CMS in Banking [Cash Management Services 101]

CMS in banking refers to cash management systems, which is a broad term describing cash collection, distribution, and reporting services for corporate clients.

In this article, we’ll explain in more detail what CMS is and how it differs when banking in different jurisdictions.

This article is part of our free series on banking, ranging from how to open accounts as a foreigner to NRI bank account opening, and everything in between.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. CMS in Banking
  2. Cash Management Services
  3. Frequently Asked Questions
  4. Ready to Explore Your Options?

CMS in Banking

CMS in banking refers to cash management services for corporate clients. In particular, CMS involves cash collection, distribution, and reporting, especially for those businesses operating multiple physical locations. When banks offer CMS to their clients, they are offering a streamlined solution for the day-to-day management of a business’s transactions and account portfolio at the bank. 

Cash Management Services

Cash management services are, not surprisingly, a broad term that banks use to define all of the cash flow management activities that they offer their corporate clients. With this in mind, we will share a more detailed look at a few of the key services banks can offer.

Importantly, the specific services that each bank offers will vary so it’s important to confirm whether a bank is able to support your specific requirement before opening accounts.

Merchant Services

Merchant services are one of the most basic forms of CMS in banking that most corporate clients expect and require. Of course, this can include the collection of payments via Point-of-Sale (PoS) terminals, support for electronic deposits, and even pick-up services for cash and cheques (depending on the business).

Bulk Processing Operations

In addition to collecting payments, businesses also tend to process large batches of payments for payroll and suppliers. To facilitate this for customers, banks typically offer streamlined services such as bulk fund transfers, bulk cheque printing, and even secure cash delivery for many retail operations.

Business Credit Options

Of course, business credit options are also important in terms of the day-to-day cash management of a company. This can come in the form of short-term bridge financing, access to working capital, or longer-term financing requirements for capital projects. Banks that offer cash management services understand these requirements and make them available to their corporate clients.

Other Important Commercial Banking Services

In addition to the services outlined above, corporate clients also have basic banking requirements as well. Here’s a look at two of the more basic services that businesses often overlook when considering where to bank.

Internet Banking

Internet banking offers management and business owners fast and reliable access to cash management reporting, account overviews, and transaction details. In most cases, banks also enable their cash management services through online banking, meaning that a corporate customer of the bank can have their finance team directly manage bulk banking activities on a monthly basis.

Wire Account Transfers

In addition to bulk transactions, corporate customers still need the ability to send and receive one-time (or in-frequent) wire transfers to and from their suppliers and customers. With this in mind, it’s important for businesses to confirm the specific fees associated with wire transfers to and from their desired jurisdictions before opening accounts as they can vary from bank to bank.

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Frequently Asked Questions

Below are two of the most common questions that we receive from people looking into what CMS in banking means. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Is CMS Cash Management?

CMS (cash management services) is the package of services that a bank offers to their corporate clients to facilitate the collection, distribution, and reporting of their transactions. Depending on the bank, CMS can range from the provision of Point-of-Sale merchant services to bulk cheque printing and cash collection.

What Is CMS in HDFC Bank?

CMS in HDFC Bank refers to the bank’s services for corporate clients. HDFC’s own description refers to it as a solution for increasing the efficiency of collections and disbursements. This is similar to how CMS is packaged at most banks including HDFC’s core competitors. With this in mind, when choosing where to bank, it’s important to compare all of the options side-by-side to determine which bank offers the best combination of services, fees, and convenience for your business.

Ready to Explore Your Options?

If you would like assistance navigating your banking options at home or abroad, we can help.

You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.

But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.

Of course, if you have any questions, please contact us directly.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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