Forecasting Float Revenue from Customer Funds: Best Practices with Josline Ma of BILL

Josline Ma from BILL oversees the forecasts for top-line float revenue (interest income earned from customer funds). These forecasts have a high degree of accuracy, but require a cumbersome manual process. She is searching for greater efficiency in her efforts and has kindly offered to anchor a members-only discussion of all things related to forecasting customer funds and earnings generated from the funds.

Topics will include:

1. Key data inputs: total payment volume, daily average customer fund balance, disbursement transit times, interest rates, and income streams by different investment types (e.g., bank deposits, Money Market Funds and SMAs)
2. Incorporating market-implied Fed Funds rate trajectory (FedWatch Tool, Bloomberg, Refinitiv, or other market resources?)
3. Integrating forecasting models into FP&A’s forecasts
4. Tools and tech: automation software, bots, APIs and TMS - what are members using?
5. Navigating Fed Funds rate volatility and regulatory considerations (permissible investment requirements - money transmitter)
6. Forecasting cadence and time horizons