Cash Management System Market Size, Global Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Cash Management System Market


The global cash management system market size was valued at USD 9.86 billion in 2019 and is expected to register a CAGR of 12.6% from 2020 to 2027. 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 requirement by providing real-time access to the 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 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 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.

Component Insights of Cash Management System Market

Based on the component, the cash management system 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 of Cash Management System Market

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 receivable 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 of Cash Management System Market

Based on deployment, the cash management system market has been segmented into the 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 enterprises segment dominated the market in 2019, owing to the increased adoption of cash management system 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 SMEs 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 SMEs 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 operations, and commercial enterprises. The banks 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 improve technical proficiency of their employees. Various services offered by these systems include advanced web services, account reconcilement services, and balance reporting services.

The commercial enterprises 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 eStatements and balance and transaction information through a consolidated dashboard.

Regional Insights of Cash Management System Market

Europe region dominated the market for cash management system 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 a 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.

Market Share Insights of Cash Management System Market

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.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Cash Management System Market Research Report

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 2019 to 2030. For the purpose of this study, this market research report 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, 2019 - 2030)

  
Solution
  
Service

Operation Type Outlook (Revenue, USD Billion, 2019 - 2030)

  
Balance & Transaction Processing
  
Cash Flow Forecasting
  
Corporate Liquidity Management
  
Payables
  
Receivables
  
Others

Deployment Outlook (Revenue, USD Billion, 2019 - 2030)

  
Cloud
  
On-premise

Enterprise Size Outlook (Revenue, USD Billion, 2019 - 2030)

  
Large Enterprises
  
Small & Medium Enterprises

End-use Outlook (Revenue, USD Billion, 2019 - 2030)

  
Banks
  
Retail
  
Non-Banking Financial Corporations
  
Commercial Enterprises