Bank of America Merrill Lynch Launches Liquidity Express

Virtual Account Management Liquidity Product

April 26, 2018 at 7:00 AM Eastern

Bank of America Merrill Lynch (BofA Merrill) today announced the launch of Liquidity Express, a new Virtual Account Management (VAM)-based solution which offers an alternative to notional pooling and physical cash concentration. Liquidity Express allows clients to consolidate funds from multiple accounts into a single balance position and categorise and report these transfers using a virtual account arrangement. This ‘all-in-one’ tool combines the bank’s VAM, Global Liquidity Platform (GLP) and CashPro Assistant Analytics & Forecasting capabilities into a new liquidity package, which will simplify client account structures, saving time and money.

Through Liquidity Express, clients with less complex liquidity needs and leaner treasury organisations will be able to categorise and report fund transfers to a single physical bank account using VAM. This reduces the need to open and maintain multiple accounts. As the balance positions are reported as aggregated within the virtual account structure, there is no need for a separate cash concentration arrangement, and the credit utilisation is naturally reduced.

Where separate physical account need to be maintained for operational, tax or regulatory reasons, the GLP sweep capabilities can automate the physical transfer of funds and at the same time track and reconcile fund movements.

The client benefits of Liquidity Express include:

  • Simplicity: A practical and simple alternative to physical cash concentration and notional pooling – with reduced documentation, credit, tax and accounting complexities.
  • Cost efficiency: Lower running costs due to reduced number of physical accounts and sweeps.
  • Flexibility: Ability to add new virtual accounts via the portal.

Mark Smith, global head of Liquidity Management for Global Transaction Services (GTS) at BofA Merrill said, “We’re proud to launch Liquidity Express. It’s ideal for clients who may not be eligible for traditional notional pooling products, have less complex needs, and require a solution that is quick and straightforward to implement.”

Liquidity Express is currently available to clients for US dollar, euro and pound sterling accounts held in UK and Ireland.

Henrik Lang, head of Liquidity for GTS EMEA at BofA Merrill, said, “Physical cash concentration and notional pooling have traditionally been the only liquidity tools available for clients to offset long and short balances positions – Liquidity Express offers a flexible yet practical alternative by using VAM to categorise and report fund transfers to a single physical bank account.

“For clients with simple needs, it can work as a stand-alone concentration tool; for clients with more complex needs, it could be useful as a complementary solution to their broader liquidity structure.”

Please note: All transactions reconcile funds with the physical account. Virtual accounts hold no funds; they only categorize and report transactions of the physical account. Please see general disclaimer for Bank of America Merrill Lynch at www.bofaml.com/disclaimer


Bank of America

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,400 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 36 million active users, including approximately 25 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

###

Reporters May Contact:
Megan Pearson, Bank of America,
Phone: 44.20.7995.6977
megan.n.pearson@bofa.com

Categories

  • Global Corporate and Investment Banking