Mindgate’s Virtual Accounts solution coupled with its payment-on-behalf-of (POBO) and collection-on-behalf-of (COBO)

The global digital payment revolution has offered fertile conditions for improving efficiency and refining cash management operations for corporates to take advantage. Virtual accounts offer a particularly compelling option. Mindgate’s Virtual Accounts solution coupled with its payment on behalf of (POBO) and collection on behalf of (COBO) offerings which see a central account issue and receive payments for multiple subsidiary accounts is built with this intent in mind.

This in-house banking structure enable corporates to channel payments and/or collections through a single legal entity, which allows to rationalize their accounts and simplify cash management structures by eliminating physical and notional concentration

Features Include:

– A single-account banking structure; To reduce the typically complex bank structures of corporate industry

– Boil down banking structures; ‘n’ Number of accounts at ‘x’ Number of banks, involving a wide range of currencies, into just one account

– Structured payer identification & real-time reconciliation; Streamline the corporate collection process and provides accurate information on the collection statistics

– Distribute the day to day processing; Consolidate the management and reporting to centralized operations, handle micro level access to distributed user range

Highlights

  • Multi-Country IBAN handling
  • Multi-Currency handling
  • Multi-Hierarchy (Parent-Child Mapping)
  • Dynamic VA creation on the deal based for direct Invoice Presentment
  • Enhanced API based VA creation to support Hierarchy & Currency
  • Reporting of VA Statements in MT940/MT942 formats

Features of its POBO and COBO Offerings:

POBO

  • In-House banking setup
  • Entity setup and linking of various level VA for pay-out process
  • Provisioning of Budget and SI/ad hoc pay-out functions
  • Multi-Model Budgeting – Percentage / Fixed based on collection & Pre-Funding Model
  • Rule-based pay-out using SI module
  • Mapping of third-party bank accounts and handling of pay-out using MT101
  • Beneficiary templates for ad hoc pay-out process
  • Authorization matrix setup as per corporate signing limits
  • Entity-level reporting

COBO

  • Entity setup and linking of various level VA for the reporting process
  • Multi-Hierarchy (Parent-Child Mapping)
  • Mapping of third-party bank accounts and aggregation of account statement using MT940 reporting
  • Consolidated account position reporting – Country / Currency / Bank wise
  • Handling of fund movements based on account balance position
  • Unified account number pattern for In-House VA & Third-Party bank Account VA mapping
  • Reporting of VA Statements in MT940/MT942 formats

Benefits:

  • Centralized treasury operations – Better cash visibility and optimization
  • Capability to initiate or receive payment in the virtual account while hitting real account from debit/credit
  • Optimized cash flow – Help clients manage their working capital better
  • Lower costs – Lower transaction cost, administrative and fund transfer cost for physical accounts
  • STP reconciliation capabilities ­­- Reconciliation at the virtual account level
  • Better tracking of intercompany funds