Six reasons why every bank should offer a cash forecasting solution
In this blog, I will list six reasons why every bank should offer a cash flow forecasting solution to its cash management clients.
Reason 1: Opportunity
It is a mistake to assume your clients have already fixed their cash forecasting. Even though forecasting has been a hot topic for years, it is still one of the key development areas.
It is particularly timely for medium-sized and small companies, which have not had the resources to develop their cash forecasting.
A significant share of corporations is prepared to deploy a cash forecasting solution offered by a bank. This is an excellent opportunity to help the clients as the bank is already a trusted partner.
Reason 2: Competition
Large banks already offer cash forecasting solutions to their clients. This does not, however, mean that you should not join the fray. These banks often concentrate on selling the applications to large clients that are typically the most difficult cash forecasting clients. Besides, the big players often make it quite complicated to buy their applications.
Reason 3: Client satisfaction
A large proportion of your clients know they should improve their cash forecasting. However, they often lack the resources and expertise to do it.
By leveraging your position as a trusted partner of your client and offering a modern cash forecasting application, you are in a great position to solve a client’s problem fast and cost-effectively.
A bank can increase client satisfaction by solving clients’ problems. This, in turn, provides an opportunity to sell additional services to the clients.
Reason 4: Deepening client relationships
Increasing the client commitment is a key goal for banks. A cash forecasting application helps you achieve this goal in two ways.
First of all, increased client satisfaction increases customer loyalty. A satisfied client is not easily lured away by competitors.
And secondly, cash management banking solutions are typically used only by a tiny sliver of the clients’ organizations, mainly just by treasuries. Cash forecasting, by contrast, is an organization-wide endeavor. This effectively deepens the client relationship as it is much more cumbersome to replace a widely deployed solution.
“Cash forecasting is an organization-wide endeavor. This effectively deepens the client relationship as it is much more cumbersome to replace a widely deployed solution.”
Client satisfaction and a widely deployed solution are efficient tools to deepen client relationships.
Reason 5: Getting closer to the clients
Traditionally, it has been difficult for banks to get inside the clients’ processes. However, a cash forecasting application is usually deployed company-wide. This opens inroads to even deeper cooperation in the form of, e.g. consulting.
“A cash forecasting application offered by a bank is deployed company-wide. This opens inroads to deeper cooperation.”
Reason 6: Add-on sales
You can upsell and cross-sell other banking services with cash forecasting. By, e.g. integrating the cash forecasting with your eFX system, you can increase your currency dealing volumes.
You may notice something missing: revenue from selling the cash forecasting application to clients. In most cases, a bank reaps the largest benefits by using the cash forecasting application as a loss leader to get as many clients as possible to use it.