Cash Management System Market Size, Share & Trends Analysis Report By Component (Solution, Service), By Operation Type, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global cash management system market size to be valued at USD 25.37 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 12.6% during the forecast period. The growth can be attributed to the rise in the e-commerce sector and the increased adoption of automated applications in the banking sector. An increasing need for automated cloud-based solutions in banking is expected to further create lucrative growth opportunities for the market. The cloud-based cash management system can be easily integrated into existing enterprise resource planning (ERP) systems that help banks manage money flow and payments through a network. This allows banks to scale money management systems to address the corporate customers’ requirements by providing real-time access to transactions.

The increasing need for centralized cash management solutions in banking transaction processes is anticipated to propel the market growth. These solutions allow businesses to overview information about cash and financial transactions. Numerous businesses are focusing on driving financial efficiency and managing transaction risk. As a result, businesses are widely adopting a centralized cash management system.

Growing adoption of smart safe cash management solutions across various end-uses is anticipated to fuel market growth. Smart safe solutions help businesses overcome cash handling and storage issues. These technologically advanced safes allow businesses to monitor cash at every step of the money handling process. These safes provide clear visibility into the money flow at all times.

The integration of machine learning (ML) and artificial intelligence (AI) techniques in the financial sector is expected to create growth opportunities for the market over the forecast period. AI and ML platforms are helping businesses in providing the most accurate money flow forecasts. The AI and ML integrated solutions are widely adopted by enterprises as these solutions seamlessly integrate with accounting systems, enterprise resource planning (ERP) systems, and bank management systems. The ML and AI algorithms process datasets, including vendor invoices, customer invoices, and bank statement inflows/outflows for accurate and comprehensive money flow forecasts.

Increasing cyberattacks and data theft are, however, hindering the market growth. In May 2018, the World Economic Forum stated that the worldwide losses that occurred due to cyberattacks reached USD 1 trillion. Cyber-attackers are targeting card processing, e-banking, ATM management, and interbank transfer processes for data theft. This, as a result, is obstructing market growth and creating challenges for securing financial transactions data.

Cash Management System Market Trends

The introduction of AI (artificial intelligence) has been fuelling the market’s growth. The process of cash management and cash forecasting has been revolutionized by the implementation of AI technologies such as machine learning, robotic process automation (RPA), and deep learning. The process of cash management thus resulted in greater efficiencies, enhanced productivity, and higher profitability. The technology benefits by eliminating the need for manually performing the tasks like reporting payables, receivables, and others enhances the effectiveness of such tasks, along with increases the efficiency by reducing time demand.

The majority of transactions that occurred in the retail sector are cash transactions. Retail stores are required to accept, process, and store cash payments along with the required amount for change. The need for working capital increases due to the cash kept at stores, also handling cash leads to waste of human resources. In addition, this sector is highly prone to experience internal cash shrinkage or stealing. According to Global Retail Theft Barometer, over $41 Billion of shrinkage was done by internal employees. This necessitates the requirement for an effective money management system thus providing lucrative growth opportunities to the market.

However, the software incompatibility during expansion has resulted in a major drawback for vendors providing cash management systems. This is ascribed to the interoperability problems faced by the systems when organizations collaborate or get acquired by another company. In addition, setting up a cash management system requires specific infrastructure which can be compatible with new services and software. Furthermore, incorporating new technologies into existing business needs high initial investments. Collectively these factors are observed to hamper the market growth.

Component Insights

Based on the component, the market has been segmented into solution and service. The solution segment is expected to dominate the market over the forecast period owing to the increasing need for fund transfer process automation and streamlining of money management processes. The cash management solutions enable businesses to simplify complex money transfer processes and reduce manual workload. Numerous vendors are focusing on offering configurable automation algorithms as per the business needs. For instance, Cashbook is focused on offering configurable automation algorithms to business ERP systems, thereby helping businesses improve their outcomes.

The service segment is expected to register the highest CAGR over the forecast period. Various businesses are adopting cash management services to efficiently process their payables and receivables. These services help businesses optimize money flow position and further help drive effective management of the business operations. Moreover, these services allow businesses to predict money flow and manage liquidity.

Operation Type Insights

Based on the operation type, the market has been segmented into balance and transaction reporting, cash flow forecasting, corporate liquidity management, payables, receivables, and others. The balance and transaction reporting segment dominated the market in 2019, owing to the increased adoption of balance and transaction reporting module by business treasurers to accurately monitor all receivables and payables in real-time. An increasing need to gain visibility into money transfer activities across multiple accounts, currencies, and geographies is further anticipated to drive the segment growth over the forecast period. Moreover, these modules allow businesses to maintain control over money flow and liquidity.

The cash flow forecasting segment is anticipated to register the highest growth over the forecast period. The money flow forecasting tools are widely used by corporates and banks to identify future money needs. Various factors, such as highly competitive industry and economic uncertainty, are propelling organizations to deliver more value to their customers. The need for an effective money demand measurement is rapidly growing, which is expected to fuel the segment growth during the forecast period.

Deployment Insights

Based on deployment, the market has been segmented into cloud and on-premise. The on-premise deployment segment is anticipated to continue its dominance over the forecast period. This deployment method allows businesses to have control over their business data and offers a sense of proprietorship compared to cloud deployment. Moreover, the on-premise deployment process permits large-scale customization of services and products whilst offering infrastructure flexibility.

The cloud deployment segment is anticipated to register the highest growth over the next eight years. The cloud deployment mode is preferred by a wide range of businesses owing to the advancements in technology and numerous benefits it offers, such as easy upgradation and low operational cost. The advantage of this deployment method is that businesses that are using cloud services need not upgrade those services constantly. Moreover, this deployment enables the ability to manage, monitor, and control large and complex systems.

Enterprise Size Insights

Based on the enterprise size, the market has been segmented into small and medium enterprises (SMEs) and large enterprises. The large enterprise segment dominated the market in 2019, owing to the increased adoption of cash management systems in larger banks to precisely manage payments and basic account transactions. These systems include services like image lockbox and automated clearing house (ACH) receipt. Moreover, the systems also offer payables automation services, which, in turn, is expected to fuel the demand in large enterprises.

The SME segment is anticipated to register the highest growth over the next eight years. Numerous small and medium enterprises are turning to software solutions to control their cash flows. As liquidity management becomes more complex, various SMEs across the globe are investing in high-performance software with the view of reducing transaction risk and increasing profitability. The rapidly increasing SME sector is anticipated to create growth opportunities for the market in near future.

End-use Insights

Based on end-use, the market has been segmented into banks, retail, non-banking financial corporations, and commercial enterprises. The bank segment is expected to dominate the market over the forecast period owing to the increased adoption of money management systems to reduce the time required for the transaction process and to help increase the high net profit of the banks. These systems also help the banks to improve the technical proficiency of their employees. Various services offered by these systems include advanced web services, account reconcilement services, and balance reporting services.

The commercial enterprise segment is expected to emerge as the fastest-growing end-use segment over the forecast period. Various commercial businesses are widely adopting money management tools to optimize their business cash flow. These tools allow businesses to access a suite of online receivable, payable, and reporting solutions to meet the needs of the business. Moreover, these tools allow easy access to e-Statements and balances and transaction information through a consolidated dashboard.

Regional Insights

Europe region dominated the market for cash management systems in 2019. The growth can be attributed to the presence of prominent market players, such as Sopra Banking Software SA; Giesecke & Devrient GmbH; and Glory Global Solutions, Inc. The European Union is accelerating its efforts to foster work around advanced technologies such as blockchain. According to Fintech Action Plan 2018, the European Commission plans to form new Fintech Labs across the region, thereby creating growth opportunities for the regional market.

Asia Pacific is anticipated to emerge as the fastest-growing regional market over the forecast period. The growth can be attributed to the increasing demand for money management systems to maximize the automation of high volume financial transactions for large enterprises. Various factors, such as the increasing need for enterprise-level connectivity and a rise in demand for liquidity management, are anticipated to propel the growth. Moreover, large as well as small and medium enterprises in the region are deploying tailor-made money management solutions to attain significant returns on investment.

Key Companies & Market Share Insights

Key market vendors include Sopra Banking Software SA, Intacct Corporation, NTT Data Corporation, National Cash Management Systems (NCMS), Giesecke & Devrient GmbH, and Oracle Corporation. Continuous focus on offering advanced features and integration of cutting-edge technologies are some of the key trends observed in the market. Numerous businesses continue to expand globally, due to which their connectivity to local banking partners and networks is becoming more complex. As a result, vendors are focusing on offering cloud-based solutions to cater to their client needs.

Collaborations and new product developments are some of the key strategies adopted by the vendors to gain a competitive edge. The vendors focus on collaborating with financial service providers to launch inter-bank money management systems for their business clients. Players are constantly focusing on innovations to personalize and differentiate their solution and service offerings for potential customers. They also focus on investing in R&D activities for updating and innovating products and solutions.

Recent Development

• In May 2022, Aurionpro Market Systems Pte Ltd., an Aurionpro subsidiary announced the up-gradation of its partnership with Murex a financial software provider company as business partners.

  In April 2022, BankiFi a multi-bank aggregator platform announced the launch of its new open cash management platform.

• In August 2021, An Aurionpro subsidiary, Integro Technologies Ltd. announced the launch of “Smartlender Cloud”, which is a cloud offering from its lending product suite. The cloud offering is stated to help accelerate the bank’s digital transformation agenda.

• In November 2020, Aurionpro Solutions Ltd announced that they have been signed up by Arab Bank for Investment & Foreign Trade in UAE to implement their iCashpro+ Corporate Internet banking & Cash Management platform in order to enhance Al Masraf’s Corporate Banking services in the region.

Cash Management System Market Report Scope

Global Cash Management System Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the cash management system market report based on component, operation type, deployment, enterprise size, end-use, and region.

• Component Outlook (Revenue, USD Billion, 2016 - 2027)

  • Solution

  • Service

• Operation Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Balance & Transaction Reporting

  • Cash Flow Forecasting

  • Corporate Liquidity Management

  • Payables

  • Receivables

  • Others

• Deployment Outlook (Revenue, USD Billion, 2016 - 2027)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2027)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Billion, 2016 - 2027)

  • Banks

  • Retail

  • Non-Banking Financial Corporations

  • Commercial Enterprises

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa