BNY Mellon has introduced a new cash management solution called Virtual Account-Based Solutions, aimed at providing clients with enhanced access to and control over their cash administration activities. This innovative offering is designed to streamline financial operations for global treasurers, addressing the complex needs of payments and financing.

Real-time transparency and flexibility

Virtual accounts within BNY Mellon are connected to physical accounts, enabling real-time tracking of incoming or outgoing payments. This feature maintains a continuously updated virtual sub-ledger that provides comprehensive transaction and balance histories, offering companies insights into their cash flows across the board.

Virtual accounts come with unique identifiers accessible on external payment networks. They offer self-service capabilities for managing these accounts flexibly according to specific client needs or ideal liquidity structures. The solution allows clients to avoid opening numerous physical accounts with multiple banks, thus enhancing operational efficiency and flexibility.

BNY Mellon officials state that this approach helps in providing streamlined processing for reconciliations or segregating cash flows across various business units or entities. This capability supports the centralization of payment and collection functions through structures like Payments on Behalf Of (POBO) and Collections on Behalf Of (COBO).

Applications of Virtual Account-Based Solutions

• Automatically reconciling high volumes of incoming payments via USD wires and ACH networks, accurately identifying the remitter of each payment, and aligning receivables with specific clients, businesses, invoices, and more.
• Supporting the centralization of payment and collection functions across legal entities. BNY Mellon’s solution accommodates In-House Bank structures to meet the needs of large corporate and institutional clients by simplifying cash management processes.
• Creating a hierarchy of virtual accounts tailored to specific business units, properties, divisions, geographies, or purposes, offering a segregated view of cash and transactions without managing numerous physical bank accounts.
• Enabling financial institutions to segregate their Nostro accounts for use by end corporate clients in receiving wires or ACH credits in the US.

BNY Mellon’s Role

BNY Mellon is a global leader in capital markets, offering comprehensive solutions that assist clients with managing and servicing their financial assets across the investment life cycle. As of 31 December 2023, BNY Mellon managed USD 47.8 trillion in assets under custody or administration and held USD 2.0 trillion in assets under management.

The company has been recognized as one of Fortune’s Most Admired Companies and Fast Company’s Best Workplaces for Innovators. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation.