According to a new study by SunGard, companies today are looking for diversity, rather than consolidation, in their global banking relationships. According to the study, 28% of the large multinational organizations have 10% or more cash management banks. The trend differs from SunGard's last year study which showed that 25% of large multinational organizations operated with 10 or more cash management banks.
Some of the key findings of this report focused on the b2b market are:
1. Consolidating bank accounts
According to the study, only 7 percent of companies said that they were using 1000 or more bank accounts globally. The number drastically reduced by 16 percent from the last year’s survey when 23 percent of companies said that they were using 1000 or more bank accounts globally.
2. Drivers for implementing a payments project
According to SunGard, 33 percent of companies said that the key driver for companies to embark upon a payments and bank connectivity project is to gain improved controls. This response shows an increase of 4 percent year-on-year, and remains the key driver for corporates, emphasizing a desire for a greater degree of fraud management. This was followed by the option reduce cost to which 27% of the companies agreed.
3. Trend to standardize payments workflow
As per the study, 80 percent of the companies are operating some sort of centralized model for payments, whereas only 16 percent are using a true payment factory approach. This highlights the difference that exists between a centralized group and a truly centralized technology.
4. Managing bank connectivity
SunGard analysis says that some 36 percent of companies connect to their banks using an e-Banking platform. The trend has fallen from 55 percent which represent a fall of 19% year-on-year. Acc. to the analysis this is a clear trend that corporates are coming off proprietary e-Banking platforms and are looking for third-party hosted solutions with SWIFT connectivity.
Participant Profile: The survey on which these findings were based was conducted in April – May 2015. There were 177 respondents. Where relevant, responses are divided at the $1B revenue mark across multiple countries throughout the globe.
About SunGard: SunGard is one of the world’s leading software and technology services companies, with annual revenue of about $2.8 billion. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard serves approximately 16,000 customers in more than 100 countries and has more than 13,000 employees. For more information visit.