BNY Mellon Unveils Cash Management Solution for Treasury Services Clients

Core View - BNY Mellon has launched a new cash management solution called Virtual Account-Based Solutions, designed to enhance clients' access and control over cash administration and reporting [1] Product Features - Virtual accounts are linked to physical accounts within the bank, enabling real-time reflection of incoming and outgoing payments with continuously updated transaction and balance history [1] - The solution offers flexibility by allowing clients to reflect desired account structures through virtual accounts instead of opening multiple physical accounts with different banks [1] - The solution supports automatic reconciliation of high volumes of incoming payments over USD wires and ACH networks, accurate identification of payment remitters, and reconciliation of receivables by client, business, invoice, etc [2] - It centralizes payment and collection functions across legal entities, supporting Payments on Behalf Of (POBO), Collections on Behalf Of (COBO), and In-House Bank structures [2] - The solution allows for the establishment of a hierarchy of virtual accounts exclusive to specific business units, properties, divisions, geographies, or purposes, providing a segregated view of cash and transactions [2] Industry Use Cases - The solution caters to various industry use cases, enabling financial institution clients to segregate physical Nostro accounts for end corporate clients to receive wires or ACH credits in the U S [3] - 54% of chief financial officers cite liquidity and cash management as a top challenge, highlighting the need for real-time visibility and control over banking accounts [3] Recent Developments - In October, BNY Mellon launched a White Labeling service for its LiquidityDirect platform, enabling financial institutions to offer their clients liquidity management solutions [3]