Bank spending on cash management technology is set to grow by 7.1% in 2010, escaping IT budget restraints elsewhere in the industry, according to research from Boston-based analyst house Celent.
Although the online cash management technology market has reached maturity, it continues to be ripe for innovation and advancement, replacements, and new features, according to a new report from Celent.
"Cash management is taking centre stage this year in the wholesale banking space. It is receiving increased attention as banks look to upgrade or augment their aging platforms to woo business," says Jacob Jegher, senior analyst with Celent's Banking group and author of the report.
Given how quickly the Internet and customer expectations are morphing, Celent believes that a dramatic shift will take place at most banks over the next three years, with spending climbing to $904 billion by end-2010 and exceeding $1 billion in 2011.
The boom is likely to reap rewards for leading package suppliers, including ACI, Fundtech, S1 and Metavante. Celent believes that a great opportunity exists for one or more vendors to stand out from the pack by demonstrating a "differentiated Web 2.0 user experience".
"It is encouraging to see that a handful of early movers are starting to show signs of next-generation offerings," says Jegher, singling out S1, ACI and Fundtech as making the most inroads in this space.
None of them however, have yet to reach the point of delivering a true next-generation "Web 2.0esque" rich Internet application, he says.
"It will take a good 12-18 months before we begin to see cutting-edge corporate banking sites complete with Web 2.0 elements," the report concludes.