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The treasury and risk management software market size is estimated to grow at a CAGR of 6.86% between 2023 and 2028. The market size is forecast to increase by USD 1.94 billion. The growth of the market depends on several factors, including the benefits associated with treasury and risk management software, the demand for regulatory compliance related to treasury and risk management, and the rise in adoption of cloud-based treasury and risk management software. The treasury and risk management software is used to streamline corporate treasury operations, optimize cash management, and ensure regulatory compliance, as well as risk management. The software is used to manage an organization's financial operations, such as their cashflows, assets, and investments.
The report includes a comprehensive outlook on the Treasury and Risk Management Software Market, offering forecasts for the industry segmented by Deployement, which comprises on-premises and cloud-based. Additionally, it categorizes Type into treasury, investment management, and risk and compliance, and covers Geography regions including North America, Europe, APAC, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments
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Rise in adoption of cloud-based treasury and risk management software is the key factor driving the growth of the market. The adoption of cloud computing is rapidly increasing across the world owing to the flexibility and cost benefits associated with cloud services. Organizations worldwide are focusing on reducing their overall capital expenditure (CAPEX) and are looking to adopt new technologies with low CAPEX. Small-scale companies and start-ups are adopting cloud solutions to leverage the scalability of hardware and resources offered by cloud providers. Similarly, large organizations have started using cloud-based solutions as they can scale their workload when required, thus eliminating the need to set up their own data centers because it involves high CAPEX and operating expenditure (OPEX).
Moreover, the cloud-based software offers multiple benefits; therefore, vendors have started to offer cloud-based treasury and risk management software. For instance, Kyribas Treasury Cloud is a multi-tenant cloud-based software solution. It offers functionalities such as cash management, cash forecasting, bank account management, and FX accounting. The increasing use of cloud-based treasury and risk management software will drive the growth of the global treasury and risk management software market during the forecast period.
Emergence of intelligent treasury management software is the primary trend in the treasury and risk management software market. Treasury and risk management software is used to streamline and automate the process for cash management and other business procedures. It is also used to ensure the efficient management of policies and regulatory compliance and reduce exposure to cybercrime. There has been a surge in data leakage and Internet fraud incidence reported in banks and organizations belonging to other industries. Therefore, to protect financial resources, companies are adopting advanced analytics solutions. Banks and other organizations are adopting analytics solutions such as AI, machine learning (ML), and big data to automate treasury tasks and recommend actions to take and identify exceptions to policy.
Moreover, the adoption of AI-based treasury and risk management software can improve fraud detection and productivity, thus reducing the report generation timeline. It allows a better understanding of the company's risk factors, financial position, and enhanced decision-making. During the forecast period, the use of AI-based and other analytics treasury and risk management software is expected to increase. Therefore, various vendors have started forming partnerships, acquiring regional players, and launching products to expand their presence and gain more customers. Thus, the emergence of intelligent treasury management software will provide growth potential to the global treasury and risk management software market during the forecast period.
Data security and cybersecurity concerns related to the financial data of organizations is a major challenge to the market growth. The growing importance of an organization's data has led to an increase in cyber threats by hackers for monetary benefits. Organization's financial data are confidential; thus, data security has always been a key concern, particularly in industries such as BFSI and healthcare. Organizations belonging to BFSI, healthcare, and other industries have started using cloud-based software services as they are cost-effective and easy to use. Cloud-based solutions provide end-users with quick and inexpensive access to software programs. These solutions are scalable, which is important for early-stage organizations.
Moreover, the reports of cyberattacks on data centers have raised concerns related to privacy. This is because the lack of control over information can lead to potential dissemination, deletion, or corruption of data by unauthorized users. Treasurers working with banks, insurance, and corporations are cautious about sharing business-critical and financial data with third-party service providers. These concerns are making it difficult for organizations to approve cloud-based technologies for processing sensitive financial information involving strategic decisions. Hence, concerns over data security and the rise in cyber threats could negatively impact the growth of the global treasury and risk management software market during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. On-premises is the largest segment of the global treasury and risk management software market and will continue to remain the largest segment during the forecast period. The primary reason for the adoption of on-premises treasury and risk management software is the high system security offered by it in comparison with the public cloud offering. It also requires a robust IT infrastructure for deployment.
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The on-premises segment showed a gradual increase in the market share of USD 3.03 billion in 2023 and continued to grow by 2021. On-premises treasury and risk management software is mainly used by large organizations and institutes with a global presence to have more control and ownership over the performance of the hardware and software, as well as the data generated and stored within the software. These organizations, especially in the BFSI and healthcare industries, deal with critical business- and customer-related information that requires high security. Hence, on-premises treasury and risk management software deployment is preferred by enterprises. Therefore, it is expected that the on-premises segment of global treasury and risk management software will continue to grow during the forecast period.
The treasury segment is the largest segment of the global treasury and risk management software market. Treasury management software is designed to ensure financial risk management policies, and procedures are properly managed. The software reduces exposure by preventing cybercrime and guaranteeing regulatory compliance while streamlining the cash management process. Regardless of the size, managing cash flow is essential to a business's existence. Companies are using treasury software to automate three key areas: cash flow, assets, and investments. The treasury segment is flourishing due to the increasing acceptance of treasury software among end-users such as governments, banks, and enterprises. Additionally, treasury software provides complete and accurate audit control while lowering operational costs. Such factors will increase the segment growth during the forecast period.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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