Multi-currency business accounts and their benefits

Business accounts come in many shapes and sizes. And, of course, they have different features to accommodate the needs of companies — for instance,  multi-currency bank accounts. 

Want to learn more? Genome will explain! Find out about the benefits of the best multi-currency bank accounts and how a business can open one!

Multi-currency account: the definitions

When you deal with finances, multiple factors are involved. For instance, some people have to send and receive funds internationally. But, when it happens regularly, such operations can come at a great cost. You see, countries have different currencies, which means that, in most cases, a bank account owner has to pay a hefty foreign exchange fee. 

It is why some individuals and companies decide to open a multi-currency account. It is a special type of account that allows storing different currencies inside. Hence, multi-currency accounts allow money transfers in currencies that are used in the beneficiary’s country.  

For example, you live in Québec and want to send funds to your aunt from Munich. Under usual circumstances, you must exchange Canadian dollars for euros during the transfer process. But, if you have a personal multi-currency account that can hold euros, you can send money to Munich in this currency to save on exchange costs. 

Both individuals and companies can use such accounts. The main difference is that people use multi-currency accounts for personal needs, while businesses – for corporate financial operations. In this article, we will primarily focus on multi-currency business accounts.

Why does a company need a multi-currency business bank account?

Now that you know about multi-currency banking services, you can better understand if your business needs a multi-currency account. So let us help you figure it out.

1. The location of your company. Does your business operate on a local level, or do you have subsidiaries in other countries? Well, if it is the second option, you may need a multi-currency bank account.
2. Your partners, vendors, and employees. Just as in the case with the first point, it all depends on the location. If you have partners around the world or hire contractors / work with businesses from other countries, a multi-currency account may save you costs. 
3. Are you a merchant? If you sell goods or services, you are likely to accept payments from clients from different parts of the world. Not only will you need a merchant account for such purposes, but a multi-currency business account will also be a good idea. 

As mentioned, a multi-currency business bank account allows you to keep various currencies inside, which can assist you with international transfers. Thus, when selecting such an account for business, ensure that it can hold all the currencies you may need when dealing with your partners, contractors, and vendors.

You may also encounter the term multi-currency IBAN when searching for a multi-currency account. Such IBAN accounts were also created to simplify international transfers. 

However, multi-currency IBAN accounts are more commonly used by merchants. It is how multi-currency IBANs work: a merchant has one account number, and clients can pay the said merchant in different currencies. But, the payments they make are re-routed to this one account in the merchant’s preferred currency. Find out more about such IBANs in this article. 

How does a multi-currency account compare to other business accounts?

Here’s a short comparison of the main purpose of different types of business accounts. Please note that multi-currency business accounts are sometimes called foreign currency accounts. 

Types of accounts	Multi-currency (foreign currency) account	Checking account	Savings account	Investment account
The main purpose	The account allows companies to store many currencies inside of it to make international transfers more beneficial and cost-effective.	This account is common for day-to-day corporate banking, such as making deposits and money transfers, withdrawing funds, etc.	This account will be suitable for businesses that need to save funds. However, you can’t use the account daily, and there are limits on certain operations.	The account is used for accumulating funds. To achieve that, a company needs to buy assets that will potentially generate high returns.

These are only some examples of bank accounts companies may have. You can find out more about various kinds of business accounts in this article. 

Advantages of multi-currency business accounts 

Of course, the use of a multi-currency business bank account provides certain benefits to companies that are fit for said account. Let’s list them:

• First of all, convenience. Imagine if there were no multi-currency accounts. That means you have multiple accounts in different currencies and run them, oversee financial operations, etc. Therefore, a multi-currency business account will simplify all these processes, and you won’t have to waste time on opening and managing multiple accounts. And, of course, it is usually cheaper to open a multi-currency account than start multiple regular ones. 
• Have all the necessary currencies at your disposal. When you have many options at your disposal, it is easier to make more cost-effective decisions. For instance, one of your foreign subsidiaries needs to hire local contractors to redecorate the office – use your multi-currency account to pay them in the national currency. 
• Last but not least – make your international transfers cheaper. Because a multi-currency business bank account contains various currencies, you are likely to make an international transfer in the beneficiary’s currency. It allows you to save funds on foreign exchange rates. And it’s not only about payments you make for goods and services. You can pay your foreign employees and contractors, transfer funds to partners around the world, etc.  

Start a multi-currency account online – with Genome 

If you need a multi-currency account, Genome offers such an option for both individuals and companies! It is how it works:

1. You need to start a personal or a business wallet inside Genome – the onboarding is completely online; 
2. Once Genome approves your application, you will gain access to your wallet;
3. Inside the wallet, you will have your first account in the euro currency;
4. Now you can start additional multi-currency accounts! The process will take just a couple of minutes, and you can have up to 5 accounts in each of the following currencies: EUR, USD, and GBP. 
5. The additional multi-currency account opening is free for all personal wallet clients and low-risk business clients. 

You can apply for your multi-currency business account right now. All you need to do is pass the verification process – provide some information about yourself and your company and upload the necessary documents. 

Getting a Genome business wallet unlocks many features for your company! There are multi-currency accounts, of course, and money transfers* available! You can also make mass transfers and track all your operations online – anytime you need to.

*Please note that SWIFT transfers and Faster Payments are temporarily unavailable.

Business wallets have a shared account feature, meaning your employees can access the wallet to share the workload with you. Also, you can order the Genome token, which allows the wallet owner to additionally authorize all outgoing payments.

Genome is PCI DSS, PSD2 compliant, and is licensed and supervised by the Bank of Lithuania.  

FAQ

What is a multi-currency business account?

It is a type of account for businesses that allows storing multiple currencies inside of it. Said currencies can be used for international payments to save costs on exchange fees. 

Which banks offer multi-currency accounts?

Multi-currency business accounts are not very common, but some banks and financial institutions have such options. For instance, Genome, an Electronic Money Institution, offers multi-currency accounts, which you can start online in just a few clicks! 

What are the benefits of a multi-currency business account?

Of course, the first and most important advantage is that you have access to multiple currencies, which you can use for international transfers. Not only that, but payments during traveling also become more convenient. Last but not least, you don’t have to open many accounts and keep track of them – just one multi-currency bank account will suffice. 

What are the disadvantages of multi-currency accounts?

One of the main disadvantages is that multi-currency business bank accounts aren’t very common. And, if a bank offers one, you usually have to pay an extra account opening fee.  

How can a business benefit from using multiple currencies?

As described before, having access to multiple currencies significantly simplifies the flow of business financial operations, such as payments and international transfers. 

How do I create a multi-currency account for business?

To open a multi-currency account, you need to find a financial institution that offers such services. Compare the competitors and check the currencies they offer.