For JPMorgan Chase, a major corporate treasury services bank, to buy Xign Inc., a software/services company in the cash conversion cycle space, is a sign of the times, treasury services analysts agree. "Expect to see more deals of this type," says consultant Craig Jeffery, managing director of Strategic Treasurer in Atlanta.

Faced with flat revenue from traditional products, banks are moving aggressively to expand into value-added components of the financial supply chain, notes Anthony Carfang, founding partner of Treasury Strategies Inc. "Processing payables, receivables, order entry–everything that touches the working capital chain–is fair game for banks now," he notes. "They are radically expanding the definition of payment processing."

The first wave has seen JPMC buying Vastera and Fisacare; Mellon Bank acquiring SourceNet and ClearTran; and Bank of America adding Works and HealthLogic, notes David Robertson, Chicago-based partner of Treasury Strategies.