In a world that is ever-more inclusive of financial opportunities on a global scale, growing businesses need a dependable solution to keep up with the demand of global commerce. Creating a virtual IBAN account can provide users with a convenient way to access international transactions efficiently.
As a reference account number issued by banks, a virtual IBAN (International Bank Account Number) can be used for routing payments to a regular or physical account. Businesses can use virtual IBANs to reduce the number of physical accounts they need to receive payments from different international sources.
Here are a few key reasons why your business may need virtual IBANs to maintain a competitive edge:
- Setting up a business account is easier: Using a virtual IBAN eliminates much of the bureaucracy involved in opening an account at a traditional bank. The procedure of opening a business account with a traditional bank can be complicated and lengthy, as many entrepreneurs know. This is not the case with a virtual IBAN obtained through an online platform. For instance, virtual IBANs don’t require a resident to live in the same country as the account issuer.
- More functionality: Virtual IBANs are capable of a lot more. Business owners can, for instance, instead of directing payments into one bank account, direct them into separate accounts, and in preferred currencies, to make them easier to manage. As a result, accounting and reporting are simplified, since you can create multiple accounts for different product lines or sort by customer.
- The cost-savings can be significant: Businesses that do a lot of business online in different global markets have found that virtual IBANs can reduce banking fees by as much as 20%. The reason for this is that many traditional banks charge high FX and transfer fees on every payment they receive.
- Improved Security: Virtual IBANs are kept securely in cloud servers that are redundant, encrypted to reduce the risk of fraud and outages. Organizing funds in a secure method and maintaining end-to-end transparency also makes it easier for businesses to comply with AML (Anti-Money Laundering) and KYC (Know Your Customer) rules.
To Conclude
Virtual IBANs give companies a competitive advantage. This will save your company money and time as it lowers the cost of administering multiple real accounts, improves security, and will greatly enhance transaction security. In a highly competitive field, these factors can make or break the ultimate result.
It is important, however, to choose the right virtual IBAN provider. While several organizations are licensed to operate as financial institutions, some of them may not offer the same level of reliability as traditional banks. Providers with a stringent regulatory and compliance policy are the ideal choices.
