Study Predicts Booming Growth for SaaS Based TRM Software

By CIOReview | Tuesday, April 1, 2014

SAN DIEGO: The technology analyst firm, ‘Apps Run The World’ have announced the results of their latest study on Treasury and Risk Management applications in the market. Treasury Management includes everything from the firm's collections to disbursements, investments to funding activities.

According to the report, Kyriba, a SaaS app for treasury management is currently at the helm of the market with an increase of 27 percent in subscriptions revenue for the year 2013. It also predicts that this rate will continue to increase in the coming years.

“Kyriba is the only treasury software vendor that has developed its product as a 100 percent SaaS solution, from the ground up. This approach has been proven to be very beneficial for our clients, and that is why Kyriba now powers treasury management for more than 800 organizations worldwide,” says Jean-Luc Robert, Chairman and CEO of Kyriba.

As per the report, growth for SaaS based TRM software is expected to escalate from $2.2bn in 2013 to $3.5bn by 2018–CAGR of 9.3 percent.  Subscription-based SaaS software will contribute to the bulk of expansion in the industry, at 21.5 percent CAGR, while returns from on-premise and ASP solutions are only forecast by the report to CAGR of 4.1 percent.

The report also forecasts multi-tenant cloud delivery of TRM applications to grow quicker through the calculated period owing to the abundance of easy and scalable online services and regular software updates.  

Treasury workstation vendors, who have adopted cloud delivery as the primary platform to sell their products, are projected by the study to grow faster than those focusing exclusively on risk management.

Acquisitions of smaller firms by better-financed vendors, increased reception to cloud-based products for cost efficiency by customers, and integrated technology solutions replacing discrete and manual processes from bank communication to exposure management; and compliance to the recently-enacted financial rules and activities from Dodd Frank to European Market Infrastructure Regulation are all contributing to the growing market for TRM software.

The study also showcases that the TRM software growth will not be even and consistent. Since cloud is replacing the conventional implementation of softwares, license sales are projected to grow less than 5 percent over the next five years. Support and maintenance revenue rates will be marginally better owing to the ERP and on-premise applications vendors favoring the customers with distinguished service offerings from custom development to hybrid hosting.