HCA 270 WEEK 8 Assignment Cash Management Services
HCA 270 WEEK 8 Assignment Cash Management Services
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Date Created: 11/13/15
Cash Management 1 Cash Management Services YOUR NAME Axia College of University of Phoenix Cash Management 2 In United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers. It may be used to describe all bank account (such as checking accounts) provided to business of a certain size, but it is more often used to describe specific services such as cash concentration, zero balance accounting, and automated clearing house facilities, In some cases, private banking customers (depositing a considerable amount of cash) are given cash management services. The following article will identify three different commercial banks and detail the cash management services available at all three institutions. The assessment of the commercial banks will include the different services available, the features of one particular service that may prove more beneficial than others, as well as the fees involved with doing business with the service. A commercial bank can also be referred to as “business banking”, it is a bank that provides checking accounts, savings accounts, and money market accounts and accepts time deposits. Cash management services generally offer services such as Account Reconcilement Services a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month that bank statement will show not only which checks have cleared, but also which have not, Cash Management 3 Advanced Web Services which enables managers to create and organize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site, Armored Car Services. Large retailers who collect a great deal of cash may have the bank pick cash up via an armored car company, instead of asking its employees to deposit the cash, Automated Clearing House an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees. Another service offered by cash management services is Positive Pay which is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay checks listed on that register, with exactly the same specifications as listed in the register (amount, payee, serial number, etc.). The first institution of focus will be the Chase bank, with roots dating back to 1799, the chase bank has forges through multiple economic wavers to remain a driving force in the financial sector. Comprised of five Business (Middle Market Banking, Chase Business Credit, Commercial Real Estate Banking, MidCorporate Banking, Chase Equipment Leasing), Chase commercial banking services more than 30,000 clients, including corporations, municipalities, financial institutions and notforprofit Cash Management 4 entities. These clients generally have annual revenues ranging from $10 million to $2 billion. Chase Commercial bankers serve clients nationally throughout the retail branch footprint and in offices located in other major markets. As of the first quarters of 2007 Chase was listed as the number one large middlemarket lender in the United States as well as the number one assetbased lender in the United States (Chase 2009). In addition to offering traditional commercial banking services chase offers, Assets and Wealth Management, International Banking, Investment Banking, Commercial Real Estate Banking, Community Development, Securities Safekeeping, Subordinated Debt and Equity, and Treasury Services. Chase bank serves business via their many officers around the world but some banks prove you don’t have to be a juggernaut to serve businesses successfully. Smaller commercial banks, such as the Commercial bank of Tennessee have been servicing customer in the financial sector since it opened its doors on November 1, 1976 (commercial), just as chase bank, commercial banks serves individual consumers as well as business. As part of its business services commercial offers Checking, Savings, Cash Management, Merchant Processing, Loans, Direct Deposits, and Check Reorder. In addition to providing the above services to its client’s commercial bank also provide Cash Management 5 insurance for its small businesses that it does business with. For the sake of variety, the next financial institution discussed is more of a mid sized bank not as large as chase but not as small as Commercial bank. Comerica opened its door in 1849 and as of 2007 was listed as the 25 largest bank in the United States with assets of $20 billion. Comerica cash management services offer all the benefits of the commercial bank but slightly less than chase. Benefits of have Comerica services include but are not limited to Capital Markets and Investment Banking, Institutional Services (trust and custodial), Risk Management and Insurance, and Treasury Management (Comerica). When considering which of the cash management system is the best I thing it is important to bear in mind the old cliché “do what works for you”. Financial institutions such as Comerica and Chase may help a thriving small business enter a larger market and increase profit but that does not mean than an individual with a business plan to start a small business should walk in one of these institutions and present their plan before it opens its doors. One of the benefits of doing business with a smaller institution (commercial) is customer satisfaction (the relationship is more personal). On the other hand as I stated above, doing business with a bank such as chase could catapult a business into a new financial market. Chase has resources and Cash Management 6 knowledge of regulatory laws and guidelines that some smaller banks may not have due to the lack of size and legality. If I hand a small business with revenues of $200 million a years I would consider employing a cash management service like Comerica of Chase but if I was just starting a business I would do my research to identify which financial institution would provide me the best support (best interest on my money, best business relationship, and speediest service. In summation, there are many options to cash management which makes it all the more strenuous when deciding which financial institutions is best for business. Just as it is important to evaluate the foods and the liquids that we consumer it is equally important to evaluate the organizations that we left handle our money. With the recent collapse of banks and other financial institutions the decisions for where to put your money can be a hard decision to make which is why the consumer must be responsible in there business practice. It seems as if CEO’s and CFO’s are not as responsible as consumers hoped so the consumer must be… Reference Chase (2009). Commercial Banking Retrieved August 4, 2009, from https://www.chase.com. Commercial Bank (2009) Business Banking and Cash Management. Retrieved August 4, 2009, from http://www.ctbn.com. Comerica Bank (2009) Corporate. Retrieved August 4, 2009, from http://www.comerica.com.
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