Platform Program Parameters
Mbanq has an easy-to-use specification program that assists platforms in defining the financial service programs they plan to deliver to the market prior to going live. This enables Mbanq, the partner bank and the platform to be on the same page with the product and service offerings. The parameters fall into specific categories:
Platform Information
This section has basic company information, how you are planning to monetize your product, and who your target audience is.
| Information | Example |
|---|---|
| Business Name | United Fintech Company |
| Business Description | United Fintech provides embedded banking services to consumers in the higher education market. |
| Website | www.unitedfintech.com |
| Helpline Phone Number | 800-123-4567 |
| Help Email | [email protected] |
| Customer Demographic | Banked |
| Monetization Plan | $3.50 monthly subscription fee and per transaction fees |
Customer Demographics is broken down into the following sections:
| Demographic | Description |
|---|---|
| Under-Banked | The end users historically have had limited-to-no access to financial products. |
| Banked | The end users historically have been moderately banked. So they've had access to deposit accounts, but not low APR loans, for example. |
| Long-Term Banking | The end users are well represented by mainstream financial products. They tend to be on the higher end of the socioeconomic ladder and have access to most mainstream financial products. |
Business and Financial History
For Mbanq to accurately present you to a banking partner, the following information about your platform's financial position is required.
| Financial Data Point | Example |
|---|---|
| Year Founded | 2021 |
| Years in the Market | 3 |
| Most recent capital raise amount | $1.2 million |
| Most recent raise date | Jun 2023 |
| Total amount raised to date | $3.1 million |
| Estimated runway | 29 months |
You will also be asked to provide the following information:
- Articles of Incorporation
- By Laws
- Business Address
- State of Incorporation
- Business Tax ID
- List of Officers
- List of Beneficial Business Owners
Programs and Use Cases
Mbanq offers a wide variety of financial service products. It is important to clarify which products fit your platform use cases.
| Product | Features | Notes |
|---|---|---|
| Savings Account | Internal Transfers ACH FED Wire | |
| Checking Account | Internal Transfers ACH FED Wire SWIFT Wire RDC | |
| Debit Card | Attached to Checking Account | |
| Credit Card | Revolving Charge Card | |
| One Time Loan | Internal | Platform will use loans to fund a cash advance for the client |
Mbanq supports the following account ownership types:
| Account Type | Description |
|---|---|
| Individuals | End users will be individuals |
| Corporate | End users will be business entities |
| Joint Accounts | End users will be opening combined accounts together (E.g. families) |
| Third-Party Payment Accounts | No end users, placeholder accounts will be opened for third parties that the client need to send payments to. This allows clients to make payments to external individuals/entities that are not a part of your platform. |
Lending Program
Platforms that wish to offer credit and loan programs need should provide the following information:
| Feature | Description |
|---|---|
| Loan Type | One Time |
| Max APR | 30% (or as governed by State) |
| Max Loan Amount | $5,000 |
| Max Term | 60 months |
| Payment Schedule | Monthly |
Credit Box
This will define the key parameters for credit decisions
| Criteria | Value |
|---|---|
| Minimum Credit Score | 640 |
| Maximum DTI | 15% |
| Minimum Annual Reported Income | 40,000 |
Underwriting Policy
The policy should be in compliance with government regulations including UDAAPT, FCRA, TIL, Reg Z and other regulations. Your Mbanq Compliance representative can assist you in this assessment.
Propensity to Pay
The ability to pay for a loan is often measured by their current debt-to-income ratio. This represents the amount of debt payments they have to make on a monthly basis compared to their monthly income. The platform should consider DTI both before and after the new loan or credit product is added to the client's debt load.
Willingness to Pay
Not only does the client need to have the means to pay for their loan or credit debt, they also have to be willing to. This can be approximated by examining the client's credit report.
Transaction Velocity Limits
Transaction Velocity Limits define the sum total of monetary value that a client can transact via Mbanq in specific periods of time, such as per day, week, etc.
Transaction Velocity Limits are a function of your operating capital and the overall fraud occurring on the platform and can be updated over time.
| Transaction Velocity Limits | |
|---|---|
| Platform Daily Origination Limit | $1.5 Million |
| Platform Reserve Requirement | $150,000 |
| Transaction Fees | See Contract |
| Payment Type | Daily | Weekly | Monthly |
|---|---|---|---|
| Internal Transfer | Unlimited | Unlimited | Unlimited |
| ACH Pull | $1,000 | $5,000 | $15,000 |
| ACH Push | Unlimited | Unlimited | Unlimited |
| Card Pull | $2,000 | $7,000 | $20,000 |
| Card Push | $10,000 | $30,000 | $85,000 |
| Card ATM Cash | $300 | $1,000 | $3,000 |
| Card Merchant Purchase | $2,000 | $7,000 | $20,000 |
| FED Wire | Unlimited | Unlimited | Unlimited |
| SWIFT Wire | Unlimited | Unlimited | Unlimited |
| RDC Pull | $1,000 | $3,000 | $5,000 |
| RPPS | Unlimited | Unlimited | Unlimited |
KYC & KYB Program
Knowing who you are dealing with is critical for any business, but especially so for financial institutions.
KYC & KYB Policy
Mbanq and your partner bank will require that you as the platform will adhere to well defined policies and procedures around the KYC and KYB processes. These will be added as an addendum to the Platform Program Parameters. For more information on please refer to the Know Your Customer Overview.
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Updated 9 months ago