The difficulties in opening new bank accounts are here for many years, if not forever. Know Your Customer difficulties are legendary, but there is a solution: Virtual Accounts.
There is a long list of benefits claimed for virtual accounts (Accenture analysis):
- Substitute for cash management offerings
- Centralization of treasury functions
- Viable alternative to other liquidity management offerings
- Increased cost efficiencies
- Increased STP reconciliation
- Rationalization of accounts and banking relationships.
While Cashfac claims that they place control of client bank accounts into their hands. Flexible account structures allow segmentation of the business more precisely and allows them to gain greater transparency and control over cash.
- Simplification: A single view and a single platform for any number of accounts linked to multiple banks
- Compliance: Cashfac Virtual Accounts identifies and protects client monies by segregating client funds in dedicated client accounts.
- Speed: Instant creation of multiple bank accounts so that client onboarding limitations are removed and payments can be managed immediately.
- Scale: Quickly scalable to meet the changing needs of corporations, enabling them to improve how they client money management.
- Audit: continuous reconciled views of client cash and internal ledgers to demonstrate necessary segregation of client money and clear records of all transactions to support all associated audit and reporting requirements.Client Friendly: Cashfac Virtual Accounts provides corporations clients with a portal to see their own accounts, reducing internal administration and creating transparency across the cash management process.
But the simplest solution may be the most important: opening bank accounts immediately.
Speed of account opening = the key benefit
Virtual accounts allow creation of multiple bank accounts so that onboarding limitations are removed, so that corporates can setup new accounts when they want. This is is why:
- Roche used virtual accounts in their complete POBO & ROBO payment factory making subsidiaries ‘bank-free’
- Powys County Council used virtual accounts to improve the speed and efficiency needed to help vulnerable citizens.
CTMfile take: In the bank account opening nightmare of today (and many years to come), the simplicity of opening new Virtual Accounts really an example of a ‘frictionless’ service and it works. Does your account structure need to be adapted to incorporate virtual accounts?
Virtual accounts: technology to help banks exceed customer expectations
Tieto’s white paper explores the opportunities
Virtual accounts are revolutionising cash management & payments/collections
Future is virtual as virtual banking/virtual payment technology now fully understood and available
Money Corp launches virtual account international payment solution for corporates
The key to cutting the cost of international payment is to make them locally. Exhibiting at the ACT Conference in Glasgow Money Corp were presenting their fully integrated FX and payment service which uses virtual a