It has been virtually impossible to insist on keeping confined to your borders may it be cultural or economical – the skyrocketing propulsion of internet and network technologies dragged along all industries, those that avoided simply became obsolete within a decade.
Banks and financial institutions, although feeling threatened by some such as cryptocurrencies, swiftly hopped the train that promised a user-friendly, cost-effective journey around the globe in no time. Virtual IBAN technology is one of those newly evolved tools that has its roots in IBAN obviously with aims to make cross-border payments a breeze.
What is a Virtual IBAN?
In a nutshell, a vIBAN (Virtual International Bank Account Number) can be simply defined as a digital account reference number utilized to send/receive payments or to route incoming payments to a different nominated bank account. Without further ado, IBAN needs a brief introduction to better grasp what business virtual IBAN benefits have been added on top of the universally accepted standard. IBAN stands for International Bank Account Number – it has been adopted as a key to the international payments conducted by individuals, businesses, banks and financial institutions alike. Starting with 2 alphabetical characters used to identify the origin country of the bank account, the rest of an IBAN consists of numericals two of which are error checking digits along with the unique identifier series of numbers of that particular bank account. If you ever find yourself stuck with a local bank account number from a certain bank, you can always derive the IBAN of that account should you know the bank code and the account number in question. IBAN.com is specifically useful for such help for when you feel the need.
Having set the basics aside, you could expect what to expect from the concept of virtual IBAN. Basically a virtual IBAN is a master virtual IBAN account that simplifies the otherwise overwhelming collection and management of payments coming from different jurisdictions where the effort, money and compliance requirements for both ends of the transaction would ultimately be unbearable.
The Benefits of a Virtual IBAN
So what are virtual IBAN benefits such that it attracts quite a lot of interest for businesses? As yielded by the hints from the previous paragraph, it simplifies the whole cross-border payment process by aggregating the whole volume into one unified address that makes such repetitive and humongous transfers streamlined and manageable. Such a unified process remarkably cuts down the costs as well which would otherwise be unconscionable from a fiscal point of view. The time, effort and money saved from the use of a virtual bank account IBAN could also be streamed down to the self-development of the business, multiplying the direct benefits it brings by some coefficient indeed.
As virtual bank accounts are looking to be a norm very soon which eliminates the obligatory visit of physical premises of the bank. And most of such virtual bank account providers could also equip your business with an IBAN, even with some plans with a free virtual IBAN account depending on the provider and the bundle you opted for. Otherwise, a standalone free virtual IBAN account is hard to come by and therefore your best bet for a free one is either by getting a virtual IBAN bank account from major providers and acquiring one as a bonus or allocating a separate amount to set up your virtual bank account with IBAN for your collectibles and payments.