Open banking and real-time payment opportunities have forced the global transaction banking industry to rapidly undergo fundamental changes. By offering effective virtual account services, banks can stand out in an experience-driven ecosystem and generate potential revenue sources.
The ability of Payment Service Providers (PSPs) and FinTech firms to manage their client flows is a game changer. Virtual accounts are a sophisticated, technology-enabled banking tool to simplify, streamline, and consolidate merchant flows and reconciliation. They can become a strategic enabler for banks and corporates.
New-Age Treasury With Virtual Accounts
Virtual accounts, also referred to as ‘shadow accounts,’ are a set of non-physical accounts used to make and receive payments on behalf of real accounts. They are subledgers that divide the balances within a physical bank account and attribute all transactions to the correct virtual account. Every virtual acco …