Earnings credit and account analysis from the system that bills

Your commercial clients pay for treasury services with balances as much as with fees. Fincarna calculates the credit, applies the rate each client negotiated, and issues the statement their treasurer reconciles.

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The challenge

For most commercial clients the fee schedule is only half the price. The other half is the earnings credit their balances generate, and for a large operating account it can outweigh the fees entirely.

At most institutions that half is run somewhere else. Fees are billed in one system, earnings credit is calculated in an analysis package or a spreadsheet, and the ECR a relationship manager negotiated is applied by hand to the accounts someone remembers are covered.

The gaps show up on the statement. A rate concession that should have ended keeps running. A client on a negotiated rate is analysed at the standard one and their treasurer finds it before you do. And when a correction is needed, the old statement is regenerated, so nobody can show what the client was actually sent.

How Fincarna solves it

In Fincarna the earnings credit rate is a rate like any other, governed in Rate Authority, attached to the products that earn it, and overridden on a deal when a client negotiates something different.

At the end of each cycle the same engine that billed the client works out their investable balance, the credit earned at the rate in force, the analysed charges it offsets, and the net amount due. The account analysis statement is issued from those figures automatically.

Nothing is recalculated after the fact. The statement is frozen at issue, corrections appear as adjustments on the next one, and every figure traces back to the rate, the deal and the charges that produced it.

What account analysis covers

Negotiated earnings credit

Per deal, not per product

A corporate client agrees a better ECR as part of moving its operating accounts to you. The deal pins a negotiated rate, or swaps in a different rate that is itself indexed or tiered. Only the accounts enrolled in the deal earn it. Everyone else on the same product stays on the catalog rate.

Analysed and hybrid accounts

Offset fees, or earn interest too

On an analysed account, earnings credit offsets eligible service charges and stops there. On a hybrid account, the balance not needed to cover fees also earns real interest at a second rate, posted as its own credit line.

Credit carry forward

N months, per billing group

When credit exceeds charges, the excess carries forward for as many months as the billing group allows, or expires at month end if you set it to zero. The statement shows what was earned, applied, carried in, carried out and expired.

Corrections that keep the history

Adjust, never overwrite

A charge or balance found wrong after the statement went out is corrected on the next statement as a prior period adjustment, showing the original period, the before and after, and the difference. The statement the client already reconciled is never edited.

Key capabilities

ECR is a rate, not a setting

Earnings credit rates live in Rate Authority alongside every other rate. Fixed, indexed to a benchmark, or tiered by balance, with floors, ceilings, effective dating and a full publication history.

Negotiated rates stay inside your guardrails

A rate negotiated on a deal must sit within the floor and ceiling of the rate it overrides. One outside the range is refused, not quietly clamped, so a concession cannot exceed what Treasury allows.

Both rates on the record

For every account on a negotiated ECR, the record holds the catalog rate, the negotiated rate, and the deal that produced the difference. What the client was promised and what it is costing you are one query apart.

A statement your client’s treasurer recognises

Relationship summary, balance summary, results summary and an earnings ledger, with each service line showing volume, unit price, charge and balance required, and carrying its AFP service code.

Issued once, reproducible forever

The statement is issued automatically when the billing cycle is finalised, and its figures are frozen at issue. A reprint two years later matches what the client received, line for line. A preview is available before issue.

Standard formats, delivered through Connekt

Statements render as ISO 20022 camt.086 or ANSI X12 822, alongside an in app printable view. Files go out through the same Connekt pipeline as the rest of your billing output.

Earnings credit, explained

An earnings credit rate is the rate a bank applies to a commercial client’s investable balance to calculate a credit that offsets the fees on their treasury management services. The credit reduces what the client owes. It is not paid out as interest, and any unused credit either carries forward or expires.

It is the monthly statement a corporate client receives showing their balances, the earnings credit those balances generated, the service charges incurred, and the net amount due after the credit is applied. In Fincarna, one statement covers one billing group for one calendar month, with detail for every member account.

Yes. A deal can pin a fixed negotiated rate or replace the catalog rate with another earnings credit rate, including an indexed or tiered one. The deal goes through the normal Deal Desk workflow, and the negotiated rate applies only to accounts enrolled in that deal.

Each monthly analysis period uses the rate in force when the period began. A rate change or a deal signed partway through a month applies from the following month, so a single statement never mixes two rates.

ISO 20022 camt.086 and ANSI X12 822, plus an in app statement view that can be printed. Statement files are delivered through Connekt alongside the rest of your billing output.

Bring last month’s analysis statement

Redact the client and bring the statement. We will rebuild it live, including the ECR they negotiated, and show you where the figures come from.

or email us at hello@fincarna.com