Ranking the US Vendors of Cash Management Solutions 2003: Survival of the Fittest

December 29, 2003

Abstract

Boston, MA, USA December 29, 2003

It's "Survival of the Fittest" for US Cash Management Vendors

Celent predicts US spending on cash management solutions will exceed US$1.7 billion over the next three years.

Celent痴 latest report, " ,"

"This change is driven by bottom-line pressures and the necessity for financial institutions to more closely scrutinize ROI from technology initiatives," says Christine Barry, banking analyst at Celent and author of the report. "Investments in cash management technologies result not only in cost savings, but also, and more importantly, in increased potential for cross-selling, more fee-based income, and the ability for banks to further diversify their portfolios at a time when business borrowing has stalled."

The report compares the solutions of 10 leading vendors and ranks them against 5 major criteria including depth of features/functionalities, financial viability, number of successful deployments/experience in the space, client support/services offered, and solution usability. Adoption, IT spending, and marketplace trends are also examined. Table 1 summarizes the results of the study.

Top Browser-Based Cash Management Solutions
Rank Mid- to Top-Tier Institutions (>$5 billion in assets) Small Institutions (<$5 billion in assets)
1 Politzer & Haney BANKLINK
2 FUNDtech Digital Insight
3 Metavante S1 Politzer & Haney
Source: Celent Communications

The increased attention and investment in corporate customers is causing greater activity in the cash management space as vendors engage in fierce competition for their business. Gone are the days when cash management services were limited to large banks. Vendors have begun to move down-market to target even small financial institutions whose customers have become more demanding. Today痴 solutions also offer more advanced capabilities than they have in the past. Many are beginning to offer functionalities beyond traditional cash management transactions such as trade finance and loan origination.

"Fierce competition is likely to keep the vendors on their toes as banks increasingly look to improve the lagging technologies often found on the corporate side of the bank. With more eyes on this space than ever before, cash management promises to be exciting over the next few years," adds Barry.

Vendors included in this study are: BANKLINK, Bottomline Technologies, Digital Insight, Enterprise Cash Management, Financial Fusion, FUNDtech, Magnet Communications, Metavante, Politzer & Haney, and S1.

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.

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

Boston, MA, USA December 29, 2003

Vendors of Cash Management Solutions

Return to report Abstract

 

EXECUTIVE SUMMARY 3
TRENDS 5
SPENDING 12
THE COMPETITIVE LANDSCAPE 14
THE CLIENT REPORT CARD 16
PROFILES AND REPORT CARDS 17
BANKLINK 18
Bottomline Technologies 21
Digital Insight/Magnet Communications 24
Enterprise 32
Financial Fusion 35
FUNDtech 37
Metavante 41
Politizer & Haney 45
S1 48
COMPARATIVE ANALYSIS 52
RANKINGS 61
FUTURE TRENDS 66
OBJECTIVITY & METHODOLOGY 67

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