The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Cash management takes to the internet

Although the internet is not tearing up the rule-book in cash management, it is subtly altering the banks’ business models, both changing the way banks provide these services and creating a new class of customers. By Chris Cockerill.

For years banks' cash management businesses have focused on collecting receipts and executing payments for large traditional companies, minimizing their short-term borrowing needs and perhaps earning them a few basis points on overnight deposits of spare cash. Efficient management of cash resources is a boon to large companies. Banks that do it well earn good returns and tie themselves closely to companies as key banking providers. The leading banks have each invested hundreds of millions of dollars in the infrastructure required to move and monitor cash balances safely. In recent years, the trend has been towards large companies outsourcing large parts of their treasury operations to the biggest and most technologically advanced cash management banks.

Then came the internet.

Although the internet is not tearing up the rule-book in cash management, it is subtly altering the banks' business models, both changing the way banks provide these services and creating a new class of customers.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree