Are you always curious to know the differences between traditional accounts and global accounts? If yes, then you are in the right place. In this blog, we will explore the in-depth analysis of various aspects, of both of the accounts. It will include factors like transaction costs, convenience, usability, transparency, and time efficiency. After knowing the major differences between global accounts and traditional accounts, we can determine when to utilize each type of account. To start with, let’s find out what global accounts are.
What are Walcy’s Global Accounts?
Global accounts typically refer to banking or financial accounts offered by multinational banks or financial institutions. These accounts are designed to provide customers with access to banking services across different countries or regions seamlessly. They often include features such as international access, currency conversion, and cross-border transactions. Thus, Walcy’s global account is also similar to other foreign currency accounts. It is tailored specifically for businesses that require conducting regular cross-border transactions.
What are Traditional Bank Accounts?
Traditional bank accounts are those that allow users to deposit money, collect interest, and withdraw money as necessary. Such accounts are provided by banks and other financial institutions. These types of accounts are still popular among citizens all over the world. In particular, traditional accounts are popular for making domestic payments and transactions.
However, with the growing numbers of neobanks all over the world, the popularity of global accounts is also seen to be gradually rising. To date, more than 400 neobanks are claimed to be in operation globally. Before knowing the differences between global accounts and traditional bank accounts, you must have a clear idea about what Neobanks are.
What are Neobanks?
Neobanks, also referred to as “Virtual Banks,” are fintech firms that offer apps, software, and other technologies to streamline mobile and online banking. These companies generally specialize in particular financial products, like checking and savings accounts, global accounts, a multi-currency account, etc. These types of banks do not have any physical presence and operate only in the digital landscape. Most of the neobanks used to provide global account services. Walcybank is also a neobank.
Learn more about neobank.
Differences Between Global Accounts and Traditional Accounts
Based on a few metrics, we will highlight the main differences between global accounts and traditional accounts in this blog.
| Metrics | Global Accounts | Traditional Accounts |
| Purpose | The main purpose of the global account is to make global payments fast, secure, and transparent. | The major purpose of a traditional bank Account is to simplify domestic payments within the defined territory. |
| Service Platform | Global accounts are completely virtual. You need not be physically available to open it. Additionally, managing the funds in a global account is also completely internet-based. | On the other hand, you shall have to be physically available in the bank premises to open the traditional bank Account. However, these days traditional accounts can be managed by using mobile apps and the internet. Though it is not completely virtual. You will be required to visit the bank while closing it. |
| Usability | Global accounts are used for making cross-border transactions. With a global Account, you can manage payments outside of your country of residence. | Moreover, traditional accounts are popular for making domestic transactions. However, it is not impossible to make international payments using it. |
| International Payment Fees | As the purpose of this account is to simplify international payments, international payment costs are comparatively lesser. | Sadly, it can cost you a fortune if you use the traditional account for making international payments. |
| Transparency during international payment | Comparatively, global accounts are more transparent and convenient during overseas payments. | As the major purpose of traditional bank accounts is not to make international payments, you shall experience low transparency in cross-border transactions. |
| International transaction time | Surprisingly, you can enjoy quicker transactions using global accounts. Also, the use of a global account is most important if you are needed to make instant payments. | You might have to cope with slow transaction speed if you use a traditional account for international payment. |
From the above table, it is seen that there are several differences between global accounts and traditional accounts. The major difference that can be outlined is their purpose. A global account is opened for making overseas payments while a traditional account serves as the domestic payment channel. Other differences between global accounts and traditional accounts include the international transaction fee and time, which is higher when using a traditional account.
When to use a Global Account?
After knowing the differences between global accounts and traditional accounts, you must be clear that you should use a global account if you need to make regular international transactions. Having a global account helps you reduce currency conversion costs, leading to cost savings for your business. Furthermore, the sophisticated payment handling systems of global accounts enable you to send and receive overseas payments quickly.
When to use a Traditional Account?
If you do not make a cross-border transaction, you can simply use traditional accounts to manage your finances. However, if you use a traditional account to make international payments, remember that you have to bear hectic transaction costs, lack of transparency, and longer transaction time.
Conclusion
Overall, the demand for global accounts is increasing rapidly and is supposed to increase more in the upcoming times. With this trend, it is predictable that global accounts will soon be the leader in international payment. The major differences between global accounts and traditional accounts is observed in overseas transaction costs, time, and transparency. With the growing time, having a global account is not just good to have instead it is a must. Any business willing to succeed globally should use Walcy’s global accounts, as it can empower the global business.
If you have any queries or confusion regarding the global accounts, feel free to contact WALCY Pte. Ltd.
You can learn more about the benefits of Global Accounts through this link.
Additionally, if you want to know everything about opening a global account, click here.
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