Market Overview

The Cash Management Software Market size was valued at USD 12.93 billion in 2022 and is projected to reach USD 36.21 billion by 2030, at a CAGR of 12.6% from 2022 to 2030.

This growth can be attributed to the rise in the e-commerce sector and the increasing adoption of automated applications in the banking sector. Growing demand for automated cloud-based solutions in the banking sector is expected to further create lucrative growth opportunities in the market. Cloud-based cash management software can be easily integrated into existing enterprise resource planning (ERP) systems that help banks manage money flow and payments across network-time access to transactions.
The growing need for centralized cash management software in banking transaction processes is expected to fuel market growth. These solutions give businesses an overview of cash and financial transactions. Many companies are focused on increasing financial efficiency and managing trading risk. As a result, centralized cash management systems are widely adopted by businesses.
The growing adoption of smart vault cash management software across various end uses is expected to fuel the market growth. Smart vault solutions help businesses overcome cash handling and storage challenges. This technologically advanced safe allows businesses to monitor their cash at every stage of the money-handling process. These vaults always give you clear visibility into your money flow.

The Cash Management Software Market has been recently published by Contrive Datum Insights to its huge database which helps to shape the future of businesses by making well-informed business decisions. It offers a comprehensive analysis of various business aspects such as global market trends, recent technological advancements, market size, shares, and new innovations. Furthermore, this analytical data has been compiled through data exploratory techniques such as primary and secondary research. Moreover, an expert team of researchers throws light on various static as well as dynamic aspects of the global Cash Management Software market.

Significant Market Dynamics

Drivers

Increase in circulation of currency

The increase in the economy's currency circulation has increased the demand for cash logistics solutions such as cash management, cash-in-transit, and ATM services, among others. According to the State Bank of India (SBI), the country's currency circulation increased by 7.7% from 2020 to 2021 due to economic growth and interest rate. Adopting cash logistics services improves cash management by reducing time consumption, error risk, and inefficiencies in cash flow, among other benefits. Consequently, an increase in currency circulation stimulates the expansion of the global cash logistics market.

Cash flow management enhances planning and budgeting cycles

Planning and monitoring business budgets aid in identifying wasteful expenditure, adjusting rapidly to changing financial conditions, and achieving financial objectives. A little forethought can help prevent short-term cash shortages. A cash flow budget summarizes anticipated income and expenditures for a specified period, typically one year in advance. In addition, the budget provides a tangible, organized, and easily understood breakdown of the business's income and expenses. It forces a business to consider its annual plan and determines whether it will generate sufficient income to satisfy all of its cash needs.

Restraints

Increase in new regulations and financial standards

Financial regulation that is effective prevents market failure, promotes macroeconomic stability, safeguards investors, and mitigates the effects of financial failures on the global economy. Nevertheless, financial regulations impose numerous costs on regulated firms and the economy. For instance, institutional responses to regulation frequently result in suboptimal business practices and can cause firms to depart or restrict their market entry. Standards and requirements for financial reporting differ from country to country, creating inconsistencies. When investors contemplate funding capital-seeking companies that adhere to the accounting standards and financial reporting of the country in which they conduct business, this issue becomes more prevalent.

An upsurge in cyberthreats and data hacking

Increasing cyberattacks and data theft hinder the market revenue growth of Cash Management Systems. For example, in May 2018, the World Economic Forum reported that the global losses caused by cyberattacks totaled $1 trillion. For the purpose of data theft, cybercriminals are targeting card processing, e-banking, ATM administration, and interbank transfer processes. Consequently, this is impeding market expansion and posing challenges for securing financial transaction data.

Opportunities

The Evolution of Machine Learning (ML) and Artificial Intelligence (AI)

The adoption of AI and ML to automate business processes is increasing across industries. These technologies are also transforming the financial sector, and businesses are discovering new methods to improve decision-making and bolster their competitive advantage. In cash flow forecasting, AI facilitates the resolution of discrepancies, such as customer payments that do not match extant transactions, and the analysis of the timing of accounts payable. The accuracy of financial forecasts can be significantly enhanced by ML.

Manufacturing of a completely automated cash-in-transit vehicle

In recent days, the rate of crimes of cash-in-transit vehicles has increased exponentially, resulting in staff injuries and sometimes murders. In January 2019, employees of a garage in Chiawelo, South Africa, were shot while a cash-in-transit vehicle was collecting currency. No lives are at risk as a result of the production of fully automated and robust vehicles that are impenetrable and can only be operated by authorized vehicles.Thus, the production of entirely automated cash-in-transit vehicles presents a remarkable growth opportunity for the market leaders in cash logistics.

Challenges

The incorporation of data from disparate sources

 Due to the organizations' adaptation to today's ever-changing business conditions, with a specific focus on the people, processes, and technologies, the majority of finance teams in organizations are currently contending with disparate data silos belonging to various cash streams. These unprecedented changes have necessitated that finance teams derive insights from consolidated data expeditiously. However, if mission-critical data is isolated across multiple source systems, it becomes much more difficult to plan with agility and integrate data from complex data silos. Data divisions make it challenging to obtain a comprehensive view of business performance. As market conditions continue to evolve, this can prevent finance teams from assisting key business stakeholders in making decisions.

Increase in crimes of cash-in-transit vehicles

In recent days, the rate of thefts from cash-in-transit vehicles has increased exponentially. For instance, the increase in cash robberies in South Africa is one of the significant factors discouraging cash logistics agencies from opting for cash payment. During the preceding fiscal years, cash-in-transit thefts increased by approximately 56%, resulting in a reduction of cash movement by cash logistics companies and a loss of consumer confidence. Thus, a rise in cash-in-transit vehicle robberies hinders the cash logistics market's expansion.

Key Market Updates

• In August 2021, An Aurionpro subsidiary, Integro Technologies Ltd. announced the launch of “Smartlender Cloud”, which is a cloud offering from its lending product suite. The cloud offering is stated to help accelerate the bank’s digital transformation agenda.
• In November 2020, Aurionpro Solutions Ltd announced that they have been signed up by Arab Bank for Investment & Foreign Trade in UAE to implement their iCashpro+ Corporate Internet banking & Cash Management platform in order to enhance Al Masraf’s Corporate Banking services in the region.

Market Segmentation

By Deployment Type

There are three deployment modes: cloud, on-premises, and hybrid. Currently, cloud deployment is the most popular method. Due to the growth of omni-channel and multi-inventory business models, hybrid deployment mode has gained popularity among vendors in recent years. Cloud deployment modes presently provide remotely accessible devices with access to real-time inventory data, big data analytics, automated update of inventory information, and management of multiple warehouses. Soon, the platform will provide predictive space management capabilities for warehouses, utilizing blockchain and AI.

By Application

The market has been segmented based on end-use into banks, retail, non-banking financial corporations, and commercial enterprises. The bank segment is anticipated to dominate the market as a whole across the forecast period due to the growing utilization of money management systems to speed up the transaction process and contribute to the banks' high net profit. The commercial enterprise segment is anticipated to be the fastest-growing end-use sector during the forecast period. Numerous commercial enterprises are implementing money management tools in order to optimize their cash flow.

By Component

The market is segmented by component into solutions and services. The cash flow solution enables organizations to define financial objectives, monitor expenses and income, and develop business plans by identifying anomalies and trends in advance. Modern mathematical techniques and the rise of information technology applications and infrastructures such as big data and statistical analysis, have enhanced the cash flow solution's ability to obtain real-time insights from financial data.

By Operation Type

The market has been segmented into balance and transaction reporting, cash flow forecasting, corporate liquidity management, payables, and receivables, among others, based on the operation type. In 2019, the balance and transaction reporting segment dominated the market due to the increased adoption of the balance and transaction reporting module by corporate treasurers to accurately monitor all receivables and payables in real-time. It is anticipated that the cash flow forecasting segment will experience the greatest growth over the forecast period. Corporate entities and financial institutions rely heavily on money flow forecasting tools to identify future cash requirements.

Regional Insights:

The European region dominated the cash management software market in 2019. This growth can be attributed to the presence of prominent market players such as Sopra Banking Software SA, Giesecke & Devrient GmbH, Glory Global Solutions, Inc. The European Union is accelerating According to the Fintech Action Plan 2018, the European Commission plans to establish new Fintech Labs across the region to create growth opportunities in the regional market.

Asia Pacific is expected to emerge as the fastest-growing regional market during the forecast period. This growth can be attributed to the growing demand for money management systems to maximize the automation of high-volume financial transactions for large enterprises. A number of factors, including increasing demand for enterprise-wide connectivity and increasing demand for liquidity management, are expected to drive growth. Additionally, large and small businesses in the region are deploying custom money management solutions to reap significant returns on their investments.

Geographically, the global Cash Management Software market has been analyzed in various regions such as North America, Europe, Asia-Pacific, Latin America, Middle East, and India. The global region is dominating this market in the upcoming future.

Scope of the Report

Key Vendors

Finastra is a privately held company based in Paddington, London, that was founded in 2017. The company's mission is to become the most admired and inclusive fintech firm in the globe. Corporate Banking, Retail Banking, Investment Management, Treasury, Capital Markets, Community Markets, Digital Banking, Payments, Financial Technology, and FinTech are the company's specialties.

Citi Bank was established in 1812 and has its headquarters in New York, New York. Citi's mission is to serve as a dependable partner to our clients by providing financial services that promote economic growth. Banking, Commercial Banking, Investment Banking, Wealth Management, Credit Cards, Capital Markets, Equity and Fixed Income Research, Consumer Lending, Cash Management, and Transaction Services are the company's specialties.

Sopra Banking Software is the preferred partner of more than 1,500 financial institutions around the globe. Sopra Banking Software is a division of the European leader in consulting, digital services, and software development, Sopra Steria Group. In 2022, the Sopra Steria Group generated a revenue of €5.1 billion with over 47,000 employees. In 2012, a software development corporation was founded.

Oracle Cloud Infrastructure provides increased efficiency, security, and cost savings. It is designed to facilitate the migration of workloads from on-premises systems to the cloud, as well as between the cloud, on-premises, and other clouds. Oracle Cloud applications provide business leaders with contemporary applications that assist them in innovating, achieving sustainable development, and becoming more resilient.

Glory Global Solutions As a global leader in cash technology solutions, they provide the financial, retail, cash Centre, and gaming industries with the assurance that consumers' currency is secure and always contributing to the growth of their businesses. Their cash automation technologies and process engineering services optimize the handling, transportation, and management of cash for businesses in over 100 countries. The company increases staff productivity, decreases operating expenses, and enables a more satisfying consumer experience.

Market Key Players

• Finastra
• FIS
• Cashfac
• HSBC
• SAP
• EY
• Infor
• Citi Bank
• Sopra Banking
• National Cash Management Systems (NCMS)
• Giesecke & Devrient GmbH
• AURIONPRO
• Oracle
• NTT DATA EMEA Ltd.
• Glory Global Solutions
• ALVARA Cash Management Group AG

 Major Market Segments Covered

On the Basis of Deployment Type:

• Cloud-based
• On-premises
• Hybrid

On the Basis of Application:

• Banks
• Retail
• Non-Banking Financial Corporations
• Commercial Enterprises

By Component

• Solution
• Services

By Operation Type

• Balance & Transaction Processing
• Cash Flow Forecasting
• Corporate Liquidity Management
• Payables & Receivables
• Others

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Conclusion

The Cash Management Software Market was recently added to Contrive Datum Insights' massive database, which aids businesses in shaping their futures by making informed business decisions. Cloud deployment is currently the most prevalent method. Due to the increasing use of money management systems to expedite the transaction process and contribute to banks' high net profit, it is anticipated that the bank segment will dominate the market as a whole over the forecast period. During the forecast period, the commercial enterprise segment is anticipated to be the end-use sector with the highest growth rate. By component, the market is segmented into solutions and services. Based on the operation type, the market has been divided into balance and transaction reporting, cash flow forecasting, corporate liquidity management, payables, and receivables, among others. In 2019, the European region dominated the market for financial management software.