Money Movement Maps
Learn how to represent flow of funds in your organization.
A money movement map is a group of all in your system.
It is crucial to have clarity on how the flow of funds behave within your application, because it helps you define how to set up your ledger and track a through its entire journey.
Before you start
Some of these key stakeholders include:
- Product & Engineering: Owns the technical implementation of money flows, ensuring the architecture supports all required functionality and integrations.
- Finance: Sets the rules for accounting treatment of transactions and defines what financial data/reports are needed.
- Reconciliation: Creates processes to match transactions across systems and handle settlement discrepancies.
- Treasury: Manages cash positions and handles actual movement of funds between accounts/partners.
- Operations: Establishes day-to-day processes for transaction handling and control procedures.
- Data analytics: Defines reporting needs and metrics to track money movement effectiveness.
Let’s dive in ✨
What we’ll cover …
1. Defining your use case
To draw an accurate money movement map, you need to define your product’s use cases and priorities. Consider 2 fintechs:
| Fintech | Services | Priorities |
|---|---|---|
| A | Wallets | Only wants to track how its wallets are performing. |
| B | Wallets | Wants the same thing as fintech A, but also wants to track every external account that their users transact with. |
2. Transaction journeys
A transaction journey refers to all the nodes money flows through when a transaction is initiated in your system. For a wallet, you can have at least 2 journeys:
- Wallet funding
- Wallet withdrawal
Wallet funding for fintech A
Case scenario: When a user funds their wallet, they pay a processing fee.
Balances with an ”@” prefix are called internal balances. They refer to balances owned by the organization. They are automatically grouped in the General Ledger.
In the flowchart above, @World represents all external accounts (cards, other bank accounts, etc.) interacting with your users’ balances.
Wallet funding for fintech B
Case scenario: Fintech B wants to track every external account that has funded the wallet.
Unlike fintech A that groups them all into a single balance, in this case, a separate balance is created for each unique external account that has funded the wallet. This allows fintech B to have deeper insights into which external account interacts often with the user’s balance.
Wallet withdrawal for fintech A
Case scenario: When a user withdraws from their wallet, they pay a processing fee.
Wallet withdrawal for fintech B
Case scenario: Fintech B wants to track every external account that has withdrawn from the wallet.
3. Applying your money movement map
With your transaction journeys clearly defined, you can use this information to set up your Blnk Ledger.
Setting up fintech A ledger
Fintech A only needs to create one ledger to group all of its users’ balances. @World and @Fees are automatically added to the General Ledger.
| Ledgers | Ledger balances |
|---|---|
| General ledger | @Fees |
| Customer wallets ledger | user-A-balance |
| user-B-balance | |
| user-C-balance | |
| user-D-balance |
Setting up fintech B ledger
Fintech B needs to create a ledger for each user. The ledger groups the user’s balance managed by the fintech and all external balances that has funded/withdrawn from the user’s balance.
| Ledgers | Ledger balances |
|---|---|
| General ledger | @Fees |
| User A ledger | user-balance |
| external-account-1 | |
| external-account-2 | |
| external-account-n | |
| User B ledger | user-balance |
| external-account-1 | |
| external-account-2 | |
| external-account-3 | |
| external-account-4 | |
| external-account-n |
Review your money movement map periodically to find out ways to improve how money is moved and tracked in your application.
Need help?
We are very happy to help you make the most of Blnk, regardless of whether it is your first time or you are switching from another tool.
To ask questions or discuss issues, please contact us or join our Discord community.
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