The growing demand for transaction banking stems from the fact that corporate houses today seek a smarter and efficient cash management system for smooth business operations. An increasingly competitive landscape has posed critical challenges to the organizations in terms of managing multiple banking relations, performing bank account management and handling complicated account structures. ‘Digital Transaction Banking‘ with its latest liquidity management tools and innovative strategies offer optimal solutions to those seeking end-to-end cash management for efficiently handling their pools of liquidity and optimizing their working capital, dispersed across domains and regions.

Role of Technology in Transaction Banking

Digital Transaction banking

The advent of new technologies is redefining the roles of banking sectors in terms of their operating models and their customer interaction. It has brought in its wake a new level of transparency, efficiency, and speed that has transformed cash management and transaction banking for the benefit of the corporate clients.

As banks upgrade their legacy systems for developing sustainable digital solutions and streamlined processes, innovative minds at Mindgate have come up with a comprehensive solution for banks to effectively manage advanced digital modes of collections and invoicing for the banks’ customers and their business partners.

VAM (Virtual Account Management)

As corporate enterprises grow bigger and complex they face tremendous pressure for optimum fund utilization. This requires them to have a better view and control of the inflow and outflow of their funds; this is where virtual account comes into the picture. Virtual accounts are dummy accounts linked with the single physical account which enables the corporate to address real-time liquidity needs, manage payables and receivables and segregate funds across different entities.

Mindgate is one of the leading IT service providers, offering digitalized solutions that enable banks to optimize their working capital and improve liquidity management. With virtual account concept turning out to be the next big thing in liquidity management, Mindgate offers Virtual Account Management(VAM), a comprehensive cash management solution that delivers the following advantages:

Simplifies Cash Management Structure: Today, when corporate houses are looking forward to a stronger grasp and control over their cash transactions and their banking relationships, VAM is being viewed as the optimal solution. It allows the corporate to efficiently manage their cash management structures and business risks. It facilitates regularized transactions and serves as a central master account through which the digital payment for international, national or local transactions can be done with ease.

Reduces Number of Bank Accounts: It is a unique solution that offers a single platform for managing any number of accounts linked to multiple banks. Be it the cash and liquidity management, payments and receivables management or in-house banking and client money management, VAM enables corporate to get a collective view of multiple banks accounts through a single window.

Our user-friendly products like e-collect allow the customer to create a multi-tier hierarchy of virtual accounts which provides a centralized system for the payments and collections processes. Moreover, the POBO COBO models facilitate the paying process on-behalf-of subsidiaries (POBO) and introduce true collecting on-behalf-of subsidiaries (COBO). These modules impact corporate clients positively to boost the efficiency and transparency of their financial transactions.

Serves as Flexible and Accessible Solution: The growing popularity of VAM is credited to its inherent flexible structure. The virtual cash management offers flexible account structures that allow the segregation of business more precisely and ensure better control over cash management and transparency. With a sophisticated VAM reporting module, tracking the status of every transaction and virtual account in real-time is convenient. While this provision offers better visibility of transactions and balances to the corporate, for banks the complexity of managing multi-account infrastructure is reduced.

Besides, Mandate Management is another important aspect of transaction banking which further streamlines payment processing and improves the operational efficiency of banks. We offer flexible collection solution for your business model. A fully automated system, Direct Debit Mandate Management (DDS) is a settlement facility process that ensures safe and hassle-free financial transactions between financial institutions. The system enables the banks to offer the mandate setup for On-us mandates (within bank accounts) independently or with support of Central Bank integration or clearinghouse based data exchange for other participating banks.

With the rapidly changing technology landscape, there can be no denying that corporate today seek better solutions. Mindgate as a solutions provider adopts the innovative and collaborative approach for clients to bring in optimum operational efficiency. Turning challenges into opportunities, we endeavor to offer products that keep transaction banking solutions at par with the evolving technologies and create a value proposition for both, corporates and banks.