Product Spotlight #2: Merge’s Sub-accounts

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What are Sub-Accounts in banking?

Merge’s sub-accounts are a next-generation financial solution designed to streamline and accelerate global payments and banking operations for businesses.

They provide a platform that brings together local payment capabilities and a flexible sub-account structure, enabling businesses to manage funds seamlessly across various countries and currencies.

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Who can benefit from banking sub-accounts?

Merge is built to support global B2B and B2C businesses looking for flexibility, scalability, and efficiency in managing their cross-border payments..

Our sub-account structure is tailored for digital-first businesses with a global customer base that require accurate, real-time data to handle fund reconciliation and segregation for cross-border payments. 

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How do sub-accounts work in banking?

Merge’s platform streamlines fund management with a unique main account and sub-account structure that offers greater visibility and control. 

Imagine it like this: each sub-account acts as its own, dedicated bank account for specific clients or business units. This provides granular visibility and control over client or internal funds, whilst our local payment capabilities then eliminate the usual cross-border complications. 

Our aim is to provide the enhanced fund reconciliation that a business needs, alongside improved compliance, and more efficient fund management.

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Key Features of sub-accounts:

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Enhanced Fund Segregation

• Clear separation of funds for different projects, clients, or departments within a single main account
• Ability to maintain distinct financial records for various business units or pay-ins and pay-outs
• Simplified compliance with regulatory requirements for fund segregation in certain industries, particularly regulated financial services.

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Streamlined Fund Management

• Centralised view of bank balances or funds positions across multiple currencies and countries
• Easier management of multi-currency operations without the need for separate physical accounts
• Improved liquidity management through instant internal transfers between sub-accounts

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Operational Efficiency

• Reduction in the number of physical bank accounts needed, lowering maintenance costs and complexity
• Simplified account structure that aligns with the organisational or legal structures needed by the company
• Easier implementation of "On Behalf Of" payment structures for multinational corporations

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Enhanced Reporting and Analytics

• Granular visibility into bank balances at the sub-account level
• Improved ability to analyse financial performance by project, client, or business unit
• More accurate and detailed financial forecasting capabilities

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Flexibility and Scalability

• Easy creation and closure of sub-accounts as business needs change, without the bureaucracy of traditional bank account opening
• Ability to quickly select, add, or remove chosen currency access options to quickly adapt to new markets without any banking infrastructure changes

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Improved Client Fund Management

• Simplified segregation and reconciliation of client funds for businesses handling third-party money
• Enhanced transparency in client fund management, potentially improving client trust and satisfaction

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Cost Reduction/Management

• Lower transaction fees compared to maintaining multiple separate bank accounts
• Reduced foreign exchange costs through centralised currency management
• Decreased administrative overhead associated with managing multiple bank relationships

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Enhanced Security and Control

• Ability to set different access levels and permissions for various sub-accounts
• Improved fraud detection through more granular transaction monitoring
• Better control over fund allocation and spending across different business units or projects

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What is Merge's USP or Why is Merge unique?

Most payment platforms force you to choose between localised capabilities and centralised management. In other words, it’s a choice between being able to handle payments that are tailored to the specific needs of individual countries (e.g., supporting local currencies, regulations, or payment methods) or to have the ability to manage all payments and financial operations from one central system or platform, regardless of the country or currency. 

That’s not the case with Merge. 

Our sub-accounts bridge the gap - ensuring you have access to local payment rails whilst still providing the centralised controls and multi-currency accounts that you need for modern financial management. 

Our API-first approach further allows businesses to easily integrate with existing systems or utilise our intuitive dashboard, providing flexibility and a simplified setup process. With our sub-account structure as well, we’re able to ensure that companies can rapidly expand into new markets without compromising on data integrity or security.

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The impact of using banking sub-accounts for businesses

Using our sub-accounts, businesses can optimise their financial operations, reduce costs, and enhance their ability to operate efficiently in multiple markets. 

Merge’s platform empowers digital-first businesses to overcome the traditional complexities associated with cross-border payments, improve fund reconciliation processes, and provide a streamlined experience for managing multiple currencies and accounts.

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Ready to learn more?

Ready to transform your global payment operations? Discover how Merge’s sub-accounts structure can elevate your business by booking a demo or reaching out directly.

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Let’s take your payment processes to the next level.

Email: hello@merge.money