Brokers need IBs and Affiliates to expand their business. With increased competition, brokerages need many ways to incentivize their partners, rebates being one of them. Dynamic Works is one of the trading industry technology providers that is working on this specific rebate management solution.
Finance Magnates recently sat down with George Georgiou, Managing Director of Dynamic Works, to learn more about the relations of the brokers and their partners. Additionally, he elaborated on Dynamic Works’ Syntellicore SmartRebate solution, a multi-tier rebate management system, that is claiming to have many more advantages than its competition.
1- So George, can you first explain what a rebate management system is and how does it benefit IBs and Affiliates?
Rebates were introduced into business as an incentive to drive sales growth. The formula is simple. IBs/Affiliates introduce traders, and while they are trading, IBs/Affiliates benefit from this based on retrospective agreements they have established with the brokers.
There are many different rebate approaches in the market. What is common between them is the fact that they often have the element of loyalty; the more you contribute to the increase of order volumes, the more you benefit.
So, now that we know what rebates are, let us see what a rebate management system is. It is a set of processes and tools which allows brokers to organize and effectively manage their rebate strategies. In a nutshell, it includes tracking deposits and trading volumes while helping with the management of rebate claims and accruals. Furthermore, and quite importantly, it can provide detailed reporting and monitoring. It can help brokers identify trading partners that yield the highest and lowest margins.
2- IBs and Affiliates have always played an important role in the trading industry. Can you elaborate on their importance and why brokers need them? How is co-branding important?
A very high volume of business comes from IBs and Affiliates. IBs and Affiliates have the capacity to secure a high number of clients. So, brokers instead of simply focusing on individual campaigns to bring in new clients, they also partner up with IBs and Affiliates to make sure they are sustainable. While new business for a broker can result from its performance-based marketing initiatives, another business model, that of Partnerships, including IB and Affiliates, secures the introduction of new clients in high numbers. These kinds of partnerships have a high impact on any broker as they can guarantee a steady increase of new accounts which can then result in meeting the marketing targets.
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Co-branding can be important as it can act as an additional [GP1] incentive for an IB (IE: Tight Agent) as it contributes to the exposure of his/her own brand if they come to such an agreement with the Brokerage.
3- Let’s talk about Smart Rebate. Can you first describe your solution? How is it better than the competition?
Syntellicore SmartRebate is an intuitive, flexible, and very powerful rebate management system that allows brokers to handle almost any kind of rebate strategy. The core of SmartRebate is the IB/Affiliate campaigns. Configuration is performed on a campaign level. Since SmartRebate is a true-multicampaign system this means that an IB/Affiliate can have multiple numbers of strategies. We can characterize the system in many ways.
- A multi-campaign system: An IB/Affiliate can have more than just one campaign running at the same time. This means that the same IB/Affiliate can have multiple strategies, depending on their agreement with the broker but also their target market.
- Supports truly big networks, of multiple tiers: IBs/Affiliates are provided with a couple of referral links for each campaign. One is used to refer traders whereas the other is used to help them build their own referral network by introducing sub-IBs/Affiliates. It is important at this point to mention that SmartRebate is perhaps the only system that offers the ability to IBs/Affiliates to have a network of unlimited tiers with unlimited nodes, even though rebate is always, of course, described as a finite figure.
- Multi-Scheme: Syntellicore ships with its own, highly flexible and sophisticated algorithm when it comes to rebate calculation. It can host, however, custom algorithms making the system a true multi-scheme solution.
- Template-driven rebate structures: SmartRebate allows brokers to organize rebate structures in templates and re-use them while they can bulk-configure them. Should the broker choose the custom approach for each IB/Affiliate or a more bulk-approach SmartRebate can help achieve this by minimizing the number of clicks through its simple-to-use yet powerful interface. UI/UX was, is and will always be one of our main concerns.
- Group / Security / Instrument inheritance support: Rebates can be configured on a group, security, or even instrument-level providing more flexibility when it comes to rebate configuration and reward calculation.
- Multiple Reward types: Per-Lot, Per-Deal, on Spread, on P&L can co-exist under the same strategy. Many more types are available with full support on percentage, on points, or even on flat money.
- Full CPA Support: Rebate structures are not restricted only to trading, but also provide full support for CPAs. Reward IBs/Affiliates on FTDs or even on a recurring basis based on net deposits. Protect your business by applying qualifying conditions such as minimum volume within a predefined amount of time before rewarding CPAs.
- The System Master IBs love!: There is no such a term as ‘a Master IB’ in SmartRebate, however, there is the so-called Master Network, i.e., a mini-network of Master IBs residing on the root nodes of a standard IB Network. The way this is engineered can give more incentives to Master IBs.
- Full Branding Support: SmartRebate is equipped with its own branding/co-branding functionality, meaning that IBs/Affiliates can have their own branding based on their campaigns. IBs/Affiliates can act as if they are having their own brokerage whereas they should only focus on referring traders while letting the Broker do the rest.
- It’s all about transparency: IBs/Affiliates have access to close-to-real-time reports through which they can monitor the activity of their referrals.
- DIY Rebate Support: If you prefer to pass the budget to the Master IBs and decide how to split it for their own referrals. This is also possible.
- Cashback Support: One of the latest enhancements of the system is the ability of the IBs/Affiliates to define their own cash-back for their own referrals.
However, this is not the complete list. We have more features which we can provide to our potential clients on request.
4- Third-party solution integration is a major requirement in the trading industry. How compatible is Smart Rebate with third-party software?
Syntellicore SmartRebate is a very flexible and scalable system that has already been integrated with much third-party software, such as MetaQuotes MT4/5 trading platforms, TradeSocio Social Trading Platform, Brokeree’s PAMM System, SalesForce Pardot, more than fifty Payment Service Providers, VoIP Systems, and many more. Provided that there is a way to communicate and exchange data between two systems, SmartRebate can be integrated into literally any kind of third-party software.
5- The relationship between the broker and the traders has always been important. Is Smart Rebate taking any steps to improve that bridge? Can you explain what Syntellicore Forex CRM and Traders Room are for our audience?
Syntellicore SmartRebate was built by thoroughly evaluating the needs of both Brokers and IB/Affiliates. Using this approach, we managed to engineer a solution that could dramatically improve the bridge between the two sides. SmartRebate provides the tools to help in eliminating unnecessary communication between the two sides while providing accurate and transparent information regarding the performance of the traders. It pays special attention to the marketing tools (banner, form, QR Code generators, etc.) which will help IBs/Affiliates enhance their marketing campaigns.
I would dare to say Syntellicore Forex CRM in combination with the Syntellicore Traders Room is the heart of every brokerage. Considering that it will take care of business analytics, integration with MT4/5 as well as other trading platforms, lead management, and automation, customer/account management, help in maintaining compliance, automate marketing, handle traders and partner onboarding, automate KYC/AML, MiFID II/MiFIR Reporting, you understand how important a tool it can be in the hands of a Broker.