Trends in Canadian Cash Management: A Technology Crossroads
A new report from Aite Group analyses key trends in the Canadian cash management industry, including its evolving competitive landscape. Based on Aite Group interviews conducted during July and August 2010 with the six largest Canadian banks, as well as with HSBC and Citigroup (two large global banks with a presence in the country), the report also evaluates the state of Canadian cash management technology and the ways in which Canadian banks can better leverage technology to effectively address the changing needs of cash management customers.
Canadian banks are at a technology crossroads. Their cash management customers demand greater customisation and require global capabilities to meet their evolving business needs. Meanwhile, loosened regulation has allowed large foreign banks to increase their focus on the region and attempt to woo Canadian businesses by offering global platforms and modern architectures.
While the online cash management offerings of large Canadian banks are capable of meeting the current functionality needs of most of their clients, they are an average of eight to 10 years old and desperately in need of a face-lift. As Canadian banks begin to enhance their current offerings, initiatives are falling into four key focus areas: customising the user interface, creating a single platform for all cash management customers, converging single products through a common portal, and enhancing functionality.
“While all of the major Canadian banks recognise the need to ramp up their online capabilities, each remains at its own stage of the process,” said Christine Barry, research director with Aite Group and co-author of the report. “This has created opportunities for those furthest along to leap ahead of their competitors; as they re-evaluate their strategies, many are demonstrating a greater willingness to deploy vendor-built solutions than they have in the past.”