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Virtual accounts: innovation to help banks exceed customer expectation

Virtual accounts: innovation to help banks exceed customer expectation

Corporates are under increasing pressure to be more efficient and their expectations of their banks are changing as a result. Banks need to be innovative to meet client expectations.

Virtual accounts can be part of the solution for banks in meeting the needs of their corporate clients, as well as addressing their own internal strategic challenges, such as increasing regulation and the downward pressure on fee revenue.

In this Tieto whitepaper we present the case for virtual accounts as something that all banks, looking to compete strongly in the areas of payments, cash management and transaction banking, should seriously evaluate.

Virtual Account Management (VAM)

One truism about banking and payments is that they are always changing. Yet while change is the norm, the speed and scale of customer expectations, regulatory and technological change today is anything but normal.

Banks must plan their response on their own terms, before they are outmanoeuvred by more nimble start-ups or more far-sighted competitors. Innovation is one of the few ways to sustain competitive advantage over time.

Implementing virtual accounts is a strategic and significant investment in innovation. Particularly as the innovations extend beyond the back-end software to encompass the customer interface, operating model,
downstream processes and bank revenues. However, when considering the cost/income ratio around investment in virtual accounts, the question is not so much can a bank afford to invest. Rather, can it afford not to?

Corporate treasurers and client money managers are demanding better visibility and control over cash flow and liquidity. They are demanding products and services from their banks that are faster, more joined-up and help them unlock the power of their own data.

A highly configurable virtual account solution will support banks and bank customers no matter what their strategy or segmentation model. If the solution is based on a single solution, customers can implement in 4-6 months, iterate as desired and overcome legacy infrastructure challenges.

Choosing the right technology partner for any type of long-term, strategic innovation is critical. Banks are advised to evaluate the architecture of any virtual account solution as this will impact not only their speed-to-market, but also their roadmap for future developments. They should evaluate prospective technology partners with regard to their proven use cases and customer references.

Download the White Paper HERE

The post Virtual accounts: innovation to help banks exceed customer expectation appeared first on Payments Cards & Mobile.

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