Advantages of Cash Management Solutions Drive the Market
As the name suggests, a cash management system enables enterprises to efficiently record, track, and forecast the cash flow. Rising demand for cash management systems in various industries to optimize working capital and ascertain the liquidity and profitability position drives the market growth. The integration of futuristic technologies, like AI and ML, with cash management systems enhances their performance and increases the market size, boosting their sales.
The increasing uptake of cloud banking solutions by several enterprises fosters the market share. Citing the increasing adoption of cash flow management software in banking, IT & ITes, and retail & e-commerce industries, MRFR expects the global cash management system market to reach approx. USD 40.10 BN by 2025, registering a 14.15% CAGR throughout the review period (2019-2025).
The cash management system market surged despite the COVID-19-related headwinds. Mandates for lockdown and physical distancing forced many organizations to digitize their business processes, including cash management, accounting, and finance. The rapid automation increased the use of cloud-based cash management solutions and services, which, in turn, increased the market share.
Over recent years, the cash management system market has been witnessing a constant uptick. Solution providers are increasingly investing in fostering R&D activities and helping developers make digital-based recording solutions. Moreover, the growing uptake of cash management systems in construction & real estate, manufacturing, and government sectors boosts the market size.
Advantages of cash management systems are immense, such as insights for determining liquidity & profitability positions and optimum cash balance, improved cash management & capital budgeting decisions, and superior accounting, planning & coordination, and cash movement. The increasing adoption of these solutions among SMEs and professionals substantiates the market growth.
Additionally, the spurring rise in the e-commerce sector and the growing adoption of cloud-based cash management solutions that can maximize liquidity, optimize capital, and manage risk boost market revenues by providing accurate forecasts of money flow. Conversely, increasing cyberattacks and data theft are major factors impeding the market’s growth.
Inadequate cash flow and high cash use can lead to the failure of businesses. Cash management systems are designed to eliminate these causes and increase the volume of successful lending applications. These solutions help enterprises drive better record-keeping, creating crucial data that business owners and potential financiers can access to improve cash flow by increasing working capital.
North America, the Largest Cash Management System Market
North America leads the global cash management system market. The increasing use of cloud and IoT applications creates vast market demand. Besides, the increasing adoption of cash management system solutions across enterprises in the region to improve transparency and operational efficiency drives the regional market growth.
Technological advancements, such as AI, ML, BI, and data analytics, fuel market revenues. Moreover, the strong presence of notable market players, such as SAGE, Oracle, NCMS, and Acumatica, accelerates the region’s market share. The North American cash management system market is expected to retain its dominance throughout the forecast period.
APAC stands second in the global cash management system market. The vast adoption of cloud-based cash management solutions for data-driven decision-making drives market growth. Additionally, the growing use of cloud computing and the rising demand for money management systems contribute to the growth of the market in the region.
Europe has emerged as a profitable market for cash management systems globally. Considerable advances in artificial intelligence and other ubiquitous technologies push the market value. Furthermore, the proliferation of cloud technology, alongside increasing strategic partnerships and investments by players operating in the region, influences the market value. Additionally, the rising adoption of cash management system solutions stimulates the market size.
Strategies Industry Players Follow to Gain Significant Competitive Advantage
The cash management system market witnesses significant strategic initiatives, such as collaboration, mergers & acquisitions, expansion, and launch & integration of advanced technologies. Leading industry players also make strategic investments to drive research and development activities and foster their expansion plans.
Notable Industry Updates
On August 03, 2022, two India-based companies, a leading public sector bank, Bank of Baroda, and Jawaharlal Nehru Port Authority (JNPA), a premier container port, inked a pact for DigiNext cash management services. JNPA has successfully integrated Baroda DigiNext Cash Management Services with SAP into its system to drive its digital transformation.
The successful roll-out of Bank of Baroda’s DigiNext cash management services would digitize the port’s accounts payables, receivables, and liquidity management. JNPA is amongst the largest container ports globally and has recently implemented SAP to bring efficiencies to its operations.