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| Global Corporate Liquidity Management Market Size |
Corporate liquidity management involves managing cash flows, making payments
and collecting receivables for businesses. It enables effective capital
preservation and provides flexibility to pursue opportunities. Corporate
liquidity management tools help in cash positioning across different accounts
and locations, cash flow forecasting and payment tracking. With growing
regulatory pressures on financial institutions and corporations for prudent
liquidity risk management, the demand for corporate liquidity management
solutions is increasing.
The global Corporate Liquidity Management Market is estimated to be valued at US$ 3 Bn in 2024 and is expected to
exhibit a CAGR of 9.0% over the
forecast period 2024 to 2031, as highlighted in a new report published by
Coherent Market Insights.
Market Opportunity:
Stringent regulatory norms around the world have increased compliance
requirements for corporate entities with regards to liquidity risk management.
The Basel III liquidity framework and other local banking regulations mandate
minimum liquidity coverage ratios and stress-testing of liquidity positions.
Non-compliance can result in penalties. Corporate liquidity management
solutions help organizations meet these regulatory guidelines by centrally
monitoring cash positions in real-time across multiple entities, running
liquidity stress-tests and simulations. This key opportunity of addressing
regulatory compliance requirements is expected to fuel the demand for corporate
liquidity management systems over the forecast period.
Porter's Analysis
Threat of new entrants: The corporate liquidity management market requires a
large amount of investment, which makes it difficult for new players to enter.
There are also established players in the industry.
Bargaining power of buyers: Buyers have low bargaining power as there are many
providers in the corporate liquidity management market offering differentiated
solutions.
Bargaining power of suppliers: Suppliers have moderate bargaining power as
there are many component providers available.
Threat of new substitutes: There is a low threat of substitutes as corporate
liquidity management solutions offer unmatched security and control over
finances.
Competitive rivalry: The corporate liquidity management market has fierce
competition among the top players due to their product offerings and
innovation.
SWOT Analysis
Strength: Corporate liquidity management solutions provide enhanced security,
control and visibility over finances. They offer mobility and accessibility
features.
Weakness: High initial investment and integration costs. Dependency on tech
support.
Opportunity: Growing digitization and automation across industries. Increasing
demand for cash flow forecasting and working capital management tools.
Threats: Cyber threats and data breaches. Participation of FinTech startups
offering cheaper alternatives.
Key Takeaways
Global
Corporate Liquidity Management Market Size is expected to witness high
growth. Factors such as increasing cash flow complexity, demand for capex
planning and forecasting will boost adoption of these solutions. The global
Corporate Liquidity Management Market is estimated to be valued at US$ 3 Bn in 2024 and is expected to
exhibit a CAGR of 9.0% over the
forecast period 2024 to 2031.
North
America dominates the market currently due to widespread digital transformation
among enterprises in the region. Asia Pacific is poised to grow at the fastest
pace during the forecast period backed by developing economies applying modern
cash management practices.
Key players operating in the corporate liquidity management market are KABA
Group, Yubico, and SecuGen. KABA Group offers state of the art physical access
solutions and has a strong presence across regions. Yubico is a prominent
player known for hardware authentication security keys. SecuGen focuses on
multi-factor fingerprint identification solutions.
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