Aite report stresses urgent need for cash management evolution

Banking And Financial Messaging

Jessica Cheney

Jessica Cheney

Dec 9, 2021

Regardless of company size, cash management used to be about one thing: Liquidity. It’s not that this focus has changed; it has taken on new dimensions at a speed and scale that demand financial leaders follow and manage the flow of their cash and liquidity in a business landscape defined by economic uncertainty, global volatility, and continued regulatory complexity. That landscape is highlighted in a new report from Aite Novarica, “Aite Matrix: Leading U.S. Cash Management Vendors”. According to Aite Noverica, the market for cash management solutions is driven by technology and changing client expectations that must be addressed by flexible digital solutions.

You can find a full version of the report here, and it’s packed with data and insights. As I see it, there are five key takeaways to focus on for FIs and corporates as they navigate their cash management evolution:

  1. Real-time urgency: The focus on liquidity and the optimization of financial processes in real time has never been more important. According to the report, “real-time cash management” is growing in adoption and use cases, and it stresses that technology partners must support not only real-time payments but also the request to pay feature and the enriched customer experience supported by the accompanying real-time messaging associated with real-time payments. Businesses of all sizes see important use cases for real-time payments driving up need and adoption. Technology providers must support not only real-time payment initiation but also request to pay for a richer experience.
  2. Seamless digital experiences: For banks it means that the organizational silos that support the various products corporate clients use need to be hidden . Clients need to be able to seamlessly acquire, access and use the various products supplied by the Bank, regardless of the organization within the bank providing the solution. Tight integration between the products makes them more valuable to the end user.
  3. Data And Analytics: Vast amounts of data are available to both Banks and Corporates but the real value technology solution can provide are intelligent insights garnered from the data. Actionable insights related to customer retention and growth or improved financial decisions are key use cases.
  4. Cloud infrastructure: The cloud is enabling faster innovation. The report states: “The cloud is increasingly being embraced by even the largest banks around the globe. Cloud technology enables faster speed to market, reduced capital expenditures, and the ability to take advantage of the latest solution enhancements in a secure and easily accessible environment.”
  5. Flexibility: Banks want a highly differentiated, flexible cash management solution that will allow them to add and subtract new products and capabilities without disrupting the ecosystem they have already built. Vendor SDKs are an essential part of any evaluation and purchase process.  

Finally, and perhaps most importantly, the report sees a rise in cash management platform replacements and an urgent need to do so. “This increase will be due to pent-up demand and a greater urgency to better meet new client expectations,” the report stated, “and correct deficiencies with legacy platforms made obvious as a result of the pandemic.”


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Jessica Cheney

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Jessica Cheney

As the VP of Product Management and Strategic Solutions for Bottomline’s Banking Solutions, Jessica drives the creation of strategic solutions that facilitate financial institutions’ growth in commercial banking. Jessica has more than 25 years of cash management experience with banks and software providers, including leadership roles at S1, Clear2Pay and US Bank.
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