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Introduction:
In a recent episode of Tearsheet hosted by Zack Miller, KeyBank’s Jon Briggs, Head of Commercial Product & Innovation, and our CEO, Patricia Montesi, discussed our strategic partnership with KeyBank. Watch the full video below.
The podcast focuses on how innovation is reshaping financial services, and this episode highlighted the creation of KeyVAM, a virtual account management solution designed to streamline treasury operations for businesses. KeyVAM enables organizations to consolidate and simplify their financial operations by leveraging virtual accounts to manage payments, receivables, and cash flow more efficiently—all within a single, unified platform. Recognizing the growing complexity of managing financial systems, KeyBank partnered with us to combine their deep banking expertise with our cutting-edge fintech capabilities. Our partnership highlights the importance of collaboration between banks and fintechs in today’s financial environment.
Understanding Virtual Account Management (VAM)
Virtual Account Management (VAM) has emerged as a critical tool for businesses managing large, complex account structures. KeyVAM, the result of KeyBank and our partnership, consolidates money movement through virtual ledgers, allowing businesses to streamline treasury operations without the need for multiple traditional accounts.
Patricia explained that their partnership began with a shared vision of simplifying finance, particularly for businesses dealing with a “spiderweb” of financial suppliers. She highlighted, "How fintech created this spiderweb ecosystem of suppliers and placed the burden back on banks, fintechs, and corporates to bring it all together. Qolo was really about solving that by saying, 'You don’t have to go find 10 suppliers, stitch it all together, and unify it yourself, Qolo is here.' That was the intent behind our entire platform."
This vision took shape through KeyVAM’s innovative design, which simplifies financial management and enhances efficiency. As John put it, KeyVAM’s design represents “a hyper-modern core ledger” with robust user interface (UI) and application programming interface (API) capabilities, allowing clients more control over their accounts and a more seamless banking experience. This increased control and efficiency naturally lead to the next major benefit of KeyVAM: the ability to streamline and simplify processes.
The Impact of Streamlined Process
Traditional account setup is time-consuming and often requires extensive paperwork and resources. KeyVAM’s instant account creation puts clients “in the driver’s seat,” as John emphasized, allowing them to create sub-accounts in as little as 60 seconds.
This quick setup and instant payment capability empower clients with real-time access and control over their funds, marking a major step forward in digital banking. By consolidating account operations, KeyVAM eliminates redundancies, making it easier for businesses to manage cash flow efficiently.
Building Strong Bank-fintech Relationships
For John and Patricia, the partnership’s success comes from more than just technological compatibility, it’s rooted in cultural and executive alignment. John highlighted that genuine partnerships, unlike just vendor relationships, depend on cultural and executive alignment. Patricia agreed, stressing that education is crucial for successfully integrating fintech solutions into traditional banking systems.
“You have to spend the right amount of time educating folks along that journey,” she said, emphasizing the need to align everyone involved with the innovation process.
The Future of Bank-fintech Partnerships
KeyVAM addresses the changing landscape of banking, as banks increasingly seek fintech partnerships to remain competitive and meet evolving customer needs.
John anticipates that deposits will become more crucial to banks' growth strategies, with solutions like KeyVAM enabling banks to innovate around the core operating account central to every banking relationship. By prioritizing deposit-driven growth, KeyBank aims to stay ahead of regulatory changes and shifting consumer expectations.
As the landscape continues to evolve, Patricia predicts that fintech collaborations will only grow, with traditional banks increasingly turning to fintechs to modernize their offerings and meet the demands of a rapidly changing market.
Key takeaways for stakeholders
- Collaboration is Key: Success for both banks and fintech companies depends on strong collaboration, alignment, and adaptability.
- Cultural Alignment: John emphasized that cultural alignment between partners is crucial for overcoming challenges and driving success, particularly in complex projects like KeyVAM.
- Education is Essential: Patricia highlighted the importance of educating stakeholders to ensure smooth integration of new technologies and solutions.
- Clear Communication Drives Innovation: These insights underline the need for transparent communication and mutual understanding to foster innovation and achieve shared goals.
Ready to Discover More?
Our partnership with KeyBank is reshaping the way businesses manage their treasury operations. By combining KeyBank’s banking expertise with our innovative KeyVAM solution, we’re helping clients streamline processes and tackle the challenges of modern financial management.
To learn more about how KeyVAM can transform your business operations, find out more about our KeyBank partnership here.
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