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What Is A Virtual IBAN?

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Any bank account has an International Bank Account Number or IBAN. This is a standardized sequence of numbers and letters that helps identifying bank accounts regardless of bank or country. An IBAN consists from 34 alphanumeric characters and it enables money transfers between bank accounts belonging to different banks or located in different countries. Even though IBANs have been used by businesses and individuals alike for over 20 years, they aren’t necessary the best option for companies that do most part of their business online.

Virtual IBANs emerged from this need of these companies as a better alternative to traditional IBANs. A virtual IBAN isn’t associated with a physical bank but rather with a virtual one. Even though they serve the same purpose, namely to enable money transfers between different entities, the virtual IBAN has several good advantages for business. Let’s take a closer look at some of them.

Why Virtual IBANs Are Better For Business

They Ease The Setting Up Of A Business Account

Setting up a virtual IBAN for your business is a simple, straightforward procedure, free from the bureaucracy embraced by traditional banks. This means you don’t have to put up with the lengthy and cumbersome processes required by banks all over the world. When setting up a virtual IBAN for your business, you don’t even need to show proof of residency in that specific country. You can learn more about virtual IBANS here – 

Enhanced Functionality

A virtual IBAN allows you to do much more than a traditional one. For instance, you can direct payments from different countries to different accounts, in currencies of your choice. This eases accounting and reporting a great deal, as you can create unique sub-accounts and statements for each product range. You can even perform a sorting by customer with only a few clicks.

Important Cost Savings

According to some business owners, virtual IBAN accounts enabled them to cut their bank fees by a whopping 20%. If you do a lot of business online, in the global market, you can use a virtual IBAN to avoid the high FX and transfer fees of traditional banks.

Better Security

Virtual IBANs are stored in encrypted and redundant cloud servers, where the risks of downtime or fraud are rather low. Also, thanks to the easy separation of funds, businesses using virtual IBANs find it easier to comply with anti-money laundering and Know Your Customer regulations.

Faster Money Transfers

Virtual IBANs make transactions much faster. For instance, you can use KoalaPays network for your business to benefit from instant money transfers. Even transfers to and from EU can have an extremely short processing time.

Let Your Virtual IBAN Work For Your Business

Using a virtual IBAN can provide your business with awesome benefits, particularly if you do a lot of business on the global market. Thanks to this virtual IBAN, you’ll have all the multi-currency banking solutions you need, without having to put up with the high FX and international bank transfer fees.