Cash Management Services

Financial Services

Cash Management Services (CMS)

Cash Management Services can be explained thoroughly from the scenario of how various banks worldwide offer these services and benefits attach with them to their clients.

The Dhanalakshmi Bank Limited

The bank offers Cash Management Services (CMS) to efficiently manage cash flow in order to reduce risks, minimize costs, and maximize profits. Integrated collection, payments, liquidity management, and receivable functions are some of services provided by this bank.

The benefits provided through these services to clients include quick cash at hand, planning of cash flow, faster collection of bank interest saved as instruments, and MIS reports to meet customer's requirement.


Cash Management Services offered by the bank comes in the form of technology with versatile software, hardware, and network support. With the help of them, customized daily transaction and web-enabled reports are offered to the clients regularly. While seen company-specifically, they allow a corporate to efficiently manage its treasury.

Corporation Bank

The bank offers Cash Management Services to the corporate customers, where every organization has receivables to collect from its dealers/ depots/ customers. The bank has been always aiming to create values for its customers. Customized solutions to corporates' in liquidity management are provided by collection and payment services.

Cash Management Services in the United States

Cash Management Services offered by private and public banks in the US to businesses and corporations includes account reconcilement services, advanced web services, armored car services, and automated clearing house.

Here, Account reconcilement services is used by banks to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay.

Advanced web services enables managers of banks to create and authorize special logon credentials, allowing employees to send wires and access other cash management services features not found on the customer web site.

Cash Management Account (CMA)

Generally, the Cash Management Account is high yield account that helps client to build wealth while tracking and facilitating his investment portfolio. It works as a high interest transaction account, an online share trade account, and as a "parking" account to decide for next investment. It provides 24-hours access to funds via cards, check, phone, and Internet banking.

To elaborate Cash Management Account, some examples are given below:

Merrill Lynch Cash Management Account (CMA )

Through Cash Management Systems, client access one of broadest and deepest arrays of investment products and services in the financial service industry, including managed money, mutual stocks, and bonds. The account offers leverage and diversity of client investment, portfolio, automated investing, and reinvest cash dividends.

Victory Connect

Cash Management Accounts offered by the bank act as an automated service that links client checking account with a Victory money market mutual fund and it provides the opportunity to increase the rate of return that client can earn while conserving its principal.

Various types of Cash Management Accounts offered by banks are business investment account and public sector investment account. The benefits this account offers include greater return potential on excess cash, liquidity, and convenience.

Cash Management System

Cash Management System is a tool used to maximize profits, minimize costs, and obtain efficient management system to assist and accelerate growth.

The Cash Management System of the Enterprise Solution Platform (ESP21) offers powerful, comprehensive tools to create, manage, edit, post, and process bank and investment account activity. The system offers immediate access to disbursements and deposit transactions produced by other ESP21 applications with also providing many other tasks associated with tracking and managing account activity including a comprehensive reconciliation process.

The system enables to track and maintain cash management balances, run cash-management re-conciliation process and inquiry, review summary and detail activity on-line, on demand using ESP's Business InsightTM, and much more.

Techniques used for Efficient Cash Management:

Businesses need efficient Cash Management System to estimate their level of working capital, which can be used to set up the business, to minimize the business risks, to guard against late payment by making sure that the invoices made were sent to the right person on right time.

Emphasis should be given to understand why the float game has gone away, on the use of lockbox banks with the latest technology, on the use of the best features of the controlled disbursement account, in understanding how to maximize use of the ACH and reaping the benefits, on the use of Electronic Data Interchange (EDI), and on combating check and wire fraud.

Approaches to obtain them include use of bank information reporting systems; developments are done in electronic bill presentment and payment, global ACH, treasury workstations, outsourcing, and electronic commerce.