The cash management conundrum
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Treasury

The cash management conundrum

There are only two truly global, fully fledged cash management banks today, but the digital arms race in transaction services gives far more banks the opportunity to be world class.

cashman-cover-780

The business of cash management is a conundrum. The new economy has broken down borders for companies. Few are constrained by their country of domicile as e-commerce grows.

If you make or sell a product, the chances are you can do one or both in multiple jurisdictions and therefore multiple currencies. Your cash management and supply-chain finance needs are complex and you require banking partners that can help you manage them. In some respects, therefore, transaction services have become the most global part of the banking industry.

And yet global cash management remains a business with very few global banks. And the fee pool remains steadfastly diluted. Whereas in areas such as capital markets and investment banking, or trading-based sectors such as FX or equities, market shares for the leading banks of 10% or more are commonplace, in cash management the share of global wallet for the biggest firms is less than 5%. 



We have focused heavily on dealing with the pain points of our customers: easing the process of funds transfer, providing payment-tracking facilities and improving security - Diane Reyes, HSBC


Make no mistake that cash management is a good business to be in.






Gift this article