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Cash management is a central issue in any business organization. The ability of an organization, with the help of a bank, to manage its cash appropriately gives that business organization an edge on the market. This means that the organization is able to use its cash more quickly and put the cash in applications that bring forth income.  Many banks nowadays are offering CMS to their customers and with the end of each day the banks strive to venture into technologically competent CMS so as to remain at the top of the banking market (Shim & Siegel, 2000).

Within the same product of CMS a bank emerges top depending on the efficiency of that bank in offering that service, the charges involved and the customers’ preferences. In the US almost all banks offer CMS and the major banks such as Citibank, Bank of America and Wells Fargo offer a wide Range of CMS services which are user friendly and efficient in a bid to gain an edge in the highly competitive market. Among the customers who receive these CMS from banks include individuals, business organizations such as a health care organization, corporations, etc.


General Objective

To identify the major CMS offered by the banks in US and the importance of the services to the business organization.

Specific Objective

To identify the CMS offered by Citibank, Bank of America and Wells Fargo banks with an aim of choosing the best service to be subjected to comparison and contrast among the three banks offering this service.

To explain the best choice and show how that CMS can be used to reduce the opportunity cost for a health care organization.


CMS is the professional management of cash in a business organization to enable the cash work for the organization and ensure this cash is put in high return investment. Cash Management’s major aim is to make cash or information about cash accessible whenever needed so as to help an organization venture into a timely high returns investment, carry out transactions or make decisions. These services of cash management are usually offered by the banks to the large organizations. It is more of private banking where a bank tailors services to fit the needs of the customer than a normal banking practice (Shim & Siegel, 2000).This paper seeks to identify the CMS offered by Citibank, Bank of America and Wells Fargo. After identification of the CMS services, one of the services ranked as the best for each banks is chosen. An explanation for choosing the supposedly best service is rendered and a parallel drawn on how the three banks offer these services. The parallel is based on advantages and disadvantages of each banks presentation of the best services. The paper closes with an explanation on how the bank’s cash management service can reduce opportunity cost for a health care organization.

CMS in Citibank, Bank of America and Wells Fargo.

The banks offer a number of CMS to their clients these include: Account Reconcilement Services, Advanced Web Services, Armored Car Services, Automated Clearing House Services, Balance Reporting Services, Controlled Disbursement Services, Positive Pay Services and Zero Balance Accounting Services

Account Reconcilement Services tries to solve t he problem of not being able to know the actual account balance of an organization. Failure to establish the exact account balance of an organization results from  numerous checks issued by the organization some of which might or might not have been cleared by the time you check the account thus  making it difficult to tell the exact account balance. To solve to solve this problem, the banks develop a system which permits an organization to upload a full list of all checks offered on a daily basis such that at the end of the month, the bank statement shows checks which have been cleared and those that have not. In this way, it is easy to tell the actual account balance. This system in the recent days has been used by banks to prevent fraudulent cashing of checks that do not appear in the list. This process of preventing the fraudulent cashing of checks which are not in the list is called positive pay.

Positive Pay is a service where the bank and a business organization share the information on the organization’s check register through electronic means. The sharing enables a non-fraudulent clearing of checks because the bank will only clear the checks in the organization’s check register and only the way they appear in the register i.e. in t terms of serial No., payee, etc. This system reduces chances of fraud in an organization.

The bank’s Web Services available to consumers may not at times carry out some operations depending on the restrictions specified by the management of an organization. Advanced Web Services provides extra features which might not be available on the consumer website. These extra features enable the managers to create and authorize special logon passwords which can allow employees to generally access the cash management features absent on the consumer website. (Shim & Siegel, 2000).

Some very large retailers such as wall mart collect a lot of cash daily which may not be safe for employees to deposit hence need for the bank to come and pick up the cash through an armored car company. This kind of cash management system is called armored car services and it is purely for the security of the cash in transit the organization then pays the bank for that service of hauling its cash to the bank safely.

Automated Clearing House system services are carried out by the bank’s cash management department. It involves the automated inter bank fund transfer using an electronic system. However some organizations have used this system to receive payment from customers but this kind of use has been received with relative criticism based on the banks automatic assumption that the organization initiating the debit is right until proven wrong.

Wire Transfer system is a process through which a bank transfers funds to another bank. This transfer is virtue and involves a phone call from one bank to another instructing the bank to make payments according to the given specification. This feature is important because it allows for international and long distance transactions between organizations.

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Kylie Garcia

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