2. Intermediary - An Overview

2.1 Introduction

An intermediary is a third party who offers intermediation services between two trading parties. From a software application perspective, an intermediary acts as a middleware between the bank and the customer. The bank may also contract an intermediary to market its funds, thereby attracting the customers. Intermediaries can avail the commission from the bank on every successful loan created through them. An intermediary can be a single entity or a group. The banks can follow hierarchical structure to group multiple intermediaries. In case of multiple intermediaries, the commission earned should be shared with all intermediaries who are part of the same hierarchical structure up to the specified levels.

This manual explains the processing of intermediaries in Oracle FLEXCUBE. Using the Intermediary Service that Oracle FLEXCUBE provides, you can:

• Capture and maintain the Intermediary hierarchy structure
• Maintain commission plans and commission calculation for main loans and third party products such as insurances, warranty contracts, etc
• Pay commission to the intermediaries as the loan is disbursed
• Maintain charge backs in case of early pay-offs and defaults
• Generate Intermediary statements
• Capture and maintain periodic billing and accounting

You can process intermediaries in Oracle FLEXCUBE in the following manner:

• Maintain Intermediary details
• Maintain intermediary rules
• Maintain branch and currency restrictions
• Capture Intermediary account details