Virtual Accounts, Virtual Solutions, Virtual Cash Management…multiple terms, one powerful concept that has advanced in line with technological innovation. Virtual reference numbers have paved the way for more holistic virtual account offerings which streamline account structures. These offerings allow for true end-to-end solutions that are fluid, accessible and integrated. They offer broad functionality and facilitate interconnectivity between payables, receivables and liquidity solutions. They support location strategy and global treasury operations.

Global treasurers continually strive for rationalized account structures and centralized transaction processing. More and more, they are turning to virtual accounts as a key tool to provide a comprehensive view of their cash picture and enhance their decision making process.

A solution that mirrors Demand Deposit Accounts (DDA)

Virtual Account Management (VAM) enables the segregation of activity under a single, centralized bank account, while retaining the visibility and reporting needed to facilitate reconciliation and internal accounting.

The reporting flexibility VAM offers is a crucial component in supporting operational, intercompany and treasury cash operations, reconciliation and accounting. J.P. Morgan’s VAM platform is an end-to-end cash management and liquidity tool that supports treasurers at any point along their treasury transformation journey. VAM gives the ability to reflect client payable and receivable transactions and establish virtual account reports by function, which streamlines management reporting.

VAM structures are able to cover a wide range of industries and scenarios, and have been instrumental in supporting treasurers to efficiently and effectively meet their objectives.

Strategic enabler of treasury transformation

The evolving strategic role of treasury management and the digital transformation of banking have created an inflection point for treasury transformation. VAM can be integrated with other cash management solutions as a strategic enabler of treasury’s intertwined objectives for centralization, visibility, control and flexibility.


VAM supports the goal of centralization by rationalizing the number of demand deposit accounts required to effectively manage cash across the organization. By segregating balances virtually rather than physically, treasurers can achieve continuous real-time cash consolidation, reduce reliance on intraday credit and manage transaction flows and liquidity positions more efficiently.

Visibility and control

Multiple bank accounts and a decentralized structure naturally result in lower transparency of activity and require greater resources to manage cash flow and operational risks. The need for information reporting and accounting across a vast network of accounts adds to the challenge.

VAM addresses these challenges by providing a tailor-made solution that meets the requirements of treasury teams. It shows a 360-degree view by business lines across the entire organization, providing actionable insight for improved decision making and risk management. Additionally, treasury teams are able to meet specific audience requirements.


Virtual accounts can easily be adapted to address evolving treasury strategies. Now more than ever, streamlined structures, detailed information reporting and seamless accounting are mission-critical to executing treasury initiatives. VAM’s customizable, hierarchical reporting features make it simple to reconfigure sub-ledgers and design a virtual account hierarchy that directly reflects business needs. VAM structures can also facilitate intercompany loan administration via reporting without the need for physical sweeps.

A VAM solution will seamlessly integrate with current global platforms to deliver a cohesive experience, help improve the receivables and payables reconciliation and reduce the need for multiple bank accounts per currency.


Integral part of a larger suite of solutions

Virtual accounts are not a standalone solution. What makes VAM structures powerful is their connectivity with other capabilities related to liquidity, payments, collections, channels and FX. A comprehensive VAM solution has the power to transform a reporting layer service into an effective and powerful business tool.

For example, the combination of notional pooling and virtual solutions may result in reduced FX costs and enhanced cash optimization, providing clients with an end-to-end solution that can help them to manage working capital more effectively.

J.P. Morgan continues to pursue the vision and is committed to expanding our virtual account management capabilities in the future, helping treasurers move closer to the ultimate cash management goal of  “a single account.”

J.P. Morgan virtual account management: A customizable set of capabilities that drives results

  • Live globally across 11 locations and major financial centers (United States, Canada, Mexico, Luxembourg, Ireland, United Kingdom, Germany, Netherlands, Singapore, Hong Kong and China) to support your global needs with a consistent experience, available 24x7
  • Available in 30+ currencies to allow for a scalable and flexible solution
  • Supports multi-entity VAM structures that enable your in-house banking and payment factory organizations, including intercompany reporting capabilities
  • Integrates with other J.P. Morgan Liquidity Solutions tools including notional pooling, physical cash concentration and multi-bank sweeps to enable efficient overlay structures across locations and banks
  • Multi-level virtual account structure and reporting across multiple channels enables reporting flexibility across your organizational hierarchy
  • Proprietary solution built entirely in-house that features an intuitive client interface and can support large scale structures (thousands of virtual accounts) and be scaled per client needs and evolving business environment

Wherever you are on your virtual account journey, we stand ready to support you with tailored and efficient solutions.

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