Modern Treasury, a payments operations software platform, has announced its Virtual Accounts product in order to make it easy for firms to accurately track and reconcile payments “at scale.”
The introduction of Virtual Accounts aims to further solidify Modern Treasury’s leadership in “enabling companies to modernize, automate and accelerate payments,” according to a release.
The announcement also mentioned that annually, over $750 trillion in bank transfers occur “each year via wire, ACH and checks.” Many of these payments, particularly those between firms, take one to three days to clear and finance teams “spend hours tracking them from initiation and approvals to accounting and reporting.”
The release further noted that Modern Treasury provides a single API into the international banking system, as well as software to “support finance and treasury teams, so that each step of the process is automated.”
With Modern Treasury’s Virtual Accounts, organizations get instant real-time visibility into payments —”where they come from and why— which helps streamline the reconciliation of incoming payments.”
The update pointed out that this launch follows Modern Treasury’s recently released Ledgers product, which “helps companies automate recording financial transactions using double-entry bookkeeping.”
As stated in the release:
“Combined with direct bank integrations and support for multiple payment methods, Virtual Accounts and Ledgers allow customers to reconcile payments and track balances and transactions for users within their apps and products.”
“There is a lot that is fundamentally broken about money movement that we’re solving for businesses. Virtual Accounts and Ledgers are key pieces of that solution, tracking the source and purpose of funds in your bank accounts,” added Dimitri Dadiomov, Modern Treasury CEO and co-founder.
Dimitri also mentioned that there’s a lot more to money movement than simply moving money. Whether firms require just one product or both, along with their wider platform, Modern Treasury can now address their exact requirements as they streamline their payment operations, Dimitri explained.
With Virtual Accounts, firms are able to create unique account numbers for their clients that are “nestled under the primary account.” The announcement also noted that these sub-accounts “act like regular bank accounts, but received payments settle in the primary bank account, making it easy for the company to understand the source and reason for a payment.”
Firms with complex payment flows, such as neobanks, will find Virtual Accounts quite useful. Neobanks process payments “on behalf of a large number of users each day, which means they need a reliable system to efficiently track and attribute transactions and balances to users,” the update noted.
As explained in the update, Virtual accounts are widely used by digital wallets and Fintech platforms providing essential banking services, such as account and balance tracking, “as part of their digital products.”
The announcement also noted that Modern Treasury’s Ledgers product allows customers to “maintain ledgers for user balances and match them perfectly against incoming and outgoing line items on bank statements and Virtual Accounts.”
Ronald Oliveira, CEO of Revolut US., remarked:
“Revolut is building the world’s first global financial super app and Modern Treasury’s Virtual Accounts product is a critical component of our banking services in the United States. It enables our customers to easily send and receive ACH and wire payments, equipping our team with the tools to deliver the best user experience.”
Modern Treasury’s payment operations solutions enable firms to “automate the entire payments lifecycle from initiation to reconciliation and accounting all through one platform,” the announcement noted. In June of this year, Modern Treasury reconciled more than $2 billion in payments “up from $100 million in August 2020.”