Virtual accounts are a set of off-balance accounts, originally designed in late 80’s to simplify the reconciliation of payables and receivables. In more recent years, the demand from corporate businesses looking to address operational inefficiencies and gain greater transparency on their real-time cash position has grown exponentially, and as a result, so has Virtual Account Management.
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 committed to design and develop an entirely new Virtual Account solution, which was previously missing from their offering. To address this propositional gap, SAP Innovative Business Solutions enlisted bancon as the build and implementation partner to lead the discovery, design, development and delivery of the now standard solution.
Virtual Account Management from SAP is the latest enhancement to their transactional banking offering, which enables financial institutions to transform their corporate cash management offering without the need for a full core banking replacement. With this new standardized, yet highly configurable solution, financial institutions are able to address the demands of corporate treasurers who are looking to gain a deeper and more immediate insight into their real-time liquidity position throughout the day.
While virtual accounts in themselves aren't new, they have been given a new lease of life thanks to API-enabled open banking, access to real-time data and sophisticated analytics capability. These regulatory and technical advancements have given corporate treasurers even more reasons to utilize virtual accounts, allowing them to react to intraday cash demands and unlock much needed working capital by reducing sales day outstanding.
The SAP Virtual Account Management solution was built using the enterprise grade, core banking platform, SAP Transactional Banking for S/4HANA as a blueprint. Leveraging many of its market leading features, the solution offers unparalleled self-serve capabilities whilst connecting seamlessly across core legacy digital channels. Some of the features offered include;
The Virtual Account Management solution from SAP provides financial institutions with a complete ‘out of the box’ solution, utilizing 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.
Get familiar with how a Virtual Account solution can enable you and your customers to increase operational efficiency and transform your cash management and payment offering by downloading our independent, tech-agnostic white paper.
How can our specialists help your business with SAP Virtual Account Management?