In recent years, transactional banking has gone through an innovation revolution. Ushered in by agile, tech-first fintechs,
this era has unleashed endless new products and better user experiences. But, as mentioned in our virtual accounts management whitepaper, this has left many corporates and their treasurers looking at their current banks and wondering whether they are getting what they need. They demand deeper, real-time insights into their liquidity position that allow them to react instantly to changes.
In response, many incumbent banks are investing heavily into enhancing their cash management and payment platforms.
One area in particular is gaining an ever-increasing amount of attention: virtual accounts. Although the concept has been around for over three decades, it’s only now that treasurers are beginning to see just how vital they are to up-level cash management and payment offerings. And as a result, demanding them from their current bank.
Virtual accounts are a set of administrative ‘sub-accounts’ underlying one physical bank account maintained in the
bank’s ledger, usually known as the master or real account. This real ledger account is mirrored 1:1 in the VAM solution,
and is known as a clone, header or sub-ledger account. Both the clone and real account stay in sync through a range of accounting techniques. This ensures transaction and balance control are maintained between them both.
For the banks that decide to invest in a VAM solution, there are numerous benefits including reducing the need for costly traditional cash management products, improving client-centricity, decreasing operational costs and expanding the bank’s product portfolio.
Thanks to advances in technology, Virtual Account Management (VAM) is also starting to enable new business models
in the B2B2C sector including, centralized digital wallets, digital marketplaces and virtual savings pots.
As part of a wider client engagement, SAP Fioneer (emerging from SAP) committed to design and develop an entirely new Virtual Account solution, which was previously missing from their offering. To address this propositional gap, SAP Fioneer Innovative Business Solutions enlisted bancon as the build and implementation partner to lead the discovery, design, development and delivery of the now standard solution.
The SAP Fioneer Virtual Account Management solution provides financial institutions with a complete ‘out of the box’ platform that delivers unparalleled self-serve capability whilst connecting seamlessly across core legacy digital channels. This innovative solution caters for all IT Landscapes by utilizing SAP Fioneer Banking Services or SAP Transactional Banking for S/4HANA, deployed on premise, or in the cloud.
The strength of having us implement this new innovative solution lies in the deep expertise of our people who have spent their careers mastering SAP Banking. Many of our consultants have co-delivered the foundational SAP VAM product so whether you're considering upgrading an existing Virtual Account platform, or looking to introduce this as a new offering, bancon can help.
How can bancon's specialists help your business with SAP Fioneer Virtual Account Management?