Differences Between a Pooled Account and a Personal Account11 min read

Differences Between a Pooled Account and a Personal Account11 min read

Let’s take some time to look at how a pooled account works and how does it differ from what you may be accustomed to. 

By the end, we hope to help simplify your understanding of this digital banking solution.

To start, let’s quickly review the basics of traditional individual bank accounts. With a standard checking or savings account at most banks, you as a customer open a single account in your own name. 

All of your funds are kept separately from other customers’ money in your designated account. You have full visibility and control over your own balance and transactions.

While individual accounts work well for personal banking, they present challenges when handling funds for multiple customers or entities. 

That’s where pooled accounts at The Kingdom Bank offer a superior solution for many business and professional needs. So what exactly makes our pooled accounts different? Let’s break it down.

What is a Pooled Account in Digital Banking?

At its core, a pooled account allows multiple customers’ funds to be aggregated together into a single master account held by the bank. 

Instead of opening hundreds or thousands of separate individual accounts, businesses utilize one pooled account for efficiency.

On the surface, this may seem risky by commingling different customers’ money. However, The Kingdom Bank employs advanced virtual account management (VAM) technologies behind the scenes. 

Our innovative platforms replicate all the capabilities of individual accounts within a pooled structure through the use of virtual sub-accounts.

Each customer’s funds are kept completely segregated from others via their unique designated virtual account. 

Real-time reporting then provides full transparency on balances and activity attributed to each individual virtual account holder. This permits effortless reconciliation without risk of co-mingling assets.

In other words, our pooled accounts deliver all the functionality businesses require while streamlining the administrative workload versus maintaining mountains of individual accounts. 

Customers gain powerful commercial banking tools without the traditional downsides of pooled structures.

How to Open a Pooled Account Online?

Opening a pooled account with The Kingdom Bank is simple, quick and completely digital. 

Just follow these straightforward steps:

• Visit our website and select “Open Account” to begin the process.
• Provide some basic business details such as company name, address, tax identification, etc.
• Upload required documents like passports, articles of incorporation, Know Your Customer forms.
• Review and accept our terms and conditions.
• Wait for lightning-fast application processing and verification. Our automated systems handle most of the heavy lifting.
• Assign account administrators and user roles. Designate which staff can manage funds, view reports, authorize payments and more.
• Fund your pooled account by bank transfer or supported crypto to activate it for use.
• Begin using your feature-rich account interface! Manage sub-accounts, transfer between currencies, pay vendors – it’s all seamlessly online.

The entire process from application to full usability usually takes less than 24 hours. No unnecessary branches, paperwork mountains or delays. 

Welcome to digitized commercial banking!

Required Documents to Open a Pooled Account

When opening an online bank account, regulated financial institutions must comply with global anti-money laundering and know-your-customer laws.

To properly onboard clients, The Kingdom Bank requires some standard KYC documentation be provided.

• The minimum paperwork needed to open a pooled account includes:
• Business registration documents such as articles of incorporation, partnership agreement, or certificate of formation.
• Government-issued photo ID for all authorized account representatives like a driver’s license or passport.
• Proof of business address like a utility bill or lease in the company’s name.
• Ownership structure information clearly outlining percentage stakes for all beneficial shareholders.
• Source of funds letter describing the business activities generating account deposits.

With our streamlined digital processes, acceptable files can be uploaded as scans or photos directly from a smartphone. 

No faxing, no mailing – just simple secured transmission over the internet. Your new pooled account could be approved within the hour of submitting paperwork depending on volume.

What Transactions Can Be Done with a Pooled Account?

Once activated, pooled accounts at The Kingdom Bank empower businesses to manage funds and process a wide range of important commercial transactions entirely online:

• Deposit and withdraw funds from the master account by bank wire or supported cryptocurrencies.
• Transfer between currencies and take advantage of The Kingdom Bank’s competitive interbank exchange rates.
• Create and manage virtual sub-accounts to attribute credits and debits to individual customers seamlessly.
• Pay employees, vendors and contractors quickly via domestic and international wires or issued checks.
• Collect customer payments securely through built-in invoicing tools.
• View real-time reports on account balances, activity feeds, transaction histories and account statements.
• Conduct ACH pulls and deposits (US only) for seamless processing of recurring payables and receivables.
• Receive and make card payments via integrated payment gateways for maximum flexibility.

Pooled accounts deliver comprehensive commercial money management and flow capabilities all in one digital solution.

Who Can Use a Pooled Account in Digital Banking?

Pooled banking arrangements tend to appeal to a variety of professional services, large organizations as well as investment professionals and fund managers. 

Some example user types that tend to thrive with The Kingdom Bank pooled accounts include:

• Businesses aggregating customer funds: Escrow, settlement and trust accounts; loan crowdfunding platforms; merchant processing; buy-now-pay-later services.
• Investment fund administrators: Managing subscriptions, redemptions, dividend distributions for hedge funds, private equity firms and real estate syndicates.
• Professional service providers: Law firms (IOLTA accounts), accounting practices (client trust), marketing agencies (project budgets).
• Non-profit organizations: Foundations, charities, political action committees, social clubs handling membership dues or donations.
• International businesses: Managing regional accounts, cross-border receipts and payables, payroll across multiple countries seamlessly.

Any organization collecting or disbursing client monies, association dues or investment capital frequently leverages pooled account structures for efficiency and compliance at The Kingdom Bank.

We hope this guide has helped explain what pooled accounts are, how they differ from traditional individual accounts, and why businesses increasingly rely on them for payments and financial management. The Kingdom Bank strives to remove complexity and deliver banking virtually anywhere through powerful digital banking solutions.

If your organization could benefit from streamlining accounts receivable, accounts payable, customer funds processing or related workflows, consider speaking to one of our representatives about opening a pooled account today. 

The entire application is online and can be completed from your computer or mobile device in minutes.

Remember, with a pooled account powered by advanced virtual account tools, you gain commercial-grade tools without the heavy lifting. 

Better balance visibility, transaction tracking and reconciliation are right at your fingertips. Take control of your business money flows for increased efficiency, security and growth.

We invite you to learn more by exploring The Kingdom Bank or contacting our friendly support staff. One of our banking experts will be happy to guide you through the process or answer any additional questions you may have.