With a 19 percent share of U.S. revenue, Bank of America dominates the treasury services business in the United States and is the No. 1 global provider. Notwithstanding this position of strength, there remain excellent opportunities to grow revenue. Realizing these opportunities requires investment, and Bank of America intends to deploy capital over a multiyear period to accomplish three objectives: expand sales and distribution capability, enhance technology and platforms and expand internationally.
"The treasury management needs of our clients are becoming more complex," said Cathy Bessant, president of Global Treasury Services. "At the same time, clients desire to simplify their treasury processes. Our strategic investment will give us the technology and capabilities we require to stay ahead of the market and grow in importance to clients."
Over time, we have demonstrated the capability to grow market share across all of our client segments. By leveraging our banking center distribution and sales force capacity, we will continue to deepen our share of wallet with existing clients and expand our client base.
Across our industry, the shift to electronic payment mechanisms is accelerating. Our investment strategy is specifically designed to drive our capabilities and market share in electronic channels consistent with our dominant share in traditional cash management products.
With a non-U.S. market share that is one sixth that of U.S. share, we must invest in enhancing our international treasury capabilities. Fully 92 percent of our planned investment has international relevance and will enable rapid growth.
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2. Opportunities in Global Treasury Services
- Launched new capability to expedite billing and claims processing for major health care providers
- Introduced vendor financing solutions to expand global sourcing opportunities for U.S. companies
- Created the Emergency Relief™ card program for government emergency responders and corporate business continuity teams
- Clients are consolidating payments providers.
- Growth in electronic transaction volumes and international payment flows is dramatic.
- Investment in treasury capabilities will protect existing dominant share and produce long-term revenue growth.