The migration from paper to electronic payments has important strategic implications for bank treasury management. David Robertson and Michael Hunstad of Treasury Strategies assess the impact of this shift on the US market for payments processing and suggest an action plan for financial institutions.
The authors project that declining paper volumes could reduce treasury management revenues by five to ten per cent and pre-tax profit by as much as 15-25%.
The impact for a particular institution will depend upon a variety of factors, including customer portfolio composition, operating infrastructure, scale position and business strategy.
Financial firms need to understand the change in revenues and cost position and refine their factory and business strategy accordingly.» Download the document now 351Kb PDF