The evolution of technology also has played an important role in changing
cash management practices over the past two decades. The banking
industry has created new products that allow depositors access to real-time
account balance information and the ability to move funds electronically.
The U.S. Federal Reserve System has improved check processing and expedited
the availability of funds. Wall Street firms have designed new financial
products that allow investors to earn higher yields on idle cash. All these
factors have combined to make cash management an important part of the
finance function.