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The Shifting Sands of Corporate Cash

U.S. corporate treasurers have been slow to move company cash into high-yielding accounts even as the Federal Reserve has raised rates eight times in the past three years.

That may be about to change.

New research from Novantas finds that three-quarters of companies plan to move deposits into higher-yielding accounts over the next 12 months. The anticipated shift will mark a return to historical trends and comes at a time when the Fed is expected to continue raising rates through 2019.

The research underscores potential challenges for bankers who have spent years building relationships with corporate clients. While these clients still value those relationships highly, they also indicate a willingness to forego those bonds in favor of a good rate. And treasurers have plenty of options when looking for a place to stash their cash.

As a result, banks must work harder to identify, acquire and retain corporate and commercial deposits, using tools that dig deep into funding sources, customer scoring, and other analytics.



Matthew Sharp
VP, Head of Customer
Knowledge, Chicago

Robin Sidel
Director, New York

Peter Serene
Principal, Chicago

For more information, contact Novantas Marketing

+1 (212) 953-4444

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