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Analytics and Cash Management

How Cash Management will become the bank’s greatest asset

 

Business banking is going to change. Today banks are primarily used as ways to carry out financial transactions. But in the future, banks will be primarily considered as trusted advisors. Of course they are to a degree already. They provide advice on risk management in particular. They do this through hedging products, investment advice, etc.

Advanced Analytics. For a long time, banks have sought to help businesses with management of payables, receivables, working capital and so on. But the approach has been largely transactional in nature. With advanced analytics, given enough of the right data, banks can use their industry expertise to analyze, model and predict implications of changing strategies. This includes strategies for early and late payment. It includes offering discounts to certain groups of customers for early payment. It covers inventory and receivables finance, and short-term investments.

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