Mindgate’s Virtual Account Management Solution | Blog

Mindgate’s Virtual Account Management Solution

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


  • 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:


  • 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


  • 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


  • 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