Client Life Cycle
  • 26 Jun 2023
  • 5 Minutes To Read
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Client Life Cycle

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Article Summary

This page describes the client life cycle. For general information on individual clients, see Clients and Groups Overview.

The client life cycle describes the different states a client can be in, there are a total of six states:

  • Pending Approval
  • Inactive
  • Active
  • Rejected
  • Exited
  • Blacklisted

client-states-diagram

The client state can be seen on the client detail page next to the Client State field.

The Client State field on the client detail page

Please Note

To perform any action related to clients, you need the proper permission from your administrator.
Creating a user form with permissions related to clients selected

Setting a new client's initial state

You may set the initial state that clients have when they're created. You may choose between the pending approval state or inactive state. This setup is available under Administration > General Setup > Internal Controls > New Client Initial State. For more information, see Internal Controls - New Client Initial State.

Set client's initial state

Pending approval

The pending approval state indicates that a client is under evaluation.

This state can be used as an initial state if there is a process of approving the client that is separate from the process of approving a loan or deposit account. Or if you have a process of carrying out your credit checks outside of Mambu.

When a client is in this state, it is not possible to create new accounts or process any loan or deposit applications for this client - they must first be approved.

A client in this state can either be rejected or approved as a new client. A rejected client's state changes to rejected. An approved client's state changes to inactive. To reject or approve a client:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select either Reject Client or Approve Client.

A client in pending approval state

Inactive

The inactive state is for clients that have no active loans or deposit accounts.

This state can be used as an initial state for new clients or it can be the state an existing client, that was previously in the pending approval state, enters after they have passed their evaluation and been approved.

A client in this state can be activated, exited, blacklisted, or returned back to the pending approval state.

A client will be activated if you create new accounts for them or process their loan or deposit accounts applications.

To exit, blacklist, or return a client to the pending approval state:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select More.
  3. Select either Blacklist Client, Exit Client, or Undo Approve Client. Selecting Undo Approve Client, changes the client state to pending approval.
Please Note

The Exit Client and Undo Approve Client option will only be available if the client does not have any accounts.

A client in inactive state

Active

The active state is for clients that have at least one active or in arrears loan or deposit account.

A client in the active state can either become inactive or be blacklisted.

The client's state will automatically be set to inactive as soon as there are no active accounts associated with the client.

To blacklist a client:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select More > Blacklist Client.

A client in the active state

In good standing

Clients in good standing are clients in the active state who are complying with all their financial obligations and are not late with any payments.

Rejected

The rejected state is for clients that did not pass their evaluation while in the pending approval state. You may describe the reason for the rejection in comments.

It is possible to reverse the rejection and set the client state to pending approval again. To undo a rejection:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select More > Undo Reject Client.

A client in the rejected state

Exited

The exited state is for clients that don't have any active accounts. If a client is in this state then it is not possible to create new accounts for them, assign them as a guarantor, or add them to a group. Only inactive clients can be exited.

There are several reasons why you might want to consider setting a client's state to exited. For example: if the client finished a loan cycle and doesn't apply for another loan immediately afterwards, you might want to keep that client's information in the system while also preventing other users from opening accounts for that client by mistake or assigning them to credit officers, or guarantors. Clients in this state might return to your organization in the future and it will be valuable to have all their history stored.

You may also reverse a client's state from exited to inactive. To undo an exit:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select More > Undo Exit Client.

A client in the exited state

Blacklisted

Any client in the Pending approval, Inactive or Active states can be blacklisted. If clients are blacklisted, you can no longer open new loan or deposit accounts for them. When blacklisting a client, you can add comments to describe why a client is blacklisted, which will be accessible to other users from your organization.

After a client is blacklisted, with the proper permissions you can still:

  • Operate and transact on existing accounts.
  • Create, edit, and delete tasks linked to the blacklisted client.
  • Create, edit, and delete comments linked to the blacklisted client.
  • Upload, edit, and delete attachments.
  • Set up new, activate, and deactivate notifications.
  • Add new, edit, and delete clients' profile pictures.
  • Add new, edit, and delete clients' profile signatures.
  • Edit any of the client's custom field values.

After a client is blacklisted, you can no longer:

  • Open new accounts.
  • Edit the client's details.
  • Add the client to one or more groups.
  • Assign a client the role of guarantor.

It is also possible to revert the action of blacklisting a client. This will cause a client to go back to the state they had before they were blacklisted. To remove a client from the blacklist:

  1. Go to the client detail page for the client you want to manage.
  2. In the top right-hand corner, select More > Undo Blacklist Client.

A client in blacklisted state


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