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Virtual Account Management: the minimum viable proposition

When it comes to corporate liquidity and treasury management, the banks I’m talking to all seem to have one thing in common. The need for speed.

Virtual Account Management

Virtual Account Management: the minimum viable proposition

Whether they are offering in-house banking facilities to medium-sized corporates. Or a client money proposition. Or an ‘on behalf of’ set-up for payments or receivables. Banks want to move fast – writes Ilkka Korkiakoski, VP Transaction banking, Tieto.

They realise that their competitors have these types of services. They don’t want to lose clients or marketshare. They need to be up and running with virtual account management (VAM) quickly.

This is where our minimum viable proposition comes in. We can get banks live with such a proposition in 7-8 months. Sounds impressive, so you’re thinking there must be a catch, right?


The minimum viable proposition is essentially powered by three things:

  • Overlay — VAM exists as a state-of-the-art front-end overlay, which leaves back-end legacy systems and processes largely untouched. This is how we can offer such great time-to-market with all the VAM functionality you’d expect.

With a minimum viable proposition, banks can still offer self-service, enhanced reconciliation and multi-entity visibility of funds.

Bank clients still get the speed and convenience of do-it-yourself in-house banking. They still get full transparency of their current cash position in real-time. And they still get quality reporting and BI for quicker, more effective decision-making.

  • Single platform — Because it’s a single platform solution, once a bank has implemented the minimum viable VAM proposition, incremental implementations and new propositions become possible with minimum fuss or waiting time. Complex re-programming or integrations? There’s just no need for this.
  • Roadmap — Naturally, the phased minimum viable proposition approach comes with a roadmap for further roll-outs. These can be across new geographies and/or propositions. We’re proud that we work closely with our customers to co-create propositions. We also accompany them to client meetings to offer our insight and expertise there.

I said above that the minimum viable proposition was powered by the overlay, single platform and roadmap. I could have said functionality, architecture and expertise. Tieto has several USPs around its VAM functionality and architecture.

It is our expertise, though, that customers particularly value. One of our largest customers recently won a 2016 Transaction Banking Award from The Banker for their cash management proposition based on Tieto’s VAM solution.

We’re also working with 2-3 customers in Europe right now on VAM proof-of-concepts. Several more are looking to launch VAM services in 2017.

If you’re feeling the need for speed to deliver a corporate cash or treasury management solution, please contact me about our minimum viable proposition for VAM.

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