BofA Brings Virtual Account Management to the US
After launches in the Netherlands, Ireland and the UK, Bank of America is bringing its Virtual Account Management (VAM) tool to the US
As the company stated in a press release Tuesday, June 14, the solution allows companies to create virtual accounts that serve as sub-accounts linked to a physical account.
“Today’s large enterprises typically have a complex account structure, which creates challenges for real-time visibility and reconciliation,” said Liba Saiovici, head of Global Receivables in Global Transaction Services at Bank of America. “Our VAM solution will help customers who want to streamline their bank account structures and increase the efficiency of their treasury operations and global cash management.”
According to Bank of America, the tool allows treasurers to create a virtual account within 24 hours and view its transactions in real time, as well as transactions related to other virtual accounts linked to the same physical account.
The bank said its VAM solution can be integrated with all major enterprise resource planning systems and “supports cross-company cash movement across virtual accounts for complex cash management operations.”
Bank of America said VAM will support ACH, wire transfers, vaults, check disbursements, in-house vaults and remote deposits. The program is expected to arrive in other countries in Europe, Latin America and Asia during the rest of 2022 and into next year.
Last month, PYMNTS interviewed Jennifer Petty, managing director of treasury products at Bank of America, who spoke of an increased urgency to embrace digital business transactions as working from home becomes more firmly entrenched.
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“We’ve seen a 50% increase in the number of customers coming to us month over month to talk to us about digitization,” Petty said. As these customers become more familiar with digital payments, they are modernizing transactions to and from their end consumers.
“We’re in an economy where customers are very focused on spending and focused on how they can improve their working capital,” Petty told PYMNTS, adding that “we’re able to see the ins and outs data really trying to streamline payments. . And there’s a lot of information we can use to help these companies go from digital ‘point A to point B’.”