Hot on Cash forecasting

Why a Bank should cooperate with a niche cash forecasting solution provider

September 10th, 2015

A bank can reap significant benefits by offering a cash forecasting solution to customers. Many a bank, however, do not consider themselves a software developer and do not know enough about corporate cash forecasting to credibly offer such a solution.

While this may be true, it does not mean the bank has to give up the benefit of solving their customers’ cash forecasting challenge. In this blog entry I will describe how that can be achieved.

In an earlier entry I pointed out the six reasons why a bank should offer a cash forecasting solution to clients. The key benefits include competitiveness and enabling incremental sales.

But a bank doesn’t need to offer their own cash forecasting solution to reach these benefits – the key is to help clients solve their problems. By combining forces with a cash forecasting specialist, all the bank needs to do is to devise a compelling offer to the clients and the partner does the rest.

What matters here is the kind of partner the bank chooses. The application must be a modern cloud solution and the partner must have a track record in cloud delivery.

The application must be a modern cloud solution and the partner must have a track record in cloud delivery

Next, we’ll reiterate how the six reasons mentioned earlier apply if a bank offers a partner solution instead of an in-house one.

Opportunity

The opportunity is basically the same regardless of whose solution is offered. A significant percentage of clients are wrestling with cash forecasting. The specialized partner can offer a fast and inexpensive solution that enables the bank help their clients solve problems.

Competition

If a bank cannot offer a credible solution, there is a threat of a competitor stealing away clients with a cash forecasting solution. However, many of those competitors are offering traditional, inflexible solutions. By offering a modern and flexible solution by a trusted partner, you can make sure your clients do not defect to competitors.

Customer satisfaction and commitment

Again, customer satisfaction is improved by offering solutions to their problems. And improved customer satisfaction usually deepens customer loyalty and commitment. A best-of-breed solution from a partner does all this optimally.

Tighter integration with client processes and incremental sales

A bank can, for instance, integrate the partner’s cash forecasting solution with their FX system to gain incremental currency dealing volume. Additionally, the bank can offer various consulting services and (with the permission of the client) get to learn more about the client’s cash flows.

I will repeat this: the cash forecasting solution MUST be cloud-based. It also needs to be quick to deploy and there must be a free trial period. In an earlier entry called Cash Forecasting is NOT an IT project, I described these must-have features in more detail.

A bank should research specialized cloud-based cash forecasting vendors and explore their interest in cooperation. I can tell with certainty, that there is at least one vendor out there that has plenty of experience, motivation and skill on working with banks.