One of the most surprising things we have learnt in our relatively short history is that our Monies on Account model is not just very popular but very secure and robust. It appeals to our partners and brands as they don’t need to hold multiple financial relationships, instead they deal with just us! Additionally brands have the comfort that they will get payment for each code sold making it completely risk free. This is because the Partner already has money on account and the Reward Cloud system prevents sales beyond this amount.
However, as we have onboarded more retailers on our network than anyone else, we have learnt that this process could be greatly improved.
A partner managing multiple Monies on Account relationships has a significant overhead in calculating how much to transfer and then making those payments. The more brands the partner takes the bigger the problem gets. Longer term this may even limit the number of brands they are willing to take up, and we’re only up to 75 retailers!
Now with Hub 2.0 we addressed some issues by streamlining the transfer process so that partners only have to make one bank transfer, rather than one per brand. However listening to the feedback from our partners we know that we need to go much further.
So that brings me to the latest feature that we are working on! We are in the middle of developing what we are calling a Universal Float. This will bring all the separate Monies on Account floats into just one!
There are some huge advantages to this approach
Time saving - instead totting up sales on individual brands and calculating how much is needed to be transferred for each, there is one calculation based on total sales for all the brands in the universal float.
It scales - as more brands join the network, this solution can cope with those increases without increasing the effort for partners.
Lower risk of not enough funds - in the current setup partners may be reluctant to commit a lot of funds to all brands. This can mean funds run out when there is a sudden surge. A Universal Float where all sales draw from one large float reduces the chances of this happening.
Brand take-up increases - by not having the extra overhead of setting up and managing a separate float one barrier for partners to onboard brands has been removed.
It is still Monies on Account - even though it is one float, the money has already been transferred and the same controls are in place to prevent sales going beyond the balance of the float.
We are really excited to get this released to our customers as we firmly believe it will add a lot of value and save a lot of effort.
We hope to get this out live soon so keep an eye out for further updates on our social channels.