It makes total sense for a corporate banking customer to buy treasury workstation functionality from its bank - who would be better at helping determine end-of-day cash positions and other cash management questions? But banks have had little
success in this segment, with only about five percent of corporates with revenue between $1 billion and $10 billion using a bank-provided platform.
Aite Group, in a series of recent reports, argues now is the time for banks to invest in the creation of up-to-date treasury workstations, with the latest Web-based models offering the most promise. "Those banks failing to keep up with the changing needs of their corporate customers will find themselves increasingly viewed as a processor of transactions instead of as a partnering service provider," analyst Judson Murchie wrote in a report, "Bank-Offered Treasury Workstations: The Time is Now."
Wells Fargo invested heavily in this product line and in late 2007 launched CEO Workstation, a treasury workstation product that's integrated into Wells' online banking platform. Aite says the number of North American banks offering treasury workstations is expected to increase from nine this year to 26 by 2012.
The market is large and ripe. More than 40 percent of large corporates surveyed reported paying more than $200k per month for cash management services, and 35 percent of corporate customers with revenue between $1 and $10 billion don't currently have a treasury system.