Settlements

Settling is the process of transferring funds to cover deposits, withdrawals, or transactions. DriveWealth offers two different types of Bulk settlement options.

One Settlement

Under One Settlement we are settling deposits and withdrawals in aggregate across many customers' accounts within an organization. The aggregation of customers deposits and withdrawals are then further netted to provide a Net amount due for settlement. If on a given day, the aggregated deposit amounts are greater than the withdrawals across all customer accounts within an organization, the counterparty would be responsible for sending DriveWealth a settlement Wire, and vice versa if the aggregated withdrawals trump the aggregated deposit amounts.

To learn more about this Bulking methodology, refer Bulk Deposits and Bulk Withdrawals sections.

Cashless Reconciliations

Under Cashless brokerage we are settling transactions in aggregate across many customers' accounts within an organization. These transactions include but not limited - buys & sales of assets, credits/debits due to Corporate actions, fees, commissions, etc . The aggregation of transactions net and offset within a single customer's account but not across customer accounts, providing a payablestoDW amount and receivablesFromDWamount. If payablestoDW> receivablesFromDW, the counterparty will owe DriveWealth the amount indicated by the totalfield and vice versa if payablestoDW<receivablesFromDW.

To learn more about this Bulking methodology, refer Cashless Accounts section.

Settlement profiles

A settlement profile is a way to segment different lines of business into different settlement buckets. There is a default settlement profile provided. There is no need to pass the settlementProfileID if there is only one settlement preference, it will inherently fall to the default profile.

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Lines of business (LOBs)

Spendify is a wallet/banking institution who has customers in several countries; United States, Canada, India and Mexico. Although Spendify is a single company these LOBs move money differently and would like to settle these LOBs separately to reduce confusion among their operational teams.

DriveWealth will configure settlementProfileID upon request.

Deposits

When making deposit requests, ensure you pass the associated settlementProfileID with the specific line of business.

{
  "accountNo": "SPFY0000052",
  "amount": 250.25,
  "currency": "USD",
  "type": "BULK_FUNDING",
  "settlementProfileID": "spendify-mexico" //NEW FEATURE
  ...
}

Withdrawals

When making withdrawal requests, ensure you pass the associated settlementProfileID with the specific line of business.

{
  "accountNo": "SPFY000053",
  "amount": 100.25,
  "currency": "USD",
  "type": "BULK_FUNDING",
  "settlementProfileID": "spendify-india" //NEW FEATURE
  ...
}

Settlement reports

Settlement reports will now include settlementProfileID for each individual settlement profile.

[
  {
    "id": "DP_cb3321ec-93cc-4b41-b641-0b0c2d44918a_20230816",
    "date": "2023-08-16",
    "partnerID": "80f9b672-120d-4b73-9cc9-42fb3262c4b9",
    "status": "APPROVED",
    "statusComment": "Finished processing breakdown",
    "totalAmount": -14250,
    "created": "2023-08-16T22:28:21.810Z",
    "updated": "2023-08-16T22:28:21.810Z",
    "updatedBy": "SYSTEM",
    "category": "DEPOSIT",
    "settlementProfileID": "spendify-mexico" // NEW FIELD
  },
  {
    "id": "DP_cc472507-6aee-4b47-95a8-3b00114042fe_20230816",
    "date": "2023-08-16",
    "partnerID": "80f9b672-120d-4b73-9cc9-42fb3262c4b9",
    "status": "APPROVED",
    "statusComment": "Finished processing breakdown",
    "totalAmount": 2000.10,
    "created": "2023-08-16T22:28:21.810Z",
    "updated": "2023-08-16T22:28:21.810Z",
    "updatedBy": "SYSTEM",
    "category": "WITHDRAWAL",
    "settlementProfileID": "spendify-mexico" // NEW FIELD
  },
  {
    "id": "SM_0f84b177-5f94-4271-9e26-500500159065_20230816",
    "date": "2023-08-16",
    "partnerID": "80f9b672-120d-4b73-9cc9-42fb3262c4b9",
    "status": "APPROVED",
    "statusComment": "Finished processing breakdown",
    "totalAmount": 100,
    "created": "2023-08-16T22:28:21.810Z",
    "updated": "2023-08-16T22:28:21.810Z",
    "updatedBy": "SYSTEM",
    "category": "WITHDRAWAL",
    "settlementProfileID": "spendify-india" // NEW FIELD
  },
  {
    "id": "SM_d19c7418-67ea-4dc7-9453-2cf09f9efe6b_20230816",
    "date": "2023-08-16",
    "partnerID": "80f9b672-120d-4b73-9cc9-42fb3262c4b9",
    "status": "APPROVED",
    "statusComment": "Finished processing breakdown",
    "totalAmount": -1000,
    "created": "2023-08-16T22:28:21.810Z",
    "updated": "2023-08-16T22:28:21.810Z",
    "updatedBy": "SYSTEM",
    "category": "DEPOSIT",
    "settlementProfileID": "spendify-india" // NEW FIELD
  }
]

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