Choosing Between a Digital Bank Account, a Virtual Account, and a Global Business Account – What Mak

Almost every business that wants to develop worldwide discovers that typical international banking services are time-consuming, expensive, and inconvenient. Even for (slow and expensive) cross-border cash transfers and payments, many organizations, particularly SMBs, continue to rely on traditional banks. One reason is that people are unaware of the various options available, which are often less expensive, faster, and more convenient than typical bank services. Virtual bank accounts, digital bank accounts, and global business accounts are examples of FinTech developments that provide increased flexibility, scalability, and cost-effectiveness, all of which can be significant factors for expansion and growth. The differences between these accounts will be explained in this article and how organizations may use them to manage and optimize their cross-border payments and collections.

Digital Banking Is Disrupting Traditional Banking

Although the two concepts are not the same, a digital bank account is frequently confused with a virtual bank account. 

Most banks now offer a digital service that allows customers to do everything from check their balance to make interbank currency transactions without ever having to visit a physical location. Customers benefit from digital banking because it saves them time, which they can put to better use by focusing on their customers and growing their business.

Any banking activity that is conducted utilizing a digital device — whether it's a desktop computer or a mobile banking app — is now referred to as digital banking. People use saving apps to save money online, pay for coffee by scanning a code, and businesses pay their employees via app internet banking. All of these are examples of digital banking. Taking Disruption a Step Further (Virtually). The majority of international and cross-border sellers struggle to open a bank account in the buyer market, due to excessive fees that eat into profits and time spent going to market.

This is where virtual accounts come into play, a newer and even more disruptive kind of FinTech-driven banking. Virtual accounts are distinct from other types of digital banking in that they exist solely online, with no physical presence in a community or country.

Virtual accounts allow businesses to receive foreign currency payments into their accounts while maintaining consistent foreign currency conversion prices for receivables, removing price padding and high conversion rates from merchant processors, online marketplaces, and customers.

Virtual accounts simplify the cash management process for organizations by reducing the number of real accounts they operate worldwide.

Virtual Accounts, such as the Wallex Global Collection account, are meant to allow businesses to receive payments from all over the world as if they were local payments. They can receive account information in countries such as the United States, the United Kingdom, and Europe and accept foreign currency payments from consumers to an account in their name, all without having a physical presence in the area.

This would be a hassle-free alternative to acquiring local bank accounts in each nation of operation for enterprises and e-commerce suppliers moving to new markets.

Furthermore, accounts may be activated instantly, payments may be made to virtual accounts for free, logs and notifications on the status of each transfer are supplied, and funds can be converted back to your native currency at very competitive exchange rates. There is no need to visit a bank or fill out complex paperwork to open, operate, or maintain the account.

Global Business Account: A Boon for Cross-border Business Expansion

A global business account works similarly to a digital bank account and virtual account, but we like to think of them as the upgrade to both digital and virtual accounts to a more cost-effective, robust package of solutions for growing businesses.

Companies can manage all of their needs with a Wallex global business account, including paying suppliers and employees, moving money across borders, performing local currency conversions, maintaining liquidity in multiple currencies, and setting up virtual accounts in the countries and currencies that matter most to them.

When opposed to standard bank-driven business accounts, the following are the advantages of a Wallex business account:

• It is completely free to open and maintain. There is no requirement for a minimum balance.

• Singapore, Indonesia, and Hong Kong have all regulated online secure platforms.

• Transaction processing times are reduced.

• Fees that are less expensive and more transparent, based on the services consumed

• Currency conversions at competitive exchange rates

• Virtual accounts in a variety of currencies are available.

• An account manager who is dedicated to you

Additional services may include credit extension, virtual cards, and other services that improve the business' capacity to function solely through a global business account.

It's crucial to research the payment methods and payout options available to be sure they'll work for your company. Some business account providers, for example, only support international payments to other members of their network or charge extra for payments made outside of their network. Such hidden fees might soon deplete whatever savings you would have gotten from having a business account.

In the key Asian markets of Singapore, Indonesia, and Hong Kong, Wallex is licensed and regulated, making it easier and safer for Asian businesses to do business abroad. All customer monies are safeguarded and kept separate from all other internal operations accounts in a client segregated account. Wallex follows a tight set of guidelines for both compliance and the security of funds in its care.

Wallex is more than just a money transfer service for your company.

We've established a formidable alternative to traditional banking at Wallex. Our Global Business Accounts are designed for companies with a strong focus on worldwide expansion. Wallex does not charge any setup fees, unlike most other accounts. There are no monthly minimum fund requirements to meet, and there are never any monthly or annual fees.