Ben Ray, Growth Manager, Monoova answers some common questions on how Monoova’s Automatcher works and how it can improve business efficiencies when it comes to automatic reconciliation.
What is Monoova Automatcher?
So here at Monoova we call it an Automatcher account but in the industry, it can also be known as a virtual account or virtual wallet.
What that is essentially, is a unique payment destination for a particular user or entity to deposit into. This allows us to instantly identify a payment via API with a BSB and account number which is addressable on the NPP and BECS networks, or a PayID unique to that user for NPP only.
So how does Automatcher work?
Let’s take an example with a fictional investor, let’s call them Chris. Chris has signed up to a crypto trading platform and needs to deposit money from his bank account into his crypto trading wallet. Through his registration process with the crypto exchange, the exchange would also notify Monoova of the new user. Monoova then creates an Automatcher, or virtual account. This is where the exchange assigns those unique payment credentials to Chris.
Now, when Chris deposits from his bank account into the crypto trading account, Monoova is able to notify the crypto exchange in seconds, who the money has come from and in this case, that this particular payment is from Chris. The key benefit is that it automates the manual process of reconciling all deposits.
How can it help businesses?
It can help on two fronts. One is from the customer experience perspective and then the other side is the efficiencies to the internal operations of the business itself.
From the customer side, because people are given their own unique credentials it’s a more personalised experience and it's familiar. That’s reassuring, especially when people are transferring their money.
For the business, being able to issue each user their own unique credentials enables them to automatically identify payments using Monoova’s API, moving seamlessly to the next stage of their payment flow.
Traditionally a business instructs customers to deposit into their company BSB and account number, usually with some form of reference number to identify the payment. The accounts team, who run through the statement for that batching period, are expected to match the payments and confirm that the money has actually arrived in their account.
However, what often happens is that a user can either forget to put that reference number in or they can get it wrong. When this occurs the business is left with unmatched funds because they can't identify who it's from. Customers raise enquiries which the accounts team need to manually investigate. We’ve received reports that, in some cases, up to 30% of payments have incorrect or missing references. That’s a large number of unmatched transactions and it puts a strain on internal processes, especially as companies scale.
How Monoova and Automatcher can help in this scenario is that we automate that reconciliation process– we can provide a notification in seconds that a successful payment has been made and exactly who that payment has come from. Furthermore, the solution can scale to match the growth of the business.
In addition, there’s a complementary piece of the Automatcher tech stack known as whitelisting. This can help with fraud mitigation as clients can nominate specific external bank accounts that can deposit into and receive payments from that Automatcher account.
What are some of the key challenges we’ve helped businesses solve?
The great thing about Automatcher is that it really lends itself to all industries and use cases. Whether it be remittance, lending, fintech or crypto, essentially any company that has customers that need to pay in, can benefit.
What we're really solving is manual inefficiencies. Automatcher frees up resources resulting in dollars saved with the added speed and automation.
If we look at the trading platform example again, by using Monoova as a settlement facility, because funds are received in real time, this allows customers to deposit in and use those funds immediately. Through traditional payment rails, this can take up to 5 days.
We know in this case, it’s particularly crucial that the user can make a trade sooner and not lose out on an opportunity due to delay of funds settlement, which for some traders can mean a significant sum of money.
If you’re interested in learning more about Automatcher or any other part of Monoova’s payments solutions/tech stack, get in touch with Ben Ray today.