Deposit Account Life Cycle and States

Each new deposit account has a life cycle consisting of the following states:

Pending Approval

This is the initial state when you open a new deposit account. This means that the deposit application is under evaluation and can be “Approved” or “Rejected” as the next step of the process, or it can be “Withdrawn” by the client.

Withdraw a deposit account application

If the client or your organization decides to withdraw the request for a deposit account, you can do it only if the account is in the "Pending Approval" state.

To withdraw a deposit account application:

1. Open the deposit account.
2. On the right hand side of the screen, click on Close > Withdraw.
3. Add any notes about the reason for the withdrawal.
4. Select Change Status.

Reject a deposit account application

When a deposit account is still "Pending Approval" and the application hasn't fulfilled your organization's requirements, for instance, you can choose to reject it.

To reject a deposit account application:

1. Open the deposit account.
2. On the right hand side of the screen, click on Close > Reject.
3. Add a comment about the reason for rejection.
4. Select Change Status.

Rejected

If the deposit account application doesn’t pass the initial evaluation, you can reject it. The account will be automatically closed and classified in Mambu as "Closed (Rejected)".

The deposit applications will keep all their associated information, such as comments, notes or attachments, and remain associated to the client or group. This will allow organizations to have a record of all applications which were rejected with comments explaining why.

Withdrawn

If clients change their mind and decide not to move forward with the deposit application, you can withdraw their application. The deposit account will be automatically closed in Mambu, and classified as "Closed (Withdrawn)".

Approved

Once the deposit account application passed the evaluation, it can be “Approved”.

To approve a deposit account, chick on Approve, add any comments you might have and confirm the state.

At this stage, the client can still “Withdraw” the application.

Active

Once the client makes any transaction (deposit, withdrawal or transfer) on the account, it will become “Active”.

Dormant

If no deposits, withdrawals, or transfers have been performed for a period of time, the account can be automatically set to “Dormant” state. This allows to identify and report on dormant accounts, as well as implement other specific workflows such as contacting the clients who own the dormant accounts. The dormancy period is optional and can be defined at Product level.

Once the account status is changed to “Dormant”, no more interest is accrued on the account and no automated transactions are posted on it (interest, fees, transfers, and so on).

Closed

When the client wishes to close the deposit account that has zero balance, you can close the account and stored it under the client's profile as "Closed”.

Locked

In order to prevent any transactions from being performed on the account (deposits, withdrawals, transfers), you can lock it under More. The new state will be “Locked”.

If you don't want to lock the entire account, but only to block a certain amount from being withdrawn or transferred, you can do it via API. For more information, see Blocking Funds in Deposit Accounts.

Additional states applicable to Fixed Deposit Accounts and Savings Plans

Begin Maturity Period

Once the opening balance quota is reached (defined under the Deposit Product settings), you can “Begin Maturity Period” for that account.

The state of the deposit account will remain “Active”.

Matured

Once the deposit account reaches maturity, it will be stored in the system as “Matured”.

Additional states and processes applicable to Overdrafts

In Arrears

When a deposit account with an overdraft has a negative balance after the overdraft expiry date or the overdraft limit is decreased below the current negative balance, Mambu will automatically change its state to "In Arrears" until the deposited amount will cover the overdraft balance.

When the overdraft balance is covered, the deposit account will be sent back to the “Active” state.

Written-Off

When repayments are no longer expected on a deposit account with an overdraft that is “In Arrears”, it can be closed and written-off.

To write off a deposit account with an overdraft, select Close > Write Off.

You can also add any notes you wish to this transaction that will be stored with the history of transactions for this account.

The account will be stored in the client’s profile as “Closed (Written-Off)”.