Cash Management System Market

Cash is the primary asset used by companies to settle their obligations regularly. A positive cash flow is important for good financial health. Cash management system is an automated solution designed to assist organizations in managing cash handling from end to end. It provides 360-degree view, transparent cash visibility that leads to accurate and reliable cash forecasting, prompt reporting, and optimal working capital utilization and help transition from cash preservation to cash excellence.

The global cash management system market size is expected to grow from USD XX.X billion in 2022 to USD XX.X billion in 2027, at a CAGR of XX.X%. Rising need to improve cash flow and enterprise visibility and reduce the cost of handling cash and save time with end-to-end cash management are boosting the growth of the market. An increasing need for automated cloud-based solutions in banking is expected to further create lucrative growth opportunities for the market.

Drivers: Compelling need to automate cash flow, save time, lower cost, and increase cash visibility and accuracy

Cash management systems are integrated tools designed to help businesses handle cash processing from end to end. Cash management solutions and services help enterprises from the point of intake to reconciliation by automating the cash-handling processes. These systems streamline the processes, which has numerous benefits for businesses. Major benefits include saving time, lower costs, and higher accuracy. Automation frees up employees’ time and speeds up the process of counting and reconciling cash. It also reduces errors and improves security. By freeing up employees’ time, cash automation helps organizations to improve customer service and productivity. This also reduces the costs of handling cash within the business. Banks are investing extensively in banking software that ensures ease of usability, is reliable and fortified with advanced security features. A larger focus is being oriented on the advancement of a cash management system, which includes high volume transfers between various accounts. It is expected that the cash management system market will generate an exponential level of revenues in the coming years across banking vertical. Since smaller banks and enterprises are growing in terms of strength, their increasing asset size is predicting a sharp rise in cash management. These factors are driving the growth of cash management system market globally.

Adoption of AI and advanced analytics to predict patterns in cash forecasting

Cash flow remains the cornerstone of a company’s health, but with pandemic impacts, changing consumer behaviors and supply chain disruptions, it has become harder to forecast it. The use of AI and advanced analytics in the cash management system is on the rise because it helps ensure the availability of data and knowledge around the business to make informed liquidity decisions. Predictive and prescriptive analytics allow companies to extract the vast volumes of data they need to further boost their sales output and financial performance. Predictive analytical techniques such as predictive analysis, rich data modeling, real-time analytics, and scoring can be used to predict patterns in forecasting. This helps to drive the growth of the cash management system market to expand and prosper during the forecast period.

Challenges: Software incompatibility during expansions, lack of expertise, and insufficient cash management skills

The software incompatibility during expansion has resulted in a major drawback for vendors providing cash management systems. This is ascribed to the interoperability problems faced by the systems when organizations collaborate or get acquired by another company. In addition, setting up a cash management system requires specific infrastructure which can be compatible with new services and software. Furthermore, incorporating new technologies into existing business needs high initial investments. Also, it is crucial that cash management systems have managers at the helm who have the necessary skills to understand every aspect of cash management. These skills include the ability to optimize and manage working capital, a clear knowledge of accounts receivable, a real time view of current liabilities and the cash reconciliation process. Collectively these factors are observed to hamper the market growth.

Key players in the market

Infosys (India), Oracle (US), HCL Technologies (India), Finastra (London), Sage Intacct (US), intimus (Germany), Giesecke & Devrient (Germany), NTT DATA (Japan), Aurionpro (India), and Glory (Japan) are few key players in the cash management system market globally.

Recent Developments

• In September 2022, Finastra and Wipro announced partnership in India to help corporate banks accelerate digital transformation by deploying Finastra’s leading solutions. Wipro is also one of Finastra’s preferred global partners for its Cash and Liquidity Management solutions.
• In January 2022, Oracle announced the launch of Oracle NetSuite Cash 360 to help businesses make more strategic cash decisions and improve forecasting.
• In September 2021, HCL Technologies and Finastra have expanded their partnership to drive digital transformation across South Korea and Taiwan. As part of the engagement, HCL will use its next-generation digital transformation and service capabilities to bring two of Finastra’s strategic products, Fusion Cash Management and Fusion Summit, to the financial services ecosystem in the region.
• In July 2021, Infosys’ digital core banking offering Finacle and Santander UK have announced the roll out of an international cash management platform as part of the ongoing digital transformation programme at the bank. Santander Global Connect will be powered by the Finacle Cash Management Suite that includes the Finacle Digital Engagement Hub, Finacle Online Banking, Finacle Payments, and Finacle Liquidity Management solutions.