The global market for cash management services was valued at US$ 3.0 Bn in 2021 and is growing significantly with a CAGR of 9.5% over the forecast period of 2022-2028. The need to contain costs and expenses is the principal driver of change in cash management in various regions. While multinationals are more proactive towards cash management practices, large professionally managed domestic companies with well-diversified portfolios are increasingly interested in maximizing benefits this way. Cash flow management software helps the company to meet cash flows, allows financial planning activities in the organization, and maintains capital expenditures.
The introduction of AI has fueled the growth of the market in the past years. The implementation of AI technologies such as machine learning, robotic process automation (RPA), and deep learning has transformed the process of cash management and forecasting. As a result, the cash management process resulted in increased efficiencies, increased productivity, and increased profitability. By eliminating the need for manual tasks such as reporting payables and receivables, technology improves the effectiveness of such tasks while also increasing efficiency by reducing time demand. Such factors are expected to drive the growth of the market in the near future.
Retail stores that accept, process, and store cash payments are expected to drive the growth of the market as the cash is kept in stores and the need for working capital grows. Furthermore, the cash management services market is highly vulnerable to internal cash shrinkage or theft. Internal employees were responsible for more than US$ 41 billion in shrinkage, according to the Global Retail Theft Barometer. This necessitates the need for an efficient money management system, which provides the market with lucrative growth opportunities.
However, software incompatibility during expansion has resulted in a significant disadvantage for vendors of cash management systems. This is attributed to system interoperability issues that arise when organizations collaborate or are acquired by another company. Furthermore, establishing a cash management system necessitates the installation of specific infrastructure that is compatible with new technologies.
The prevalence of finance management in organizations is expected to drive the market growth
Organizations have started focusing on the financial health of the company owing to a rapid rise in fraudulent activities and cybercrime. In addition, the shifting focus of key market players toward financial efficiency is expected to fuel the adoption of cash management services in the forthcoming years. Moreover, such technology helps banks to maintain cash flow and payments through an established network. This allows banks to scale money management systems to address corporate customers’ requirements by providing real-time access to transactions. Such demand from banks and financial institutions is anticipated to fuel the growth of the market. Besides, strong communication and banking infrastructure, minimal political and regulatory intervention, stable exchange rates, and zero-taxation policies are some of the key drivers of the cash management services market.
Europe dominates the global cash management services market
Europe holds a major share of the global cash management services market in 2022 and is further expected to continue the same trend over the forecast period. This growth is attributed to the presence of major players and the growing adoption of cash management services in the region. The Asia Pacific region is anticipated to emerge as the fastest-growing regional market over the forecast period owing to the increasing demand for money management systems to maximize the automation of high-volume financial transactions for large enterprises.
The rapid adoption of cash management services to avoid liquidity crises is expected to drive sales revenue for the North American cash management services market in the forthcoming years. The growing popularity of systems in developing regions, such as Latin America, is characterized by the increased spending on cash management software in the region. In the middle-east region, increased participation from the private players in the market coupled with low political risk and favorable financial regulations are expected to offer good investment opportunities for the Middle East and African markets.
Market Structure and Competitive Landscape
The global cash management services market is fragmented in nature and observes intense competition in the cash management services market. Some of the prominent players that contribute significantly to the global cash management services market include CMS Info Systems Ltd., Sage Intacct, Inc, PEC Corporation, Business Computer Projects Ltd., Oracle, National Cash Management Systems, Intimus International GmbH, ALVARA, and Aurionpro Solutions Limited among others.
Product launches, mergers & acquisitions, joint ventures, partnerships and collaborations, and geographical expansion are key strategies adopted by the players in the global cash management services market. These companies adopt numerous approaches to strengthen their market share and gain a competitive edge over other competitors in the market. Some of the key developments in the global cash management services market include,
- In May 2022, Aurionpro Market Systems Pte Ltd., an Aurionpro subsidiary announced the up-gradation of its partnership with Murex a financial software provider company as business partners.
- In April 2022, BankiFi a multi-bank aggregator platform announced the launch of its new open cash management platform in North America and raised US$ 4.8 Million.
- In August 2021, An Aurionpro subsidiary, Integro Technologies Ltd. announced the launch of “Smartlender Cloud”, which is a cloud offering from its lending product suite. The cloud offering is stated to help accelerate the bank’s digital transformation agenda.
- In November 2020, Aurionpro Solutions Ltd announced that they have been signed up by Arab Bank for Investment & Foreign Trade in UAE to implement their iCashpro+ Corporate Internet banking & Cash Management platform in order to enhance Al Masraf’s Corporate Banking services in the region.
Key Market Segmentation
RationalStat has segmented the global cash management services market on the basis of type of operation, deployment, enterprise size, end user industry, and region.
- By Operations Type
- Balance and transaction reporting
- Cash flow forecasting
- Corporate liquidity management
- By Deployment Mode
- By Enterprise Size
- Small & Medium Enterprises (SMEs)
- Large Enterprise
- By End User
- Non-Banking Financial Corporations (NBFCs)
- Commercial Enterprises
- By Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific
- Middle East & Africa
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
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Frequently Asked Questions (FAQs)
The global cash management services market is expected to grow at a CAGR of 9.5% during the forecast period 2022-2028.
Europe holds a prominent share of global cash management services.
The market volume of the global cash management services market is estimated at around US$ 3 Billion in 2021.
The global cash management services market is primarily driven by increasing fraudulent activities and the growing disposable income of companies.
Major companies operating in the Global Cash Management Services market include CMS Info Systems Ltd., Sage Intacct, Inc, PEC Corporation, Business Computer Projects Ltd., Oracle, National Cash Management Systems, Intimus International GmbH, ALVARA, and Aurionpro Solutions Limited among others.