Banking - cash management
Virtual pooling is a form of notional cash pooling, using a virtual bank account.
Excess funds in a company or its subsidiaries are used to offset deficits in other group companies for the purposes of determining net interest earned or owed.
Funds are not physically moved. The mechanism for the virtual pooling is a virtual bank account.
For example, by opening virtual accounts for each entity within a group and adding sub-level virtual accounts to them, clients of those entities can effectively remit to a central account, using their own unique virtual account identifier.
Like notional cash pooling, such virtual pooling enables the corporate customer to allocate cash efficiently, without moving it physically.