REACHING THE TIPPING POINT
Global Finance presents the winners of its 13th Annual Best Treasury & Cash Management Providers awards.
Transaction banking prices remain at historic lows, and corporates are reaping the benefits. As some banks are driven out of the market and new, regional competitors rise to fill the gaps, it is pushing traditional players not only to keep those prices low but also to work harder to meet the needs and wants of their corporate clients.
But this competitive landscape is simply a backdrop to the broader picture, in which banks face much higher regulatory costs and most of their investment resources are eaten up by those costs.
In addition, banks’ leverage ratios, liquidity coverage ratios and net stable funds ratios will rise under Basel III bank regulatory standards. Consequently, banks are reevaluating their transaction-banking client relationships as corporate deposits become a more costly form of bank funding.
The net result is that low prices for transaction processing services cannot last forever, and corporates should be prepared for the point at which the scale tips and costs for, and availability of, basic transaction banking services start to rise.
One development that could offset this dynamic is the rise of new platforms and models for transaction processing services that circumvent traditional bank offerings.
This year’s World’s Best Treasury & Cash Management Providers Awards looks at how these new models are rejuvenating the transaction processing market, and how corporates are benefiting from greater visibility into transaction life cycles to enhance overall working capital access and liquidity management.
Global Finance editors—with input from industry analysts, corporate executives and technology experts—used a variety of subjective and objective criteria in selecting winners across more than 60 categories. Factors considered include: profitability, market share and reach, customer service, competitive pricing, product innovation and the extent to which treasury and cash management providers have successfully differentiated themselves from their competitors around core service provision. In addition, we polled our corporate readers and factored in the results.
by Denise Bedell