Magazine article American Banker

Wells Fargo Exec: Cash Management Products Can Differentiate Banks

Magazine article American Banker

Wells Fargo Exec: Cash Management Products Can Differentiate Banks

Article excerpt

WASHINGTON -- "The mind is our battleground," David F. Kvederis of Wells Fargo Bank NA told group of bankers assembled here Tuesday to hear about new cash management services.

"To the typical corporate treasurer who sees 130 banks every 90 days, all banks look alike," he said at the American Bankers Association's national operations and automation conference.

Banks don't have the "top-of-the-mind awareness," he said, that firms like IBM, Hertz, Xerox, and Coca Cola do, but new cash management products can help differentiate a bank in the minds of its customers.

Furthermore, Mr. Kvederis, a senior vice president in charge of cash management, warned that some banks don't seem to believe in "the potency of Sears" as a competitor in providing such services.

Competitors such as Sears, he said, are "tough, strong, smart people" who are only beginning to penetrate the wholesale market.

He cited as an example a retail lockbox joint venture between Sears and Mellon Bank, Pittsburgh, pointing out that Sears is "right on the doorstep, offering services through Mellon to corporations."

Lockboxes are used by corporations to speed the collection of remittances from consumers or other businesses. Remittances are sent directly to a bank postal address, and the checks are deposited and processed immediately, giving companies access to those funds sooner than if they received and deposited the checks.

Many banks, though, are taking advantage of interstate and telecommunications opportunities in developing new products, Mr. …

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