12 December 2017
visit www.solutions.lexisnexis.com

US corporates concentrating cash management business with valued advisors

30 November 2005  |  4360 views  |  0 global_4

Relationship building is back in fashion for US cash management banks as corporate treasuries take technology and high value service delivery for granted, according to a survey conducted by Greenwich Associates.

Greenwich Associates says the research shows that companies are raising the stakes for the banks competing for their cash management business and are willing to handsomely reward valued providers.

According to the study, some large US companies are concentrating as much as 85% of their business with their top three cash management providers. Firms are also extending their commitments to cash management service providers by putting their business out to bid less frequently.

However, companies are now taking technology and high service delivery for granted and are looking for banks to provide further value through advice.

According to the study, companies award four times as much cash management business to banks with which they have advisory relationships than to non-advisor banks. In terms of wallet share, advisory banks can claim as much as 45% of a company's cash management business.

But banks are increasingly viewing the cash management business as a critical entry point to companies' 'total wallet' for financial services of all types.

David Fox, consultant at Greenwich Associates, says: "From the bank's perspective, cash management has become just one part of a 'share of wallet' strategy that stretches from cash and treasury management to credit and investment banking services.

"Only when a company's overall wallet seems sufficiently large or valuable will many banks commit a dedicated representative or other significant sales and service resources to the client relationship."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EBS Prime pushing e-FX market to tipping point

EBS Prime pushing e-FX market to tipping point

03 August 2005  |  9475 views  |  0 comments
Program trading on the up

Program trading on the up

04 August 2004  |  4515 views  |  0 comments
Web Services found wanting in cash management tests

Web Services found wanting in cash management tests

02 October 2003  |  4495 views  |  0 comments
Top US banks explore Web services for cash management

Top US banks explore Web services for cash management

21 May 2003  |  7512 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.solutions.lexisnexis.comvisit http://info.nice.com

Who is commenting?

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11784 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
8707 views comments | 15 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7075 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
6817 views comments | 20 tweets | 11 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
6750 views comments | 17 tweets | 35 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job