Barclays reports that 55% of its corporate clients consider innovation critical to achieving their treasury/cash management goals, and that number is only expected to increase as banks invest more in technological advancement and innovation. Moreover, global organisations with a turnover of US$1bn+ are increasing their focus on cash and treasury management to support business growth and manage costs and investments.
In its recent Cash Management survey, Barclays reported that there is a clear need to drive innovation in the cash management space, with 25% of survey respondents committed to investing between US$500,000 and US$1m+ towards advancement in the next 12 to 24 months. However, 90% consider cost and quality of innovation as a roadblock, while slightly more than 25% are wary of implementing innovation either due to a reluctance to adopt new technology or a lack of understanding of the current products and services available.
“Corporations of all sizes are increasingly turning to their financial institutions to provide them with cash and treasury management services that genuinely transform the way that they operate,” said Oliver Baillie, head of cash management, Middle East at Barclays. “Demand from corporate clients, in addition to the competitiveness of the cash management marketplace, is driving an abundance of innovation in this space.”
Barclays insists that banks that invest in enhancements to core products and functionality are able to have more strategic dialogue with their corporate clients. Survey respondents said that innovation will lead to improving process efficiency, reduce cost, facilitate business activity and build improved customer experience.
Added Baillie: “Nearly 70% of the surveyed consider banks as their most important partner for innovation and 80% of our clients have placed us in their innovation agenda going forward.”
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