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Top 10 Trends in Cash Management: Moving Beyond the Status Quo

Top 10 Trends in Cash Management: Moving Beyond the Status Quo

As the U.S. cash management industry transitions for a challenging and more competitive environment, smaller players are strengthening and vying for the market share now held by the top five providers.

Boston, MA, October 31 – In a new report, Top Ten Trends in Cash Management: Moving Beyond the Status Quo, Aite Group examines some of the current trends promising to shake up the cash management industry over the next few years. It explores not only the critical business issues pushing banks to adopt new strategies, but also the impact on technology vendors in the space.

Today the top five cash management providers generate approximately 60% of industry revenue. Smaller institutions are growing in strength, however, by not only joining forces, but also by leveraging the latest technologies to differentiate themselves and level the playing field. By 2008, a portion of business is likely to shift down-market.

“Their more nimble structures also enable them to move more quickly with new initiatives and provide superior customer service,” notes Christine Barry, a research director with Aite Group and co-author of the report. “As a result, mid-size banks with between $9 billion and $30 billion in assets are likely to see the greatest growth in cash management revenues over the next few years as they, along with the small banks and new non-bank entrants, slowly chip away at the market shares of the current leaders.”

This is a 29-page Impact Report. Clients of Aite Group's Wholesale Banking service can download the report.