Bank of America to grow corporate cash management through a new tool
Bank of America will roll out a new cash management tool to US-based clients to gain market share in the $300 billion cash management business for multi-national corporations. Transaction banking—processing employee payroll, paying suppliers, and collecting from customers—contributed roughly 8% of the bank’s total 2021 revenue, or $7.23 billion. The second-largest US bank said it was extending its virtual account management tool (VAM)—already available in Europe—to the United States, where the COVID-19 pandemic has accelerated customers’ use of electronic payments. The tool helps firms manage multiple accounts by creating a virtual ledger, accessible online, that shows all their account balances and transactions and can model future cash flow. The tool can be opened and used within a day, whereas a bank account can take weeks to open. Liba Saiovici, head of global receivables in global transaction services for Bank of America said, firms need to because they often keep hundreds of...