e-Financial Supply Chain: An Attainable Summit

January 27, 2004

Abstract

San Francisco, CA, USA January 27, 2004

Part I of III: Banks' Potential to Lead the Trek

Banks must take a leadership role in the migration of businesses’ financial supply chain to the electronic realm. If not, they risk being relegated to the low-margin payment clearing and settlement business while non-banks win in high-margin, information-related businesses.

In a new report, , Celent examines the opportunities for banks to expand their role in the financial supply chain, from purchase order to payment settlement and reconciliation. Within their historical stronghold, electronic payment-related services promise profits that eclipse those of traditional paper-based services. The most lucrative opportunities, however, lie not in banks’ historical domain but rather in system integration and information-related services. Banks can add significant value by integrating their systems into their clients’ ERP/accounting systems, building a critical electronic bridge over a manual abyss.

According to

Alenka Grealish, author of the report and manager of the banking group at Celent, "The greenfield opportunity is vast, but it’s not forever. In ten years, this green market will be mature; most companies will use e-invoices and e-payments. Banks must act soon to establish a long-run position because early movers will likely sustain an advantage based on their track records. Currently, slightly less than half of the top 20 treasury services banks risk being also-rans."

The report profiles the initiatives of five banks (Bank One, JPMorgan Chase, Mellon, U.S. Bank, and Wells Fargo) that are exemplary.

A is available online.

of Celent Communications' Wholesale Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

San Francisco, CA, USA January 27, 2004

e-Financial Supply Chain

Return to report Abstract

 

EXECUTIVE SUMMARY 3
BEYOND BANKS' BASE CAMP 5
  Camp I: Attitude Adjustment 6
  Summit: The Entire Financial Supply Chain 7
  Banks Taking the Sharp End 11
BANKS SOLOING 12
  Mellon Tradelinks 12
  US Bank's Powertrack 14
BANKS TEAMING UP 17
  Bank One + Microsoft 17
  JPMorgan Chase: E-Payables Powered by XIGN 18
  Wells Fargo's Total Payables Solution 20
MASTERCARD SETS AN ANCHOR 23
  Integrating the P-Card Into the Chain 23
  Mastercard's Teammates 25
CONCLUSION: WORTH PLANTING A FLAG 28

 

        

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