Segregated accounts

Segregated account solutions for regulatory safeguarding

Ensure full compliance with legal obligations by keeping your clients’ funds strictly separated from your operational capital.

Contact sales

Segregated account solutions for regulatory safeguarding

What is a segregated account?

It is a specialized bank account used by businesses – often those in regulated sectors like fintech, law, or insurance – to hold client funds separately as part of their embedded finance solutions. This structure ensures that in the event of insolvency, client assets remain protected and are not treated as part of the company’s reachable assets.

An extra layer of fund protection

We understand that many digital businesses have a legal or fiduciary mandate to safeguard user funds. Stay compliant and fully protected with a segregated account designed for complex business structures. By utilizing our infrastructure, you fulfill your safeguarding requirements while maintaining the liquidity and transparency your auditors expect.

A streamlined two-step onboarding process

Deploy a segregated account for your business without the traditional bureaucratic delays.

Application

Submit your request via our online banking portal. Simply specify the intended use case for the account and the nature of the funds being held.

Compliance verification

Our team performs a targeted compliance check to ensure the account structure aligns with your regulatory needs. Once approved, the account is ready for immediate fund allocation.

Scalable safeguarding for multiple client segments

Does your business model require more than one segregated account? Depending on your operational scale, you may need to silo funds for different client tiers, jurisdictions, or multi currency payment processing needs. You can easily manage and apply for multiple accounts through a single dashboard, ensuring your financial architecture grows alongside your user base.

Different users, different roles

Through our user-friendly dashboard, you can allocate, manage and alter the rights and roles of your users. Delegate the right level of access to the people who need it, and stay in control.

Account management made easy

The four eyes principle

Enhance the security of your segregated account with our dual-authorization mechanism. When enabled, every outgoing payment requires approval from two authorized users, significantly reducing the risk of internal fraud or erroneous transfers.

Granular limit control

You retain full autonomy over your transaction limits via our online banking platform. Adjust your daily or monthly thresholds instantly without needing to contact support, giving you the agility to manage large-scale capital movements.

Sophisticated user roles

Assign specific access levels to different team members. Whether it is “view-only” access for your auditors or “full-manager” rights for your CFO, our platform makes it simple to allocate and audit user roles across all your accounts.

Segregated account FAQs

Why does my business need a segregated account?

If you handle money on behalf of third parties, many jurisdictions (and the EBA) require you to safeguard those funds. A segregated account is the primary tool used to meet these regulatory standards, preventing the commingling of corporate and client capital.

Are funds in a segregated account protected if ConnectPay faces issues?

Yes. Funds held in a segregated account are kept separate from the institution’s own assets. This means they are not available to creditors and remain the property of the clients for whom they are held.

Can I use a segregated account for my company’s daily expenses?

No. To maintain the legal integrity of a segregated account, it must only be used for client-related transactions. Using these funds for operational costs like rent or payroll would violate compliance standards.

How many segregated accounts can I open?

There is no hard limit. Many of our clients use dozens of accounts managed via developer-friendly APIs to keep different currencies separate.

Is there a difference between a segregated account and a trust account?

While they serve similar purposes of separation, a segregated account is a broader banking term often used in the context of EMI safeguarding, whereas a trust account involves specific legal fiduciary structures.