Celent publishes Cash Management in China report

Hua Zhang examined the rapidly developing cash management market China and trends in cash management services.

The cash management business has penetrated into 72% of bank deposits, but only 26% of corporate clients use cash management products, indicating a much higher penetration rate among large companies than among SMEs.

In China, SMEs account for more than 60% of China’s GDP, and their annual growth rate has reached 46%. The overseas accounts receivable of SMEs have exceeded US$70 billion, and are growing by US$10 billion every year.

These trends suggest that, in addition to the well-established demand from large corporates, there is a substantial and growing unmet need from SMEs for mature cash management services.

"Cash management in China is moving towards more integrated and globalized services, and increased application of information technology," said Hua Zhang, author of Cash Management in China: High Growth Market, Penetration of SMEs Still Low.

"Chinese banks are developing more advanced and customized solutions to satisfy corporate needs, such as investment services and online cash management, and rolling these services out through branded campaigns with great fanfare," he added.