The treasury management market is estimated to be valued at US$ 5.10 billion in 2023 and is expected to exhibit a CAGR of 13.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Treasury management refers to the management of liquidity, cash flows, and financial risks. It involves activities such as cash and liquidity management, payment and collection, investment and borrowing, and bank relationship management. Major corporations use treasury management solutions and services to streamline workflows related to cash management, bank account management, payments, and other treasury operations.
Market Dynamics:
The growing adoption of cloud-based treasury management solutions is expected to drive the market growth over the forecast period. With cloud deployment, treasury management solutions offer advantages such as easy accessibility, flexibility, scalability, and low maintenance. They help organizations improve efficiency, reduce costs, and gain real-time visibility into cash positions. In addition, the increasing demand for integrated treasury management solutions from SMEs is also anticipated to fuel the market expansion. Integrated solutions help unify various treasury functions on a single platform, thereby enhancing process optimization and data visibility.
Market key trends:
The treasury management market is witnessing increasing adoption ofAI and machine learning-powered treasury management solutions. AI enables predictive analytics and other capabilities to help treasury professionals in liquidity management, payments and collections, cash positioning, and other activities. AI-powered solutions can automate several routine tasks and processes, allowing treasury teams to focus more on strategic activities. Furthermore, growing demand for working capital optimization among organizations is also driving the adoption of advanced treasury management systems.
SWOT Analysis
Strength: Treasury management solutions enable better cash visibility, forecasting and regulatory compliance which help improve efficiency and reduce costs.
Weakness: High initial costs of deploying treasury management systems. Lack of in-house expertise for handling advanced solutions.
Opportunity: Growing digital transformation among enterprises is driving the shift from manual to automated treasury management processes. Rise of SaaS-based solutions is also an opportunity.
Threats: Cybersecurity threats to financial transactions pose risks. Economic slowdowns can impact demand.
Key Takeaways
The global Treasury Management Market Share is expected to witness high growth, exhibiting CAGR of 13.8% over the forecast period, driven by increasing digitalization of treasury operations and demand for working capital optimization.
Regional analysis: North America dominates the treasury management market currently due to presence of early adopters. Asia Pacific is expected to grow at the fastest pace owing to rapid economic growth, increasing spends on financial technologies by enterprises in countries like China and India.
Key players analysis: Key players operating in the treasury management market are J.P. Morgan Treasury Services, Bank of America Merrill Lynch, Citibank, Wells Fargo, HSBC Global Banking and Markets, BNP Paribas, Deutsche Bank, PNC Bank, Barclays, U.S. Bank. These players are focusing on partnerships, acquisitions and product innovations to strengthen their positions in the market.
For example, JP Morgan recently partnered with Anthropic to launch AI virtual assistants for treasury functions. Bank of America has acquired Axicorp to enhance its payment processing capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it