Why multi-entity enterprises need smarter global banking solutions

Running a business across multiple entities and borders isn't just complex – it's becoming increasingly critical for growth. With international transfers expected to increase five percent per year until 2027 ¹, enterprises managing multiple entities face mounting pressure to streamline their global financial operations. The global B2B payments market has already reached US$ 1,108.6 billion in 2023 and is expected to reach US$ 2,117.0 billion by 2032 ².

Yet traditional financial services weren't built for today's multi-entity reality. With 195 countries each maintaining their own payments systems, regulations, and levels of technological maturity ¹, businesses struggle with fragmented accounts, slow transfers, hidden fees, and compliance headaches across jurisdictions.

The hidden costs of managing multiple entities

Every multi-entity enterprise knows the pain: reconciling accounts across different countries, navigating varying regulatory requirements, and losing money to unfavorable exchange rates. According to data analytics company LexisNexis, up to 50 percent of payments that don't complete or are delayed are due to simple data entry problems ¹. These operational inefficiencies compound when you're managing dozens of entities across multiple markets.

The financial impact extends beyond just transfer fees. Currency volatility, delayed settlements, and manual reconciliation processes drain both time and resources. Studies show that 75% of consumers now use mobile banking apps and digital wallets for their daily transactions ³, yet many businesses still rely on outdated systems for their cross-border operations.

Administrative burden multiplies with scale

Entity management supports legal, finance, tax, HR, and operations by providing a single source of truth for governance and reporting ⁴. Without proper tools, each new entity adds layers of complexity:

• Separate accounts with different providers in each country

• Manual tracking of inter-company transactions

• Inconsistent reporting formats across jurisdictions

• Duplicate compliance processes for each entity

• Time-consuming reconciliation across multiple systems

These challenges become exponential as businesses expand. Real-time payments (RTP) systems are expected to generate $173 billion in additional economic output by 2026 ¹, yet many multi-entity enterprises can't access these benefits due to fragmented financial infrastructure.

Traditional solutions fall short for modern enterprises

Traditional financial institutions weren't designed for the speed and scale of modern multi-entity operations. While 89 percent of payments flowing through the Swift network arrive at the destination bank within an hour ¹, the end-to-end process for multi-entity businesses remains cumbersome.

The limitations of conventional approaches

Most enterprises cobble together solutions from multiple providers – a local account here, a foreign exchange service there, expense management somewhere else. This patchwork approach creates:

Visibility gaps: Without consolidated reporting, finance teams struggle to get real-time insights into global cash positions. Entity management helps you stay compliant, reduce admin, and make better decisions across multiple markets ⁴.

Compliance risks: Managing regulatory requirements across jurisdictions becomes increasingly complex. Leading companies in B2B payments are introducing compliance and security solutions that are reliable and efficient ².

Operational inefficiencies: Manual processes and disconnected systems slow down operations. Consumer inclination toward real-time payment solutions over traditional methods is significantly supporting the market ².

Hidden costs: Multiple provider fees, unfavorable exchange rates, and intermediary charges erode margins. Globally, 84 percent of payments are now either direct payments or they have one intermediary ¹, yet many businesses still face multiple intermediaries.

What modern multi-entity enterprises actually need

Today's global businesses require integrated solutions that match their operational complexity. The integration of enterprise resource planning (ERP) systems to manage operations, including finance, supply chain, and customer relationship management, is creating a positive market outlook ².

Unified global infrastructure

Multi-currency accounts allow you to receive, hold, and send funds in different currencies ⁵. This eliminates the need for multiple providers and reduces complexity. Modern solutions should provide:

• Single platform for all entities and currencies

• Consolidated reporting across jurisdictions

• Automated reconciliation and accounting integration

• Real-time visibility into global cash positions

• Streamlined inter-company transfers

Speed and efficiency at scale

Half of the payments that flow through the Swift network make it all the way to the beneficiary account in less than five minutes ¹. Multi-entity enterprises should expect similar speeds for their internal operations.

Flightpath, for example, saves 4+ hours per week on global transfers and achieves same-day settlement when collecting multiple currencies ⁶. This level of efficiency becomes crucial when managing dozens of entities across time zones.

Transparent, competitive pricing

Foreign exchange rates are influenced by factors such as purchasing power, inflation, supply and demand, import and export ratios, foreign investment, and fiscal policy ⁷. Multi-entity enterprises need:

• Competitive exchange rates without hidden markups

• Clear, predictable fee structures

• Volume-based pricing advantages

• No surprise intermediary charges

• Real-time rate visibility for better decision-making

The technology driving transformation

Several key players are leveraging blockchain technology to offer innovative payment solutions which are secure, transparent, and tamper-proof ². These technological advances enable new capabilities for multi-entity management.

API-first architecture

Modern financial infrastructure relies on APIs to connect systems seamlessly. This allows businesses to:

• Integrate directly with existing ERP and accounting systems

• Automate payment workflows and approvals

• Synchronize data across multiple platforms

• Build custom solutions for specific needs

• Scale operations without manual intervention

Cloud-native platforms

Cloud-based solutions provide the flexibility and scalability multi-entity enterprises need. Major market players are leveraging technologies such as blockchain, artificial intelligence, machine learning, and the Internet of Things for making transactions more convenient ⁸.

Enhanced security and compliance

Companies are prioritizing security and investing in robust security systems to protect sensitive consumer data and transactions due to the rise in cybercrime and financial fraud cases ⁸. Modern platforms provide:

• Multi-factor authentication and role-based access controls

• Automated compliance monitoring across jurisdictions

• Real-time fraud detection and prevention

• Audit trails and regulatory reporting

• Data encryption and secure storage

Real-world impact: How leading companies transform operations

The difference between traditional and modern approaches becomes clear when examining real implementations. McLaren Racing modernized cross-border payments, while RYSE transformed complex cross-border finances into streamlined, cost-saving, and efficient global operations ⁴.

Measurable business outcomes

Flightpath's experience demonstrates the tangible benefits of modern solutions ⁶:

• Time savings: 4+ hours saved weekly on global transfers

• Faster settlements: Same-day settlement for multiple currencies

• Cost reduction: Significant FX savings with competitive exchange rates

• Operational efficiency: Streamlined processes across all entities

These improvements compound as businesses scale. The growing adoption of mobile payment solutions that are secure and easy to use for reducing transaction costs and improving cash flow is positively influencing the market².

Building for the future: Key considerations

As international commerce continues to expand, multi-entity enterprises must future-proof their financial operations. Around 90 percent of central banks globally are currently working on developing a Central Bank Digital Currency ¹, signaling major changes ahead in global payments infrastructure.

Scalability and flexibility

Your financial infrastructure should grow with your business. An Airwallex Global Account empowers your business to enhance its financial operations on the international stage ⁹. Key features to consider:

• Ability to add new entities and markets quickly

• Support for emerging payment methods and currencies

• Flexible approval workflows and spending controls

• Customizable reporting and analytics

• Integration capabilities with new technologies

Regulatory preparedness

Businesses need to comply with regulatory requirements and protect their payment systems from fraud and cyber threats ². Modern solutions should provide:

• Automated compliance updates across jurisdictions

• Built-in KYC and AML processes

• Regular security audits and certifications

• Transparent data handling and privacy policies

• Proactive regulatory change management

Why Airwallex stands out for multi-entity enterprises

Airwallex has emerged as a comprehensive solution specifically designed for the complexities of multi-entity operations. Established in Melbourne in 2015, the company has raised over US$900 million in funding and is currently valued at over US$5.6 billion ¹⁰.

Comprehensive product suite

Airwallex offers products including Business Accounts, Global Accounts, FX & Transfers, Corporate Cards, Expense Management, Bill Pay, Payments Checkout, Payment Plugins, Payment Links, Platform APIs and Embedded Finance ⁴. This integrated approach means:

• Single platform for all financial operations

• Consistent user experience across all entities

• Unified reporting and analytics

• Streamlined vendor management

• Reduced operational complexity

Global reach with local expertise

Airwallex's Global Accounts provide access to local account details around the world ⁵. This enables businesses to:

• Operate like a local company in multiple markets

• Receive payments without international transfer fees

• Hold and manage multiple currencies efficiently

• Access competitive exchange rates

• Maintain compliance across jurisdictions

Proven track record

Airwallex provides services to various industries including eCommerce and retail, Professional services, Travel, SaaS platforms, Fintechs and financial services, Software and technology, Marketplaces, Wholesale and trade, Digital and creator ⁴. The platform's recognition as a finalist for the Best Business Payments System at the PayTech Awards 2025 ¹¹ further validates its capabilities.

Technology-first approach

Supported by investors including Sequoia, Lone Pine, Greenoaks, DST Global, Tencent, Hillhouse, Salesforce Ventures and MasterCard ¹⁰, Airwallex continues to innovate. The platform provides:

• Modern APIs for seamless integration

• Real-time payment tracking and notifications

• Automated reconciliation and reporting

• Advanced security and fraud prevention

• Continuous platform improvements and updates

Making the transition: Implementation best practices

Transitioning to a modern financial infrastructure requires careful planning. Before you can open an account, your business typically needs to be legally registered ¹². Here's how to approach the implementation:

Start with assessment

Evaluate your current setup:

• Map existing entities and their financial needs

• Identify pain points and inefficiencies

• Calculate current costs including hidden fees

• Define success metrics and goals

• Prioritize which entities to migrate first

Plan for integration

Modern platforms offer various integration options:

• API connections to existing systems

• File-based data synchronization

• Manual processes for smaller operations

• Phased rollout across entities

• Parallel running during transition

Focus on change management

Successful implementation requires buy-in across teams:

• Train finance and operations teams

• Document new processes and workflows

• Establish clear roles and responsibilities

• Create feedback loops for continuous improvement

• Celebrate early wins to build momentum

The competitive advantage of unified global operations

In today's interconnected economy, the ability to operate efficiently across borders isn't just convenient – it's a competitive necessity. The global digital payment market is expected to grow at a CAGR of 15.62% during 2024-2032 ⁸, and businesses with streamlined multi-entity operations will capture disproportionate value.

Airwallex Global Entity Management provides you with full visibility and control over your global operations ⁴. This comprehensive approach delivers:

• Operational excellence: Streamlined processes reduce errors and save time

• Financial optimization: Better rates and lower fees improve margins

• Strategic agility: Faster expansion into new markets

• Risk mitigation: Enhanced compliance and control

• Competitive positioning: Focus on growth instead of administration

Conclusion: Transform complexity into competitive advantage

Managing multiple entities across borders doesn't have to be a burden. With the right financial infrastructure, complexity becomes a source of competitive advantage. Singapore has recently integrated its real-time PayNow network with faster payment networks in India, Thailand and Malaysia ¹, showing how modern payment systems continue to evolve.

Airwallex stands out as the comprehensive solution for multi-entity enterprises. It's a modern alternative to a traditional business bank account, giving you the ability to open domestic and foreign currency accounts in minutes ⁹. With proven results from companies like Flightpath, McLaren Racing, and RYSE, plus recognition from industry awards, Airwallex delivers the unified global infrastructure that modern businesses need.

The question isn't whether to modernize your multi-entity financial operations – it's how quickly you can make the transition. Every day spent wrestling with fragmented systems is a day your competitors might be pulling ahead. Take the first step toward transforming your global financial operations with Airwallex today.

FAQ

What challenges do multi-entity enterprises face with traditional banking?

Multi-entity enterprises struggle with fragmented banking relationships across different countries, high cross-border transfer fees, complex compliance requirements, and lack of unified visibility into global cash flows. Traditional banks often require separate accounts in each jurisdiction, creating operational inefficiencies and increased costs.

How much are international transfers expected to grow in the coming years?

According to J.P. Morgan research, international transfers are expected to increase five percent per year until 2027. This growth is driven by expanding global commerce and the need for businesses to operate across multiple markets and entities.

What is entity management and why is it important for global businesses?

Entity management involves overseeing all legal entities within a corporate structure, including subsidiaries, branches, and joint ventures across different jurisdictions. For global businesses, effective entity management ensures compliance with local regulations, optimizes tax structures, and streamlines financial operations across multiple markets.

How do modern banking platforms improve cross-border payment efficiency?

Modern platforms like Airwallex eliminate intermediary banks by providing direct payment routes and local banking infrastructure in multiple countries. With 84 percent of payments now having either direct processing or just one intermediary, these solutions significantly reduce transfer times and costs compared to traditional correspondent banking networks.

What factors influence foreign exchange rates for international businesses?

Foreign exchange rates are influenced by purchasing power parity, inflation rates, supply and demand dynamics, import/export ratios, foreign investment flows, and fiscal policy decisions. Multi-entity enterprises must navigate these fluctuations across 195 different countries, each with their own payment systems and regulatory requirements.

What should businesses consider when choosing a global business account provider?

Businesses should evaluate multi-currency support, local banking infrastructure availability, compliance capabilities across jurisdictions, integration with existing financial systems, and transparent fee structures. The provider should offer unified visibility into global cash flows while maintaining regulatory compliance in each operating market.

Citations

1. https://www.jpmorgan.com/payments/payments-unbound/volume-3/cross-border-payment-modernization

2. https://www.imarcgroup.com/b2b-payments-companies

3. https://www.airpayfintech.com/

4. https://www.airwallex.com/ca/blog/what-is-entity-management

5. https://www.airwallex.com/ca/blog/what-is-a-multi-currency-account

6. https://www.airwallex.com/ca/case-studies/flightpath

7. https://www.cathaybank.com/about-us/insights-by-cathay/comprehensive-guide-to-foreign-exchange

8. https://www.imarcgroup.com/top-digital-payment-companies

9. https://www.airwallex.com/ca/blog/what-is-an-airwallex-global-account

10. https://londontechweek.com/speakers/jack-zhang

11. https://informaconnect.com/paytech-awards/the-shortlist/

12. https://www.airwallex.com/ca/blog/what-is-a-business-account