periods, be sorted by fund name and include the following: - Fund Name - No of unit holders - Total units held - Total purchases - Total sales - Current unit price, sale and purchase Monthly fund value movement report. Sequenced by month and including: - Opening balance (start of financial year) - Month - Total $amount purchased - Total $amount encashed - Total $amount transferred - Running balance (o/bal + purchases encashments) Monthly withholding tax report. Sequenced by encashment date and client name and including - Encashment date - Client name and number - Certificate number

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4. 47.11

4. 47.12

4. 47.13

$ amount encashed Taxable amount should vary based on tax rules applied. In general, taxable amount is equivalent to current value of investment minus principal investment - $ amount tax withheld - Tax withheld certificate number - Ability to specify the application of tax rules based on system parameterized event such as specific date, transaction amount Daily Purchases Transaction Report. Sequenced by Transaction date for a user specified period and including: - Transaction date - Units purchased - Unit price - Receipt number - Broker code - Preliminary charges (% and dollar figure charges) - Client name and number - Contract/certificate number - Gross proceeds - GCT $ amount - Total units and $ amount Daily Encashment List. Sequenced by contract note number pre-set parameters) and including: - Transaction date - List number - Contract number - Indemnity or certificate indicator - Client name and number - Units encashed - Early encashment penalty (%) - Partial/total encashment indicator - Encashment $ amount - Date funds available (facilitate manual input and system determined based on - Withholding tax deducted Commission Reports (for agents and for in-house sales representatives). Include the following information: - Broker code and name - Purchase date - Client name and number - Certificate number - $ amount purchased - Commission charge (purchase x % commission) - Total $ amount purchased - Total commission charged Units Held as Collateral report. Sequenced by fund, unit-holder account number and including: - Unit holder account number and name - Fund name

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4. 47.15 4. 47.16

4. 47.17

4. 47.18

4. 47.19

- Number of units held - Tenure - Number of free units - Collateral held by whom Change Report. Including fields such as: - Certificate number - Headings (the name of the fields changed) - Old (the original value, if any) - New (correction that was made) - Updated by (name of person who made the correction) - Date updated - Total number of corrections should be printed at the end of the report Edit List a separate edit list is printed at the end of the day for Purchases. Encashments, Amalgamations and Transfers, including such fields as: - Certificate number - Customer number - Transaction type - Transaction date - Client name - Client address - Joint holders - Number of units - $ amount received - Updated by - Date updated - Broker code - Totals for number of purchases, partial encashments, total encashments, amalgamations, and cancellations are printed at the end of the report The ability to inquire on Unit holders; Details should include: - Unit holder number - Unit holder name - Address - Other demographic information The ability to inquire on unit holder accounts. Details should include: - Unit holder number - Unit holder account number - Secondary account holders - Beneficiaries - Unit trust type - Share balance (no. of units) - Current unit price - Transaction details scrolling from most recent through history - Certificate details Transaction details ability to search by transaction type or transaction (trading) date and displaying the details of the particular transaction including the accounting entries generated.

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4. 47.20 Income Distribution Register. Sequenced by Unitholder account number and including: - Unit holder account number and name - No. of units - Rate - Dividend amount - Tax rate - Tax amount - Effective date

5.0
5.1 5.2 5.3

MARKETING & CUSTOMER SERVICE SYSTEM REQUIREMENTS

Ability to track new accounts/ Closed Accounts for a specific period -by client and $ value. Ability to track withdrawals & deposits for a specific period-by client & $ value Ability to provide historical data for 1 & 2 (for e.g. to be able to compare historical data with post marketing campaign data to track the impact of a marketing campaign) Ability to give total number of clients without duplication as same client may have multiple accounts Ability to provide Customer Portfolio Statements Ability to provide demographic profile of clients Ability to provide Branch Profitability Ability to capture all client names, first & secondary holders Ability to search by client name regardless of category (1st or secondary holder(s) Ability to capture client profile info for specific investment Ability to link clients whether companies or individuals( for relationship management purposes) Ability to insert comments on clients' investments. Ability to hold funds(both for lodgements and cashing of chqs.) which are automatically removed on the expiry date M M M

5.4

5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13

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6.0
6.1 6.2 6.3 6.4 6.5

ADDITIONAL OPERATIONS REQUIREMENTS CHEQUES, TRANSFERS, OTHER

Ability to have automatic generation of interest cheques and wire messages. Ability to transfer funds across products Ability to send interest cheques to a deposit account to facilitate auto PAP payments. Loan Origination FUNCTIONALITY Ability to hold funds on a client account and automatically clear after a set period of days. This is for two transaction types: - Cashing a cheque - Lodgement of cheques Ability to implement limit management and exception M M M N M

6.6

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6.8

6.9

reporting in such a way that Money Laundering exception reports are automatically updated and the generation of Money Laundering form is incorporated in the workflow of the transaction. Ability to hypothecate investments to a loan across clients - that is Client A's deposit can be used to back Client B's loan Accommodate multiple balance sheet FORMATS and to consider the need to generate balance sheets in multiple currencies as it relates to Balance Sheets Ability to generate consolidated balance sheets across companies

7.0
7.1 7.2 7.3 7.4

ADDITIONAL MUTUAL FUND REQUIREMENTS

Ability to accrue income Ability to accrue receivables Ability to accrue RE revaluations Ability to accrue all expenses - Management Fee, Trustee Fee, Registrar Fee, Insurance and other expenses. All accruals are over a year - this is to prevent the NAV spiking unnecessarily due to these activities on the Trust. Ability to have the Management Fees calculated monthly based on a tiered structure - the Management Fees payable monthly is dependent on the size of the Assets under Management at the end of the month. Ability to amortize the premium discount on a bond instrument. Ability to provide a Cash Flow summary on the Assets Portfolio across different time buckets and taking inputs from all asset categories. Ability to auto reprice fund securities. Ability to auto process dividend payments and have it impact on cash flow. That is, to set dividend payment parameters centrally for an equity and have it affect all portfolios holding the equity. Ability to book Tax Receivables and accrue (see above) M M M M

7.5

7.6 7.7

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7.10

8.0
8.1

ADDITIONAL FINANCIAL CONTROL NEEDS

Must offer multi-company capability and ability to consolidate accounts across companies and currencies. Must offer the ability to track income and expenses by geographic location and cost center. Budget status for each geographic location and cost center. Being able to know income levels affecting a prior period on a daily/mthly basis. Scope for transferring historical information to the M

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8.8 8.9 8.10 8.11

8.12

8.13

'newly-selected' software. Must be able to produce an aging report for loans & investments Ability to generate all reports for back periods by accounts in all categories in base or other choice currency Internal Mthly Management Accounts: Balance Sheet & Income Statement Financial Services Commission Reports: Qtrly Financial Reports Accommodate suspense type accounts Able to produce investment schedule showing assets classified as loans and receivables held for maturing or available for salethe interest earned for the respective period as well as interest receivable and interest rate. Client liabilities - able to produve report showing client name and account #, interest paid and interest payable and the periods they relate to Amortization and table showing asset, cost. Face value, amt of discount/premium, amt amortised to date, amt amortised for current period and unamortized amount

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9.0
9.1 9.1.1

TRANSACTIONS MANAGEMENT (INVESTMENTS)

Encashments Allow Encashment from account with automatic cheque generation to queue for printing - generate encashment receipt with area for client to sign Allow request for encashment for future date. Ability to transfer between accounts with authorization step, receipt printing - grid to view pending request for authorization Ability to break account before maturity at penalty and allow for reinvestment, including availability to waive penalty, penalty rate should be automatic and allows for manual adjustment Ability to indicate encashment type with respective details, i.e. by cheque/wire Ability to automatically deduct transaction fee based on encashment type )e.g. wire fee once done by wire, option to waive fee with authorization Investments Allow for investment to client account with investment source option, cash, wire, cheque with details captured depending on source & generate receipt (new accounts) Ability to automatically allocate investment to available asset with manual allocation option Allow for additional investment to account during invested period Reinvestment Allow for batch reinvestment of maturing accounts M

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9.2.2 9.2.3 9.3 9.3.1

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9.4.3 9.4.4 9.4.5 9.4.6

9.5 9.5.1

9.5.2 9.5.3 9.5.4

9.5.5 9.5.6 9.5.7

9.5.8 9.5.9 9.5.10 9.5.11

9.5.12

9.5.13

based on built-in rate table Allow individual reinvestment with ability to change tenure, rate and underlying asset Ability to automatically apply interest on maturity date Allow individual reinvestment with ability to change tenure, rate and underlying asset Account Information Ability to search for client information by client #, account #, name, account type View details of account transactions with filter by transaction date/value date, agent, transaction type, reference #, status Ability to generate consolidated client info for all accounts across all modules Ability to view account balance to date principal + accrued interest Ability to view past account balance as at a particular date principal + accrued interest Ability to view information on principal account holders, joint holders, signing rights and view id and signature on accounts General Ability to cancel pending and completed transactions with same day value date(transfers, investments & encashments) cancelled transactions should not appear on statements but be able for viewing on client account Ability to generate transaction reports with filters by period, type and user Ability to generate reports showing flow of transactions (showing all users and action) Built-in Rate table to be used to for investment and reinvestments of accounts. Allow for manipulation of information with record kept of previous data Ability to generate batch statements for clients Ability to generate Tax Statement with filter by account or client # and period Ability to automatically close accounts based on period since last transaction and/or minimum bal in account transfer funds to a suspense account Ability to generate email listing for sending statements, eblast, etc Allow investment to client account and put automatic hold for clearance period Ability to generate a birthday listing each month for clients (based on birthday from KYC) Ability to set up classes of clients for which default rates/parameters for products can be set, e.g. Private or Personal Banking Ability to assign a client to a customer class and thus default the account parameters based on this customer class. Ability to override at transaction level. Must maintain one central client database. Ability to

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9.5.17 9.5.18 9.5.19

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9.5.21

9.5.22

9.5.23

9.5.24 9.5.25

9.5.26

9.5.27

search, sort on secondary account holders. Ability to maintain a client relationship manager and ability to have a product manager for each client. Ability to maintain pertinent data on counter-parties:Name and address, Signing Officers, Commissions. Ability to generate advices and client profile documentation, e.g. signature cards and master agreements. On-line signature verification, i.e. ability to view client signature and photo ID online. Ability to provide profitability analysis at the client/transaction level. Ability to specify the client asset preferences/risk preferences and automatically prevent the autoallocation of client to assets based on the risk priorities specified by client. Ability to capture client instructions/standing order and specify an expiry date. It should be readily visible that an item has expired. The system should NOT process expired items. Ability to capture the client's settlement details...client instructions/standing order to allow the system to generate cheque or wire message as determined. Ability to specify documentation/correspondence delivery method: mail, bearer, fax, pickup/hold, email Ability to notify responsible officers/customers automatically when significant events occur on the account, E.g. closure of account, withdrawal of funds above a predefined limit. Ability to flag whether or not the client wishes to be notified of significant events on the account. Ability to specify the time frame for automatic change of account status to dormant. Ability to generate exception reports for this system event. Ability to specify organization fee structure....ability to specify that the first settlement option (cheque or wire) on a transaction is free. All subsequent cheques/wires are at an automatically determined fee. Provide override at the transaction level Allow investment to client account and put automatic hold for clearance period

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10.0
10.1 10.2

CUSTOMER INFORMATION SYSTEM

Ability to capture client name - separate fields for first name, surname, middle name or initial Ability to capture multiple phone numbers - work, home, fax, cellular, pager. Multiple numbers in each category. Ability to capture multiple addresses - settlement, home, business, mailing Ability to capture multiple email addresses per client. M M

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10.8 10.9 10.10 10.11 10.12

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10.17 10.18

10.19

10.20 10.21

10.22

10.23

10.24 10.25 10.26

Ability to capture website url. Ability to capture contact persons along with pertinent details (name, address, contact numbers, special instructions, etc) associated with corporate clients (individual and corporate). Ability to specify the primary account holder versus secondary account holder. Ability to capture at least three secondary account holders. Specify first name, surname and middle name/initial. Ability to capture/scan TRN/TRN certificate for each client. Ability to record/scan/store ID Type and ID # and ID expiry date for each client. Ability to capture the client investment profile/goals/horizons. Ability to indicate/capture/scan power of attorney, power of attorney rights (Comments Field) Have the ability to differentiate client categories and subcategories, e.g. Individual, Corporate, Staff, Corporate, Trusts, Pension Fund, Financial Institution. Ability to have the system generate a unique client number. Ability to store two alternate client numbers. Ability to link a client to multiple accounts. Using client # Ability to track multiple relationships, namely Family, Corporate, Commissioned Officer, Customer Relations Officer etc. Ability to define the lead company in the group. Ability to enter referral details, for example another client, newspaper advert, web-site, radio, email advert, television advert, etc. Ability to capture client profile with respect to demographics (e.g. date of birth, gender, parish, Country & closest city), risk tolerance, tax categories and group relationships Ability to capture KYC/POCA details...source of funds, etc Ability to define industry codes/classifications for use in FSC/BOJ reporting and other reporting such as marketing/CRM. Ability to set up classes of clients for which default rates/parameters for products can be set, e.g. Private or Personal Banking Ability to assign a client to a customer class and thus default the account parameters based on this customer class. Ability to override at transaction level. Must maintain one central client database. Ability to search, sort on secondary account holders. Ability to maintain a client relationship manager and ability to have a product manager for each Client. Ability to maintain pertinent data on counter-parties:-

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10.28 10.29 10.30

10.31

10.32

10.33

10.34

10.35 10.36

10.37

Name and address, Signing Officers, Commissions. Ability to generate advices and client profile documentation, e.g. signature cards and master agreements On-line signature verification, i.e. ability to view client signature and photo ID online. Ability to provide profitability analysis at the client/transaction level. Ability to specify the client asset preferences/risk preferences and automatically prevent the autoallocation of client to assets based on the risk priorities specified by client. Ability to capture client instructions/standing order and specify an expiry date. It should be readily visible that an item has expired. The system should NOT process expired items. Ability to capture the client's settlement details...client instructions/standing order to allow the system to generate cheque or wire message as determined. Ability to specify documentation/correspondence delivery method: mail, bearer, fax, pickup/hold, email Ability to notify responsible officers/customers automatically when significant events occur on the account, E.g. closure of account, withdrawal of funds above a predefined limit. Ability to flag whether or not the client wishes to be notified of significant events on the account. Ability to specify the time frame for automatic change of account status to dormant. Ability to generate exception reports for this system event. Ability to specify organization fee structure....ability to specify that the first settlement option (cheque or wire) on a transaction is free. All subsequent cheques/wires are at an automatically determined fee. Provide override at the transaction level.

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11.0
11.1 11.2 11.3 11.4 11.5

CUSTOMER REPORTS
Client Account statements with date filter Taxation reports for individuals Consolidated taxation report (all accounts) filter by date, account type, currency Master Listing (Regular by asset, by liability, by both) Ability to capture contact persons along with pertinent details (name, address, contact numbers, special instructions, etc) associated with corporate clients (individual and corporate). Master Listing (Regular by individual currency & consolidated Consolidated Portfolio Client Listing by category and consolidated M M M M M

11.6 11.7 11.8

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Exceptions Reports New accounts during specified period Transactions Listing by currency, by type, by branch by account executive New Account Listing by product type etc Closed Account Listing by product type etc Closed accounts during specified period End of period reports by currency, by product, etc Statutory payments/balances reports

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12.0
12.1 12.1.1

LIMITS MONITORING SYSTEM FEATURES SECURITY CONTROLS CREDIT SERVICES PRIVATE BANKING TREA & INVESTMENTS CUSTOMER SCHEDULES ASSET & LIAB MATCHING DOCUMENT MGMT, GENERAL CUST, TREASURY REPORTS
Limits Must be able to define limits based on: Country Industry Client Specific Product Ability to define limits in centralized area. Ability to track online credit limits across family groups and corporate groups. In cases of company groups, the limits should roll up to the lead company in the group for transactions being done by subsidiaries. Limits checks should be rolled up, starting at the product level when transactions are in process Limits may be based on either: Absolute amounts entered Based on a percentage of a centrally maintained figure in the G/L (e.g. capital base of bank) Teller Support Must have support for multiple tellers. Must be able to designate a head teller or supervisor to approve/override transactions Maintain cash opening and closing balances for tellers including: Values and denominations by currency Support issuance of additional cash, reduction of cash etc in teller tills in the course of the day. Ability to track denominations at the transaction level. Have the ability to generate activity reports for each teller (Transaction Journal) Ability to amalgamate daily transactions and help in the M

12.1.2 12.1.3 12.1.4

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12.3 12.3.1 12.3.2 12.3.3 12.3.4 12.3.5 12.3.6 12.3.7 12.3.8

12.3.9 12.3.10

12.3.11

12.3.12

12.3.13

12.3.14

12.3.15 12.3.16 12.3.17 12.3.18 12.3.19

12.3.20 12.3.21

preparation of daily lodgements. This will facilitate easier reconciliation of Nostro. Ability to update transactions pending settlement from the teller module with details such as cheque reference number, receipt number. System Features End-user access should be possible from a PC network based on a Windows 2003 client environment, Be online real-time; information impacts on all relevant areas from the moment it is input. Have multi-user capability. Have multi-company and multi-branch capability. Open architecture. Be user friendly. Ability to import and export data. Ability to submit SQL queries to the back-end database and generate reports from independent reporting systems. System should meet ODBC standards for connectivity. Ability to fully automate EOD and execute: from off-site location based on system schedule with operator intervention only due to error conditions. Ability to broadcast or send error alert. System should facilitate user-based maintenance of parameter tables such as the Transaction Type table. The possible entries would include user defined types such as Placement, Acceptance, Interest Accrual, etc. Ability to maintain tax rates according to: Individual, Corporate Country of residence Tax exempted entities and securities (ability to track when exemption is surpassed based on dollar amount and expiry date.) Ability to override tax rates according to: - Individual, Corporate - Country of residence Ability to provide pop-ups, selection lists or automatic access to field variations for easier selection by users e.g. Transaction types, Investment types, Currency Codes. Ability to do quick efficient searches of the database. Ability to maintain transaction processing date, this should differ from todays calendar date. Ability to maintain holiday tables for each currency and year combination. Ability to warn user if due/settlement date is a system holiday. Ability to define at a global and product level actions of system should due/settlement date falls on a system holiday. That is, roll due/settlement date backward or forward. Ability to maintain historical data and initiate purge for specify periods. Facilitate booking of transactions against an

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12.3.26

12.3.27 12.3.28 12.3.29 12.3.30

12.3.31

12.3.32 12.3.33 12.3.34 12.3.35

12.3.36 12.3.37

12.3.38

12.3.39 12.3.40 12.3.41 12.3.42

12.3.43 12.3.44 12.3.45

unapproved client profile. System should be able to accept transaction values of 999 billion in all products. Ability to provide for up to six (6) decimal places for input of rates and calculations. Should be able to accept Foreign Exchange Rates and Interest Rates up to 99,999.99. Provide for user-defined status for clients / accounts / transactions i.e. User determines the applicable rules for specifying client account as Active, Inactive, Pending, Closed. Provide for tax exemptions by allowing input of exemption code and amount; income tax to be allocated for the transaction that exceeded the exemption threshold. Ability to calculate tax on all income earned. Ability to calculate commissions. Provide functionality to levy miscellaneous charges. Ability to facilitate on-line tracking of income and expenditure due to taxes, commissions and levies. Entries should be posted to the G/L automatically at the transaction level. Ability to define a Commissioned officer which may differ from person responsible for transaction data entry. Ability to assign a unique system generated transaction number to each transaction. Ability to define fields as mandatory. Provide Drill Down access to data Provide access to data in various forms without having to externally record a reference number for use in a separate screen. Information should be available for display and reporting purposes in a client-centric manner. Ability to facilitate straight-through processing. That is, transactions should be entered at source and the GL entries passed automatically. System should be work-flow enabled. That is, system should facilitate automatic status change based on transaction stage. Ability to electronically approve transactions. Ability to generate multiple advices on a transaction event. Ability to do text searches on electronic reports. Ability to see account positions based on the following categories: Booked to G/L - cleared funds Booked to G/L - un-cleared funds Pending (not booked to G/L) Ability to add fields to database without supplier intervention. Ability to add products without supplier (mimics) intervention. Advices automated and available at each stage of a transaction. Format should be readily modified.

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12.3.52 12.3.53 12.3.54 12.3.55 12.3.56 12.4 12.4.1 12.4.2 12.4.3 12.4.4 12.4.5 12.4.6 12.4.7 12.4.8

12.4.9

12.4.10

12.4.11

Ability to determine the approval status based on predefined workflow. Ability to approve all pending transactions ad-hoc or in batch mode. Ability to export data to ASCII text, spreadsheets without IT intervention. Ability to capture special comments regarding a transaction. Unlimited field size. Ability to restrict/edit access to the approval function for specified users. Ability to review previous approval cycle information (example why a transaction was previously rejected and by whom) Ability to automatically route the approved transaction to the cashier to effect settlement across all products. Ability to prevent changes to approved transactions. All changes to approved transactions should be processed as an audited adjustment process. System should permit the capture of reason for change. Ability to automatically route rejected transaction to originator. Security Controls User sign on and password controls. Program access control based on user profile. User groups for ease of administration of access rights for users. Ability to maintain an audit trail on all transactions and on all security level changes. Ability to maintain an audit trail on all changes at the field level. Ability to auto logoff after a certain period of inactivity. Ability to maintain system status during logoff state. Provide adequate security controls at the transaction level: Authorizer must be different from user entering transaction. File access controls to be specified at: User level: for add, amend, delete, inquire on all master and parameter files Client level: client cannot be deleted if accounts exist Account level: account cannot be deleted if balance exists Transaction (record) level: changes should reflect on all associated entries previously made Limit control should require authorization only when limits are about to be exceeded: limits should be allowed on a client basis and should include but not be limited to the following: - Institution - Instrument type - $ amount - Group membership (corporate or family) System should track both successful and unsuccessful

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12.4.12 12.5 12.5.1

12.5.2

12.5.3 12.5.4 12.5.5 12.5.6 12.5.7

12.5.8 12.5.9 12.5.10 12.5.11 12.5.12

12.5.13 12.5.14

12.5.15 12.5.16 12.5.17

12.5.18 12.6 12.6.1

attempts to use functionality. Provide reports of auditable activities by date, user, or option accessed. Credit Services Ability to maintain the following products/transaction types: - Demand Loans - Installment Loans - Inventory Financing - Insurance Premium Financing - Receivables Financing - Trade Financing - Guarantees - Lease Financing - Letters of Undertaking - Loan Syndication Ability to track entire loan lifecycle - Pre disbursement - Post disbursement Ability to process interest & arrears. Provide arrears management through provision of aging reports. Integrate the collateral management for loans with respect to processing of securities. Ability to link acceptances to loans i.e. acceptance acting as collateral for loan facility. Ability to support the following interest amortization methods: - Straight Line - Reducing Balance Ability to specify begin mode or end mode for amortization. Ability to handle discounting. Ability to support uneven periods and amounts. Ability to specify add-on versus effective rate. Ability to specify the interest calculation method at the client and product level and provide user override at the transaction level. Ability to apply fees automatically. Ability to generate invoices automatically. Ability to provide statements online. Statements should be summary or detailed and should allow drill down to details. Provide the ability to maintain, assign and print PreAuthorised Payment cheques (PAPs) Allow "What-if" analysis of expected client liability Ability to monitor the Payment of Insurance Companies for IPF transactions. Payment status should be noted on system and payments should be generated ad hoc or automatic based on user-defined parameters. Document Management - store and print standard loan documentation Private Banking Customer Information System with detailed profiles on clients.

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12.6.7 12.6.8

12.6.9 12.6.10

12.6.11 12.7 12.7.1

12.7.2

Automated statements for all accounts related to a single customer. Statements should be generated in a customer centric versus a product centric manner. Ability to view client portfolio via graphs and bar charts. Ability to provide a detailed or summary statement of the client holdings Ability to provide an integrated client summary of all activities across all product areas (i.e. Loans, Funds, Investments, FX) with the ability to drill down to transaction details. Ability to view statements on-line and to drill-down to underlying data. Memo Management Facility which immediately alerts designated account officer whenever customer carries out a transaction with a Teller or other officer. Ability to generate client statements/portfolio at the GROUP level. Ability to have the Banks liability with respect to the clients entire portfolio updated real-time and available online for review. Store and print client documentation Treasury & Investments Ability to maintain the following products: - Commercial Paper - Bonds - Local and Foreign - GOJ Repo Agreements - Foreign Exchange Trading - Acceptances (Fixed & Call) - Asset Trading of Commercial Paper and Government of Jamaica Debentures - Asset Trading of Government of Jamaica Securities such as Treasury Bills and other discounted instruments - Savings Type Accounts Ability to monitor the daily cash position online, realtime: - A summary of all money taken and received at funding desks. Flows tracked should be across all areas of the bank's operations, including but not limited to FX Deals, Counter Deals, OP Expenses, client withdrawals, deposits, loan payments and loan disbursements. - Calculate weighted average cost of funds received and average weighted income from funds used. - Net position between borrowing and lending and the associated cost of funds. - Net position for all liquid asset and liability instruments (that is instruments maturing in less than 30 days) - Link to cashier desk to ensure that receipt and disbursement of funds is reflected in daily cash position.

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12.7.5 12.7.6

12.7.7

12.7.8

12.7.9

12.8 12.8.1 12.8.2 12.8.3 12.8.4

12.8.5

12.8.6 12.8.7

Link to all trading desks to ensure that expected funds flow are reflected at the funding desk. - Ability to provide reports of bank's funding based on client category and sorted by date, amount and average rate. - Ability to determine the yield to maturity, purchase date, duration and applicable cash flows for coupon based instruments. - Ability to track mortgage backed instruments. - Ability to do sensitivity analysis based on the gapping report. - Ability to setup the budgetary targets for banks assets and monitor thresholds. For example portfolio should be 25% short term maturities, 25% medium term and 50% long term. Where short, medium and long term are user-defined and user-modified parameters. Ability to track the receipt of dividend payments. Ability to enter the dividend payment date (DPD) and payment amount and generate the total expected based on stocks held on record as of the DPD. Ability to book fixed interest instruments. Ability to price various instrument types, namely - Amortised Interest & Principal - Variable Rate Pricing Ability to see profits due from fixed interest instruments reported online, real-time with ability to drill from a summary position to specific bond. Ability to price bonds. Users should not be required to use an external calculator to effect transactions related to discounted instruments. Ability to provide online, real-time cost of funds information which facilitates answering the questions: How much does it cost to hold a specific bond? At what rate should I sell the portfolio to ensure a profit? Customer Schedules and Other Requirements Ability to generate reports such as maturity schedules. Ability to link with the security database maintained for the Risk Management Unit. Ability to provide electronic approval and routing workflow between Treasury and Risk. The ability to do the following transactions: - Early encashment - Interest rate changes with a back value date - Penalty charges - Tenure and amount change - Partial encashment The ability to consolidate clients accounts without maturing the old investment, i.e. add new funds to the same account. Ability to add funds to fixed interest acceptances. i.e. break and re-fix transaction in one step. Ability to subtract funds from fixed interest

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12.8.12 12.8.13 12.8.14 12.8.15 12.8.16 12.8.17 12.8.18

12.8.19

12.9 12.9.1 12.9.2 12.9.3 12.9.4 12.9.5

12.9.6

12.9.7

12.9.8

12.9.9

acceptances. i.e. break and re-fix transaction in one step. The ability for clients to have multiple sub-accounts. Ability to handle discounted instruments. Ability to automatically determine the certificate details printed based on the Asset Type for the transaction. Ability to enter pertinent transaction details such as interest rate, tenor, inception date, amount, withholding tax rate. Ability to determine interest calculation method based on transaction type & client residency. The system should automatically determine maturity date based on Inception Date and Tenor entered. Ability to warn the user if the maturity date falls on a system holiday. Ability to enter hypothecation status for acceptance. Ability to facilitate early withdrawals with the option to apply penalty charges. Ability to reduce principal before maturity with the option to apply penalty charges. Ability to roll an investment for: Principal Only, Principal + Interest, Partial Principal + Interest, Specified Amount. Ability to configure automatic rollovers. Inclusive of specifying standing instructions at roll-over, settlement details, rate adjustments and tenor adjustments based on the holiday table. Asset to Liability Matching Ability to do matching of assets to liabilities and view the matching online real-time. Ability to identify at a glance on-line assets which are over-funded or under-funded. Ability to identify the liability or liabilities linked to the particular asset(s). Ability to limit the percentage over-funding or underfunding allowed for the entire portfolio by currency. Ability to select an asset from a list of under-funded assets and create a liability that will be matched to the asset in one step. Ability to stop user if attempts are made to book an investment for an asset where the investment amount is greater than the assets unallocated funds. Ability to do match many assets to many liabilities. That is: - Ability to match one liability to one asset - Ability to match one liability to many assets - Ability to match many liabilities to one asset - Ability to match many liabilities to many assets Auto Allocate: The system should automatically provide a best match scenario for allocating all investments to an asset based on the client risk profile and risk priorities. Ability to displace several small investments by a larger investment. This feature should be based on transaction type and should be set via a system

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parameter. Ability to specify the amount available in asset and have system return only those assets to the user. 12.9.11 Ability to reallocate the liability to a new asset. Reallocation transaction should result in the need for approval based on predefined rules. These rules should be user configurable. 12.9.12 Ability to view asset allocation on-line and via reports throughout the day. 12.9.13 Ability to determine the next interest payment date on all assets and have it impact on the cash flows. 12.9.14 Ability to forecast long and short positions at any time for the Money Market. Document Management 12.10 12.10.1 Ability to print certificates for each product type. 12.10.2 Ability to flag accounts to indicate that certificates have been printed and capture date and time of print 12.10.3 Ability to force all reprints of a certificate to indicate COPY on output. 12.10.4 Ability to generate a unique certificate number for each original certificate printed. This number should be retained by system for use on the reprints. 12.10.5 Ability to indicate hypothecation status on the certificate. 12.10.6 Statements detailed and summary statements. 12.10.7 Ability to generate advices such as Repo agreement and tax withheld certificates for a liability. 12.10.8 System should track the number of times that a certificate has been printed. 12.10.9 Ability to generate an acknowledgement letter for new clients. General/Customer/Treasury Report & Queries 12.11 12.11.1 Ability to inquire on the interest payable or receivable on a specified date for a client account 12.11.2 Ability to inquire on the credit balance available on the borrower. 12.11.3 Ability to inquire and report on interest gapping between the matched assets and liabilities 12.11.4 Ability to inquire and report on maturity date gapping between the matched assets and liabilities 12.11.5 Ability to inquire on future cash positions within definable time categories, for example 10-day, 30-day and 90-day. 12.11.6 Ability to inquire on future cash positions for a user specified date. 12.11.7 Ability to generate a client account statement periodically or ad hoc, batch mode or individual. 12.11.8 Ability to generate withholding tax certificates for all products. 12.11.9 Ability to do asset-liability matching across currencies and provide arbitrage monitoring reports. 12.11.10 Provide a history of events occurring on a contract including initial terms and changes to terms such as: value dated changes (e.g. maturity date, interest rate) 12.9.10

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payments (e.g. interest payment, principal payment) giving the following details: - Value date - Transaction date - Event description 12.11.11 Ability to generate reports showing accounts opened and closed for user defined period.