Canadian Cash Management Slippage

In the 70's for approximately two decades, Canadian banks were considered leaders in cash management; not just at home but also in dealing with multi-national corporation needs in managing their Canadian operations. In fact the Canadian cash management products and services were the envy of many countries, especially those that did not have a national banking system and technology that stretched from coast to coast for same day credit and debit.
Now, a study by the Aite Group during the summer of this year with the Canadian banks finds that the banks are at " a technology crossroads" in meeting customers' customization needs. This has left the door open to foreign banks who are offering global solutions today. Some of the banks are showing a willingness to entertain vendor built solutions instead of their historical "built here" culture.
Cash is the life blood of businesses, large and small, and therefore the management of cash for corporations should be a strategic priority of those whose focus is handling cash-all FI's. Obviously there has been slippage internal with this strategic priority and consequently the resources and investments therein. Credit unions are beginning to look at this area as they get more involved with providing business services besides loans.
Perhaps, with more investment bankers setting bank priorities, there has been a decreased focus on the cash management value propositions. Whatever the reasons, there is an obvious need to get "back into the game" before further relationship erosions take place.

Pat Palmer | Thursday, September 02, 2010 | Comments (0) | Trackbacks (0) | Permalink