European banks will spend 450 million on front-office web-based cash management technology in 2003, and the sum will rise steadily to 640 million in 2005. Or so says Celent Communications in a new, 45-page report, European Web-Based Cash Management Solutions .
In the report, published today, Celent Communications analyst Isabella Fonseca looks at the solutions offered by ten leading vendors of web-based cash management solutions – Cambista Technologies, Eontec, Financial Objects, i-flex Solutions, Kyriba, CashTech Solutions, Fundtech, Infogroup, Misys, and S1 – and ranks them on depth of functionality, reputation, financial stability, technology supported, flexibility and customization, and deployment methods supported. The analysis is based on questionnaires, interviews, and client references.
“Current economic conditions, the introduction of the euro, and increasing competition have spurred a re-evaluation of corporate banking services in the European market,” says Fonseca . “Although PC-based corporate cash management solutions have long dominated the European banking landscape, European banks will slowly migrate to Internet-based technology. They will adopt vendor solutions to lower long-term maintenance costs and stay competitive. It is an opportunity for solution providers targeting the European market.”
The study also includes a discussion of the major developments and trends in European cash management , which Celent argues is on the cusp of major upheavals, as current economic conditions, the introduction of the euro, and increasing competition prompt corporate clients to demand more sophisticated services while banks are faced with high internal costs to update and maintain its existing technology.