The global digital payment revolution has offered fertile conditions for improving efficiency and refining cash management operations for corporates to take advantage. Virtual accounts offer a particularly compelling option. Mindgate’s Virtual Accounts solution coupled with its payment on behalf of (POBO) and collection on behalf of (COBO) offerings which see a central account issue and receive payments for multiple subsidiary accounts is built with this intent in mind.
This in-house banking structure enable corporates to channel payments and/or collections through a single legal entity, which allows to rationalize their accounts and simplify cash management structures by eliminating physical and notional concentration
Features Include:
– A single-account banking structure; To reduce the typically complex bank structures of corporate industry
– Boil down banking structures; ‘n’ Number of accounts at ‘x’ Number of banks, involving a wide range of currencies, into just one account
– Structured payer identification & real-time reconciliation; Streamline the corporate collection process and provides accurate information on the collection statistics
– Distribute the day to day processing; Consolidate the management and reporting to centralized operations, handle micro level access to distributed user range
Highlights
- Multi-Country IBAN handling
- Multi-Currency handling
- Multi-Hierarchy (Parent-Child Mapping)
- Dynamic VA creation on the deal based for direct Invoice Presentment
- Enhanced API based VA creation to support Hierarchy & Currency
- Reporting of VA Statements in MT940/MT942 formats
Features of its POBO and COBO Offerings:
POBO
- In-House banking setup
- Entity setup and linking of various level VA for pay-out process
- Provisioning of Budget and SI/ad hoc pay-out functions
- Multi-Model Budgeting – Percentage / Fixed based on collection & Pre-Funding Model
- Rule-based pay-out using SI module
- Mapping of third-party bank accounts and handling of pay-out using MT101
- Beneficiary templates for ad hoc pay-out process
- Authorization matrix setup as per corporate signing limits
- Entity-level reporting
COBO
- Entity setup and linking of various level VA for the reporting process
- Multi-Hierarchy (Parent-Child Mapping)
- Mapping of third-party bank accounts and aggregation of account statement using MT940 reporting
- Consolidated account position reporting – Country / Currency / Bank wise
- Handling of fund movements based on account balance position
- Unified account number pattern for In-House VA & Third-Party bank Account VA mapping
- Reporting of VA Statements in MT940/MT942 formats
Benefits:
- Centralized treasury operations – Better cash visibility and optimization
- Capability to initiate or receive payment in the virtual account while hitting real account from debit/credit
- Optimized cash flow – Help clients manage their working capital better
- Lower costs – Lower transaction cost, administrative and fund transfer cost for physical accounts
- STP reconciliation capabilities - Reconciliation at the virtual account level
- Better tracking of intercompany funds
