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Banks Offer CFOs Programmable Liquidity to Win Corporate Deposits

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Banks Offer CFOs Programmable Liquidity to Win Corporate Deposits

Banks are competing for corporate cash with more than yield. JPMorgan, Citi and Bank of America are offering faster settlement, automated reconciliation and improved liquidity management to win valuable treasury relationships.

The battle for deposits is becoming a battle for control. As payments move into ERP systems, APIs and treasury platforms, banks and software providers are competing to influence where corporate cash flows and who controls the data.

Programmable liquidity could become the next competitive advantage. Tokenized deposits and automated payments promise to make corporate cash more productive, but CFOs must weigh efficiency gains against vendor lock-in, interoperability and loss of control.

Corporate cash has become one of banking’s most consequential bargaining chips. The third-quarter earnings season is offering chief financial officers a glimpse of what financial institutions are willing to provide to keep it.

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Third-quarter results from JPMorganChase, Citigroup and Bank of America suggested that the competition for corporate deposits is expanding beyond interest rates and into the infrastructure surrounding the money itself. The world’s largest banks are chasing mid-market CFOs by offering corporate products that remove settlement friction and potentially some reconciliation; transfer greater influence over cash routing to software and banking platforms; and could be creating a competitive market for programmable liquidity and its associated data.

P. 6 billion, up 14% year over year. Citi’s Services business grew revenue 15%, with average deposits increasing 16%.



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