ING Wholesale Banking has announced a new solution aimed at corporate treasurers in need of managing cash across borders.
Dubbed Virtual Cash Management (VCM), the solution, announced on Wednesday (Aug. 24), provides an array of digital solutions for corporate treasurers, including internal transfers, reconciliation and invoice matching. It also supports payment-on-behalf-of subsidiaries transactions, as well as collection-on-behalf-of subsidiaries transactions.
According to ING, Virtual Cash Management is a way for corporate money managers to use virtual IBAN bank accounts that link to a single account. Doing so, the company said in its announcement, means “cross-border transactions and multi-entity cash will be concentrated in one place.”
While the solution provides visibility into cross-border transactions, it also provides support for inter-company transactions. Recent analysis by Deloitte pointed to inter-company transactions as a particularly challenging aspect of accounting and treasury management for corporates.
Virtual bank accounts provide a streamlined way to manage treasury, the company added, through a single digital portal.
“ING’s VCM solution allows full cash concentration and visibility to be realized across the group, no matter how the treasury function is organized or how sophisticated and harmonizing its technology infrastructure is,” the firm added. “The solution will support both large and mid-corporate clients in taking their next step towards centralization and will allow these clients’ treasury function to focus on its value-added tasks.”
ING highlighted market volatility and a changing regulatory climate as two factors that are shaping the role of the treasury department into a critical one for the enterprise. According to the firm, corporate treasurers are expected to become more of an advisory position in the future. The Virtual Cash Management tool is ING’s effort to guide treasurers into this new role, it said.
“ING partners with treasurers that embrace efficient, cutting-edge solutions to help them navigate an increasing[ly] complex industry,” stated ING Global Head of Sales for Transaction Services Dick Oskam in a statement.