Servicing Phase

Servicing constitutes the foundational hub of the credit product, encompassing the creation of offers, the application of financial algorithms, and the comprehensive management of payments across all credit portfolios. It serves as the nerve center where intricate financial calculations are executed, tailored offerings are devised, and meticulous payment processes are orchestrated, ensuring the seamless operation and effective administration of the credit ecosystem

Step 1: Create an Aggregator

In our system, there are aggregators, which can be considered as an additional actor in the credit operation, operating as aggregators of end-users, where credits are issued to these groups of users through them. Additionally, the solution supports that, for each credit issued through these aggregators, a commission is charged to the lender as compensation for the funding or issuance of the credits. A clear example of these aggregators are the merchants within a BNPL-type operation, where credits are issued to buyers through their respective merchants. The aggregators associated with the credit operation will have a dedicated portal where they can view all credits issued through their particular operation and the commissions between them and the lender.

Create aggregator: Upon client´s request, the support team will create an aggregator with the following attributes: To associate an aggregator with the client's credit operation, a request must be made to the support team, which must include the following information for each aggregator:

Step 2: Create a Product and Offer

Your journey with MO begins with receiving your back-office access and API keys. With these in hand, you can launch and manage your credit program. Manage has three levels of configuration, which provides flexibility to the solution. The highest level of hierarchy is the project, followed by the product, where the level with the highest granularity is the credit offer. The lower hierarchical levels inherit the configurations from the higher levels:

Project Creation MO's support team creates a Project as required by your business, configuring country, currency, and active credit limit.

Create a New Product: In our system, products operate as containers or segments of
offers. These contemplate transversal configurations that will be adopted for all offers
created within the product; currently Product Configuration.
Generate Offers: The credit offer supports the highest number of configurations within the system, defining the main conditions of the credit obligation. The configuration is divided into four main sections; the first covers general configurations of the offer; in the second section, the repayment terms and logic of the credit are defined; the next section establishes all charges and fees associated with the credit; finally, the last section defines the order of prioritization of payments with respect to the configured charges. MO Manage does not have a limit on the creation of offers, which can be enabled or disabled depending on the needs of the credit operation. Offers

Step 3: Create a Precustomer and Customer

In MO, every customer will start as a pre-customer. After they meet the business rules to become a customer, for example, completing the onboarding process or accepting the terms and conditions, upgrade them to a customer.

A Pre-customer is a user who does not yet meet the business rules to become a customer; for example, they may not have accessed the platform and accepted the terms and conditions, or they may not have completed the entire onboarding process, among others. These pre-customers can be pre-loaded into the system if the client already has a known user base, or they can be users who organically enter the borrower porta, but don´t
complete the onboarding. Once the user meets the defined rules to become a Customer, they will be created in our system with an assigned status. Once the user is registered as a customer, they will be able to apply for loans Create a pre-customer.
Once the user meets the defined rules to become a Customer, they will be automatically created in the system with the Enabled status, where they can request credits from the platform. It is important to note that once a customer has been created into the system, this does not imply that the user has already requested or obtained a credit., Create customer.

Step 4: Create a Loan Request and Loans

In our system, credits are the entity that represents a financial obligation between the lender and the borrower (end-users); where the latter, in exchange for a loan, agrees to repay the money under certain conditions. To have complete traceability of requests and loans, our system distinguishes between pre-loans (loan applications) and confirmed
loans.

Create a transaction

To initiate the request process from the aggregator, in the case of BNPL from the e-commerce widgets, a transaction must be created in our system, so that the user is redirected to our debtor portal to initiate the credit request processes.

Create a Loan Request

A loan request is created in our system when a loan application is confirmed,that is, after the user accepts their payment plan and loan agreement. Each loan request will be associated with a user, an amount, and an offer; depending on the business rules of each project, it will automatically become a loan, but it always has to be created in the system. create a pre-loan.

Create a Loan

A loan or credit is created in our system once a loan request is confirmed and is in the confirmed state; at this point, it is assumed that the amount has already been disbursed to the user. Once it is created in the system, the credit will be automatically assigned the active state. creating a loan.

Step 5: Create Payments

MO Manage as a solution has the capability to receive and record payment information in its system, therefore it is always necessary to confirm payments via API or an integration with a payment gateway (see integrations with third parties). Once payments are registered in our system, they are applied to the debt calculations of each credit. To have traceability of all payments, the system distinguishes between Payments, Loan payments and installment payments.

Create payment:

A payment is any payment attempt made in the system, including automatic and voluntary payments. These payment attempts are generated while a payment is being processed in full.

Payment status:

Payments have different statuses associated with business rules or proactive actions within the system. The names of the statuses cannot be modified; however, some states may depend on business rules configured in the project. The possible statuses of the payment are:

Rejected: Status where a payment was not completed. This can happen if the
payment gateway could not complete the action due to insufficient funds or any other
problem.
Pending: Status where no confirmation of the payment request has been received. Our system runs a scheduled task that will reject the pre-payment after a certain time without receiving confirmation (business rule).
Completed: Status where the pre-payment was successfully confirmed and the payment was successfully made. Once the pre-payment is confirmed, the payment will be automatically created in the system.

Payment Types
The system supports the record of voluntary and automatically discounted payments, when a payment method is registered or if the operation has direct access to the user's funds.

Automatic Payments:

These are payments where the user does not have to make any effort to make the payment and will be debited depending on the installments of the loan. Currently, the solution supports two types of automatic payments:

Payments automatically debited from a registered payment method, such as a credit card, through an integration with payment gateways (See Integrations with third parties).
Automatic debits from the user's funds, when it is a closed operation and there is access and control over the user's funds, for example, in an operation such as MCA.

Voluntary Payments:

These are payments where the user proactively wishes to make a payment in favor of their credit; currently, the system supports various types of voluntary payments, which the user can select when making a payment:

Total Payment: a payment will be made in favor of the total debt, where if the payment is confirmed, the credit will be marked as "paid" and the obligation will be considered fulfilled.
Pay Installment: The user will only pay the value associated with the pending installment.
Pay Future Installments: The user can pay installments that have not yet been generated.
Other Amount: The user can choose a different amount than the previous options. If the entered amount is greater than the pending installment, the user will have the following options:

Reduce capital: The paid amount will go directly to the principal once the overdue installment is closed, thus decreasing the outstanding principal amount of the remaining installments, and consequently the total amount of them.
Reduce term: The paid amount will go directly to the last installment and ifthis amount covers it completely, the maximum payment date of the credit will be reduced