East & Partners

In the Spotlight: Corporate Cash Management Market Share

When More Customers Means More Customers Shopping Around… (6 September 2006 – Australia) East’s research shows a lot of movement has taken place in the market for Cash Management services during the year to June 2006. Most of the market share reshuffle occurred among the Big 5 banks and it would appear that smaller banks have not been particularly successful in challenging the incumbents. Not all of the Big 5 banks grew their market share, however – some recorded pronounced declines which actually saw the combined Big 5 market share decline between June and December 2005.

Wallet share (i.e. the proportion of the customer’s business serviced by their main banker in a particular product line) also continued to decline, echoing wallet share decline observed in many other Transaction Banking products. With an average share of Cash Management wallet currently standing at 83.1 percent and falling, laying claim to the primary banking relationship in Cash no longer necessarily correlates with ownership of all the customer’s business.

Clearly, corporate and institutional customers are increasingly more likely to shop around and use a number of different providers to meet their demand for Cash Management services.

Cash Management: Relationship Share & Wallet Share Among Corporates