HSBC is introducing virtual accounts for corporate and institutional clients, the financial institution said in a press release sent to PYMNTS on Monday (July 8).
The bank announced that its Next Generation Virtual Accounts are now available to wholesale clients to support cash and multi-currency management. The solution streamlines and consolidates multiple accounts and transactions into a single platform to support centralized payments and receivables for treasurers managing transactions across multiple and single entity structures.
Consolidating multiple bank accounts into a “handful,” or into a single account for each currency a company uses, reduces friction associated with managing cash across hundreds of accounts, and reduces the need for treasurers to complete complex cash sweeps and pools, HSBC noted.
Larger corporates can group multiple accounts based on corporate entity, while smaller businesses can manage virtual accounts based on product line, the bank said, pointing to the control corporate treasurers can gain in managing virtual account structures.
The virtual accounts solution also enables businesses to view transaction reports in real time via HSBCnet, while also integrating with firms’ existing treasury management and enterprise risk platforms.
“Next Generation Virtual Accounts are a powerful tool for treasurers who want to simplify their cash management,” said Thomas Halpin, HSBC’s global head of payment product, global liquidity and cash management, in a statement. “Our solution allows treasurers to create an account structure that works for them. It is innovative, intuitive and has been well-received by clients around the world.”
In another statement, Suraj Kalati, HSBC’s global head of liquidity and investments, global liquidity and cash management, said, “Virtual accounts are a natural intercompany solution that enables everyone to focus on what they do best. Entities can focus on buying and selling without having to manage physical bank accounts, while the corporate treasury gains greater visibility of the overall cash position and more control over their use of funds.”
The solution is currently live for corporate clients in the U.K., U.S., Hong Kong and Singapore; HSBC plans to launch the solution in the Netherlands and United Arab Emirates later this year.