Managing Prepayment Rule Changes - How to manage Disruption with the ICMG Anatomy Model
- Krish Ayyar
- Apr 1
- 6 min read
Updated: Apr 25
Series Title:"Rethinking Requirements: How the ICMG Enterprise Anatomy Model Makes Lending Systems Change-Ready."
Perspectives Covered: Strategy, Business Process, System, Component Specification, Implementation, Operations
Key Variables Impacted: Rule, Data, Function, Event, Network
The Challenge of Updating Prepayment Policies
Prepayment policies in retail lending play a crucial role in balancing customer flexibility with financial stability. Changes to these policies can arise due to regulatory updates, strategic shifts, or market demands. However, implementing prepayment rule changes in real time without disrupting the system is a significant challenge.
Consider a scenario where the finance team decides to introduce a new prepayment penalty structure based on loan tenure and amount. While the change might seem straightforward, it often triggers cascading issues across multiple systems:
Inconsistent prepayment penalty calculations across channels
Customer-facing interfaces showing outdated prepayment rules
Disconnected updates between backend processing and front-end display
Compliance reporting reflecting outdated or inaccurate penalty data
Increased manual intervention to correct discrepancies
These issues arise because conventional SDLC methods focus on isolated code updates rather than holistic system alignment. The ICMG Enterprise Anatomy Model (Project Edition) offers a structured, multi-perspective approach to ensure seamless prepayment policy updates without causing disruption.
Why Conventional SDLC Approaches Fail
Common Problems:
Hard-coded prepayment rules scattered across multiple systems
UI elements not updated in sync with backend changes
Fragmented data updates leading to inconsistent policy enforcement
Manual overrides to correct discrepancies
Compliance reports reflecting outdated or incorrect data
Root Causes:
The root cause lies in the fragmented approach of traditional SDLC practices, which lack:
Integrated rule management across architectural perspectives
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