Almost one-third (30%) of corporates with annual revenue of US$5bn and above are managing 21 or more cash management banks, according to a survey by SunGard AvantGard. Although the requirement for bank communication, the trend away from consolidating banking relationships and towards multi-bank connectivity has pushed the demand for a single point connectivity allowing for access to banks, SWIFT and even corporate to corporate communications.
The study, containing 358 responses from corporates throughout the US, Europe and Asia across 20 primary industries, also found that:
- For those same sized companies as above, 40% report that they are operating with 11 or more payment initiation systems, and 25% of the total has more than 21 systems.
- Only 12% of the companies reporting from the Americas have reached the point where they are able to pay more than 75% of their vendors electronically.
- When viewing companies in the US$500m and above range, on a global level, 44% are reporting that they are now connected to SWIFT. Of those not connected, it is predominantly organisations in the US$5bn or higher range with concrete plans to migrate – 53% stated having a SWIFT initiative.
Ken Dummitt, president of SunGard’s corporations business, said: “Despite the many advances we have seen in the past 10 years, there remains a requirement for a more structured and secure exchange for communication between business applications and entities in the corporate commercial ecosystem, particularly between corporations and banks. These survey results confirm the pressing need for improved connectivity between participants of the corporate commercial ecosystem.”
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