Customers want integrated cash management and trade finance services - Aite Group

Source: Aite Group

A new report from Aite Group, LLC examines the major trends currently shaping the U.S. cash management industry, as well as the changing demands of customers, new product offerings, and online capabilities of the 50 largest U.S. banks.

Customers are increasingly demanding real-time data, consolidated information, greater straight-through processing and more global capabilities. The last of a series of reports on the global cash management industry, this report is based on a survey of 15 of the 50 largest U.S. banks.

As the role of the corporate treasurer continues to expand, and the financial supply chain becomes more tightly integrated, corporate customers are demanding more tightly integrated product offerings from their banks. These customers no longer want to log into different systems for different products, and they want a single view of their financial positions that can be accessed through a single login. Cash management and trade finance seem to be the two product areas that banks around the globe are making the greatest effort to converge. One-third of U.S. banks surveyed currently offer their corporate customers a Web portal for integrating cash management and trade finance, while an additional 40% plan to do so over the next 24 months.

"In essence, customers are increasingly demanding a one-stop shop for all of their needs, including cash management, foreign exchange, trade finance, and asset management, says Christine Barry, research director with Aite Group and author of this report. "Interestingly, the largest of the top 50 banks have not been the only institutions responding to these demands. Banks of all sizes are building portals with varying degrees of success, depending largely on the number of back-end systems being integrated into a single front-end portal."

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