July 12, 2024

Treasury management Market Estimated To Witness High Growth Owing To Rising Digital Transformation And Growing Adoption Of Fintech Solutions

The treasury management market is estimated to be valued at US$ 5.10 billion in 2022 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 process of managing liquidity, payments, receipts, cash flows, forex transactions, and bank relationships of a corporate. It enables organizations to manage their finances efficiently and make informed decisions. Treasury management solutions help in effectively managing cash flows, payments, receipts, invoices, and liquidity. They provide robust compliance, reporting, and analytics capabilities to treasury professionals.

Market Dynamics:

Rising digitization across various industry verticals is driving the adoption of advanced treasury management solutions. These solutions offer enhanced visibility into cash positions, optimize liquidity, automate payments, and simplify compliance. Moreover, growing adoption of fintech solutions among banks and corporates is propelling the treasury management market growth. Fintech solutions enable real-time payments, streamline reconciliation processes, and offer seamless financing options. They are increasingly being used for cash forecasting, liquidity management, and working capital optimization. Furthermore, surging demand for advanced payment gateways, risk management tools, and mobile treasury management apps is augmenting the market expansion.

Segment Analysis

The treasury management market can be segmented into solution and services. The solution segment currently dominates the market due to the growing need amongst organizations to effectively manage their liquidity and mitigate associated risks. Technological advancements in treasury solutions such as AI, ML and analytics capabilities have further boosted the adoption of various treasury solutions across verticals.

PEST Analysis

Political: Favorable government regulations around the world promoting adoption of treasury management solutions to improve operational efficiency and control financial risks.
Economic: Growing global economy leading to increase in cross-border transactions driving demand for sophisticated treasury management.
Social: Increasing digitization and focus on providing seamless customer experience fueling adoption of tech-enabled treasury solutions.
Technological: Advent of technologies like AI, ML and cloud computing enabling innovative treasury management solutions to address complex financial requirements of organizations.

Key Takeaways

The global Treasury Management Market Share is expected to witness high growth, exhibiting CAGR of 13.8% over the forecast period, due to increasing digital transformation initiatives by organizations and banks. Regionally, North America currently holds the largest share in the treasury management market owing to strong presence of key vendors and early adoption of advanced technologies across industries. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to rising treasury operations in countries like China and India.

Key players operating in the treasury management market include 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, and U.S. Bank. J.P. Morgan Treasury Services maintains its leading position through continuous innovation and expansion of its treasury management solutions portfolio. Bank of America Merrill Lynch is another major player focusing on strategic acquisitions and partnerships to strengthen its presence.

The global treasury management market size for 2023 is estimated to be US$ 5.10 billion. Treasury solutions market is witnessing increasing adoption of AI, ML and analytics capabilities. Regionally, North America holds the major market share currently owing to presence of key vendors and early technology adoption. Asia Pacific is projected to grow at the fastest pace during the forecast period primarily driven by digital initiatives in major countries. Key players like J.P. Morgan, Bank of America, Citi, Wells Fargo, HSBC, Deutsche Bank, BNP Paribas, PNC Bank, Barclays and U.S. Bank are leading the market through innovative product offerings.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it