July 25, 2024
Corporate Liquidity Management market

Corporate Liquidity Management Market Is Estimated To Witness High Growth Owing To Increased Adoption Of Liquidity Management Solutions

The Corporate Liquidity Management Market is estimated to be valued at US$ 2.6 Bn 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 refers to the techniques used by corporate treasurers to effectively manage a company’s cash flows, debt maturity, and liquid financial assets. This helps companies maintain their day-to-day operating needs while maximizing returns. Key products include cash management solutions, cash flow forecasting solutions, and partnership banking. The increasing complexity of corporate finance operations is driving the need for advanced liquidity management solutions.

Market key trends:
One of the key trends spurring growth in this Global Corporate Liquidity Management Market is the rising adoption of liquidity management solutions by small and medium enterprises (SMEs). Traditionally, liquidity management was the domain of large companies with complex cash flow needs. However, solutions are now being tailored for the SME segment as well. Vendors are launching cost-effective and easy-to-use solutions targeting the specific needs of SMEs. For instance, in 2019 Fiserv launched CASHpro liquidity management solution for small businesses in the US. Similarly, solutions like Cashflow MAX by Kyriba are gaining traction among SMEs globally. This growing uptake among SMEs is expected to fuel market expansion over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the corporate liquidity management market requires high investment and tough regulations. However, new digital entrants can disrupt the market.
Bargaining power of buyers: The bargaining power of buyers is high as there are many established players providing similar corporate liquidity management solutions. Buyers can easily switch between providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key suppliers include financial technology providers and banks providing liquidity solutions. Switching costs are relatively low.
Threat of new substitutes: The threat of new substitutes is high due to the emergence of FinTech and BigTech players providing alternative liquidity solutions using advanced technologies like AI and blockchain.
Competitive rivalry: Intense.

SWOT Analysis
Strength: Established global network, economies of scale, and wide product offerings provide an edge to large banks.
Weakness: Legacy infrastructure hinders digital transformation and agility to changing customer demands. High compliance costs.
Opportunity: Emergence of digital payments, distributed ledgers, and APIs create new opportunities. Demand from SMEs andmid-market firms is rising.
Threats: Agile FinTech and BigTech entrants are disrupting with modern technology stacks. Regulatory changes increase compliance burden.

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 digitization of treasury operations and demand for data-driven liquidity insights.

Regionally, North America dominates the corporate liquidity management market currently, owing to widespread adoption of advanced technologies by financial institutions in the region. Asia Pacific is expected to witness the highest growth, owing to rapid digitalization of financial services in countries like China and India.

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, and Intesa Sanpaolo. Large banks dominate currently however new players are seeking opportunities through differentiation based on customer experience and new capabilities.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it