Cash Management System Market Analysis Report By Component, By Operation Type, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global cash management system market size was accounted for USD 9.86 billion in 2019 and projected to grow with a CAGR of 12.6% over the forecast period, 2020 to 2027. Growing automation in banking applications and the growth of the e-commerce sector are major factors to drive the market growth. Furthermore, the rising need for cloud-based services in banking for automation is expected to open new avenues for market growth over the forecast period. A cash management system allows banks to address customer’s demands by offering real-time aces of financial transactions.

The growing need for cash management solutions in the banking sector is projected to drive market growth. Many businesses are striving to manage transaction risk and improving financial efficiency. As a result, businesses are focusing to opt for cash management systems.

Moreover, several end users are adopting smart safe cash management solutions to overcome storage and cash handling issues. Additionally, these advanced safes enable businesses to monitor money handling operations.

The emergence of machine learning and artificial intelligence technologies in the cash management system enables businesses to provide accurate money flow forecasts. The machine learning and AI-based solutions process datasets such as bank statement inflows/outflows, customer invoices, and vendor invoices for accurate money flow forecasts.

However, the growing incidence of data theft and cyberattacks is expected to hinder market growth. In 2018, the World Economic Forum reported that the losses incurred due to cyberattacks across the globe were USD 1 trillion. Hackers are specifically targeting e-banking, interbank transfer processes, ATM management, and card processing for a data breach. This factor is expected to hamper the market growth over the forecast period.

Component Insights

By component, the market is segmented into services and solutions. The solution segment is projected to lead the market during the forecast period. This is due to the growing need for streamlining cash management processes and automation in fund transfer processes. Cash management solution helps to minimize manual work and manage complex money transfer processes. Several vendors are offering configurable automation algorithms according to business needs, thereby supporting businesses to improve their outcomes.

The service segment is projected to grow with a faster CAGR over the forecast period. Many businesses are adopting cash management services for processing their receivables and payables efficiently. These services help businesses to manage business operations efficiently and help businesses to optimize money flow and also manage liquidity.

Operation Type Insights

Based on operation type, the market is fragmented into balance & transaction reporting, payables, corporate liquidity management, receivables, cash flow forecasting, and others. In 2019, the balance and transaction reporting segment held the largest market share in terms of revenue. This is due to the growing adoption of the balance & transaction reporting modules by business treasurers to monitor receivables and payables accurately. The growing need to have more visibility in money transactions across multiple currencies, accounts, and geographies is anticipated to drive the segment growth during the forecast period.

The cash flow forecasting segment is projected to emerge as the fastest-growing segment over the forecast period. This tool is majorly used by banks and corporates to predict future money needs. Factors like economic uncertainty and intense competition in this market are encouraging organizations to deliver more value to their customers.

Deployment Model Insights

Based on the deployment model, the cash management systems market is classified into on-premise and cloud. The on-premise segment is projected to dominate the market during the forecast period. On-premise deployment enables businesses to control their business data and gives a sense of proprietorship over overcloud deployment.

The cloud deployment is expected to grow with the highest CAGR during the forecast period. This deployment is preferred by numerous businesses due to its several benefits and technical advancement. It offers low operational cost and easy up-gradation, thereby businesses or organizations do not need to upgrade services periodically. Additionally, cloud deployment has the ability to monitor, manage and control complex systems.

Enterprise Size Insights

These systems include services based on organization size, the market is segmented into large enterprises and small & medium enterprises. The large enterprise segment accounted for the largest market share, in 2019. This is due to the growing demand for cash management systems among large banks to manage account transactions and payments.

The SMEs segment is projected to grow at a high growth rate over the forecast period. Many small & medium enterprises are adopting advanced solutions to manage their cash flows. SMEs are adopting high-performance software to reduce transaction risk and increase profitability. Therefore, a rapidly increasing need to manage complexity in liquidity management will propel the demand for cash management systems.

End-use Insights

Based on end-use, the market is classified into banks, non-banking financial operations, retail, and commercial enterprises. The bank segment is projected to dominate the global market during the forecast period. Growing adoption of money management tools to reduce the time required for financial transactions and help to increase the net profit of banks are major factors responsible for segment growth.

These systems help to improve the technical efficiency of employees working in the banks. Services like account reconcilement services, balance reporting services, and advanced web services are offered by money management systems.

The commercial end-use segment is projected to grow with the highest CAGR over the forecast period. This growth is attributed to the growing adoption of money management tools by commercial businesses to improve their business cash flow. These tools help businesses to manage online payable, receivable, and reporting solutions to meet their business needs. Additionally, these tools enable easy access to eStatements, balances, and transaction information via a consolidated dashboard.

Regional Insights

In 2019, Europe dominated the global cash management system market. This dominance is obtained due to the presence of key market players such as Sopra Banking Software SA; Glory Global Solutions, Inc.; and Giesecke & Devrient GmbH in this region. The European Union is boosting its efforts towards advanced technologies like blockchain. As per Fintech Action Plan 2018, the European Commission plans to establish new Fintech Labs worldwide which is expected to open new opportunities for market growth.

Asia Pacific is projected to grow with the fastest CAGR during the forecast period. This is due to the growing need for a money management system and maximizes automation for financial automation across large enterprises. Factors such as growing demand for liquidity management and the rising need for enterprise-level connectivity are expected to boost the market growth in this region. In addition, large enterprises and SMEs are adopting tailor-made money management solutions to gain substantial returns on investment, which is expected to drive the regional market growth.

COVID-19 Impact Analysis

The outbreak of the COVID-19 virus has positively impacted the cash management systems market. Many companies have taken initiatives to preserve liquidity. Currently, they are focusing on managing a lengthy recession, planning for recovery, and trying to strengthen their market position in a pandemic situation. They are improving forecast accuracy in cash flows. Refreshing cash flow forecasts as new information arises, and monitoring key metrics like available cash and cash burn rate. These initiatives taken by businesses are expected to drive the demand for cash flow management systems.

Cash Management System Market Share Insights

The key players operating in the cash management system are NTT Data Corporation, Sopra Banking Software SA, Giesecke & Devrient GmbH, Oracle Corporation, National Cash Management Systems (NCMS), and Intacct Corporation. Integration of new technologies and constant focus on developing advanced features are key trends adopted by market players. Many businesses are focusing to expand their geographical presence which has led to increasing complexity with local banking partners. Thereby vendors are offering cloud-based solutions as per client needs.

To gain a competitive edge, vendors are adopting strategies like product development and collaborations. In addition, they are concentrating on differentiating their service offering to customers and also investing in research and development activities for innovating and updating their services and products. In 2019, Giesecke & Devrient GmbH announced the acquisition of Transtrack Internationa for the digitalization of the cash cycle. In the same year, Oracle partnered with Visa to help businesses for managing their cash flows efficiently.

Report Scope

Segments Covered in the Report

This 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 this study, Million Insights has segmented the global 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 Processing
    • 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.
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa