Omnibus Account

A pooled account that combines funds from multiple customers while tracking each customer’s balance separately off-ledger. Common among payment processors, brokers, and custodians, it simplifies settlement and cash management.

Why it Matters

Omnibus accounts are critical for operational efficiency in financial services. By pooling funds, companies reduce the number of bank accounts and transactions needed, lowering costs and simplifying reconciliation. However, they require robust internal ledgers to maintain accurate customer balances and ensure regulatory compliance, as external parties only see the aggregate balance.