HSBC launches multicurrency virtual account for treasury
HSBC has launched ‘Next Generation Virtual Accounts’ to help wholesale clients increase their cash management efficiency by consolidating bank accounts and centralising transactions.
The solution, available in more than 20 currencies, builds on the reconciliation benefits of traditional virtual accounts by enabling treasurers to centralise payments and receivables across multiple and single entity structures.
Clients can consolidate hundreds of bank accounts into a handful, or as few as one account for each currency that they use. Transactions flow through the underlying physical accounts, with the virtual accounts acting as ledger records.
This saves treasury teams the operational cost of managing cash across multiple accounts and reduces the need for complex cash sweeps and pools, the bank says.
Thomas Halpin, global head of payment product, global liquidity and cash management, HSBC comments: “Next Generation Virtual Accounts are a powerful tool for treasurers who want to simplify their cash management. Our solution allows treasurers to create an account structure that works for them. It is innovative, intuitive and it has been well-received by clients around the world.”
HSBC Next Generation Virtual Accounts have gone live in the UK, USA, Hong Kong and Singapore. It will be available in Ireland, the Netherlands and the UAE later this year.
In addition to the self-management of virtual accounts, clients can receive near-real-time reporting on transactions, through HSBCnet. The bank’s new offering also integrates with treasury management systems or enterprise risk systems using industry standard electronic formats.
HSBC’s virtual account management platform offers additional benefits for businesses that use HSBC Client Money Manager in the UK. This will enable a better user experience for businesses such as law firms or property developers, which need to hold client funds in designated accounts.