The Latest Treasury Management Industry Statistics Explained
“The global treasury management system market size was valued at USD 1.96 billion in 2019.”
This statistic indicates that the total market value of global treasury management systems amounted to USD 1.96 billion in the year 2019. Treasury management systems are software solutions that help organizations manage their cash, liquidity, and financial risk efficiently. The market size figure suggests the overall value of software sales and services related to treasury management across industries and regions in 2019. This information can be useful for businesses, investors, and policymakers to understand the scale and importance of treasury management systems in the global financial landscape.
“The treasury management system market is estimated to grow from USD 1,622.6 million in 2020 to USD 3,462.3 million by 2025, at a Compound Annual Growth Rate (CAGR) of 16.4% during the forecast period.”
The statistic provided indicates the projected growth of the treasury management system market from USD 1,622.6 million in 2020 to USD 3,462.3 million by 2025, with a Compound Annual Growth Rate (CAGR) of 16.4% over the forecast period. This signifies a significant growth trajectory for the market, implying that the demand for treasury management systems is anticipated to increase substantially over the next five years. The CAGR of 16.4% suggests a steady annual growth rate, highlighting a sustained upward trend in market expansion. This data is crucial for industry stakeholders, investors, and decision-makers to assess the potential opportunities and risks within the treasury management system market and make informed strategic decisions accordingly.
“In 2019, the top 5 competitors in the global treasury and risk management application market constituted 81% of the market.”
The statistic indicates that in 2019, the global treasury and risk management application market was highly concentrated, with the top 5 competitors holding a significant market share of 81%. This suggests that a small number of key players dominated the market, potentially indicating limited competition and strong barriers to entry for new entrants. The concentration of market share among these top competitors may have implications for pricing power, innovation, and overall market dynamics within the global treasury and risk management application industry. This statistic highlights the competitive landscape and market structure in this particular industry, underscoring the importance of these top players in shaping industry trends and developments.
“The largest players in the Global Treasury Management System (TMS) Market are ION, Kyriba, FIS, GTreasury, and Finastra, accounting for nearly 70% of the market share.”
The statistic indicates that the Global Treasury Management System (TMS) market is dominated by a few key players, namely ION, Kyriba, FIS, GTreasury, and Finastra, who collectively control a significant portion of the market share, amounting to nearly 70%. This suggests that these companies have a strong competitive advantage and are likely leaders in providing TMS solutions to organizations worldwide. Their widespread presence and influence in the market underscore their capabilities and the trust placed in their offerings by businesses seeking effective treasury management solutions. As such, these top players play a crucial role in shaping the dynamics and trends within the Global TMS market, influencing decision-making processes and setting industry standards.
“The global cash and treasury management software market will expand at a CAGR of 5.5% from 2020-2027, reaching $1.86 billion in size by 2027.”
This statistic indicates that the global cash and treasury management software market is projected to grow steadily at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. This growth is expected to lead to the market size reaching $1.86 billion by the end of 2027. The CAGR of 5.5% signifies a moderate yet consistent increase in market value over the seven-year period. Factors such as increasing adoption of advanced technologies, automation in financial processes, and the need for efficient cash and treasury management solutions by businesses worldwide are likely to drive this growth. This forecast provides insights into the anticipated expansion and significance of cash and treasury management software within the global market landscape.
“68% of corporate treasury professionals believe integrating new technology is their top operational challenge.”
The statistic “68% of corporate treasury professionals believe integrating new technology is their top operational challenge” indicates that a large majority of professionals working in corporate treasury roles perceive integrating new technology as their primary operational difficulty. This suggests that navigating the complexities and disruptions associated with adopting and incorporating new technological tools and systems into their day-to-day operations is a significant concern for these professionals. The statistic underscores the importance of addressing technological challenges and embracing innovations in order to enhance efficiency, streamline processes, and remain competitive in the continuously evolving landscape of corporate financial management.
“70% of treasurers noted automation and digitization as the most important treasury trend.”
The statistic “70% of treasurers noted automation and digitization as the most important treasury trend” indicates that a significant majority of treasurers view automation and digitization as a critical development in the field of treasury management. This suggests that treasurers believe that leveraging technology to automate financial processes and digitize transactions is essential for improving efficiency, accuracy, and overall effectiveness in treasury operations. The high percentage of treasurers identifying this trend as important highlights a shifting landscape within the industry towards embracing innovative solutions to enhance treasury functions and adapt to the digital age.
“In a 2019 survey, 40% of treasurers reported a significant impact from cyber threats.”
The statistic “In a 2019 survey, 40% of treasurers reported a significant impact from cyber threats” indicates that a substantial proportion of treasurers, representing two out of every five individuals surveyed, experienced noteworthy consequences from cyber threats during the year 2019. This finding underscores the prevalence and importance of cybersecurity concerns within the treasurer community, highlighting the potential financial and operational risks associated with cyber attacks. The statistic suggests that a considerable number of treasurers faced challenges relating to data breaches, financial fraud, or other cybersecurity incidents, emphasizing the need for enhanced cybersecurity measures and vigilance in the financial sector to mitigate such risks and protect valuable assets.
“Cloud-based treasury management software is expected to witness a growth rate of 8.6% from 2020 – 2026.”
This statistic indicates that the market for cloud-based treasury management software is projected to grow at a compound annual growth rate (CAGR) of 8.6% over the period from 2020 to 2026. This suggests that there is a significant demand and adoption of cloud-based solutions within the treasury management sector. The growth rate of 8.6% implies a strong and steady expansion of the market, driven by factors such as the increasing need for more efficient and scalable treasury operations, cost-effectiveness of cloud solutions, and advancements in technology. Companies in the treasury management software industry are likely to benefit from this trend and may need to adapt their products and services to cater to the growing demand for cloud-based solutions.
“Banking, Financial Services, and Insurance (BFSI) sector accounted for more than 60% share in the global treasury management system market in 2019.”
The statistic “Banking, Financial Services, and Insurance (BFSI) sector accounted for more than 60% share in the global treasury management system market in 2019” indicates that the BFSI sector, which includes banks, financial institutions, and insurance companies, held a substantial portion of the market for treasury management systems in 2019. This sector’s dominance suggests that organizations within BFSI have a significant need for advanced tools and technologies to manage their financial operations efficiently and effectively. The high market share also highlights the importance of treasury management systems in enabling financial institutions to optimize cash management, risk management, and liquidity management practices, which are critical for maintaining financial stability and competitiveness in the industry.
“49% of treasury management teams still use manual processes for cash forecasts.”
The statistic “49% of treasury management teams still use manual processes for cash forecasts” indicates that nearly half of treasury management teams continue to rely on manual methods, such as spreadsheets or other non-automated tools, to project and manage their cash flow. This suggests a significant portion of organizations may not be leveraging advanced technologies or software solutions for forecasting cash flows, potentially leading to inefficiencies, inaccuracies, and a lack of real-time insight into their financial positions. Moving towards automated tools and systems for cash forecasting could help these teams improve the accuracy and efficiency of their forecasting processes, enabling better decision-making and financial planning.
“Over 90% of corporate treasurers want more visibility into their cash.”
The statistic “Over 90% of corporate treasurers want more visibility into their cash” indicates that a significant majority of corporate treasurers express a strong desire for increased insight into the cash holdings and cash flows of their organizations. This statistic highlights the importance placed by treasurers on having a clear understanding of their cash positions, which is crucial for effective financial management, risk mitigation, and strategic decision-making. The high percentage of treasurers seeking greater visibility suggests that there may be room for improvement in the tools, processes, or systems currently in place to monitor and manage cash within corporations. Addressing this need for enhanced visibility could lead to better financial outcomes and operational efficiencies for organizations.
“The adoption rate of Artificial Intelligence (AI) in financial services and treasury is expected to jump from 15% to 70%.”
The statistic indicates a substantial and rapid increase in the adoption rate of Artificial Intelligence (AI) in financial services and treasury departments, with a projected rise from 15% to 70%. This jump suggests a significant embrace of AI technologies within these sectors, likely driven by the potential benefits including improved efficiency, enhanced decision-making capabilities, and cost savings. The remarkable growth in adoption rate highlights the increasing recognition of AI’s transformative potential in streamlining operations, managing risks, and driving innovation within the financial services and treasury domains. Organizations are increasingly acknowledging the value that AI can bring to their operations, leading to a widespread integration of these technologies to enhance their competitive edge and address evolving industry demands.
“As of 2020, 80% of corporate treasurers surveyed said they are working on digital transformation projects.”
The statistic “As of 2020, 80% of corporate treasurers surveyed said they are working on digital transformation projects” indicates a high level of engagement and focus on modernizing financial operations within the corporate sector. The fact that 80% of corporate treasurers are actively involved in digital transformation projects suggests a widespread recognition of the importance of leveraging technology to streamline processes, improve efficiency, and adapt to changing business environments. This statistic highlights a significant shift towards embracing digital tools and strategies within the treasury function, potentially driven by the need to enhance competitiveness, optimize resource allocation, and meet evolving customer demands in an increasingly digital business landscape.
“A 2020 report identified 7 key trends for treasury, including Back to Basics, Cash Visibility, Regional Treasury Centres, Treasury Technology, Risk Management, Regulatory Requirements and Talent Management.”
The statistic provided outlines the key trends identified in a 2020 report for the field of treasury. These trends include Back to Basics, which suggests a focus on core treasury functions, Cash Visibility, which involves improving the oversight and management of cash flows, Regional Treasury Centres, which highlights the importance of centralized treasury operations in different regions, Treasury Technology, which emphasizes the adoption of technology for enhanced efficiency and automation, Risk Management, which involves strategies for identifying and mitigating risks, Regulatory Requirements, which relates to compliance with financial regulations, and Talent Management, which indicates the significance of attracting and developing skilled professionals in the treasury sector. These trends collectively illustrate the evolving landscape and priorities within treasury management in 2020.
“By 2025, it’s expected that 90% of all new enterprise apps will be embedded with AI technology.”
The statistic suggests that by 2025, the majority (90%) of new enterprise applications developed by businesses will incorporate artificial intelligence (AI) technology as a fundamental component. This indicates a growing trend towards integrating AI capabilities to enhance the functionality and performance of software applications used by organizations for various business purposes. The adoption of AI technology in enterprise applications is expected to bring benefits such as automation of tasks, optimization of processes, and improved decision-making capabilities to help businesses operate more efficiently and effectively in the evolving digital landscape.
References
0. – https://www.www.theglobaltreasurer.com
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3. – https://www.home.treasury.gov
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11. – https://www.www.financialdirector.co.uk
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15. – https://www.www.prnewswire.com
