Entrenched relationships may prove more valuable than tech for TS clients
New transaction-services platforms may need more than good digital technology to make headway.
US banks signed more than 100 new contracts with the 10 largest cash-management technology vendors last year, according to a report published by Aite Group.
As banks prioritize availability of money management and forecasting tools, this trend will only continue, says Aite Group research director Christine Barry, author of the May report.
In September, Goldman Sachs announced a collaboration with Volante Technologies that will see the bank use the cloud payments and financial messaging solution provider’s technology to process domestic and international payments on its digital transaction banking platform.
It doesn’t seem that [Goldman] offers all the pieces that leading banks deliver
Patricia Hines, head of corporate banking at Celent, reckons it will take Goldman some time to build out its offering to the point it could replace many of the primary banking relationships in place today.
Corporate banking generates as much as $85 billion in annual revenue in the US and the top five banks account for most of that income.