BANKING
Deloitte ’ s practical guide for adopting VAM
Prior to implementing virtual accounts , Deloitte recommends a four-fold strategy to manage variables and expectations for a highly powerful tool :
• Assess your objectives thoroughly before beginning
• Determine the optimal configuration for virtual account structures
• Similarly , virtual account identifier for the organisation must be appropriate
• Discuss integration into TMS / ERP ( treasury management systems and enterprise resource planning )
Vipul Pal adds , “ Banks should understand the implications of all aspects of a VAM environment as part of their implementation roadmap and how VAM can enhance their product offering in the market . For example , banks simply looking to use VAM to simplify their internal cash reconciliation operations should also consider extending VAM as a new product / service offering to clients as a means to attract greater deposit balances .” the bank uses . The cloud VAM solution also ensures high levels of system availability , scalability , performance , and data security .
How would you characterize the challenges of implementing VAM ? Conor Colleary : As with any financial services project , the integration of a new solution can be complicated . This is particularly true here because VAM interacts with so many areas of a bank , therefore it requires many touchpoints with the bank ’ s systems . Oracle ’ s goal has been to follow standard integration models and use industry standard data exchange based on ISO20022 to help ease the integration challenge .
58 April 2021