Redefining liquidity with virtual accounts for corporations and their subsidiaries

Our Virtual Cash Management solution simplifies managing cash flows in complex business projects, especially those involving both a parent company and its subsidiaries.

SEB Virtual Cash Management allows businesses to create customised, virtual account structures without the usual lead time and paperwork associated with opening new bank accounts.

“It’s ideal for getting a better overview of complex projects and managing your incoming and outgoing business. You can build a tailor-made structure with as many sub-accounts as you need. For example, each department can operate a virtual account, all of which are connected to a single master account. This arrangement enables companies to maintain a unified cash position”, explains Johan Hansen, Product Manager at SEB.

Enhanced features for multi-entity setups

The first version of Virtual Cash Management was launched a few years ago, and it has recently been enhanced with an anticipated feature: the ability to include multiple entities within the same account structure.

“This enables you to have both a parent company and its subsidiaries within the same setup. It is something that many of our clients have been asking for since it is within these flows that much of the complexity can occur,” Hansen adds.

Streamlined cash and liquidity management

The solution simplifies cash and liquidity management, particularly in multi-entity setups. It is now available in all SEB’s home markets: Denmark, Finland, Germany, Norway, the United Kingdom, and Sweden.

Christian Daberkow, Senior Advisor Cash Management at SEB Germany, highlights the benefits:

“With the new possibility to include several legal entities in one virtual account structure, the number of physical bank accounts can be decreased, which is something many treasury departments strive to do. Payments can be made from virtual bank accounts with their own IBAN, while the liquidity source for all transactions is the physical master account. From a liquidity perspective, it is comparable to instant cash pooling.”

SEB’s Virtual Cash Management solution represents a significant advancement in corporate cash management, offering businesses greater flexibility and efficiency in handling their financial operations.