To understand how Midaz transforms banking operations, let’s explore its implementation in different scenarios: retail banking, corporate banking, and personalized banking services through portfolios and segments.

Driving Innovation in Banking

With Midaz, banks can adapt, innovate, and deliver superior financial experiences without altering core ledger structures. Whether managing individual customers, corporate clients, or tailored banking products, Midaz ensures scalability, automation, and clarity—empowering banks to lead in an evolving financial landscape.

Retail Banking for Individual Customers

A retail bank using Midaz operates under a single organization, managing customer accounts within a primary ledger. Each customer is structured as a portfolio, ensuring clarity and flexibility.

Using Midaz

• Organization & Ledger: ABC Bank registers as an Organization in Midaz and establishes a "Retail Banking Ledger" to track all customer transactions.
• Assets: The bank defines assets for every currency it operates, ensuring multi-currency support for domestic and international accounts.
• Customer Portfolios: Each customer has a portfolio under which their accounts—checking, savings, and credit—are managed efficiently.
• Transactions: Deposits, transfers, and payments are recorded with full traceability, ensuring transparency and compliance.
• Internal Accounts: Fee and interest accounts track the bank’s revenue and expenses, maintaining accurate financial records.
• Segments for Personalization: Customers are categorized into service tiers (e.g., Standard, Gold) to automate benefits like waived fees or preferential interest rates.
• Child Accounts for Budgeting: Customers can create sub-accounts within their savings portfolio, enabling better financial management.

Example: ATM Withdrawal

John Doe withdraws $100 from an ATM:

1. Debit: $100 from John’s checking account.
2. Credit: $100 to an "ATM Cash Dispensed" internal account.
3. If a non-network fee applies, an additional $3 is debited from John’s account and credited to the Fee Income account.

Midaz ensures accuracy and efficiency in managing millions of retail customers.

Corporate Banking for Business and Enterprise Customers

Corporate banking requires a more intricate structure, often with separate ledgers or segmentation for distinction from retail banking.

Using Midaz

• Dedicated Ledger: ABC Bank may establish a "Corporate Banking Ledger" for business accounts.
• Portfolios for Enterprises: Each corporate client (e.g., ACME Corp) is assigned a portfolio with designated accounts for operations, payroll, and taxes.
• Hierarchical Accounts: Child accounts allow businesses to allocate funds across departments while maintaining a consolidated balance.
• Bulk Transactions: Midaz supports large-scale operations like payroll processing with multiple simultaneous debits and credits.
• Segments & Products: Companies are classified as SME, Large Enterprise, etc., unlocking tailored banking services.
• Multi-Entity Clients: Subsidiaries can be structured under the parent portfolio, ensuring streamlined financial management.

Example: Loan Disbursement & Supplier Payments

ACME Corp receives a $1,000,000 loan:

1. Credit: $1,000,000 to ACME’s loan account.
2. Debit: $1,000,000 from the bank’s Loans Receivable account.
3. ACME uses funds:
   • $100,000 payment to a supplier at ABC Bank (internal transfer).
   • $50,000 payment to an external supplier (external transfer recorded in the clearing account).

Midaz provides complete visibility, ensuring trust and efficiency in large-scale financial operations.

Portfolios and Segments for Personalized Services

Modern banks offer custom financial products, and Midaz enables seamless personalization through portfolio segmentation.

Customization Strategies

• Youth & Student Accounts: Portfolios tagged as "Student" automatically benefit from waived fees and special perks.
• Premium Banking: "Diamond" customers receive exclusive benefits, with transactions automatically adjusted to reflect VIP status.
• Co-Branded & Special Products: Customers earning retail rewards can track loyalty points as an asset within Midaz.
• Unified Account Views: Online banking applications can fetch all customer accounts under a portfolio, offering a holistic financial overview.
• Cross-Portfolio Operations: Customers with personal and business portfolios can transfer funds effortlessly while maintaining clear separation.

Example: Student Account Perks

1. A new customer signs up as a student.
2. Their portfolio is tagged with the "Student" segment.
3. Monthly fees are automatically waived, and cashback is credited for qualifying purchases.
4. Upon reaching a certain age, their segment updates, adjusting their account terms accordingly.