HSBC launches virtual accounts

Friday, 21 October 2011 03:00 - - {{hitsCtrl.values.hits}}

HSBC yesterday launched virtual accounts which provide consolidated collection reporting and receivables advising to help customers manage their receivables effectively.

“Virtual accounts allow customers to see collections and receivables,” CEO of HSBC Sri Lanka Nick Nicolaou said at a press conference. “We have been at the forefront of innovation since 1892 and this is one more product that we are introducing.”

Virtual accounts are available to corporate clients and are intended for people who are making multiple payments, allowing them to view hundreds of thousands of payments a day. Typically in Sri Lanka this would cater to import export businesses, Nicolaou said.

The product allows working capital to be optimised, enhances efficiency and improves internal controls whilst enabling customers to manage their receivables with improved visibility and information management.

“Visibility and mobility of cash is the key to open up opportunities and deliver improvements in critical areas of the business such as working capital organisation, work efficiency enhancement and operational risk control,” HSBC Asia Pacific Head of Sales, Global Payments and Cash Management Richard Jaggard said in a statement released at the media conference. Key benefits of virtual accounts include identifying and attaching payer’s information to collections, improving management reporting by capturing all virtual account transactions on statements in real time, better credit control through swift reconciliation of collection information and enhanced visibility through the receivables advising function.

“In today’s context, cash is king. Customers want the cash they need as fast as possible and at the right place,” said HSBC’s Head of Payments and Cash Management Sohantha Wijesingha. “Virtual accounts give companies a comprehensive view of their daily cash position, allowing them to use cash more efficiently and make decisions based on real time information to create more business opportunities, he added.