Virtual bank accounts (VBAs) are a hot topic among the treasury community today. While you may have heard of VBAs before, their usage is rapidly evolving – and their benefits for treasurers continue to grow. Dick Oskam, global head of sales for transaction services at ING Bank, explains what VBAs are all about.
In an increasingly international marketplace, achieving centralised visibility, control and access to information is a significant challenge. This is where virtual bank accounts come in. Whether you’re new to VBAs, or are already familiar with the concept, there are a growing number of use cases and benefits to consider – as well as a few lingering myths to dispel.
Understanding the premise
So what are VBAs and how they work? After all, the concept means different things to different people.
The VBAs are bank-issued dummy current accounts that replace current physical accounts and instantly route payments and collections to a linked “master” current account.
Easily set up, VBAs can be allocated to any purpose – from denoting a legal entity or business unit to pinpointing individual payers. Every VBA has a unique number, which helps to separate funds in the master account.
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Dick Oskam
ING Bank
Source: Banking Technolgy