A Changing Landscape
Ask a room of corporate treasurers or bankers, “What is virtual account management?” and you’re likely to get many diﬀerent answers. And that is a good thing.
Banks have oﬀered virtual account solutions for many years; however most of these oﬀerings were for specific purposes and targeted customer segments. Today, with the capabilities of real-time payments and open APIs, VAM has evolved to offer enriched solutions that address the challenges faced by both corporates and banks for cash management efficiency.
Corporates need real-time clarity of their working capital, with self-service functionality and integrated workﬂows for efficiency and speed. Banks are moving away from notional pooling due to regulations and the rising costs of this business.
At the same time, corporates need greater insight and control, as well as lower costs through alternative solutions. Virtual accounts fit perfectly with these drivers, delivering grater operational efficiency to both banks and corporates.