Flow of Funds
You may understand your business well, someone listening to you for the very first time, may not. Many questions might be going through a person’s mind when you are explaining your transaction and transaction flows. It is like explaining how your yet to be constructed house would look like to someone verbally. It would be difficult to comprehend.
For any financial institution to better understand your business and business model, the funds flow diagram is extremely crucial. The diagram in many ways is a time-motion diagram depicting the flow of funds from the start of a transaction till its logical end.
It provides a unified, clear-cut blueprint on your transaction set and how the funds will be flowing in your proposed setup.
A properly constructed flow of funds diagram would identify various elements of a transaction, such as:
- Originator / Originating Institution
- Terminating Institution
- All intermediaries involved in the transaction
- Ownership of funds
- Fees and splits
Here is a sample time-motion flow of funds diagram. This just serves as an example as to how a funds flow diagram should look like:
The editable version of this file can be downloaded from here. Please use Draw.io (a free online editor) to upload this file and then work on it. Feel free to use this, without any citation and/or credit.
Here is a another diagram for Funds Flow for Bitcoin remittances.
Here is another example:
You can download a copy of this flow of funds (including descriptor document in Apple Keynote from here): Flow of Funds for Correspondents Revised
Please contact us to discuss further.