Virtual Account Management Gains Traction Among Corporate Customers
How long is too long to open a corporate account? Many U.S. banks have yet to shorten what can be weeks of waiting for corporate customers. But one solution that can benefit both banks and corporations is virtual account management. It’s already popular in Europe and Asia, and adoption in the United States has started to pick up in recent years.
In theory, a large corporation in the United States can open a demand deposit account, or DDA, in a day. In reality, however, the process typically takes between three and five weeks. Regulatory compliance requirements — including the stringent process of verifying documents and validating information, implemented after the 2008 financial crisis — are only partly to blame. Other reasons include manual onboarding processes and technology challenges within banks. Though the delay frustrates corporate customers, many banks have yet to shorten the wait.
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