The concept of cash management is fast catching on in the region. With more and more companies looking beyond their domestic frontiers to sustain growth, companies are under increased pressure to contain cost and manage risk. Cash management requirements among corporates vary. Also, corporates with clearly defined collection and payment processes perceive the management of accounts payables and receivables as a non-core business activity and have started seeking solutions to outsource them. Meanwhile, the huge number of middle market corporates are more price and security conscious.
Banks offer varied cash management services and product ranges.
International banks have a better regional network compared to domestic banks. International banks, with their extensive product range and their sophisticated electronic banking platforms, are clearly the leaders in offering cash management solutions. Normally, foreign banks have better global technology and electronic banking systems. Local knowledge and regional networks are normally strengths of established banks. Domestic banks by contrast may have extensive in-country networks but they lack regional networks and comprehensive electronic banking services.