Customer need, driven by consumer experience, is precipitating seismic changes in the cash management industry. But are there cash management solutions for banks that can keep pace with those demands? The answer is a resounding yes, but the more important question to ask is whether or not banks are ready to implement the next-generation technologies they need to meet the growing (and unaddressed) needs of their corporate customers.
A recent Aite report, “Digital Cash Management Solutions: the Time to Replace is Now” takes an in-depth look at the drivers for all of this change as well as the key trends that are pointing banks toward system replacement.
The report’s assertions seem obvious -- the need for an overhaul in cash management solutions for banks comes down to the simple fact that corporate treasurers are no longer comparing their user experience with a particular bank to that of other banks. Instead, the benchmark is now a treasurer’s overall digital experience. That sets an extraordinarily high bar when you consider the sleek, streamlined and intuitive experiences offered by juggernauts like Amazon and Netflix. Banks are generally not prepared to provide such industry-leading experiences, however, and because of that the chasm between customer expectation and bank offerings grows wider with each day.
But that doesn’t mean all is lost.
Cash management, like most banking services, is an area that’s increasingly becoming commoditized. Smart banks have an opportunity to rethink the ways they deliver their products and the tools they offer to support and enhance value. By evolving their strategies in this way, they can create a significant competitive advantage in an age when financial institutions are very vulnerable to losing business to more forward-thinking and agile competitors.
For a full analysis of the trends shaping the market, including:
- New expectations for user experience
- A desire to solve key customer pain points
- The blurring of needs across customer segments
- A growing focus on becoming the primary bank
- The need to stand out
..check out Aite's report, "Digital Cash Management Solutions: the Time to Replace is Now."