Aite Group, LLC introduces new report based on the data received from two Aite Group surveys: a survey of 40 U.S. and 25 Canadian middle-market companies conducted in Q2 2008, and a survey of trade finance managers at 19 global banks during Q2 and Q3 2008.
The report covers the perceptions of middle-market companies regarding bank support for both trade finance and cash management, including the importance these companies ascribe to having a single bank provider for both services. Aite Group makes a case for banks to integrate their trade finance and cash management services to best appeal to middle-market businesses and differentiate themselves from the competition.
The results of survey indicate increased desire of middle-market companies to have both cash management and trade finance services in the face of one bank. The product and service suggestions that can be integrated are online reporting, foreign exchange, exceptions resolution and customer serving.79% respondents indicated that the function of online reporting via a single sign-on is “very important” to “extremely important”.
Among the respondents were 69% who said it is “very important” to “extremely important” to have a single bank provider for both services.
Middle-market companies should be significant targets for banks’ integrated strategies regarding trade finance and cash management,” says Nancy Atkinson, senior analyst and co-author of this report, Aite Group. The size of middle-market companies makes them more amenable to combining these services than large corporations or small businesses. By better integrating trade finance with cash management, banks can strengthen their relationship with this lucrative market segment.
L.D.