Treasury and Risk Management Application Market

Overview of the Treasury and Risk Management Application Market

Treasury and risk management applications have made tracking and managing cash flows, liquidity positions, and bank account balances so effortless that their acceptance has skyrocketed, taking their expected valuation to a staggering USD 5,599.57 million as of 2024. These solutions also find their applications in identifying, assessing, and mitigating various financial risks which makes strategic decision-making effortless.

The post-pandemic economic recovery has started to benefit businesses across various sectors. With the advent of sophisticated technologies such as artificial intelligence and machine learning algorithms, businesses around the world are not at all shying from adopting financial software to effectively manage their financial operations, mitigate risks, and optimize their treasury functions.

These applications are also in excellent demand as they help organizations manage exposure to fluctuations in interest rates, foreign exchange rates, and commodity prices through hedging strategies. The global valuation, by 2034, is slated to hit USD 12,314.8 million, growing at a strong CAGR of 8.20%.

Attributes	Details
Market Value for 2024	USD 5,599.57 million
Projected Market Value for 2034	USD 12,314.8 million
Value-based CAGR of the Market for 2024 to 2034	8.20%

Category-wise Insights

Treasury and Risk Management Software to Change Businesses’ Workflows

Large-scale organizations, these days, are adopting various financial solutions, such as software, consultants, professional services, etc., to streamline their day-to-day operations. Based on the components, the treasury and risk management software is in line to hold the maximum share of 64.80% of the overall market as of 2024.

Attributes	Details
Component	Treasury and Risk Management Software
Market Share (2024)	64.80%

The demand for treasury and risk management software across sectors has touched the skies as they automate repetitive tasks such as cash positioning, forecasting, and reconciliations, freeing up time for finance professionals to focus on strategic activities.

These applications also help organizations identify, assess, and mitigate financial risks more effectively, allowing them to gain valuable insights into their cash positions.

Nearly One in Every Four Treasury and Risk Management Solutions is Used by Investment Banks

Treasury and risk management applications are used by retail banks, investment banks, clearing banks, corporates, and others. The investment banks segment is in line to hold the maximum share of 22.40% of the overall market as of 2024.

Attributes	Details
End User	Investment Banks
Market Share (2024)	22.40%

Treasury and risk management applications are in huge demand in investment banks as they are exposed to a wide range of financial risks, including market risk, credit risk, liquidity risk, and operational risk.

Treasury and risk management solutions provide sophisticated risk analytics and modeling capabilities to help banks identify, quantify, and manage these risks proactively.

Country-wise Insights

Countries	CAGR (2024 to 2034)
China	10.30%
United States	6.10%
Australia and New Zealand	5.80%
Germany	3.10%
Japan	2.00%

Rapid Economic Growth in China to Benefit Treasury and Risk Management App Market

The Chinese treasury and risk management application market is a promising one. It is slated to grow at a CAGR of 10.30% through 2034.

The Chinese economy has experienced robust growth in the last few decades. This has forced them to adopt novel technologies and methods to make their financial tasks easy and convenient. Risk management applications are thus, in high demand in the country.

China, as a country, has always been at the forefront of accepting new tech into its business models. This tendency of theirs has also bolstered the demand for treasury management applications in the country.

Economic Uncertainty in the United States Profits Market Growth

The United States is a lucrative country in this market. The market is expected to grow at a CAGR of 6.10% throughout the forecast period in the country.

The economic conditions in the United States, in the last few decades, especially after the ‘Great Recession of 2008’, have seen a series of ups and downs. This has pushed companies, especially in the banking sector, to adopt risk management solutions.

The reliance of financial organizations on treasury management applications in the United States is also rising due to the presence of an enormous number of IT companies in Silicon Valley providing these solutions.

Australian Treasury and Risk Management Application Market to Grow at Modest Rate

The future of the Australian treasury and risk management application market looks bright. The market is slated to grow at a CAGR of 5.80% through 2034.

Australia is a country known for its natural resources and the mining sector. The presence of large multinational companies, particularly in the mining and resources sector, and their exposure to financial risks have surged the demand for these applications in the country.

Besides this, stringent regulations by financial authorities and the interest of companies to implement technologies in their set-ups have also taken the market to unprecedented levels in the country.

Export-oriented Production to Contribute to German Market ‘s Growth

The German treasury and risk management application market is slated to grow at a CAGR of 3.10% for the forecasted period of 2024 to 2034.

Germany is teeming with multinational companies in the manufacturing sector. These companies have worldwide operations and are prone to the international market’s fluctuations. This has made businesses in Germany rely upon risk management software.

The demand in Germany for these applications is also rising as the European Central Bank, from time to time, updates its financial policies, making the task of adhering to them a cumbersome activity.

Japanese Market to Grow Steadily

The Japanese market is likely to flourish in the coming years. It is slated to grow at a CAGR of 2.00% through 2034.

Japan is reputed as a country that pioneers new technologies in its industrial operations. This business model of the Japanese ecosystem has expanded the treasury and risk management application market in the past few years.

Competitive Landscape

The market is a well-established one, with a multitude of players vying for international dominance. Although a substantial percentage of the revenue of this market is distributed among the top few companies, new start-ups have made their way into this ever-evolving ecosystem in the last few years.

Recent Developments:

• In May 2023, Hg invested in Chicago-based GTreasury, a treasury and risk management software provider. The transaction, advised by William Blair & Company and Skadden, involved former majority owner Mainsail Partners. Hg's investment aimed to fuel GTreasury's growth in serving over 700 customers globally.
• In September 2023, Monzo Bank implemented the MORS Treasury Management System, enhancing its operations with comprehensive financial software solutions. Chosen earlier that year, the system successfully streamlined Monzo's treasury operations, including Deal Capture, Limit Management, and Risk Management, within the agreed-upon 4-month timeframe.
• In December 2023, Treasury Prime announced its partnership with Effectiv, enabling customers to utilize Effectiv's Transaction Monitoring solution. This collaboration aimed to reduce fraudulent activities and enhance risk management within financial institutions and fintech companies.
• In June 2020, Coupa Software acquired BELLIN Group, a prominent treasury management software provider, furthering its presence in corporate banking and treasury. This bolstered Coupa's platform, enhancing visibility and control over cash, and optimizing treasury processes, solidifying its position in business spend management.
• In February 2020, FIS and its clients garnered six awards for innovative treasury and cash management solutions. FIS received recognition for Best Treasury Management Software and Best Cross-Border Payments Solution for Corporates. Additionally, GE, Crowley Maritime Corporation, and Tronox were honored for their pioneering use of FIS solutions.
• In February 2019, GTreasury received the Best Application/Use of Digital Technologies in Treasury Management award from Global Finance magazine. Recognized for its modern SaaS treasury management system, GTreasury provides integrated cash and risk management solutions.
• In November 2022, Chatham Financial upgraded ChathamDirect, their end-to-end financial risk platform. Major enhancements included an AI-powered Interest Rate Swap Loader, increased integration points, and a new commodities dashboard, empowering treasury teams to manage exposures more efficiently.

Key Companies

• SAP SE
• Oracle Corporation
• FIS (formerly SunGard)
• Kyriba Corporation
• TreasuryXpress
• Reval (acquired by ION)
• Openlink (acquired by ION)
• Fiserv Inc.
• MORS Software
• Chatham Financial
• GTreasury
• ION Treasury
• Calypso Technology
• Numerix
• Wallstreet Systems (acquired by ION)
• SAS Institute Inc.
• RiskMetrics Group (part of MSCI)
• Bloomberg LP
• Thomson Reuters (now Refinitiv)
• BlackRock Solutions

Key Coverage in the Treasury and Risk Management Application Industry

• Emerging opportunities in the treasury and risk management sector
• Market demand for treasury and risk management applications
• Impact of global economic trends on the risk management market
• Market perception of usability and scalability of treasury software
• Market penetration strategies for financial technology providers

Key Segments of the Treasury and Risk Management Application Industry

By Component:

• Treasury and Risk Management Application Software
• Treasury and Risk Management Application Services
• Professional Services
  • Consulting Services

By Application:

• Account Management
• Cash and Liquidity Management
• Compliance and Risk Management
• Financial Resource Management

By Deployment Type:

• On-premise Treasury and Risk Management Applications
• Cloud Treasury and Risk Management Applications

By End User:

• Retail Banks
• Investment Banks
• Clearing Banks & CCP
• Corporates
• Others

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

Frequently Asked Questions

How Much is the Treasury and Risk Management Application Market Currently Worth?

The treasury and risk management application market is expected to be worth USD 5,599.57 million by 2024.

What is the Sales Forecast for Treasury and Risk Management Applications by 2034?

The treasury and risk management application market is expected to reach USD 12,314.8 million by 2034.

At What Rate is the Treasury and Risk Management Application Market Growing?

The treasury and risk management application market is forecasted to grow at a CAGR of 8.20% from 2024 to 2034.

Which are the Key Companies in the Treasury and Risk Management Application Market?

SAP SE, Oracle Corporation, FIS, Sage Group PLC, Kyriba Corporation, PREFIS JSC, Openlink, ION, MORS Software, Wolters Kluwer, and Fiserv Inc., are some of the major players in the treasury and risk management application industry.

What was the Value of the Treasury and Risk Management Application Market in 2023?

The valuation for the global treasury and risk management application market in 2023 was USD 5,175.21 million.