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| Global Corporate Liquidity Management Market |
The global Corporate Liquidity Management Market is estimated to be valued at US$ 2.6 Bn or billion in 2023 and is
expected to exhibit a CAGR of 12 % over
the forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
Corporate liquidity management involves planning, forecasting, and managing a
company's short-term assets and liabilities to ensure it has enough cash flow
to fund its ongoing operations and meet its immediate obligations. It plays a
vital role in minimizing financial risks and maximizing returns for
organizations. The increasing complexities of global operations along with
rising market volatility have highlighted the importance of effective liquidity
management strategies. Corporate players are adopting innovative technological
solutions to streamline their cash flow cycles and gain real-time visibility of
liquid assets. This is expected to drive the demand for corporate liquidity
management solutions over the forecast period.
Market key trends:
One of the key trends in the Global
Corporate Liquidity Management Market is the growing adoption of
cloud-based solutions. Cloud technology offers various advantages like
scalability, flexibility, lower upfront costs and simplified deployment &
maintenance. It allows companies to access liquidity management tools from
anywhere using an internet connection. This has encouraged more organizations
to switch from on-premise to cloud-based liquidity platforms. Additionally, the
integration of artificial intelligence and machine learning capabilities is
gaining traction. AI can help predict cash flow requirements more accurately,
minimize overdraft charges and reduce operational costs associated with manual
liquidity planning tasks. It provides corporate treasurers with valuable
insights to make quick, well-informed decisions. This trend is expected to
continue and drive the adoptions of these technologically advanced solutions.
Porter’s Analysis
Threat of new entrants: The corporate liquidity management market requires
heavy investments in technology infrastructure to process high transaction
volumes and data analytics capabilities. This poses high entry barriers for new
players.
Bargaining power of buyers: Large corporate have strong bargaining power due to
high transaction volumes, however the specialized services make it difficult
for buyers to switch between providers.
Bargaining power of suppliers: Being an emerging market, the corporate
liquidity management suppliers have moderate bargaining power due to limited
options for buyers and differentiated technological capabilities.
Threat of new substitutes: Over the years many fintechs and banking
institutions have adopted cloud technologies to provide enhanced digital
corporate liquidity solutions, increasing the threat of substitution.
Competitive rivalry: Being a rapidly growing market, the competition among
established players for acquiring new clients and expanding service portfolio
is very high.
Key Takeaways
The global corporate liquidity management market is expected to witness high
growth, exhibiting CAGR of 12.% over the forecast period, due to increasing
demand for centralization and optimization of cash flows among multi-national
corporates.
Regional analysis: North America dominated the global corporate liquidity
management market in 2023, accounting for over 35% of the global market share.
This is attributed to presence of financial hubs like New York and strong
adoption of technology among corporates. Asia Pacific is expected to witness
fastest growth during the forecast period, driven by countries like China and
India with increasing cash management needs of corporates operating across
borders.
Key players operating in the corporate liquidity management market are
Citibank, Bank of America, JPMorgan Chase, Wells Fargo, HSBC, BNP Paribas, MUFG
Bank, Mizuho Bank, SMBC, Barclays, Deutsche Bank, Credit Suisse, Morgan
Stanley, Goldman Sachs, Royal Bank of Canada, Toronto-Dominion Bank, Banco
Santander, Lloyds Banking Group, NatWest Group, Intesa Sanpaolo. These players
are focusing on deployment of advanced technologies like RPA, AI and cloud to
strengthen their cash management solutions.
Read More: https://www.trendingwebwire.com/corporate-liquidity-management-market-analysis/