Aite Group Evaluates US Cash Management Vendors In Its New Report

A new report from Aite Group, LLC examines the demand for browser based cash management applications by US financial institutions. It also explores the key trends and areas of focus for technology enhancements in this space, and analyzes the key

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A new report from Aite Group, LLC examines the demand for browser-based cash management applications by US financial institutions. It also explores the key trends and areas of focus for technology enhancements in this space, and analyzes the key cash management applications offered by nine leading US technology providers.

As the cash management product area has grown in importance, so too has the technology that supports it. Technology is required to meet the more demanding needs of bank customers and enhance their overall experience. It also has the potential to differentiate banks, and drive new market share for institutions of all sizes. Vendor-built cash management technologies have evolved significantly over the last couple of years, and now scale to meet the needs of even the largest institutions. In the coming months, we will increasingly see these applications utilizing more advanced technologies such as Web 2.0 to offer a more customer-driven and interactive online experience, as well as new enhancements which add more sophisticated functionalities such as multi-bank reporting, greater international payment capabilities and more analytical cash position reports. The applications will also integrate more tightly with other third-party applications as vendors implement new portal strategies and offer users a more familiar interface.

“Cash management and treasury services have always been important product areas for banks, but the current financial crisis is shifting bank priorities and making them more important than ever before,” says Christine Barry, research director with Aite Group and author of this report. “New requirements placed on financial institutions to provide more operational information and transparency to regulators, coupled with a greater focus on cost efficiency, are driving institutions to consolidate vendor relationships. As a result, institutions are showing a preference for breadth of product offerings over depth of cash management functionality, placing the core vendors in an advantageous position and challenging the more specialized providers to consider merger-and-acquisition activity.”

The report analyzes cash management applications offered by ACI Worldwide, Bottomline Technologies, Digital Insight, Fidelity National Information Services, Fiserv, Fundtech, Harland Financial Applications, Metavante (to be acquired by Fidelity National Information Services) and S1. The applications are compared based on key strengths and weaknesses, levels of usability, recent enhancements and product roadmaps. Vendors are awarded for success in five categories: relating to deployments, usability, functionality, international capabilities, and future prospects.

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