CUSTOMER

TEMENOS EDUCATION CENTRE

Copyright © 2004 TEMENOS HOLDINGS NV

In this section we will look at the Customer application and the basic
information required to establish a database.

Secondly we will look at the tables that are linked to the Customer file and
how they can be expanded and amended.

Finally we will create Customer defaults which will enable the Bank to group
similar types of customer (grouped by sector)

1
 Introduction

• Customer and associated tables are core

Applications within the Temenos T24 system.

• Customer Application is central to the organisation of:

– information.
– services.
– profit and loss.

07 December 2004

The Customer Application contains all the basic information about any

"Customer" which the bank has dealings with.

Most Applications refer to the Customer base record during processing,

therefore it must be opened before any Customer activity can be recorded in

Temenos T24

2
 CUSTOMERS

ƒ Clients:
Private, Corporate.

ƒ Agents:
Other Banks, Brokers.

ƒ Counterparties:
Other Banks, Retail and Corporate.

07 December 2004

The Customer Application contains all the basic information about any

"Customer" which the bank has dealings with. In this sense, a Customer base

record will be opened for correspondent banks, brokers, guarantors etc. as well

as for current and savings account holders.

3
 CUSTOMER Application

ƒ Establish Customer record prior to any Customer

activity.

ƒ Descriptive details not financial.

ƒ Accounts and contracts link into Customer.

07 December 2004

Most Applications refer to the Customer base record during processing,

therefore it must be opened before any Customer activity can be recorded in
Temenos T24.

Customer records for banks, correspondent banks, Agents, etc. should ideally
be opened at installation of the System even if these banks are not 'real'
Customers of your institution. The existence of these Customer records will
minimise the input of data in Transaction Processing Applications like Money
Market, Foreign Exchange, Funds Transfer, etc. where details of banks are
always necessary to indicate the settlement details of the transaction.

4
 CUSTOMER Application
and Product Relations

A/C Based
CUSTOMER Contract Based
Transactions Transactions

USD Account Foreign Exchange

CHF Account Money Market

Savings Loans

Portfolio Securities

07 December 2004

In retail banking a private or corporate Customer would normally have some

kind of account such as a local currency current a/c, a mortgage a/c, currency
a/c, savings notice a/c or an investment portfolio.

However, a customer need not be in account relationship with the bank in

order to do business. Contract type transactions such as FX, Money Market
and Securities can still be arranged and a limit would normally be set up for
this type of customer.

5
 Purpose of CUSTOMER Application

ƒ Contains all the basic information about any

"Customer" which the bank has dealings with.

ƒ Ideally, only one Customer record should exist for

each Customer, this can be whenever a name,
address and other relevant information is obtained and
is not dependent on the existence of an account.

07 December 2004

Ideally only one Customer base record should exist for each Customer, this
can be whenever a name and address is obtained and is not dependent on the
existence of an account.

For example, a Customer base record can be set up for a Customer with whom
the Bank only expects to have Money Market or Foreign Exchange contracts.
If later an actual account is opened (e.g. current account or savings account) it
will not be necessary to input this information again since the Customer base
number is an integral part of the Customer Account record and Temenos T24
always refers to the Customer base record for all basic information.

6
 CUSTOMER & Static Tables

GLOBAL
CUSTOMER RELATION
COUNTRY

INDUSTRY
SECTOR
CUSTOMER
CUSTOMER.
CUSTOMER. CUSTOMER.
DEFAULT
DEFAULT
STATUS
LANGUAGE

TARGET LIABILITY

DEPT.ACCT.OFFICER LOCAL REFERENCE

07 December 2004

The above diagram illustrates the various static tables that are attached to the
Customer file.

Later on in this section we will expand some of these tables.

7
Important Fields

07 December 2004

Some of the Customer Application Fields that you will need

to input are explained below.

Id:This is the numeric code by which the Customer will be

uniquely identified.
The ID must be in the range 1-9999999999 (10 digits).
Mnemonic – Specifies an alternative easy means of
referencing the Customer.
Like the ID, the Mnemonic must be unique across Temenos
T24. For each Customer, the System will automatically
update the internal file "MNEMONIC.CUSTOMER" which
allows the User to display the Customers in Mnemonic
sequence instead of Customer number
Short Name: Identifies the name of the Customer in a more
descriptive form, and will be used for on-line enrichments in
any field where a Customer ID or Mnemonic has been input.

8
 Important Fields

SECTOR RELATION

DEPT.ACCT.OFFICER
TARGET
INDUSTRY
COUNTRY
COUNTRY

CUSTOMER.STATUS
07 December 2004

The sector (field 10) is the main element for classifying customers. It is purely
descriptive and additional sectors may be added by direct input to the SECTOR
table.

Industry identifies the Industry in which the Customer is trading.

Relation shows whether any other customer is related to this customer and how they
are related to this Customer

For determining Nationality and Residence, Country table is used.

Mention of Department Account Officer aids in determining the departmental profit

and loss from this customer.

Customer status indicates the status of the customer like sound, bankrupt, deceased
etc.

9
 Important Fields

GLOBAL
CUSTOMER
LIABILITY

LANGUAGE

LOCAL REFERENCE

07 December 2004

Global customer: The use of this Global Customer number will allow a bank to

uniquely identify, on a worldwide basis, those Customers who are dealing with

various branches across the world.

Customer liability: Indicates the Customer consolidation number for credit

grouping purposes, within the same branch/country.

Language identifies customer’s language to be used for correspondence

Additional information required can be stored in Local reference fields.

10
Demonstration

• We shall see how to create a new record in

CUSTOMER application by using the available data in

the several static tables. We shall also see their

significance and see how to create new records in

these static tables.

07 December 2004

11
 RELATION

ID DESCRIPTION

RELATION

REVERSE
RELATION REVERSE
RELATION
DESCRIPTION
07 December 2004

Identifies the Customer Code or the Mnemonic of the Related Customer.

Customers may be linked together as Husband/Wife, Parent/Child, Head

Office/Branch, Company/Subsidiary etc.

Any new pairings can be setup in the RELATION table - only one side needs
to be setup as the corresponding relationship is automatically defaulted.

12
 SECTOR

ID DESCRIPTION

SECTOR

07 December 2004

SECTOR – The sector table helps grouping of customers under various

sections to facilitate application of different rates of charges or reporting
figures in groups, for different class of customers. The bank normally charges
various rates of interest for different clients. The definition of a group may
comprise of various factors, one of them probably could be the sector of the
customer. The sector is commonly used to define the ‘Legal Status’ of the
customer i.e.., Individual, Public Company, Government, Corporation, Trust
etc. This value is ‘maintainable’ in the sense that a Private company could get
converted to a Public company in future and hence a change is necessitated in
the sector field on the customer record. Most of the banks use Sector in
defining the Condition.Priority in conjunction with the Category. The ID of
the sector being a 4 digit numeral, there are a possible 9,999 different sectors
that could be defined in Temenos T24.

13
 DEPT.ACCT.OFFICER

AREA/BRANCH
AREA/BRANCH

ID
ID NAME
NAME

DEPT.ACCT.OFFICER

DELIVERYPOINT
DELIVERYPOINT

RESTR
RESTR TO
TO
COMPS/PROHIBIT
COMPS/PROHIBIT
COMPS
COMPS TELEPHONE
TELEPHONE
FAX/TELEX
FAX/TELEX
07 December 2004

Identifies the main Account Officer responsible for the Customer.

This code will be defaulted on all Customer transactions within Temenos T24

except if it is overridden by another Account Officer code at the transaction or

product level. The existence of the Account Officer code on every Customer

transaction will allow generation of M.I.S. information at the Account Officer

level

14
 INDUSTRY

ID DESCRIPTION

INDUSTRY

07 December 2004

The industry table defines the activity the customer is involved in. The Public
Company described in Sector table could be involved in Manufacturing,
Service, or Export business. The manufacturing activity itself could be further
broken down to nature of industry like Cars, Two Wheelers, Customer durable,
Machinery, etc. The Industry table thus holds the second level activity that the
customer is concerned. This table also, like the Sector, is to be maintained by
the bank. Though the Industry table has no pre-defined blocks, a logical array
of the industries will facilitate reporting. As in the case of sector, the ID of the
Industry code is a four digit numeral, and hence 9,999 different values could
be defined.

15
 TARGET

ID DESCRIPTION

TARGET

SHORT
NAME

07 December 2004

Specifies how the Customer is considered by the bank and how he fits in with

the bank’s overall marketing strategy.

Customers can be targeted for different products of the bank like loans,

deposits, credit cards etc.

16
 COUNTRY

CODE
CODE CURRENCY
CURRENCY CODE
CODE

SHORT
SHORT NAME
NAME

COUNTRY

COUNTRY
COUNTRY NAME
NAME

OTHER
OTHER LOCAL
LOCAL
INFORMATION
INFORMATION

07 December 2004

The Country file is one of the core tables within Temenos T24.

The 2 letter code is the standard S.W.I.F.T. abbreviation and the Country table

is attached to both the Nationality and Residence fields.

It can also be attached to Local reference fields for additional information such

as Place of Birth or additional passport.

17
 CUSTOMER.STATUS

ID DESCRIPTION

CUSTOMER.STATUS

SHORT NAME

07 December 2004

Identifies the Status of the Customer and the values applicable to this field can

be defined by each bank/branch according to the their own practice.

It can be used in conjunction with standard ratings set by Standard and Poors

or Moodys for Banks credit status e.g Double A rated.

18
 GLOBAL.CUSTOMER

ID SHORT NAME

GLOBAL.CUSTOMER

07 December 2004

Specifies a unique identification number for a multi-national Customer which

is valid across all branches of the bank worldwide.

The use of this Global Customer number will allow any bank to uniquely
identify, on a worldwide basis, those Customers who are dealing with various
branches across the world. The consolidation of the "Global" Customer
exposure or profitability on a worldwide basis will then be made referencing
this unique Customer identification.

19
 LIABILITY

After Authorisation,
Becomes a no-input field

Exposure to 300016
Consolidated with 300015
07 December 2004

Indicates the Customer consolidation number for credit grouping purposes,

within the same branch/country.

This field allows Customer exposure to be consolidated at the branch or

country level when analysing the risk by the LIMIT Application. If entered it

must be a valid Customer code or Mnemonic.

Note : This is a no change field. Any change must be done using the

LIMIT.CHANGE application

20
 LANGUAGE

LANGUAGE
CODE

LANGUAGE
MNEMONIC

DESCRIPTION AMOUNT
FORMAT
07 December 2004

Field 25 in the Customer File identifies the Language to be used for

correspondence.

Additional languages may be added to the LANGUAGE table but is must be

remembered that Temenos T24 is NOT a translating machine.

Any messages generated by the system in Print format may be manually

translated into any language using Alpha characters.

Amount Format: Specifies the separators to be used when formatting amounts

for Enquiry, Repgen & screen input.

This field specifies the separators to be used when formatting amounts. Input
of ',.' will use commas to separate the thousands and a full stop for the decimal
place.

21
 LOCAL REFERENCE FIELDS

In addition to all the above, if the Bank

wants to have additional information of the
CUSTOMER, then it can store them by
creating the Local Reference Fields.

07 December 2004

Care has been taken to include all essential information in Customer table.

When a bank wants to have any more information which will help its

transaction handling and/or reporting easier, then new fields can be added

under Local Reference fields.

These are unique for each bank. Once created, they cannot be deleted. Hence

care should be taken in designing the local reference fields.

Such fields are available in other applications also. Note the numbering of

these fields. Though the numbering system resembles Multi value fields, the

black box near a multi value field is absent here.

22
 CUSTOMER.DEFAULT

Enables quicker input of data

SECTOR CODE

ACCOUNT
ACCOUNT OFFICER
OFFICER
INDUSTRY
INDUSTRY
TARGET
TARGET
NATIONALITY
NATIONALITY
CUSTOMER
CUSTOMER STATUS
STATUS
RESIDENCE
RESIDENCE
Whether
Whether Address
Address
(Street)
(Street) mandatory
mandatory
07 December 2004

Customers may be categorised into groups using CUSTOMER.DEFAULT

The Sector number is used as the Customer default and then other static tables
can be attached to the sector by default.

In this way a new customer in an existing sector can automatically be assigned

the correct Account Officer for standard marketing within a particular industry
etc.

The static tables from Fields 10-17 are mandatory but only the sector code
(Field 10) need be entered if the Customer default has been completed.

23
Workshop 1

• Open a Customer record for Yourself with the

Liability Customer being yourself.

• Do not create any NEW table. Pick and choose the

most appropriate alternatives.

07 December 2004

24
Solution - Customer record

Name beyond
35 Characters,
can be taken to
next field

07 December 2004

25
Solution - Customer Record

Fields 29 and 30 can be used for

addresses extending beyond
fields 5 and 6

On Authorisation, System
Creates a record in
DE.ADDRESS for Print carrier

07 December 2004

26
Workshop 2

• You have now joined the services of the Bank as

Customer Relations Officer dealing with Private
sector (Highly confidential group)
• Set up Yourself as a suitable
DEPT.ACCT.OFFICER
• Make necessary changes in your Customer
record

07 December 2004

27
Solution - DEPT.ACCT.OFFICER

07 December 2004

28
Solution –
CUSTOMER Record - Changes

07 December 2004

29
Workshop 3

• Create a suitable Sector record for your area of

operation.

• Set up a new Industry record for Finance

professionals

• Create a new Target record for High Networth

(Confidential) people

07 December 2004

30
Solution - SECTOR Record creation

07 December 2004

31
Solution - INDUSTRY Record creation

07 December 2004

32
Solution - TARGET record creation

07 December 2004

33
Workshop 4

• Create a new Customer.Default record for the

combination created in Workshop 3 with You as the
Dept.Acct.Officer.

• Customers under this grouping do not want their

addresses to be mentioned in bank records

07 December 2004

34
Solution - CUSTOMER.DEFAULT

07 December 2004

35
Workshop 5

• Mr. David Arnold is a high networth finance

professional, residing in USA and is of British origin.
He has not given his address.

• In the bank, you will be dealing with him.

• As a first step, open his Customer record.

07 December 2004

36
Solution - Customer Record

07 December 2004

37
Solution - DE.ADDRESS

07 December 2004

38
Summary

• You have learnt how to create records in some

important static tables like sector, industry and
target.

• You have also created your own Dept. Acct. Officer

and Customer.Default records.

• You have now created your own Customer records

using the records created by you in static tables.

07 December 2004

39