Globalization and digital innovation are two critical factors that businesses worldwide must take into account. While the ultimate goal of any startup or SME is to expand their operations globally, digitalization has presented them with new opportunities and challenges to work on. Various Singaporean startups, including small and medium enterprises, are venturing into larger markets abroad, which necessitates frequent transactions with foreign companies. It makes having a multi-currency account a prerequisite.
Most import/export businesses or SMEs involved in global transactions prefer using a multi-currency account. That is due to the convenience it provides for their day-to-day transactions. But what exactly is a multi-currency account? What exactly is involved in opening a multi-currency account? How does a multi-currency account help a business grow?
A multi-currency account enables the user to keep balances in various currencies and carry out transactions. A multi-currency account allows you to open a single bank account with a single account number rather than several accounts with different account numbers. You can open a multi-currency account with the assistance of many financial services organizations. You can deal with currencies like the Australian dollar, Chinese yuan, Hong Kong dollar, US dollar, British pound, Singapore dollar, Japanese yen, and other currencies.
There are two types of multi-currency accounts, i.e., traditional multi-currency accounts and digital multi-currency accounts. Banks and functions provide traditional accounts as standard savings accounts. In contrast, digital accounts are provided by hybrid digital banking solution providers.
How Does A Multi-Currency Account Work?
With a multi-currency account, you can hold multiple currencies and convert them at low exchange rates, such as SGD to USD, USD to EUR, and many others. Although the services available will vary depending on where you open your account, you can expect to be able to withdraw money, send and receive payments, access your funds, and earn interest on your account total. Aside from transaction and open fees, multi-currency accounts require a fee to maintain, similar to how banks charge to keep a standard account. There might be withdrawal fees, available fees, transfer fees, and more. These fees may range in cost or frequency, but if you inquire with the agent before opening your account, you can learn more about them.
It is relatively simple to open a multi-currency business account. After passing a few standard security and verification checks, you can open an account. Today, a wide range of payment service providers will provide you with multi-currency facilities as part of an overall pay package. Directly dealing with a bank is no longer necessary. The most significant advantage of a global currency account is convenience. If you own a business, having a single account for all of your clients will save you time and confusion. You can also avoid the volatility of currency exchange rates. Even if you only use the account as an individual, avoiding conversion and exchange fees can add significant value to your bottom line.
