Whether for an individual or a business, the use of multiple bank accounts, or multi-accounts for short, offers the possibility of optimized financial organization. It is valuable for neo-banks aiming to provide comprehensive financial management solutions to their clients, as well as for businesses managing a large volume of transactions or with subsidiaries. With the agility of Banking-as-a-Service, Xpollens invites you to explore another dimension of multi-accounts.
Multi-accounts for improved organization of financial activities
Multi-accounts allows individuals or businesses to hold and manage multiple accounts, whether within the same or different financial institutions. All accounts are at the same hierarchical level, enabling individuals or businesses to separate and organize their financial activities based on various needs or objectives. The concept of multi-accounts can include different types of accounts, such as current accounts, savings accounts, business accounts, retirement accounts, etc. Each account can have its own balance, fund movements, and specific conditions.
In practical terms, multi-accounts in a few examples
The principle of multi-accounts is ultimately quite simple, but its utility may vary when proposed to a business for its users or for internal needs.
Addressing various daily needs of users
For a neo-bank launching online banking services, multi-accounts can be an essential feature. For example, it can help clients manage their budget by allowing them to open a savings account alongside their current account to finance specific events. In this scenario, two accounts will be linked to the same account holder: their current account and their savings account.
For a niche neo-bank wanting to enable clients to open multiple accounts, some of which are accessible to third parties securely, multi-accounts is again a key feature. This includes situations like:
• Parents wanting to give financial autonomy to their children by providing them with a payment method while maintaining control over expenses, limits, etc.
• It can also benefit a person with reduced mobility requiring assistance with shopping.
For individuals who are not the account holders but are the cardholders, making payments independently, securely, and with control over their expenses is one of the conveniences made possible by multi-accounts.
Simplifying internal organization of the company
A company managing a significant volume of payment transactions also has a strong incentive to implement multi-accounts for simplified tracking. Allowing a company to open several accounts for the expenses of each internal department and linking its payment method or creating an account for each supplier simplifies daily management and oversight.
It is also beneficial for a company with different subsidiaries and engaged in cash pooling to use multi-accounts outside its bank’s environment. This optimizes cash through centralization and automation of flows, associated with real-time information. Having a central account for the parent company and an account for each subsidiary is advantageous because transfers between accounts are instantaneous (account-to-account transfers, P2P). This can contribute to reducing financial costs, optimizing investments, and ensuring more efficient liquidity management within the company.
Multi-accounts in Banking-as-a-Service, how does it work?
By engaging with a Banking-as-a-Service provider, the creation of an account occurs on-the-fly and instantly through API calls. In other words, a company using multi-accounts with Xpollens makes real-time API calls and creates a new account for its individual client whenever desired.
For both individuals and businesses, a single verification procedure is applied regardless of the number of accounts created. Known as KYC (Know Your Customer) for individuals, it becomes KYB (Know Your Business) for companies and goes along with a step, in collaboration with Xpollens’ teams, to define the project and the number of accounts to open to meet its objectives.
Multi-accounts in 3 advantages
To open an account, KYC (Know Your Customer), i.e., verification of the identity of an individual or a legal entity, is necessary. Since the account holder is already known to the institution, there is no need to redo the onboarding procedure for opening additional accounts. A single KYC is sufficient for all accounts.
Multiple accounts with individual rules
The account holder can associate specific limits with each of their accounts: ceilings, payment methods, authorization for online or in-store payments, geolocation, etc. Freezing or closing one account does not impact other accounts.
Comprehensive view of all accounts
Each additional account has its own statement.
Account Management: Refers to all operations related to the management of an account, whether for an individual or a company. The bank indicates the nature of the operation (transfer, withdrawal, check…), its amount, date, updates to balances, etc., ensuring transparency and transaction security.
Account Holder: The person in whose name the account is opened and who has all the powers of management over the account. This is usually the person who opened the account.
Cardholder: The person who physically holds the card or associated payment method (wearable…). The cardholder is not necessarily the account holder.
KYC: The KYC (Know Your Customer) is a procedure implemented by banks and financial institutions to verify the identity of their clients (individual or legal entity) in accordance with AML (Anti-Money Laundering) and CFT (Counter Financing of Terrorism) regulations.
To learn more, you can visit the dedicated page on account opening and managing: