A new report from Aite Group, LLC analyzes the key trends shaping the Canadian cash management space, the changing demands of customers, and explores new product offerings and online capabilities of the largest banks in Canada, in addition to outlining how the Canadian banking market risks falling behind, despite having what may become the world’s most efficient payment system.
Preparation for Truncation and Electronic Presentment (TECP) remains a key trend in the region, and Aite Group forecasts that 83% of the largest banks will offer corporate remote deposit over the next 24 months. However, national regulations limiting bank merger and acquisition activity have placed Canadian banks at a disadvantage to the increasingly global reach of banks in other regions. As a larger percentage of customers demand global account views and a single-customer experience, new market demands are driving banks to adopt more global strategies and offer more global product portfolios. Of the six leading Canadian banks surveyed, four stated that their middle-market customers are likely to use global banking products and international capabilities.
“Canadian banks have been successful at continuously growing their cash management revenues year after year, due to the dominance they have in their own market. Asthis industry grows increasingly global, however, country regulations preventing mergers – as well as a failure by some of the major banks to grow their presence in other parts of the world – may hinder their competitiveness as global providers,” says Christine Barry, research director, Aite Group and author of the report.
The report, titled “Canadian Cash Management: A Survey of the Country’s Largest Banks,” is the second in a series of reports on the global cash management industry, and is based on detailed surveys of the top five Canadian banks, as well as HSBC; the largest foreign bank in the region.