Ensuring a seamless Midaz implementation requires careful planning and adherence to best practices. By sidestepping these common mistakes, you can maintain a resilient, efficient, and secure financial system.
Mistake: Designing ledgers in a way that’s either too complex or too simplistic. For example, creating one ledger per customer leads to fragmentation, while grouping unrelated processes creates confusion.
Best Practice: Structure ledgers around key business areas or legal entities. Use organized groupings instead of a one-to-one approach. This improves manageability and internal transfers.
Mistake: Treating each account in isolation instead of grouping them under a portfolio. This makes it difficult to track all accounts linked to a single customer.
Best practice: Establish a portfolio for each customer, grouping their accounts for streamlined queries, relationship management, and reporting.
Mistake: Managing multiple currencies or asset types within a single account, often through metadata overrides. This leads to unclear balances and reporting inconsistencies.
Best practice: Assign one asset per account. If a customer requires multi-currency support, create separate accounts and use naming conventions or portfolios to structure them efficiently.
Mistake: Lacking a well-defined chart of accounts, leading to inconsistent transaction categorization and audit challenges.
Best practice: Design a structured chart of accounts aligned with financial reporting needs. Train developers to categorize transactions correctly and conduct periodic reviews to ensure accuracy.
Mistake: Mishandling external transactions, such as deleting an account when funds leave the bank, causing imbalances.
Best practice: Use @external accounts for all money flows into and out of Midaz. This maintains ledger balance and ensures transactions align with real-world bank statements.
Mistake: Granting excessive privileges to administrators or using shared accounts, compromising security and accountability.
Best practice: Implement role-based access control (RBAC) from the start. Avoid using root/admin accounts for daily operations, and enforce strict credential management practices. Regularly audit permissions to prevent unauthorized privilege escalation.
Mistake: Failing to handle failed transactions in the integration layer, leading to false assumptions about successful operations.
Best practice: Always validate transaction API responses. Implement retry mechanisms with backoff for transient errors and log permanent failures. Ensure upstream systems, such as core banking applications, gracefully handle rejected transactions and provide appropriate user notifications.
By proactively addressing these pitfalls, Midaz can serve as a trusted financial backbone, allowing teams to focus on innovation rather than troubleshooting avoidable issues. A well-structured, secure, and compliant implementation paves the way for seamless banking operations and long-term success.
