Virtual Account Management (VAM) is a cash management tool originally designed in the 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. If you are new to VAM here is a crash course in the SAP Fioneer solution.

In short, what is SAP Fioneer Virtual Account Management (VAM)?

SAP Fioneer Virtual Account Management is a cash management solution that enables financial institutions to offer their corporate, SME and small business clients greater ability to streamline their accounts payable and receivable processes through the creation of ‘‘off-balance’’ sub-accounts which can be assigned to customers, suppliers or subsidiaries.

This solution offers companies of all sizes better control and visibility over their cash flow, reduces the risk of errors and fraud, and improves efficiency by automating the payment and reconciliation processes. It also enables financial institutions to offer new business value through providing propositions such as ‘on-Behalf-of’ Management, Client Money Management, Virtual Cash Management and Virtual Multi-Bank Management.

Overall, SAP Fioneer Virtual Account Management helps businesses to optimise their cash management operations and improve their financial performance.

Fioneer previously announced new solutions earlier this year (2023). Fioneer Virtual Accounts Management (VAM) -  enables banks to service existing customers more efficiently. It offers improved visibility and control over cash management, increasing customer satisfaction and strengthening relationships. bancon was proud to play a key role in the initial product design, development and delivery, and look forward to a continued partnership where we work together on increasing the user base.

What are the key features and functionalities of the solution?

SAP Fioneer Virtual Account Management (VAM) is a market leading solution that all financial institutions should be considering. The key features and functionalities of SAP Fioneer VAM include:

• Multi-faceted use-cases including ‘on-Behalf-of’ Management, Client Money Management, Virtual Cash Management and Virtual Multi-Bank Management – enabling you to better service cross-industry clients.
• Customisable Rules and Workflows: embedded flexibility, allowing clients to define virtual hierarchies, rules and workflows based on their unique requirements, providing optimum operational efficiency and a more personalised service offering.
• Multi-Currency Support: The solution supports multiple currencies, allowing organisations to manage virtual accounts across different regions, jurisdictions and currencies.
• Automated Transactions: SAP Fioneer VAM automates the processing of transactions, including incoming and outgoing payments, reconciliation, and reporting, reducing manual effort and errors.
• Integration with SAP and Non-SAP Systems: SAP Fioneer VAM integrates with SAP and non-SAP systems, enabling organisations to leverage their existing technology investments and streamline their cash management processes.
• Real-Time Reporting and Analytics: SAP Fioneer VAM provides real-time reporting and analytics, allowing organisations to track their cash positions, forecast cash flows, and make informed decisions.
• User Interface flexibility: SAP Fioneer VAM comes with the option of a white-labelled user front-end or can be consumed by your existing channel through various readily available RESTful APIs.
• Deployment agnostic:  On-premise, private cloud or SaaS.. deployment solutions to support all requirements.
• Retail use-cases: SAP Fioneer VAM can also support innovative use-cases within retail banking sector including ‘virtual saving pots’, Digital marketplaces and Centralised digital wallets.

Why should banks consider implementing SAP Fioneer Virtual Account Management (VAM)?

SAP Fioneer VAM provides a range of benefits to banks and their clients. By implementing VAM, banks can offer more efficient, user-friendly, and secure banking services to their clients, while also generating new revenue streams and reducing operational costs:

1. Enhanced cash management: SAP Fioneer VAM enables financial institutions to offer better cash management solutions to their clients. It allows clients to manage their cash positions and liquidity more effectively by providing them with real-time visibility of their account balances and transactions.
2. Reduced operational costs: VAM automates a variety of manual processes related to account management, including reconciliation, reporting, and payment processing. This can lead to significant cost savings for financial institutions and their corporate clients.
3. Improved client experience: By offering VAM, financial institutions can provide their clients with a more streamlined and user-friendly banking experience. Clients can easily view and manage their accounts, make payments, and access reports through a single platform.
4. Increased revenue opportunities: SAP Fioneer VAM can help financial institutions to generate new revenue streams by offering value-added services to their clients, such as virtual cash management andClient Money Management, and .
5. Compliance and risk management: VAM provides enhanced security features, such as two-factor authentication and secure tokenisation. Additionally, VAM can help banks meet regulatory requirements related to anti-money laundering (AML) and know-your-customer (KYC) regulations.

What can you expect from working with bancon?

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 Fioneer 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.

• Certified SAP Fioneer Build and SAP Fioneer Implementation Partner
• Official build and implementation partner of the SAP Fioneer Virtual Account Management custom project for a Tier-1 UK bank.
• Experience in implementing SAP Fioneer Banking for the top 50 global financial institutions, spanning retail, corporate and investment banking

If you’d like to find out more get in touch and find further reading on the solution here

* This article was edited in August 2023 to reflect the announcement of a new solution earlier this year by SAP Fioneer.