BANKING
Describe the effect that VAM could have on the broader banking industry ? Conor Colleary : With VAM , corporates stand to reduce cost and complexity and introduce new levels of automation through the alignment of their banking accounts and internal accounting systems . They also benefit from real-time visibility and control of their working capital . Many also centralise their non-core business from subsidiaries to shared service centers and global treasury operations .
Banks , in turn , can strengthen customer relationships and generate new revenue streams by offering new services that address corporate customers ’ pain points while reducing their own operational costs .
Vipul Pal on the transformative impact of VAM
" While VAM has been around for a number of years and adopted in the transaction banking sector , the broader application of virtual accounts across global banks could enable buy-side firms to better manage cash positions in a multi-bank environment . It could also provide improved transparency and controls around client segregated cash and expand capabilities in capital markets functions such as collateral management ."