I recently read a whitepaper that suggests how financial institutions (FIs) can deliver differentiated, tailored client experiences to attract and retain valuable large-scale deposits without having to develop tailored (i.e., bespoke) software. The paper is published by Cashfac, a fintech company that provides preconfigured solutions designed to address the specific cash management compliance, security, money segregation, flexible account structures, and efficiency requirements of banks and their clients across various industry sectors. Through its virtual accounts management product, Cashfac addresses these needs and provides banks with a tailored, flexible, and scalable solution to optimize cash flow management across multiple legal entities and currencies.
Automating operational cash management processes is a critical strategy for reducing manual workload for banks and their corporate clients. When evaluating “tailored” banking software, FIs often raise valid concerns about scalability, performance, and integration challenges. However, one-size-fits-all solutions also come with pitfalls. Generic platforms often fail to account for the diverse, complex, and evolving needs of a bank’s client segments, product lines, and operating models. The lack of configurability limits the bank’s ability to tailor offerings, automate processes, and differentiate the client experience to drive growth and profitability.
Forward-thinking banks seek software partners that provide the best of both worlds: a foundation built for the unique needs of the banking industry combined with the flexibility to tailor to the institution’s specific operating model, client segments, and growth strategy. This enables the bank to benefit from the provider’s deep industry expertise and scale, while still having the adaptability to create differentiated offerings and client experiences in an increasingly competitive market.
So what?
The operational cash management model features outlined in Cashfac’s paper offer a compelling solution for banks seeking to deliver tailored client experiences without the cost, risk, and limitations of fully bespoke software development. Therefore, I thought to share my comments in this post.
The integration with existing systems through a suite of microservices-architected API operates a one-point-of-entry platform for the whole cash life cycle of each event. Standardized API connectors to multiple bank core systems, back-office systems, and accounting systems eliminate the need for custom solutions. Real-time analytics dashboards and advanced reporting tools enable users to efficiently manage personalized cash forecasts, matching, and reconciliation, supporting automated compliance processes.
Moreover, a unified view of pooled bank accounts, divided into multiple active virtual accounts, allows banks to provide their customers with a centralized, digital cash and banking solution customized to individual needs while maintaining personalized access and user experiences. Payments, reconciliations, and pre-payment checks all happen on one comprehensive operational cash management platform without the need for third-party providers, giving the user a streamlined experience with a single set of customized applications.
The combination of these features with a streamlined onboarding process, an intuitive dashboard, and dedicated support proves that a personalized experience is achievable without custom software development.
Let’s talk more if you want to review your bank’s cash management system and learn more about how an operational cash management model can benefit your institution and your clients. Contact me at [email protected].
