Los Angeles, CA (PRWEB) August 01, 2014
Corporate treasury services have a buyer power score of 3.2 out of 5. This moderate score suggests the buyers have a slight advantage over suppliers during the negotiation process. Low price volatility has boosted buyer negotiating power during the past three years, a trend that is expected to continue during the three years to 2017. “Many banks have had steady price growth and offer discounts for buyers to take advantage of the low-price, high-volume transaction strategy,” says IBISWorld procurement analyst Aileen Weiss. “This factor is occurring with the economic recovery, causing access to credit and business transactions to increase and demand for services to rise.”
Although some trends have increased buyer power over the past three years, several factors have limited buyer negotiating power. “There are relatively few substitutes available to buyers, which essentially locks buyers into purchasing the services when needed,” adds Weiss. “Similarly, corporate treasury services have a high degree of product specialization, with vendors tailoring contracts specifically to an individual client’s needs.” Specialization increases costs to the vendor, which raises prices for buyers.
Another factor that limits buyer negotiating power is the highly concentrated nature of the corporate treasury services market. Although more regional banks have started offering corporate treasury services, the top five vendors (Bank of America, J.P. Morgan, Wells Fargo, Citi and HSBC) still dominate the market. Large banks have dominated the market due to the significant capital investments required to develop the necessary infrastructure and back-end systems. This factor is expected to diminish over the coming years as the technology becomes more ubiquitous, causing more demand to move beyond tier-one banks and making it easier for buyers to switch suppliers. The rise in competition over the next three years is expected to continue limiting price growth. Furthermore, low price volatility, which also increases buyer power, is expected to continue over the next three years. As such, buyers do not have to rush to sign a contract to lock in prices. For more information, visit IBISWorld’s Corporate Treasury Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of corporate treasury services. These services are typically offered by banks and include management of receivables and disbursements, cash and liquidity management and funds transfer. Other services can include foreign currency exchange and investment management. This report excludes taxation preparation services, audit services, accounting services and debt management services.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
About IBISWorld Inc.
IBISWorld is one of the world’s leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://bit.ly/1pIQQ44 or call 1-800-330-3772.
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