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Midaz supports retail and corporate banking through a clear entity hierarchy. This page gives best practices to structure organizations, ledgers, accounts, portfolios, and segments. A good structure keeps operations simple as you scale.

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Optimal hierarchy of Organizations and Ledgers

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Single vs. multiple Organizations

A bank that operates as a single legal entity needs one Organization in Midaz. For a banking group with subsidiaries, use a parent organization over several child organizations. This structure matches your corporate governance. It also isolates data per entity.
The organization structure should reflect your corporate structure.

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Using multiple Ledgers

Within an organization, choose the number of ledgers from your operational needs. Keep a primary ledger for customer transactions. Add ledgers for special purposes, such as treasury operations or regulatory segmentation.
Use multiple ledgers only when necessary to keep complexity low. A transfer between ledgers needs external orchestration through the API.

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Efficient account structuring for retail and corporate banking

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Retail customers – Portfolio per customer

For retail banking, create a Portfolio for each customer. Each portfolio holds one account per asset type, such as checking, savings, or credit card. This structure makes balances easy to read per customer.
Use CRM to manage personal data such as tax IDs, addresses, and banking aliases — all in one place.

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Corporate clients – hierarchical accounts

For corporate banking, use child accounts within portfolios to reflect internal structure. A company can hold a parent account for its main funds. It can add child accounts for subdivisions, such as payroll or expense tracking.

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Internal accounts

Create internal accounts for revenue, expenses, and settlement flows. Named accounts like “Fee Income – USD” or “Interest Expense – USD” keep financial reporting clear.

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Worked example: a typical digital bank

This example shows how a digital bank can structure its Midaz deployment. The bank offers checking accounts, savings, and Pix transfers.

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How a Pix transfer flows through this structure

1

Transaction initiated

Maria sends R$ 500 via Pix from her checking account.
2

Transaction Route validates

The “Pix Out” Transaction Route applies. It defines a debit from Maria’s checking account and a credit to the Settlement Account. It can also add a fee operation.
3

Operations execute

Midaz creates four operations atomically. It debits R500fromMariaandcreditsR 500 from Maria and credits R 500 to Settlement. It also debits a R0.50feefromMariaandcreditsR 0.50 fee from Maria and credits R 0.50 to Fee Revenue.
4

Event published

Midaz emits a transaction event. The bank’s notification service reads the event and sends Maria a push notification.
5

External settlement

An external integration reconciles the Settlement Account with the central bank’s Pix infrastructure.

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Decision guide: when to split ledgers

When in doubt, start with a single ledger. You can always split later as operational complexity grows. If you split too early, you add orchestration overhead without clear benefit.