HPE Client Quote

“Virtual Account Management is the next-gen bank account solution taking the traditional account structure to a new level. It allows for immediate liquidity concentration, eliminating the need for physical cash sweeps and reduces overall cost.

JPMC’s VAM solution helped HPE Singapore reduce its physical accounts by 50%, without disrupting operations. The implementation team is very knowledgeable and helped HPE to define our specific solution to ensure our internal systems were well integrated and we achieved the desired result. The JPM team went out of their way to share industry best practices which HPE could learn from, making the transition smooth and memorable.”

– Victor Grado, Vice President - Treasury Operations, Hewlett Packard Enterprise

Virtual Accounts: Five Key Points

• Single centralized account
• Detailed reporting
• Enhanced reconciliation
• Automated solution
• Seamless integration

Hitachi Ventara Client Quote

“Over the past 6 years, our Company has been focused on continued rationalization of bank accounts and implementing the best possible liquidity structure. As part of our treasury evolution, we have been transitioning away from physical accounts into a virtual account environment. At the beginning of 2020, we opened our first phase of virtual accounts with J.P. Morgan.

So far the experience is everything we hoped it would be.  Using virtual accounts allows us to better segregate specific activity, making it easier to report and account for cash movement.  It also reduces the number of accounts that need to be confirmed for audit purposes.

Once we transition all possible payables accounts to virtual, we will be moving into receivables accounts.  We will continue to expand our virtual account footprint and hope that J.P. Morgan will continue to grow the jurisdictions where virtual accounts are available.”

- Cathy Fields, Assistant Treasurer and Director of Global Risk Management, Hitachi Vantara

Use Case: Fortune 100 construction equipment manufacturer uses account rationalization to support liquidity management

1.    Client Objectives

• Centralize subsidiary payable, receivable and payroll cash operations
• Increase efficiency of managing subsidiary cash across separate local bank accounts per business unit
• Reduce administrative burden to redeploy resources

2.    Virtual Accounts Solution

• Establish virtual account structure for each entity’s business units
• Centralize operational functions
• Automate virtual account transfers to facilitate ease of account management and administration

3.    Client Benefits

• Lower costs, enhanced controls and insight into operational activity
• Enhanced reconciliation resulting in improved liquidity management
• Simplified structure – less operational risk, more control
• Consolidated reporting

Use Case: Global digital payment network helps achieve seamless receivables reconciliation

1.    Client Objectives

• Improve transparency into counterparty payments
• Clearly define a solution that matches the organization
• Defined virtual account hierarchy that mirrors ERP ledger

2.    Virtual Account Solution

• Unique virtual account numbers leveraged to streamline and automate the reconciliation process
• Clients use their own ERP systems to reconcile incoming payments
• Client’s remitters use the virtual account number when paying them electronically

3.    Client Benefits

• Seamless introduction of a solution that reflects the company structure but optimizes output
• Easier and clearer reporting

Use Case: Leading telecom media company implements multi-entity structure to optimize liquidity management

1.    Client Objectives

• Ability to modify structure seamlessly
• Enhanced visibility and control at operating account level for regional treasury center

2.    Virtual Accounts Solution

• Multi-entity virtual account structure embedded within a single entity, multi-currency notional pool
• On-Behalf-Of (OBO) transactions with the ability to extend to centralized A/R and A/P processes

3.    Client Benefits

• Improved operational efficiencies and risk management with simplified administration
• Reduced number of DDAs & real-time consolidated cash
• Reduced cost of funding by optimizing use of in-house cash
   

Use Case: Leading multinational food distributor incorporates multi-entity, multi-currency notional pool with Virtual Account Management

1.    Client Objectives

• Inefficient working capital management to support balances in decentralized subsidiary operating accounts
• Inefficient and costly manual workload supporting IHB activities related to:
          • Purchase, distribution and cross-charging for FX
          • Intercompany position management

2.    Virtual Accounts Solution

• Notional Pool expanded to include Multi Entity VAM structure
• 11 operational entities opened virtual accounts under the 6 currency IHB pool
• VAM Intercompany Loan Administration reporting feature

3.    Client Benefits

• Automated execution, reporting, settlement and accounting of FX between IHB and operational entities
• Automated intercompany interest
• Reduced operating entity balances
• 25% Reduction in liquidity buffers required to maintain same IHB operations
• 3 Business Days saved per month from automating manual processes
• 30% Reduction In balances required to be held in accounts in country
   

Sysco Client Quote

“By implementing J.P. Morgan's Virtual Account Management solution, we were able to improve our working capital position and funding management, increase operational efficiencies and improve reconciliation rates.”

- Carrie Reyna, Director, Global Treasury Operations, Sysco