Technology has brought new dawn to the banking sector by introducing virtual account services. Most organizations have many accounts and inter-bank account transactions, including sales account, procurement account, expenses account, and travel account.
Corporates will therefore require digital services to ease their transactions and return them on investment. The commonly known Virtual Account Management (VAM) platforms enable businesses and organizations to more efficiently manage and control their virtual cash and banking management processes.
It provides a single option of their liquidity management and cash, the payments and clients receivables management, client money management, in-house banking thus allowing reduction manual processes and cost of operations.
The following are the benefits of using virtual bank accounts ; First, these accounts have improved cash management, facilitated bank account access and financial regulators ‘ monitoring of bank transactions.
The virtual account services encourage the corporates with many banking transactions to use the digitalized account to manage their accounts better. They are able to efficiently transact across multiple accounts in different banks. Finding a company has accounts with different banks is normal, the virtual services enable them to link and manage all accounts virtually.
Third, the Virtual Account Service has enabled organizations to consolidate all accounts and manage them from one physical point. It ensures enhanced workflow integration, real-time financial reporting, increased customer service and an efficient cash management system.
This has made them stand out and are companies ‘ preferred transaction accounts. In terms of cost, virtual accounts have lower rates compared to other bank accounts since there is no face to face transaction, bank relationship, customer service among other services offered by physical bank account.
Customers benefit from virtual banking services where the bank is able to approve and administer loans, calculate interest, simplify liquidity management.The Virtual accounts give you opportunity to control your banking service, operational control, and enhanced banking relations.
Also, you will be in a position to control and manage incoming and outgoing business transaction from several accounts into one account. In terms of time, the customer saves a lot of time as they can access their account at the convenience of their office or any place convenient for them.
The corporates are able to create, manage and monitor transaction in the virtual accounts. To add on, Virtual account allows efficient cash flow during cash management. The accounts have tools to help you pool, sweep, and check the interest rate and credit limit for your account. You will also be able to tailor your bank statement.
There is positive feedback on impact of virtual account how they have transformed banking transactions.
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