What are the Benefits of Using a Pooled Account?11 min read

What are the Benefits of Using a Pooled Account?11 min read

If you run a business that handles money on behalf of clients, a pooled account could offer some key advantages over traditional banking methods. 

A pooled account, sometimes called a client account, allows you to manage funds for multiple parties from a single banking account. 

As more financial services moves online, digital pooled accounts are becoming an increasingly popular solution among certain types of companies. 

But what exactly are pooled accounts and how can opening one benefit your business? Let’s explore some of the top benefits of using a pooled account.

What Advantages Can I Have by Opening a Pooled Account?

One major advantage of a pooled account is convenience. Instead of having to open and manage numerous individual bank accounts for each client, you can handle everything through one central account. 

With a digital pooled account from a bank like The Kingdom Bank, you can easily see balances and transaction history for all sub-accounts in one place through our online banking portal. Managing funds becomes streamlined instead of a headache.

A pooled account also enhances security. When money is held under the umbrella of a regulated financial institution like The Kingdom Bank, robust security and compliance protocols protect the assets. 

The Kingdom Bank maintains advanced cybersecurity measures and adheres to know-your-customer (KYC) and anti-money laundering (AML) regulations. Your clients can feel secure knowing their funds are protected under the bank’s oversight.

Another key benefit is flexibility. Pooled accounts typically allow for easy movement of funds between sub-accounts without physical transactions. 

You have the freedom to allocate money however needed between clients in real-time through online banking functionality. Multi-currency pooled accounts from providers like The Kingdom Bank add an extra layer of flexibility by enabling global business payments in major currencies.

Importantly for some businesses, a pooled account structure can provide regulatory advantages over alternatives. Properly utilizing the exemption of regulated banks, companies can avoid direct money transmitter licensing obligations that come with holding client money independently. 

Pooled accounts establish the bank, rather than your business, as the nominal owner of funds for compliance purposes.

What are the Transactions I Can Do with a Pooled Account?

A wide spectrum of payment and money movement capabilities are available through The Kingdom Bank’s pooled accounts. 

Chief among these is the ability to receive payments. Customers can pay invoices or make deposits into the pooled account using numerous rails, from credit card and bank transfer to popular eWallets. Funds are then seamlessly credited to the relevant internal sub-account.

On the payout side, businesses can send payments to suppliers, contractors and partners around the globe with just a few clicks. 

Next-day delivery is on offer for many domestic and international transfers through The Kingdom Bank’s expansive banking network. Beyond wires, options exist to disburse via electronic modes too like digital currency or integrated partners.

Advanced features support efficient account management. For instance, sub-accounts can be created on demand for each customer, client or project. 

A unique virtual account number grants visibility while the core balance is still centrally pooled. Robust reporting meanwhile provides full transaction history and balance oversight for streamlined reconciliation.

Can Private Banking Users Open a Pooled Account?

The short answer is yes – pooled accounts can offer compelling benefits even to private banking customers. High net worth individuals and family offices tasked with overseeing significant portfolios may find value in The Kingdom Bank’s pooled account solution.

Like corporations, private banking clients seeking to consolidate holdings for ease of view would gain a clear singular perspective into all account positions and activity.

Funds belonging to different business enterprises, investment vehicles or personal accounts could be sensibly corralled while retaining appropriate segregation using the sub-account feature.

Wealth managers also stand to profit from the operational efficiencies of pooled structures. Less time spent opening new ledgers means more capacity for activities adding true value, like portfolio strategy, risk management and client services.

Regulatory compliance moreover is assured given The Kingdom Bank’s tightly controlled processes overseeing all accounts.

Pooled accounts provide a streamlined yet sophisticated solution even for private banking customers with diversified, multi-entity financial needs. 

The consolidated oversight and simplified processes help maximize returns on investment allocation and planning activities.

The Easiest Way to Open a Pooled Account

Setting up a pooled account with The Kingdom Bank could not be much simpler. To get started, clients first create a standard business profile during the online account opening process. 

Basic due diligence like company information, ownership records and intended activities are then reviewed.

From there, selecting the pooled account type and preferred currencies is a breeze using the intuitive dashboard interface. 

Support is on hand from dedicated relationship managers should any additional tailoring be required to structuring or applicable terms.

An important step is nominating authorized signatories who will oversee sub-accounts and manage payment activities. 

Multi-factor authentication ensures only approved parties can access the account. Debit cards can also be ordered to securely pay in-store or online from pooled balances.

With a core lineup of compliance documents submitted, account approval may take just one business day. 

In moments clients are ready to begin enjoying the seamless flow of funds, reporting oversight and one-portal convenience that sets pooled structures apart from traditional bank accounts. Simplicity is at the heart of The Kingdom Bank’s products and onboarding experience.

Why Should I Choose The Kingdom Bank for a Pooled Account?

There are several compelling reasons to pick The Kingdom Bank as your pooled account provider. As a fully licensed and regulated offshore digital bank, The Kingdom Bank’s offerings are designed specifically for fintech firms, payment services, and global businesses.

Beyond basic pooled accounts, The Kingdom Bank provides advanced treasury and banking solutions not found elsewhere such as multi-currency accounts across 12 major currencies. 

Sophisticated payment and card processing tools coupled with API integrations also give clients flexible bank-grade infrastructure.

Regulatory compliance is another strongpoint. The Kingdom Bank adheres to strict KYC/AML protocols for high institutional security standards. Our pooled account solutions are tailored according to the latest financial regulations.

Perhaps most importantly, The Kingdom Bank is committed to delivering a best-in-class digital experience. 

Our user-friendly online portal puts control at your fingertips through web and mobile access. Combined with white-glove concierge support, clients enjoy seamless 24/7 usability from anywhere worldwide.

The Kingdom Bank’s wide-ranging fintech capabilities, global authorizations, robust technology, and robust service make us the top choice for establishing an optimal pooled account arrangement suited to power ahead in international digital banking and online pooled account activities.