Empowering Businesses with IBAN Accounts: Podcast Episode 06

Offering innovative financial solutions can set your business apart. One such solution is providing your customers with IBAN accounts. Whether you're a fintech provider, money transfer organization, lending company, or e-commerce marketplace, offering IBANs can be a valuable addition to your services.

But how does it work? And what are the technical and financial considerations involved? In this podcast episode, we'll delve into the world of IBANs and explore how Verestro, in collaboration with trusted payment institutions, can help you seamlessly integrate this powerful feature into your business.

- Hey everyone, welcome back. Ready for another deep dive?

- Definitely. 

- Awesome.

- So, today we're tackling IBANs. 

- Sounds good. 

- You know at first glance, IBANs might seem kind of boring, just a bunch of numbers and letters, right?

 - Right. 

- But trust me, there's way more to it. Especially for businesses, IBANs can be seriously powerful tools, think FinTech, marketplaces, lending platforms, the whole nine yards.

- Exactly. It opens up a world of possibilities. 

- And to help us unravel all of this IBAN magic, we've got an expert with us today, straight from the source, the Verestro, a platform that's making IBANs as a service, a reality.

- Happy to be here.

- So let's jump right in. Why are businesses so hyped about IBANs these days? What's the big deal? 

- Well, it all comes down to one word, global. 

- Global reach, global customers.

- You got it. Imagine you're a small business, right? You're making amazing things, but you're limited to selling in your own country. IBANs, they blow those walls wide open. 

- I see, no more geographical boundaries.

- Exactly, suddenly you can sell to anyone, anywhere. It's like having a passport for your business transactions. 

- Makes sense. So how does Verestro fit into all of this?

- Well, we provide the infrastructure that makes offering IBANs super easy for businesses. They don't have to build everything from scratch. 

- So you're kind of like the IBAN enablers. 

- That's a great way to put it. 

- Cool. Now let's talk tech for a second. How does setting up IBAN through Verestro actually work? 

- Well, we've made it pretty straightforward. We've got a really intuitive API. 

- Okey, that's application programming interface, right? 

- Yeah, exactly. Basically it lets businesses seamlessly integrate our IBAN solution into their existing platforms. 

- Gotcha. So no need to reinvent the wheel. 

- Exactly. And of course, there's the whole KYC thing. Know your customer. Gotta make sure everything's above boards.

 - KYC, yeah, that's crucial.

- Absolutely. And we handle all of that through the API, too. A business sends us the user's info and our system does all the heavy lifting verifying against databases, making sure everything's compliant. 

- Pretty efficient.

- It is. And then there's the actual setup of accounts with IBANs. This is where our pre-allocation system comes in. We work with our partner institutions to have IBANs ready to go. So when a business needs one for a customer, an instant IBAN. 

- Wow, so no waiting around for ages? 

- Nope. We know time is money. 

- Absolutely. Okay, so now let's say I'm a customer and I wanna send money to an IBAN generated by Verestro. What happens behind the scenes? Walk me through it. 

- All right, so picture this. You initiate a transfer to one of our IBANs, just like a regular bank transfer.

- Yeah, pull it off. 

- Now, this IBAN is held by one of our partner institutions. They receive your money and boom, they instantly let us know. 

- So, Verestro is in the loop right away.

- Always. We then tell the business, let's say it's an online store. Hey, you just got paid. And depending on the setup, we might also kick off a transfer to their settlement bank.

- Settlement bank, could you break that down a bit? 

- Sure, sure. It's basically the business's main bank account. Where they want their funds to end up. We make sure the money gets there safely and quickly.

- Ah, the final destination. 

- Exactly, usually the whole process takes about a day. 

- Not bad at all. Okay, so I'm hearing about all these different banks involved.

- Yeah. 

- How does Verestro ensure my money is safe as it's zipping between institutions? 

- That's a great question. Security is our absolute top priority. We partner with rock solid banks. We're located in Poland.

- Poland, why Poland? - Well, Poland has a super robust and secure financial system. It's really top notch. And more importantly, all the funds are held in accounts that are subject to the same strict regulations and security measures as any other bank account. 

- So, same level of protection, just with an international twist.

- Exactly, we're talking multiple layers of encryption, fraud detection, that works. When you use an IBAN from Verestro, your money is in good hands. 

- That's reassuring to hear. But with so many moving parts, how do you guys keep everything running smoothly and prevent delays? International transfers can be a bit of a nightmare sometimes.

- I hear you, that's where liquidity management comes in. 

- Liquidity management sounds complicated. 

- It can be, but we've got it down to a science. Basically, we work closely with businesses to understand their transaction patterns and predict their liquidity needs.

- So, you're kind of anticipating their needs before they even arise?

- Exactly. This lets us proactively manage funds and make sure there's enough cash available when and where it's needed. No more nail biting, waiting for transfers to clear. 

- That's smart. It's like having a financial crystal ball. 

- You could say that. It really helps us keep things running smoothly. 

- This has been incredibly insightful. Verestro is really taking something complex international finance and making it accessible and efficient. 

- That's what we aim for. 

- So, for our listeners out there, especially those running their own businesses or just fascinated by the future of finance, what other innovations do you see on the horizon in this space? What's next for global transactions? Hit us up with your thoughts. And if you're eager to learn more about the technical side of IBANs, Verestro's Developer Zone is the place to be. Tons of great resources there. 

That's it for our deep dive today. 

Thanks for tuning in.

Check it out: Guide to IBAN Setup Process