Virtual accounts, part 1: Payments struggle with reality

Despite their benefits, virtual bank accounts have failed to gain traction with the world’s largest corporations.

Swiss multinational healthcare company Roche has embraced the use of virtual accounts. These sub-accounts, which are linked to one physical current account, fit with the company’s strategy of centralizing visibility of cash, switching to ‘on behalf’ collections and disconnecting local subsidiaries from banks. Indeed, around a quarter of its subsidiaries now have no bank account in their own name.

The company has created better transparency for on behalf collections as the virtual account number appears as a fixed value in the bank statement according to Stefan Windisch, senior cash manager treasury operations.

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