8/13/2021 Product Designer

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Product Designer

Properties in a Product

Each Product line contains the list of mandatory Property Classes. Further, an optional Property Class in a product line can be made mandatory at
the Product Group level.

When a product is created in AA.PRODUCT.DESIGNER, the system evaluates if at least one instance of every mandatory Property Class is available
in the product and raises an error if it is not satisfied.

Linking Properties and Conditions

New products are designed within the AA.PRODUCT.DESIGNER application. The conditions and structure of these products can be modified at any
time.All new products must be associated to a Product Group so it should be defined in AA.PRODUCT.GROUP before any new product can be built.

Product records are identified with a key of PRODUCT – Effective Date.

A Product (Example: Car Loan) is derived from a Product Group (For example, Personal Loans), and made available for sale to customers.

Sample Products in the Personal Loans Product Group are shown below.

Although many Products have only a single set of conditions attached to each Property, the Product Builder enables the user to link multiple Defined
Properties to each Product Property through user-defined rules.

Assigning Defined Properties

To create a Product users link the desired Defined Properties (Example: 5 percent flat rate) to the appropriate Properties (Example: Principal
Interest).

Defined Properties linked to Product are shown below.

It is possible to have several dated records for one product. This enables the user to change one or more of the conditions of the product as market
conditions or other factors necessitate a change to the original Product Conditions.

A sample AA.PRODUCT.DESIGNER is shown below.

The Product Group field defines which group the product belongs to and this group previously have been defined in the AA.PRODUCT.GROUP
application.

The Parent Product field indicates if this product is derived from a parent product. If a product is input into this field, it is possible for all of the
Properties and Property Conditions that have been defined within this product to be inherited by the child product. It is possible to override the
condition of a certain Property by defining an alternative condition within the child product.

During the product proofing process, the system expands the Properties inherited from the parent product along with any new Properties defined in
the child product and checks if all mandatory Properties have been defined. It also checks that there are no property conditions defined for a property
that is not included in the associated Product Group.

The currency in which this product can be sold is defined in Currency field. This field is multi-valued to allow more than one currency.

The fields such as Property, Product Property, Arrangement Link and Effective Date are a multi-valued set of mandatory fields. It is possible to define 
numerous property conditions using this set of fields.

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The value entered in the Property field needs to have been previously defined in the AA.PROPERTY application. All Properties that are defined as
mandatory within the associated AA.PRODUCT.GROUP must be defined for each new product.

The Product Property field is used to define the condition for the Property. The value entered here is determined from the records created in the
AA.PRD.DES.XXXX applications (where XXXX is the name of the Property Class).

It is only necessary to input the first part of the ID. For example, if the ID of an INTEREST Property is 99-USD-20030602, it is necessary to input only
99. If the product has been defined in more than one currency, during the proofing or publishing process, the system checks if there are conditions
defined for that ID for all currencies listed in the Currency field.

The Arrangement Link field defines if the condition is Non Tracking, Customer Tracking or Tracking.

Non Tracking - Once the arrangement has been opened, it is possible to set all conditions of a specific Property for the duration of the
arrangement. Subsequent changes to the fixed Product Conditions do not affect the arrangement.
Tracking - The Product Conditions of a Property contain values for all mandatory parameters. At the arrangement level, the user cannot
change any of the conditions of the Property. Throughout the duration of an arrangement, any product level changes to a “tracking” property
can be reflected in the arrangement.
Custom Tracking - This type of arrangement Property behaves in a similar way to tracking Properties except that individual conditions can be
input (within negotiation limits) at the arrangement level. Any attributes, which have been input, effectively becomes fixed for the duration of the
arrangement. All other attributes track changes at the product property.

The Effective field represents the effective period after which a new Property Condition comes into effect. This allows a timed change of a condition
for the product so that a Property can be linked to one defined condition and switch to a different one after a specified period.

The Inheritance Only field is used to define whether the product is allowed for sale or whether it is defined purely for inheritance purposes.

If Yes is selected, it is not possible to keep the product for sale and is used purely by further child products.
If No is selected, it is possible to use this product in arrangements. It is not possible to input an arrangement using a product that has been
defined as inheritance only.

A Product created can be designated in such a way that the arrangements created in this Product has to be part of a Bundle. The Bundle Only field
helps to define the status.

The multi-value group of fields Calculated Property, Source Type, Source Balance and Source Property relate to accounting.

For example, the interest may be calculated on the outstanding amount of the balance only. If this is the case, the interest property is entered into
Calculated Property field and the Source Type determines whether the interest is calculated on a BALANCE or PROPERTY. If the Balance is
required, the corresponding record from AC.BALANCE.TYPE is entered into Source Balance.

As per most Temenos Transact applications it is possible to add multiple Local Reference fields to the AA.PRODUCT.DESIGNER record.

Changing Defined Properties

As economic conditions change over time, the characteristics of products are likely to change. These changes are entered as updated Defined
Property records with new effective dates. This method allows a change to be scheduled for a future date. Additionally, back-dated changes can also
be entered in the same fashion. A full history of all Defined Properties, which were applicable to a Product at any point in time, is available.

In addition to dated changes of a single Defined Property, the Product Builder also allows a Product to be defined with “timed” changes of its
conditions. These timed changes are handled as either “product changes” (that is, an introductory product is set for a given period after which the
arrangement reverts to a standard product) or as “condition changes” (that is, a standard product property is linked to one Defined Property and after
a period of time switches to a different Defined Property.

The difference between the two types described above is that in the case of the product change, there are two defined products both of which exist
independently. In the second example there is only one product whose conditions change after a given period. 
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Although many Products have only a single set of conditions attached to each Property, the Product Builder enables a user to link multiple Defined
Properties to each Product Property through user defined rules. Users define these rules through the Temenos Transact Rules Engine and can then
use these rules to specify which Defined Properties should be applied. As an example, this allows for a single Product to be defined which may have
preferential conditions based upon characteristics of the customer or their relationship with the bank. The selection of Defined Properties is done
dynamically during the creation and during processing of each Arrangement.

Product Availability

The financial institution makes Products conditionally available by specifying:

Allowed Currencies – Currencies in which the products are available for sale.
Allowed Companies – Temenos Transact companies in which the product are available for sale.
Through user-defined rules - Users can create segmentation rules through eligibility property class (Example: Platinum Customer, Standard
Customer, Internet Only and so on) and make products available only when these rules are met.

Variation Specific Product

The PROPERTY.VARIATION field is attached in the property conditions.

Channel Availability

Financial institutions can define the channel in which a given product should be available for sale using theChannel and Exclude fields in
AA.PRODCUT.DESIGNER.

Channel is a valid EB.CHANNEL indicates the Channel(s) used by Customer.

Available Channels can be indicated using List of Channels available

List of channels for which the product is not available using the associated set of multivalued fields Channel and checking the Exclude
The Below screen indicates that the Product is not available in Internet – in turn means that the Product is available in all Channels
except Internet Channel

The channel(s) in which the product is available for sale can be modified at any stage of the product life cycle.
Any change to list of available channel(s) is applicable only for new arrangement / new offers and does not affect the existing
arrangements.
The available Channel(s) definition is not cascaded to the inheriting child products i.e. available channels specified in the parent product does
not affect the child products.

Example, if a Available Channel is specified as Internet and Mobile in the parent product and left blank in its child product, the child product will
not inherit the available channels from parent therefore will be available in all channels and parent product will be available only in Internet and
Mobile channel.
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Line of Business

The Line of Business attribute is used to define availability of the Product for certain lines of business only. The value in the attribute should a
valid record in the ST.LINE.OF.BUSINESS table.

Line of Business is defined to distinctly describe the cost centres of a bank and to align them later to a particular branch depending on its
construct and requirement.
The Exclude attribute is used to restrict a particular Line of Business from using the Product.
For example, assume there are five line of businesses (Consumer Banking, Retail Brokerage, Reinsurance, Small Business Banking, Wealth
Management) configured in the ST.LINE.OF.BUSINESS table, if the user prefers to restrict the line of business Reinsurance from using the
Product then the value Reinsurance has to be selected in the Line of Business attribute and the Exclude attribute should be set as Yes.

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