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Repayment & Reconciliation Integration

Repayment & Reconciliation Integration

Our platform provides flexible options for managing repayments, supporting both manual and automated processes. Integration with the bank’s systems ensures that repayments are efficiently tracked, reconciled, and reflected in the system.

1. Repayment Options

a. Instrument-by-Instrument

  • User Control: The repaying party can manually select which invoices or instruments to repay

  • Marking as Paid: For each selected invoice or instrument Repayment Reference is generated

  • Integration: The system can send information to initiate a sweep of the client’s account to collect the repayment amount and check if the selected instruments have been fully repaid

  • Status Update: Once repayment is confirmed, the system updates the status of the corresponding instruments to “Paid"

b. Bulk Repayment (Automatic Allocation)

  • No Manual Selection: The repaying party does not need to select individual invoices or instruments on FinverityOS.

  • Collection Account: Repayments are made to a designated collection account.

  • Automated Sweeping: Bank's Core system can sweep the collection account to detect incoming funds and sends the information to FinverityOS.

  • Reconciliation Logic: The system automatically allocates repayments to outstanding instruments based on predefined rules:

    • FIFO (First-In, First-Out): Older instruments are repaid first.

    • LIFO (Last-In, First-Out): Newer instruments are repaid first.

  • Automatic Marking: Instruments are automatically marked as paid according to the chosen reconciliation rule (FIFO or LIFO).

Example Scenarios

Manual Repayment:
A client logs into the platform, selects three invoices to repay, and initiates payment. The system sweeps the account and confirms receipt. The information is sent back to FinverityOS, which marks those three invoices as paid.

Bulk Repayment with FIFO:
A client transfers a lump sum to the collection account. The system sweeps the account, applies the funds to the oldest outstanding instruments first (FIFO), and marks them as paid until the amount is exhausted.

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