European corporate customers’ choice of domestic cash management banks

Provides evidence of the criteria for the choice of domestic cash management banks adopted by large European firms. A questionnaire completed by 1,129 corporate customers from 20 European countries indicates that service quality is the most important criterion for choice of domestic cash management banking, followed by pricing and relationship. Using the empirical findings, discusses the appropriateness of relationship‐oriented and transaction‐oriented bank strategies across Europe. Based on the customers’ ranking of choice criteria finds no evidence of widespread successful implementation of relationship banking in Europe.