Optimization Of Bank A Cash Management Business Under The Concept Of Transaction Banking

Transaction banking is a concept put forward by the international banks such as Citibank to provide cross-border financial services to enterprises in the 1980 s.It originally refers to a package service such as payment settlement,cash management,and financial trade that based on daily operation of enterprises.With the frequent occurrence of the financial crisis and the transformation of the modern bank's business philosophy,client-centric philosophy of transaction banking has helped traditional commercial banks find a transformation path that goes deep into client's whole business process,brings stable income with low rick in the context of changing customer demand and decreasing interest rate of market-based deposit and loan.All major commercial banks have continuously emphasized on the importance of cash management service,improvement of cash management quality and variety of product categories.Client-oriented,one-stop and integrated financial services based on clients' daily trading is an important direction for the transformation of cash management business.With the rising of concept of transaction banking,the paper has analyzed liquidity improving cash management products such as enterprise payment settlement,member unit management,billing settlement to provide a reference for commercial banks to offer clients with comprehensive cash management services in the future.At the same time,the paper has provided certain guidance for enterprises to improve the efficiency of cash management.First of all,this paper introduces the concept of cash management and product connotation of commercial banks.By introducing the impact of financial innovation theory,marketing theory and transaction banking theory on the development of cash management business,this paper proposes the inevitability of the transformation of transaction banks and identify the challenges of cash management business transformation and development.Secondly,with the concept of transaction banking and analysis of the development history and current situation of cash management business in bank A,this paper analyzes the measures and methods that have been taken in the development and transformation of bank A's cash management business.Then,take A Bank,which conducts cash management product services,as a subject in the study to introduce the development status of cash management products of A Bank's Wuhan Branch.Within the case study of a cash management product project of a pharmaceutical group from Hubei,the function and significance of cash management products can be explained.Meanwhile,the paper found there is hidden danger of moral hazard in the design and marketing of cash management products,and other problems like lack of personalized design and professional marketing personnel,poor client experience,internal management confusion.Moreover,this paper explores the mechanism to optimize cash management business to find innovative way to develop cash management business in bank A.The main research methods in this paper are literature analysis and case study.Based on the case study of a cash management project of a pharmaceutical group in Hubei,theproblems in the cash management are found,and three optimization suggestions for bank A cash management products with the concept of transaction banking are proposed.First,product design should speed up the upgrade of anti-risk performance in cash management product according to the latest technology and also enrich cash management product portfolio through blockchain trust and create a cash management product system for global service to improve client experience.Secondly,client refined stratification,leading product design and cultivate professional marketing personnel can help bank A to build differentiated cash management brand to enhance market influence.The last but not the least,departmental structure flattening,business scope boundary breaking,the integrated development of business team and client-centric philosophy can help bank A to create a personalized cash management business service to improve business management capabilities.