Commercial Banking V: Three Banks Cashing in with Treasury Management Tools
This follow-up to last week’s post on the evolution of treasury management is part of our series on all aspects of commercial banking. This week we’re taking a look at the three banks leading the way in treasury management.
In the face of increased regulation the role of the treasurer has evolved, creating a gap in the market for enterprising banks (pun intended). The result of this is that treasurers need increasingly powerful tools to help them track liquidity, measure counterparty risk, create forecasts, and respond to changing markets. Recent studies show that there are big gains to be made by banks that are willing to invest in IT to deliver better tools to wealth management clients. It’s obvious that banks who want to tap into this segment must develop the technologies that will enable their clients to succeed in a globally regulated marketplace. Some banks have already released competitive offerings that are winning them clients. We take a look at the three award-winning banks who are currently leading the way.
For the last three years, Citibank has been leading the charge in developing new tools and features for treasury clients. This is likely because they recognize that “treasury departments are increasingly going beyond traditional core functions to take broader roles in the enterprise. As business operating models evolve, treasurers are becoming strategic partners to the business”. To meet treasurer’s needs, Citi Treasury and Trade Solutions has created a global network called Liquidity Management Services which includes; Treasury Advisory, Liquidity Analytics, Optimization, and a suite of Cash Aggregation services. All available through the industry’s most comprehensive range of digital and mobile platforms, tools and analytics.
CitiFX Pulse– CitiBank’s developed specifically for and only available to their corporate clients so they can stay abreast of the markets 24/7.
Bank of America Merrill Lynch has become a strong contender in treasury management since they bought Merrill Lynch in 2008. Paul Simpson, Head of Global Transaction Services, stated that “Treasury is changing dramatically, just as we have seen with the enhanced role of the CFO. In the past, it was rare that the treasurer or CFO would play an active role in the supply chain process, whereas today, optimizing the financial supply chain is often a key objective in order to maximize working capital.” BofA Merrill Lynch has launched a global portal called CashPro Online, which allows treasury clients to login to the platform to manage their accounts and supply chains. In July of this year they also released a suite of cloud-based cash management software to meet SME treasury needs.
The third and final of our treasury management heavy hitters is Deutsche Bank is perhaps the most innovative of all. Their Next Generation Treasury Solutions are totally focused on improving efficiency and tailoring functionality to meet their clients’ needs. To accomplish this they have built an independent app platform called Autobahn App Market, packed with 150+ tools like the Liquidity Manger app, to ensure greater centralization, standardization and simplification for the changing needs of treasurers. The system is the first of its kind and enables seamless combinations of products and services to ensure total support across both the supply chain and payment factory structures from a single platform.