Fifty-five per cent of clients that took part in a recent cash management survey by Barclays consider innovation vital in achieving treasury/cash management goals and the number will only rise as banks invest in more advanced technology.
It was found that global organisations with a turnover above $1bn+ were increasingly focusing on cash and treasury management to support business growth and manage costs and investments.
The survey found that “the industry has voiced a clear need to drive innovation in the cash management space with 25 per cent of respondents willing to invest $500k–$1m+ towards advancement in the next 12 to 24 months.
“Of the interviewed, 90 per cent considered cost and quality of innovation as a roadblock to growth in the space. A little over 25 per cent were wary of implementing innovation due to their reluctance to adopt new technology coupled with lack of understanding of the current products and services available in the market”.
Commenting on the analysis, Oliver Baillie, head of cash management, Middle East at Barclays, said, “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. Demand from corporate clients, in addition to the competitiveness of the cash management marketplace, is driving an abundance of innovation in this space.”
It was clear that banks that invested in enhancements to core products and functionality were able to move up the value chain, had more strategic dialogue and helped clients deliver improved efficiency. As per the survey, corporates said that innovation would lead to improving process efficiency, reduce cost, facilitate business activity and build improved customer experience.
He added, “Nearly 70 per cent of the surveyed consider banks as their most important partner for innovation and 80 per cent of our clients have placed us in their innovation agenda going forward.”
The overall feeling was that with entrepreneurism on the rise in the Middle East and businesses enjoying rapid growth, scalable and efficient cash management practices were essential to maintaining control of corporates’ finances.