This month, Bank of America’s Virtual Account Management (VAM) solution is coming to companies operating in the United States. The geographical expansion follows last year’s addition of the Netherlands to the existing UK and Ireland capabilities. Through VAM, companies can open virtual accounts that act as sub-ledger accounts tied to a physical account.
“Large companies today typically have a complex account structure creating 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 assist clients who wish to streamline their bank account structures and drive greater efficiency in their treasury operations and global liquidity management.”
When using VAM, a treasurer can usually create a virtual account for a specific entity within 24 hours and view the transactions of the account in real time alongside transactions in other virtual accounts tied to the same physical account. Coupled with its intuitive user interface, BofA’s next-generation cash management tool makes it easier for companies to achieve treasury transformation.
“Since first introducing VAM seven years ago, we’ve made substantial enhancements to ensure the platform’s design and capabilities support a company’s local treasury operations while also being globally consistent,” said Fernando Iraola, co-head of Global Corporate Sales GTS and head of Latin America GTS at Bank of America. “We’re pleased to bring this strategic tool to the U.S. where we have relationships with 95% of the Fortune 1000.”
Bank of America’s VAM solution:
- Is integrated with the bank’s CashPro® platform, enabling clients to move easily among other cash management functions
- Can be integrated with all major enterprise resource planning systems
- Offers self-service for account opening within 24 hours
- Supports intercompany movement of funds across Virtual Accounts for complex treasury management operations
- In the U.S., VAM will support ACH, Wire, Lockbox, Check Disbursements, In House Lock boxes, and Remote Deposit
The global rollout of VAM will continue in 2022 and 2023 with the addition of new countries in Europe, LATAM and Asia.
 Transactions from virtual accounts reconcile funds with the physical account. Virtual accounts hold no funds, they only categorise and report transactions of the physical account.