In recent years, international banking has made different efforts to unify the banking account numbers of various users globally, to make effective cross-border interbank transferences. These efforts resulted in two globally recognized methods: The Society for Worldwide Interbank Financial Telecommunication (SWIFT) code and the International Bank Account Number (IBAN). The following article will explain the multi-currency IBAN account and its main advantages.
IBAN
The International Bank Account Number (IBAN) was initially created as a unique identifier for country, bank, branch, and individual bank account number. The IBAN was initially adopted as a “banking standard” for cross-border and domestic transactions in the SEPA zone (Eurozone). However, it is currently a standardized and recognized system globally that allows for international transactions.
Multi-currency IBAN account
While an IBAN account allows making transactions in several countries and incorporates a series of codes that identify bank accounts internationally, multi-currency IBAN accounts are a financial product that goes a step “further” by allowing to send and receive payments in over 30 currencies and between approximately 150 countries that have adopted this innovative financial system.
A multi-currency IBAN account allows balances in “various currencies” in the same account. Unlike traditional bank accounts (usually held in the local country currency), multi-currency IBAN accounts enable holders to keep their funds in different currencies without opening separate accounts. A multi-currency IBAN account allows users to send and receive payments in foreign currencies and perform currency conversions within the same account.
Advantages of multi-currency IBAN accounts
Among the main benefits of multi-currencies IBAN accounts are:
Frequent international transactions
Multi-currency IBAN accounts are helpful for individuals, companies, or entities that carry out frequent international operations since it avoids (or decrease) the costs associated with currency conversions, besides facilitating access to funds in the desired currency, without having to deal with bank accounts in different countries.
Higher level of security and confidence
With a multi-currency IBAN account, you can have a high level of confidence and assurance that transactions will reach the correct location, as IBAN accounts are composed of 34 letters and numbers, which identify the country, check digit, bank location, and account details, thus reducing the possibility that payments reach a wrong or unknown destination.
Allows converting different currencies
Most multi-currency IBAN accounts allow sending and receiving cross-border payments and access to a conversion system of over 30 currencies, which is very useful when making frequent transactions between countries that have different currencies.
National transactions and fewer delays
International and domestic transactions can be carried out through multi-currencies IBAN accounts, giving users much flexibility. Another advantage of this type of account is that it minimizes transactions delays, which gives its users greater security and stability.
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