First Union's cash management revenue ranks fourth in the industry. First Union ranks in the survey as the second-largest provider of multi-function PC-based software, primarily stemming from the success of its on-line banking service, PC InVision. The company ranks in the top 10 (based on market share) for eight out of 10 cash management products, such as Automated Clearing House and controlled disbursement services.
"The sky's the limit for our growth, when you consider that First Union's markets on the East Coast include the richest concentration of middle-market companies in the country," said Nina Archer, senior vice president of First Union's Cash Management Division. "Being the first bank to offer corporate customers a single interstate account has given us a tremendous advantage, and we continue to expand our product line and target new markets, such as small and mid-size businesses."
First Union provides cash management services nationwide but has concentrated its efforts in the 12 East Coast states and Washington, D.C., where its branch network is located. The company's strategy calls for cash management consultants to make joint calls on customers, along with commercial relationship managers in the field, who manage a customer's relationships with First Union on a day-to-day basis.
Another key to the division's growth has been a new approach to customer service. Technical support is provided by a hotline that rings into Cash Management's Technical Consulting Group. The group assists customers with software application inquiries, training and software installation. First Union recently introduced Expert Advisor software, a problem-solving package that houses solutions to customer problems on-line. Later this year the software will be made available via the Internet.
Archer said that offering top-flight cash management services has become increasingly important in the competitive arena of banking.
"Cash management services used to be viewed as a way to enhance a bank's relationship with its credit customers," Archer said. "But today, we're finding more companies that select their cash management provider and then award their credit business. That makes our role more critical than ever."
Automated Clearing House (ACH), electronic commerce and a variety of PC-based options are among the many cash management services offered by First Union. First Union offers a full range of collection, disbursement, information reporting and electronic funds transfer services designed to improve the day-to-day efficiency of a company's treasury operation and maximize a company's return on cash assets.
First Union was the first bank in the country to offer controlled disbursement and continues to place a high priority on innovation in cash management services -- such as the latest, Web InVision, which enables customers to bank on the Internet (http://www.firstunion.com.)
Charlotte-based First Union Corporation is the nation's sixth-largest bank, with assets of $140 billion at Dec. 31, 1996. First Union serves more than 12 million retail and commercial customers and has offices throughout the East Coast from Florida to Connecticut.
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