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  • Global Cash Management Industry

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    Ajinkya
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    The global cash management industry faces challenges from increased competition and changing customer needs. Cash management involves collecting, concentrating, and disbursing cash flows for corporate customers. Major banks offer services like accounts, wire transfers, and check clearing. Competition is high internationally and within India from large domestic and foreign banks offering more advanced products. Traditional cash management products are declining as checks and accounts stagnate, while emerging technologies bring new automated clearing and payment options. Banks must improve forecasting, consolidate services, automate processes, and gain new insights to adapt and drive more business value in this challenging financial landscape.

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    Global Cash Management industry analysis

    Original Title

    Cash Management

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    The global cash management industry faces challenges from increased competition and changing customer needs. Cash management involves collecting, concentrating, and disbursing cash flows for corporate customers. Major banks offer services like accounts, wire transfers, and check clearing. Competition is high internationally and within India from large domestic and foreign banks offering more advanced products. Traditional cash management products are declining as checks and accounts stagnate, while emerging technologies bring new automated clearing and payment options. Banks must improve forecasting, consolidate services, automate processes, and gain new insights to adapt and drive more business value in this challenging financial landscape.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    10 views10 pages

    Global Cash Management Industry

    Uploaded by

    Ajinkya
    The global cash management industry faces challenges from increased competition and changing customer needs. Cash management involves collecting, concentrating, and disbursing cash flows for corporate customers. Major banks offer services like accounts, wire transfers, and check clearing. Competition is high internationally and within India from large domestic and foreign banks offering more advanced products. Traditional cash management products are declining as checks and accounts stagnate, while emerging technologies bring new automated clearing and payment options. Banks must improve forecasting, consolidate services, automate processes, and gain new insights to adapt and drive more business value in this challenging financial landscape.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 10

    Global Cash Management

    Industry

    Agenda
    Identify

    the structural features of the global


    cash management industry
    What is the nature of competition in the
    industry
    How does the structure imply upon the
    performance of banks in the industry
    What are the emerging challenges for the
    banks in the cash management

    Cash Management System


    Cash

    Management is a term that refers to the


    Concentration, Collection and Disbursement
    of cash .

    Benefits of CMS
    Funds available as per need on day zero, day one,

    day two, day three etc.


    Corporate can plan their cash flows,
    Bank interest saved as instruments are collected
    faster
    MIS reports customized to meet individual corporate
    requirement
    Single point enquiry for all queries.
    Pooling of funds at desired locations.

    Structure Of Industry
    Products Offered in Cash Management
    Services are:
    Account

    Lockboxwholesale

    reconciliation
    services
    Demand deposit Accounts Lockboxretail services
    Automated clearing house Purchasing Cards
    Information reporting
    Wire transfer
    Electronic Data Interchange Check Clearing
    Controlled Disbursement
    Coin & Currency

    Nature of Competition
    International

    High
    Level of Competition
    In India, Major banks
    such as BOI, HDFC, SBI,
    AXIS are offering CMS
    Large Corporates have
    high bargaining power
    Foreign banks like
    Deutche and HSBC
    offering more advanced
    products increasing the
    competition for Indian
    banks

    Performance of Banks
    CDA,

    DDA and Checks are showing a declining trend


    Checks are expected to show a declining trend
    DDA growth has stagnated due to focus on other
    products.
    CDA growth can be picked up again by distributing
    focus on the relevant clients and advising the
    benefits.
    Primary products have stagnated including C&C,
    WLBX, RLBX and ARP which are expected to
    stagnate due to electronic clearing processes

    Performance of Banks
    20.00%

    Revenue Growth Rates For Cash Managment Products

    15.00%
    14.00%
    10.00%

    5.00%

    6.50%
    4.00%

    0.00%

    4.00%

    3.50%
    1.00%

    1.00%

    0.50%

    0.00%
    -2.00%
    -4.00%

    -5.00%

    -10.00%

    -5.50%

    Challenges in Cash Management


    Industry

    Treasury is under increased pressure to drive additional


    business value.

    Financial Landscape becoming more challenging to


    forecast

    Forecasting must improve in speed and quality

    Consolidation

    Automation

    New level of insights

    THANK YOU

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