The global cash management system market size was valued at USD 13 Billion in 2022 and is likely to reach USD 39.36 Billion by 2031, expanding at a CAGR of 13.1% during the forecast period, 2023-2031. The growth of the market is attributed to the increased adoption of automated applications in the banking sector.
The cash management system is an automated solution that aids in the management of cash throughout the transaction process. It begins with cash receipt and aids in the automation of cash handling all the way to reconciliation. This has various advantages for the company, including time savings, cost savings, and increased accuracy.
The COVID-19 pandemic outbreak has a negative impact on the industry as the market operations slowed down and productivity of the market has reduced considerably. However, the market is expected to recover soon as organizations are resuming their operations from office, impacted by the sharp decline in the number of virus cases.
Cash Management System Market Trends, Drivers, Restraints, and Opportunities
- Rising need for safe, automated, and smart central cash management system is expected to drive the market growth.
- Increasing disposable income among a large number of the population across emerging economies is creating need for cash management system. This is expected to boost the market growth in the coming years.
- Issues concerning to data theft and cyber-attacks present some major restraining factors. This is anticipated to hamper the market expansion during the projected period.
- High purchasing and implementation cost is a key challenge likely to hinder the market growth during the forecast period
- Integration of Machine Learning (ML) and Artificial Intelligence (AI) techniques in the financial sector is expected to create significant growth opportunities for the market in the near future.
Scope of Cash Management System Market Report
The report on the global cash management system market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Cash Management System Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Operations (Cash Flow Forecasting, Receivables, Payables, Balance & Transaction Reporting, Corporate Liquidity Management, and Others), Enterprise Sizes (Small & Medium Enterprise and Large Enterprise), Components (Service and Solution), Deployments (On-premise and Cloud-based), and End-users (Commercial Enterprises, Banks, Non-banking Financial Corporations, and Retail)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
NTT Data Corp.; Oracle Corp.; Sopra Banking Software SA; Intacct Corp.; National Cash Management Systems; and Giesecke & Devrient GmbH
Cash Management System Market Segment Insights
Balance & transaction reporting segment is expected to grow at a rapid pace
Based on operations, the global cash management system market is segmented into cash flow forecasting, receivables, payables, balance & transaction reporting, corporate liquidity management, and others. The balance & transaction reporting segment is expected to grow at a rapid pace during the forecast period owing to vast adoption of the module by business treasurers to accurately monitor all payables and receivables in real-time. However, the cash flow forecasting segment is anticipated to hold a key share of the market in the coming years due to need for an effective money demand measurement.
Precise management for payments to drive the large enterprise segment
On the basis of enterprise sizes, the market is bifurcated into small & medium enterprise and large enterprise. The large enterprise segment is projected to expand at a considerable CAGR during the forecast period attributed to the vast adoption of cash management systems in major banking institutions. The adoption of the system offers advantages to allow precisely & closely manage payments and basic account transactions.
On the other hand, the small & medium enterprise segment is anticipated to account for a major market share during the forecast period due to rise in investment for technologically advanced & high-performance software considering reduction in transaction risk and increase in profitability.
Solution segment is anticipated to hold significant market share
In terms of components, the global cash management system market is bifurcated into service and solution. The solution segment is anticipated to hold significant market share owing to the growing demand for fund transfer process automation and money management process. However, the service segment is expected to register a considerable CAGR during the forecast period.
Cash management services are being used by a variety of businesses to properly process their payables and receivables and these services assist firms optimize their cash flow position and drive better management of their business operations. These are key factors expected to drive the segment growth.
Large-scale customization to drive the on-premise segment
On the basis of deployments, the market is bifurcated into on-premise and cloud-based. The on-premise segment is expected to hold major market share during the projected timeline attributed to large-scale customization of services and products along with infrastructure flexibility options. On the other hand, the cloud-based segment is expected to grow at a significant rate during the forecast period due to the technological advancement and various benefits such as low operational cost and easy up-gradation.
Bank segment to constitute robust market share
Based on end-users, the global cash management market is segregated into commercial enterprises, banks, non-banking financial corporations, and retail. The bank segment is expected to constitute robust market share during the forecast period owing to the wide use of money management systems to speed up the transaction process and assist banks increase the high net profit margins. However, the commercial enterprises segment is anticipated to grow at a significant rate during the projected timeline as it allows easy access to transaction information and e-statements through a consolidated dashboard.
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to constitute a key share of the market during the projected timeline owing to the presence of prominent players in the region. Moreover, continuously implementing of the cash management system across industries present a key driver of the market. However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the rise in demand for money management systems to help large enterprises for the automation of vast financial transactions.
The global cash management system market has been segmented on the basis of
- Cash Flow Forecasting
- Balance & Transaction Reporting
- Corporate Liquidity Management
- Small & Medium Enterprise
- Large Enterprise
- Commercial Enterprises
- Non-banking Financial Corporations
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global cash management system market are NTT Data Corp.; Oracle Corp.; Sopra Banking Software SA; Intacct Corp.; National Cash Management Systems; and Giesecke & Devrient GmbH. As part of their efforts to grow their client base and acquire a competitive advantage over competitors, manufacturers operating in the market are adopting various strategic initiatives such as partnerships, collaborations, mergers & acquisitions, and new product development.