Corporate cash management services at 45% of banks profiled in the Economist
Intelligence Unit 2005 payments survey are to be revamped through 2008. Cost and
efficiency gains will push banks to optimize their payments, with 54% of EIU survey
respondents simplifying workflows and 47% adopting straight-through processing.
Spending on eCommerce
Payment Systems
Global Banks' Payments Revenue Drop, 2001 & 2011
| Domestic Payments (average fee per transaction) |
|
| 2001 |
USD 1.16 |
| 2011 |
USD 0.86 |
|
| Cross-Border Payments (average fee per transaction) |
|
| 2001 |
USD 12.00 |
|
| 2011 |
USD 5.20 |
|
| Global payments revenues in banking industry in 2011 = ca. USD 390 billion |
Source: Boston Consulting Group, October 2004
Global Payments Market Value And Share Held By The US, 2004
| Proportion |
Value |
|
| Global payments market value |
USD 600 billion |
| US accounts for about a third of this business |
USD 200 billion |
|
| Share of this total held by US banks |
~ 50 per cent |
Source: Carreker Corp, June 2004
Order-To-Pay Processes Targeted For Automation Technology
| Process |
Firms Targeting (out of 500) |
|
| Invoice matching & reconciliation |
420 |
|
| Payment scheduling |
400 |
|
| Payment disbursement |
380 |
|
| Payment remittance |
300 |
|
| Payment status tracking |
275 |
|
| Dispute resolution |
150 |
Source: Aberdeen Group, July 2004
European Banks' Top Three Priorities In 2004
| Category |
Total (%) |
|
| Other |
55% |
| Branch System |
36% |
|
| Centralized Back-Office Operation
| 35% |
|
| Cash Management Solution |
29% |
|
| Recent Core Banking System |
29% |
|
| Online Trade Finance Solution |
25% |
|
| Mobile Finance Services |
24% |
|
| Transactional Corporate Client Web site |
21% |
|
| Direct Internet Sales |
15% |
Source: Celent Communications, June 2004
Growth of Bank Internal IT Spending On Non-Card Payments
| Payment Type (USD mn) |
2004 |
2003 |
2002 |
|
| Checks |
600 |
380 |
220 |
|
| ACH |
120 |
110 |
100 |
|
| Retail Lockbox |
60 |
50 |
30 |
|
| Wholesale Lockbox |
75 |
50 |
47 |
|
| Cash |
100 |
80 |
70 |
|
| Wire |
60 |
40 |
30 |
Source: Celent, May 2004 
Scope Of ePayments Activity At US Banks, March 2004
| Payment Type |
In production |
Under development |
No development |
|
| Web |
34% |
32% |
34% |
|
| Telephone |
39% |
26% |
33% |
|
| EIPP/EBPP |
11% |
5% |
82% |
Source: Treasury Strategies, April 2004
Banks' Core Systems Replacement By Region, 2004
| Region |
Total (USD billion) |
|
| Europe |
24.0 |
|
| North America |
19.6 |
|
| Asia Pacific |
13.6 |
|
| Latin America |
2.67 |
Source: Celent, January 2004
Checks Converted At The POS, 2002 - 2005
| Year |
Total (millions) |
|
| 2002 |
166 |
|
| 2003 |
191 |
|
| 2004 |
220 |
|
| 2005 |
253 |
Source: Celent and NACHA, January 2004
IT Spend In The US On New Browser-Based Cash Management Solutions
| Year |
Total (USD million) |
|
| 2003 |
$450 |
|
| 2004 |
$500 |
|
| 2005 |
$550 |
|
| 2006 |
$635 |
Source: Celent, December 2003
US Commercial Bank Spending, 2003, 2004 and 2007
| Year (US$ billion) |
New technologies |
Replacement |
Maintenance |
Total |
|
| 2003 |
$3.7 |
$2.7 |
$27.4 |
$33.8 |
|
| 2004 |
$4.0 |
$2.9 |
$27.8 |
$34.7 |
|
| 2007 |
$5.3 |
$4.1 |
$28.9 |
$38.2 |
Source: TowerGroup, August 2003
The Growth Of Third-Party Reconciliation Systems
| Category |
2001 (mn) |
CAGR (%) |
2005 (mn) |
|
| Proprietary systems |
$412 |
12.6% |
$509 |
|
| Third-party systems |
$135 |
19% |
$271 |
|
| Total |
$547 |
n/a |
$780 |
Source: TowerGroup, 2002
Potential Payments Revenues Missed By US Banks, 2002-2007
| Year |
Potential Lost Value (USD million) |
|
| 2002 |
- 145 |
|
| 2003 |
- 138 |
|
| 2004 |
- 144 |
|
| 2005 |
- 159 |
|
| 2006 |
- 206 |
|
| 2007 |
- 271 |
Source: Celent Communications, February 2003
Global Banks' Spending On B2B EBPP Solutions, 2002 - 2005
| Year |
Total |
|
| 2002 |
$ 49 million |
|
| 2003 |
$ 73 million |
|
| 2004 |
$ 89 million |
|
| 2005 |
$ 108 million |
Source: Celent Communications
Western Europe Dominates Online Banking, 2000 - 2004
| Region (millions of users) |
2000 |
2001 |
2002 |
2003 |
2004 |
|
| Western Europe |
18.6 |
28.0 |
37.8 |
47.7 |
57.9 |
|
| United States |
9.9 |
14.7 |
17.1 |
20.4 |
22.8 |
|
| Japan |
2.5 |
6.5 |
11.9 |
19.6 |
21.8 |
|
| Asia-Pacific (exc Japan) |
2.4 |
4.4 |
6.8 |
9.8 |
13.8 |
|
| Rest of the world |
1.0 |
1.7 |
3.1 |
5.1 |
6.1 |
|
| Total |
34.4 |
55.3 |
76.7 |
102.6 |
122.3 |
Source: International Data Corporation
European Spending on Electronic Banking Channels
| Country |
1999 |
2004 |
|
| UK |
USD 99 bn |
USD 395 bn |
|
| Germany |
USD 88 bn |
USD 243 bn |
|
| France |
USD 69 bn |
USD 271 bn |
|
| 1999 |
Banks spent almost $1 million per day on e-banking |
|
| 2004 |
4-fold increase in e-banking spend, to $1.4 billion |
|
| * |
$850 million of this total will go on external contractors |
Source: Datamonitor
Worldwide B2B eCommerce Market, 2002 - 2004
| Year |
Total (USD) |
|
| 2002 |
$1.9 trillion |
|
| 2003 |
$3.6 trillion |
|
| 2004 |
$6.0 trillion |
|
| 2005 |
$8.5 trillion |
Source: Gartner Group
Purchasing Cards Cut Costs And Time
| Average Cost Per Transaction |
|
| Cash and checks |
$91.13 |
|
| P-Card |
$21.79 |
| Average Cycle Time Per Transaction |
|
| Purchase Order |
11.2 days |
|
| P-Card |
2.9 days |
|
Source: RPMG Research, 2003
B2B Payments In The US, 2004 - 2010 (in USD billions)
| Year |
Checks |
ACH/Wire |
Commercial Cards |
|
| 2004 |
21 |
13 |
1 |
|
| 2006 |
20 |
16 |
1.5 |
|
| 2008 |
18 |
19 |
2 |
|
| 2010 |
16.5 |
23.5 |
2 |
Source: Celent Communications , February 2002
Comparison of Research Firms' B2B Totals For 2004
| Firm |
Total (USD trillion) |
|
| IDC |
2.2 |
|
| Forrester |
2.7 |
|
| Yankee |
2.78 |
|
| Gartner |
3.95 |
|
| AMR |
5.7 |
Source: epaynews.com
Regional Percentages of eCommerce Revenues, 2000 - 2004
| Region |
Totals in 2000 |
Totals in 2004 |
|
| United States |
46% |
38% |
|
| Western Europe |
20% |
33% |
|
| Japan |
21% |
12% |
|
| Asia-Pacific |
5% |
10% |
|
| Rest of World |
7% |
7% |
Source: IDC, March 2001
Spending on eCommerce Payment Systems
Source: BancBoston Robertson Stephens
