BNY Mellon introduces virtual account-based solutions for enhanced cash management

BNY Mellon (NYSE: BK), a global leader in financial services, has announced the launch of its latest innovation, Virtual Account Based Solutions. This new cash management solution is set to revolutionize how treasurers around the world handle their financial operations, addressing complex payment and financing needs more effectively.

The solution’s core feature is the virtual accounts linked to physical accounts within BNY Mellon. These accounts provide real-time reflection of both incoming and outgoing payments, maintaining a virtual sub-ledger for continuous transaction and balance updates. This transparency offers clients unparalleled insight into their company-wide cash flows. Additionally, each virtual account has a unique number accessible on external payment networks, is self-managed, and can be tailored to meet specific business requirements or liquidity structures.

Jennifer Barker, Global Head of Treasury Services at BNY Mellon, highlighted the demand for more flexible account structures. “The flow of payment information is becoming just as significant as the movement of funds,” she said. “With Virtual Account-Based Solutions, we provide crucial straight-through processing for reconciliation or to help segregate cash and transactions across multiple business units or entities.”

BNY Mellon’s Virtual Account-Based solutions are versatile, catering to a variety of industry needs. They are particularly effective for:

– Automating reconciliation of high-volume payments over USD wires and ACH networks, ensuring accurate remitter identification, and facilitating receivables reconciliation.

– Supporting centralized payment and collection functions across legal entities, including Payments on Behalf Of (POBO) and Collections on Behalf Of (COBO), as well as In-House Bank structures.

– Establishing a hierarchy of virtual accounts for specific business units, properties, divisions, geographies, or purposes, which offers a segregated view of cash and transactions without the need to manage numerous physical bank accounts.

– Assisting Financial Institution clients in segregating their (physical) Nostro accounts for their corporate clients’ use in receiving Wires or ACH credits in the US.

BNY Mellon’s introduction of Virtual Account-Based Solutions is a significant stride in financial technology. It not only simplifies cash management for treasurers but also represents a shift towards more integrated, real-time financial operations. This solution could potentially set a new standard in the industry, especially for large corporate and institutional clients who require efficient, transparent, and flexible cash management systems.