Let’s talk about how IBAN affects your business growth, but let’s begin by explaining what IBAN is for those who don’t already know.

The meaning of IBAN is International Bank Account Number and it is a standard worldwide numbering system for identifying an account held in a foreign country. This number isn’t intended to replace a proper bank account number but rather to provide additional information that aids in identifying international payments. IBAN consists of a two-digit country code, two numbers, and a few alphanumeric characters.

What are virtual IBANs?

Transactions are routed through virtual IBANs to online accounts. Virtual IBANs, like their traditional counterparts, can be used to transmit and receive payments worldwide, allowing businesses to expand their services to international clients. Customers can send and receive payments and transfer funds to and from their associated physical IBAN account using their virtual IBAN account, which works similarly to their normal IBAN.

A virtual IBAN functions in the same way as a regular IBAN in the eyes of the customer. When they make a payment, their money is transferred to the actual bank account associated with the virtual IBAN.

IBAN formats and their counties

Benefits of virtual IBANs

• Cost-effectiveness: Multiple accounts in multiple countries are time and labour difficult but also expensive. Consider how much a company would pay in banking fees to keep track of 20 accounts. It has to be a hefty sum. However, if virtual IBANs are adopted, costs will be significantly reduced. Companies can use virtual IBAN to set up several virtual accounts, similar to physical accounts. This eliminates the significant FX and transfer expenses associated with converting each payment compared to typical bank accounts.
• Extra Account Security**:** Security is crucial for keeping financial documents. Having several records exposes the owner to additional risks. A virtual IBAN is stored in redundant, encrypted cloud servers. As a result, they are generally protected from misrepresentation or vacation. Virtual IBAN’s start-to-finish simplicity and isolation make it easier for businesses to adhere to Anti-Money Laundering (AML) and Know Your Customers (KYC) security rules.
• Having virtual IBAN accounts can benefit FX and payments businesses and their customers. With these accounts, FX and payments organizations can create and allocate virtual IBAN accounts to each customer, aiding settlement and reconciliation. Payment businesses using a virtual IBAN can access multi-currency, multi-jurisdictional banking without needing multiple bank relationships.
• Competitive pricing for accounts and transactions
• Quick account setup
• Provision of unlimited virtual IBAN accounts
• Provides a banking appearance and feel
• Accurate and immediate reconciliation
• Segregation of funds and complete transparency to reduce AML and KYC risks

Conclusion

Virtual IBANs enable you and your clients to make and receive payments via local and cross-border payment rails there giving them access to by, giving them access to new territories and currencies.

Grey allows you to own foreign bank accounts and enjoy the benefits.