The Primary Challenges and Trends in European Cash Management: The Drive Toward Cash Optimization

Boston, MA, October 1, 2007 – A new report from Aite Group, LLC explores the major trends, challenges and new customer demands impacting the evolving strategies of large European cash management banks. It analyzes the specific enhancements banks will make to their product offerings and online cash management capabilities over the next 24 months. These enhancements will address the challenges faced by many corporate customers as they attempt to bring together account information from multiple systems, spreadsheets, and e-mail. Their ability to effectively manage their cash is also compromised by their heavy reliance on Excel spreadsheets and manual processes.

The report, "The Primary Challenges and Trends in European Cash Management: The Drive Toward Cash Optimization," which analyzes findings from Aite Group's July-August 2007 survey of 15 tier-one and tier-two European banks, considers that even as these banks remain consumed with complying with a changing regulatory environment, they must broaden their product offerings, enhance their international capabilities, and offer greater consolidation of global data to their corporate customers. As globalization continues to move down-market and the role of the corporate treasurer expands, local strategies are no longer sufficient. Banks will be forced to expand their services, or risk losing customers.

Forecasting tools are one service that could help banks expand their services. Aite Group estimates that less than 15% of tier-one and tier-two European banks currently offer forecasting tools to their corporate customers. An additional 29% of large European banks are "very likely" to "extremely likely" to offer those tools over the next 24 months.

"While some banks feel very strongly that offering forecasting tools is not the responsibility of the bank, many do recognize it as a possible revenue generator and an additional added-value service they can offer to customers," says Christine Barry, research director at Aite Group and author of this report. "Offering these tools creates yet another opportunity for banks to take on more of an advisory role with their customers, and provides a way to differentiate themselves from the competition."

This 56-page Impact Report contains 32 Figures. Clients of Aite Group's Wholesale Banking services can download the report.