Liability Management

Unlocking loyalty program value

As the scale and complexity of a rewards program grow, points liabilities and the uncertainty of future redemption costs can become increasing concerns. Ascenda enables brands to shift liabilities off the balance sheet and unlock new opportunities to create program value.

Key services
  • Program P&L definition
  • Legal entity analysis
  • Rewards accounting optimization
  • Liability migration
  • Equity partnership development

Covering all angles

Legal entity design

Wholly-owned or a joint venture variation? Choosing the right legal construct is a critical foundation for your program’s success.

Accounting & tax optimization

Access tax & accounting experts with first-hand experience driving results for stand-alone loyalty program entities.

Points reserve management

From breakage modelling to regulatory analysis, we help you set the right strategy for backing rewards liabilities with assets.

Loyalty program capitalization

Fuel your growth plans through our network of investment professionals experienced in loyalty program transactions.

The Power of Coalitions

Evolving a major single-merchant rewards program into a broader coalition ecosystem can be the ultimate growth aspiration for ambitious loyalty professionals. Success stories in major markets such as Japan, Australia, Germany, the UK and Canada have proven the power of the model, with coalitions achieving well over 50% household penetration.

By enabling consumers to earn points across key everyday spend categories, coalitions significantly increase the desirability of a rewards currency. And by collecting transactional data across industry verticals such as retail, travel, petrol and telco, they can monetize valuable customer insights and targeted marketing.

Enabling Your Coalition Journey

Ascenda supports each step on your path towards coalition. It starts with establishing your loyalty program as a stand-alone entity, and shifting rewards liabilities from your core business into the program. Revenue streams and expenses of the program entity are clearly defined to position you optimally for building a strong network of merchant partners.