Cash management poll 2008: Cash captains see their ship come in
For so long seen as a banking backwater, cash management’s time has come. Revenues are high-margin, stable and growing. Products such as liquidity management will only grow in importance. And, with the huge client bases involved for the biggest players, it’s a gateway into a lot of other business. Laurence Neville reports.
Cash captains (l-r): Paul Galant (Citi), Werner Steinmüller (Deutsche), Andrew Long (HSBC), Brian Stevenson (RBS/ABN Amro)
THE TIMING OF the cash management industry’s annual Sibos jamboree in Vienna in September appeared symbolic. The event was book-ended by Lehman Brothers’ collapse and Bank of America’s absorption of Merrill Lynch the weekend before delegates arrived and Goldman Sachs’ and Morgan Stanley’s shock decisions to become bank holding companies the following weekend. The significance of the seismic shift occurring in investment banking was not lost on delegates. It seemed no coincidence that as they discussed the explosive growth of transaction services, the last two sizeable independent investment banks in the US were preparing to raise the white flag. Although no one cared to voice it, the underlying message was clear: here are the new masters of the banking universe.