The continued journey of digitalisation and work on global industry initiatives, such as the migration to ISO 20022 for Swift messages related to cross-border payments, continues to dominate the agenda of transaction banks. Virtual accounts, which came into their own during and post the Covid-19 pandemic, remains the dominant product offering among the winners of this year’s Transaction Banking Awards. In addition to virtual accounts, a commitment to combating climate change and supporting clients with net-zero emissions and sustainability goals also figured prominently.
Virtual account management (VAM) functionality has come a long way since its inception. It now enables the segregation of activity under a single, centralised bank account, while retaining the visibility and reporting needed to enable reconciliation and internal accounting. The reporting flexibility VAM offers is a crucial component in supporting operational, intercompany and treasury cash operations, reconciliation and accounting. The virtual account structure provides a comprehensive view of treasurers’ cash positions, enhancing the decision-making process by providing rationalised account structures and centralised transaction processing.
