KeyBank has announced the launch of KeyVAM, a cutting-edge virtual account management solution aimed at improving treasury management for clients with intricate demand deposit account (DDA) structures. This service, which debuted on May 7, 2024, utilizes the advanced technology of Qolo to assist businesses in optimizing their cash flow management.
"In today's fast-paced digital business environment, clients appreciate real-time information and the flexibility to reflect account structures without having to open a multitude of physical accounts with multiple banks," said Jon Briggs, head of KeyBank Commercial Product. KeyVAM is designed to facilitate this flexibility, allowing businesses to manage multiple clients or cost centers with a customizable virtual account framework.
The advantages of KeyVAM lie in its unique capabilities. It provides the ability to open and close subaccounts instantly through self-service tools and integrates seamlessly with existing systems via API. Specifically, businesses can maintain a virtual sub-ledger that reflects real-time payments, thus enhancing transparency in cash management.
Qolo's CEO, Patricia Montesi, expressed enthusiasm about the partnership, stating, "We're excited to power KeyVAM through our advanced card and payments capabilities combined with our bank-grade ledger. This collaboration with KeyBank marks a giant leap forward in making next-generation financial technology available to businesses of all sizes and in any market."
Virtual accounts connected to a commercial bank DDA through KeyNavigator, KeyBank's online system, enable real-time visibility of incoming and outgoing payments. This way, treasury managers can enjoy continuous access to transaction histories and balance updates, all customized to fit their specific business needs.
"With KeyVAM, we can provide crucial straight-through processing for reconciliation or to help segregate transactions across multiple business units or entities," added Briggs, outlining the product's ability to assist in sophisticated cash management strategies.
KeyVAM also includes functionalities like real-time payments (RTP), wire, and ACH transactions, ensuring that cash managers can process transactions swiftly and efficiently. The service presents several key benefits, including enhanced efficiency that streamlines cash management, thus helping clients to avoid unwanted bank fees.
In addition, KeyVAM allows for customized reporting with transaction and reconciliation data for each virtual sub-account. All of this is conveniently settled within a single physical DDA account, allowing businesses to manage their finances with clarity and simplicity.
KeyCorp, the parent company of KeyBank, boasts nearly 200 years of banking experience, with a strong presence across the United States. Headquartered in Cleveland, Ohio, KeyCorp has amassed approximately $188 billion in assets as of December 31, 2023. Beyond traditional banking services, KeyCorp also engages in investment banking and corporate services, catering to the needs of middle-market firms.
As the financial landscape continues to evolve, the introduction of KeyVAM signifies a pivotal moment for businesses aiming to harness technology to enhance their financial operations. With the capabilities provided by Qolo, KeyBank not only delivers a powerful tool for existing clients but also positions itself as an innovator in the fintech realm, poised to meet the growing demands of modern treasury management.