Demystifying Virtual Accounts: New Opportunities to Drive Adoption
Many of the largest banks have invested in corporate virtual account management (VAM) solutions – primarily to help larger clients with complex treasuries better manage liquidity and working capital. These are major projects, particularly for banks offering multi-country and multi-currency solutions. However, despite the promise of VAM driving significant bank investments, the luster appears to be fading – at least from the bank perspective - as reflected in Virtual Accounts: Misunderstood or just Missing an Opportunity? (2022). The barrier to development of VAM platforms can be high – as can the implementation challenges for a corporate client.
At a time when banks seek to increase their advisory capacity and deepen client relationships, what opportunities exist to leverage existing or planned investments in liquidity solutions – and VAM specifically? Banks considering VAM need to understand the market segments, opportunities, and solution offerings for the next wave of VAM capabilities.
A non-exhaustive list of eight vendors that provide VAM solutions to banks around the world are profiled. These range from standalone VAM solutions to solutions integrated into a broader corporate banking platform, and in some cases, to core banking platforms.