The goal of the money transfer alliance program is to unify independent money service businesses (MSB) and money transfer operators (MTO), to leverage the power of the network, so that they can increase business, have access to a wider market and let build on the power of affiliate networks.
The alliance is not your typical opt-in network. The entire concept has been thought through with stakeholders in mind. Months of preparations, trials and convincing have led to where we are today – building the network, one stakeholder at a time.
Targeted online platform. The focus area for all alliance partners is the internet. A unified online presence is what allows for easy targeting, marketing and results which can be measured. Off-line, physical (cash-based) market is getting extremely risky and unification becomes difficult. An online marketplace is easy to construct, manage and replicate.
First level customer support is provided by the Affiliate. The alliance has a support desk as well, that can interface and mediate between the affiliate and the alliance member, as well as keep track of key metrics when it comes to customer support and service. 2nd and 3rd level support is provided by the the alliance member.
The Alliance Manager provides continuous transaction monitoring of all transactions flowing through the system, inclusive of flags and red-alerts. The monitoring ensures that all on-boarding, payments, back-office channels are running smoothly.
The SaaS platform has a pretty robust documentation process for purposes of KYC. This includes identity verification, address verification, telephone verification, OFAC/SDN/PEP checks, etc. In addition, contextual profiling and background checks are also provided for.
The alliance help desk provides an 18-hour live help-desk to resolve any issue pertaining to the entire value chain of the money transfer process. Support tickets can be opened directly by customers as well as alliance partners to quickly and efficiently have their complaints addressed and resolved in a timely manner.
Alliance members would have access to their raw transaction files (which can be downloaded) to conduct further data analysis, searching for trends and patterns. Such rich data access can better help alliance members to visually see which areas are performing well, which ones are promising and which ones need improvement.
The Customer belongs to the license holder who is on-boarding the transaction. If a customer is from California and an alliance member holds a valid California money transmitter license, then this particular alliance member is the one who would own the customer. The customer is never owned by the affiliate or the alliance collectively. However, customer’s marketing data is shared with the affiliate. But for all practical and legal purposes, the customer belongs to the alliance member who is onboarding the transaction on their license.
Affiliates will be promoting their marketplaces on the Internet. Such promotional activities bring in revenue for the alliance member (and of course represents primary source of income for the affiliate). Promotion would primarily be digital in nature (online advertising, social media marketing, etc.) Alliance members themselves don’t have to invest any money in online marketing.
The SaaS platform is a rugged implementation of MTO services. It is being used live in a commercial environment and can easily support 100s of transactions per minute. The responsibility of running an online platform is that of the alliance management who have partnered with the SaaS provider.
Clients interact directly with the affiliate’s platform. All front-end communication is handled by the alliance platform and the affiliates. All transaction data is handled directly between the client, licensed alliance partner and the Alliance Manager. Alliance Members may communicate directly with the client (as the client legally belongs to them).
The legal ownership of any customer would belong to the License holder in the alliance who is onboarding the transaction on their license. All alliance members also agree (contractually) that client data (barring banking/financial data) would also belong to the Alliance Manager.
Money flow is strictly mandated to those who are licensed to handle it. Entities such as Affiliates, SaaS platform provider, Alliance Manager, etc. do not have access to the money, nor are they part of the funds flow schematics. Licensed MSBs, Payment Processors, Banks, Correspondent Banks and their licensed Payout Partners are the only entities who would be part of the flow of funds.
Every alliance partner essentially brings forth their own platform which is a vital link in the entire value chain. The SaaS provider and the Alliance Manager are responsible at all times to ensure that from a technical perspective we do all that is necessary (within limits) to interconnect disparate systems – seamless.
As there are many partners in the alliance, the alliance manager would be responsible for relationship management amongst all the participants. This would include affiliates, licensed MTos, payment processors, banks, correspondent banks, beneficiary country institutions, payout network partners, etc. A closed-loop mailing list would be provisioned for this purpose.
As the platform and the alliance matures, we will be adding more features to the overall system based on the feedback from Customers and Alliance Members. This would include mobile app, APIs to skin your own front-end (for affiliates), responsive design, multiple payment options and foreign language support.
Affiliates are the key ingredients that power this alliance. Affiliates essentially bring a web property to the equation (i.e. a domain name that they own, for example, www.some-domain-name.com) and via this domain they market the services for money transfers. Because the affiliate is not touching the money in any manner, they do not need to be a money services business. The end transaction is on-boarded by the licensed member in the alliance. They are the ones who actually take the customer data (as provided by the Affiliate) and then execute the transaction.