Virtual Accounts

Virtual accounts are digital sub-accounts that allow businesses to manage funds more efficiently. They are a smarter approach to sub-ledgering, payments, and reconciliation because they act as unique identifiers for specific transactions or purposes. You can use them to streamline financial operations, such as managing payments from a single vendor or tracking funds for a particular project.

Custom account hierarchies allow you to logically organize funds within a structured system. You can create parent-child accounts for businesses to manage departmental spending or savings goal accounts for consumers to track specific financial objectives. This gives both businesses and individual consumers better control over their finances, providing a clearer picture of their spending and savings. 

Virtual accounts can be used to streamline B2B payments by providing a unique, dedicated account for each vendor or business partner. When a payment is made to that specific virtual account, the transaction is automatically identified and categorized, which greatly simplifies the reconciliation process and significantly reduces manual work.

A sidecar solution is a modern platform that can be layered alongside your existing core banking technology. This allows you to innovate with modern products like virtual accounts without the costly and complex process of overhauling your entire existing system. It is a powerful way to add new functionalities and stay competitive while leveraging your stable and secure legacy systems.

Virtual accounts help with reconciliation by providing a unique identifier for each transaction. When a payment is sent to a specific virtual account number, the Episode Six platform automatically knows where the funds should be allocated, which automates the reconciliation process. This greatly reduces manual work and eliminates the common errors that arise from manual data entry.

Episode Six provides a future-proof solution with its API-driven infrastructure. The Episode Six platform is built to flex and adapt to your business ambitions, ensuring you can scale and innovate without being constrained by outdated technology or rigid systems. This allows your business to stay ahead of market trends and technological shifts.

Yes, our platform supports real-time agility, allowing you to change limits, rules, and product logic for your virtual accounts instantly, without needing vendor involvement. This ability to make changes on the fly is a key advantage, as it enables you to respond quickly to market demands or business needs.

The advantage of enterprise-grade resilience is that our platform is built for high availability and real-time processing, which is crucial for financial services. The Episode Six platform's massive scalability ensures that your services are always reliable and can handle unexpected surges in transaction volume, providing a consistent and trustworthy experience for your customers.

Yes, you can use virtual accounts to help you optimize liquidity by providing a clear, real-time view of your funds. This allows you to better manage cash flow and make more informed financial decisions, as you can see exactly where funds are and when they are available.

A sub-ledger is a secondary ledger that provides detailed records for a specific type of account. Instead of relying on a traditional sub-ledger, virtual accounts provide a smarter way to manage this process by automatically tracking and categorizing transactions based on the specific account number.

We sure can. The Episode Six platform supports:

• Multi-currency virtual accounts for global transactions
• Automated FX conversions to optimize foreign exchange management
• Localized virtual accounts for receiving payments in different markets
• Dynamic fund routing to optimize payment processing costs

This allows businesses to manage international transactions seamlessly without needing multiple bank accounts.

Virtual accounts enhance security by:

• Eliminating the need to share sensitive banking details with multiple parties
• Providing audit trails for transaction tracking
• Using configurable controls to prevent unauthorized access
• Supporting compliance and regulatory requirements like KYC and AML

With built-in security and fraud prevention, virtual accounts offer a safe and efficient way to manage business finances.

Yes! Virtual accounts can be used for:

• Incoming payments – Businesses can assign a unique virtual account to each customer for automated tracking.
• Outgoing payments – Funds can be routed through virtual accounts for supplier and vendor payments.
• Internal fund allocation – Companies can create department-specific virtual accounts for better budget management.

With real-time fund tracking, businesses can optimize cash flow and reduce manual reconciliations.