In 2015, the top 10 TRM software vendors accounted for nearly 65% of the global Treasury & Risk Management applications market which grew 5% to approach nearly $2.7 billion in license, maintenance and subscription revenues.
Last year FIS Global led the pack with 13% market share and $337 million in TRM product revenues. Misys was No. 2 achieving 12% share, Murex was the third at 10% and ION Trading and SAP were fourth and fifth place with 10% and 5%, respectively.
Through 2020, the TRM applications market is expected to reach $3.4 billion by 2020, compared with $2.7 billion in 2015 at a compound annual growth rate of 4.9%.
|Exhibit 2: Worldwide TRM Software Market 2015-2020 Forecast, $B|
|Year||2015||2020||2015-2020 CAGR, %|
Source: Apps Run The World, June 2016
TRM Market Definitions And Forecast Assumptions
Treasury and Risk Management applications covers standalone and/or integrated products that automate business processes to support corporate treasury operations (including the treasuries of financial services enterprises) with the corresponding financial institution functionality and optimize related cash management, deal management, and risk management functions.
Financial services remain TRM’s biggest buyers, FIS’ purchase of SunGard forming a juggernaut in TRM will reshape the marketplace.
Top 10 TRM Software Vendors
Here are the rankings of the top 10 TRM software vendors in 2015 and their market shares in 2015.
|Rank||Vendor||2014 TRM Apps Revenues, $M||2015 TRM Apps Revenues, $M||YoY Growth||2015 TRM Market Share, %||Recent Developments|
|1||FIS Global||Subscribe||Subscribe||-2%||13%||Acquired SunGard Data Systems in late 2015 for its complementary range of products and services in Capital Markets, Wealth and Asset Management, and Risk Management to financial institutions and businesses worldwide|
|2||Misys||Subscribe||Subscribe||3%||12%||Signed HP Enterprise in deal to put FusionCapital for post-trade processing in the cloud.|
|3||Murex||Subscribe||Subscribe||10%||10%||Bolstered risk management solutions with Enterprise FRTB designed to help banks meet the Basel committee’s compliance deadline of January 1, 2019.|
|4||ION Trading||Subscribe||Subscribe||4%||10%||ION’s move to deleverage appears to be paying off as ratings on its loans remain stable.|
|5||SAP||Subscribe||Subscribe||23%||5%||Treasury management is one of the key modules within SAP’s new ERP suite S/4 HANA.|
|6||IBM||Subscribe||Subscribe||-4%||3%||IBM Algorithmics focuses on risk management solutions, having divested its collateral management apps to SmartStream in 2015.|
|7||Reval||Subscribe||Subscribe||18%||3%||Ramped up Treasury and Risk Management offerings for mid-market and Asia expansion.|
|8||Open Link Financial, Inc.||Subscribe||Subscribe||14%||3%||Former CEO of Digital Insight John O’Malley was named CEO of OpenLink.|
|9||Wolters Kluwer||Subscribe||Subscribe||13%||3%||Formed Tax & Accounting North America unit in 2016 to combine tax and accounting apps under one roof.|
|10||EdgeVerve||Subscribe||Subscribe||-6%||3%||Infosys Finacle pitches Cloud-first banking as well as an connected ecosystem of financial and non-financial entities to take advantage of open banking services for general population at large.|
Source: Apps Run The World, June 2016
Exhibit 1: Worldwide Enterprise Applications Market Forecast 2015-2020, By Functional Market, $M
TRM Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in TRM applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest TRM software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these TRM customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
|Vendor||Customer Win||Industry||No. of employees||Revenue, $M||Old Product||New Product||Wins in|
|EdgeVerve||Al Ahli Bank of Kuwait||Banking and Financial Services||1500||425||Misys||Infosys Finacle||1Q16|
|EdgeVerve||Albaraka||Banking and Financial Services||1300||275||Temenos||Infosys Finacle||1Q16|
|EdgeVerve||Asia Green Development Bank||Banking and Financial Services||1700||200||Legacy System||Infosys Finacle||2Q16|
|EdgeVerve||Bank Leumi PLC||Banking and Financial Services||225||57||Misys Midas||Infosys Finacle||1Q16|
|EdgeVerve||Paytm||Internet||3000||330||Legacy System||Infosys Finacle||2Q16|
|FIS Global||CIT||Banking and Financial Services||4740||2890||Jack Henry and Associates||FIS IBS Core Processing Platform||4Q15|
|FIS Global||Citizens Bank||Banking and Financial Services||17900||4530||Legacy System||FIS Core Banking||2Q16|
|FIS Global||Dallas Capital Bank||Banking and Financial Services||50||5||Legacy System||FIS Digital Banking, FIS Mobile Banking||1Q16|
|FIS Global||Emprise Bank||Banking and Financial Services||500||70||Fiserv||FIS Core Banking||1Q16|
|FIS Global||Evans Bank||Banking and Financial Services||220||25||Legacy System||FIS Core Banking||2Q15|
|FIS Global||Landmark Bank||Banking and Financial Services||700||130||Fiserv||FIS Digital Banking||4Q15|
|FIS Global||Los Alamos National Bank||Banking and Financial Services||310||45||In-House Legacy System||FIS Core Banking||4Q15|
|FIS Global||National Bank Holdings||Banking and Financial Services||956||162||Legacy System||FIS Core Banking||3Q15|
|FIS Global||State Bank of India||Banking and Financial Services||222033||38000||Tata Consultancy Services (TCS) BaNCS Core Banking||FIS Core Banking||1Q16|
|FIS Global||Westwood Holdings Group Inc.||Investment Management||130||170||Infovisa||FIS Core Banking||4Q15|
|IBM||BNY Mellon||Banking and Financial Services||51200||15194||Algorithmics||IBM Algo Collateral Management||3Q15|
|IBM||European Investment Bank||Banking and Financial Services||2900||500||Wall Street Systems||IBM Algo Risk||1Q15|
|IBM||Generali||Banking and Financial Services||77000||73100||Misys||IBM Algo Risk||3Q15|
|IBM||Nationwide Insurance||Insurance||34000||40222||OpenLink||IBM OpenPages||3Q15|
|IBM||Skandinavisk Data Center||Computer Software||1200||245||Misys||IBM Algo Risk||2Q16|
|IBM||Westpac||Banking and Financial Services||32620||16230||Misys||IBM OpenPages||1Q16|
|Misys||Habib Bank||Banking and Financial Services||14000||1100||Misys||Misys FusionBanking||4Q15|
|Misys||IDFC Bank||Banking and Financial Services||1220||120||Misys||Misys FusionBanking||4Q15|
|Misys||PVcomBank||Banking and Financial Services||2845||230||Temenos||Misys FusionBanking||4Q15|
|Misys||Techcombank||Banking and Financial Services||7500||750||Temenos||Misys FusionCapital||1Q16|
|Misys||The United Bank of Egypt||Banking and Financial Services||1000||500||Misys||Misys FusionBanking||1Q16|
|Misys||Trade Bank of Iraq||Banking and Financial Services||100||15||Misys||Misys FusionBanking||1Q16|
|Misys||Virtus Partners||Banking and Financial Services||250||30||FIS Global||Misys FusionBanking||1Q16|
|Murex||DZ Bank||Banking and Financial Services||29596||6810||Murex||Murex||1Q16|
|Murex||Jefferies||Investment Banking||3557||3275||Wolters Kluwer||Murex||2Q15|
|Murex||TD Bank||Banking and Financial Services||26000||8024||Legacy System||Murex||1Q16|
|Murex||TD Securities||Banking and Financial Services||3000||500||Wall Street Systems||Murex||1Q15|
|Murex||Westpac Institutional Bank||Banking and Financial Services||32620||16100||Calypso||Murex||4Q15|
|Open Link Financial, Inc.||Banco Original||Banking and Financial Services||750||87||Legacy System||OpenLink Findur||2Q16|
|Open Link Financial, Inc.||Bayerische Landesbank||Banking and Financial Services||7082||700||OpenLink||OpenLink Findur||2Q16|
|Open Link Financial, Inc.||Etihad Airways||Airlines/Aviation||19700||7600||IT2 Treasury Solutions||OpenLink Findur||2Q16|
|Open Link Financial, Inc.||Federal Home Loan Bank of Topeka||Banking and Financial Services||220||10||TPG Software||OpenLink Findur||2Q16|
|Open Link Financial, Inc.||Romande Energie||Utilities||740||590||Bellin||OpenLink Findur||1Q16|
|Open Link Financial, Inc.||Superior Plus Energy Services||Oil & Energy||1100||570||Legacy System||OpenLink Findur||2Q16|
|Reval||Amcor||Packaging and Containers||28000||9500||Legacy System||Reval Cloud Platform||4Q14|
|Reval||Hong Kong Aviation Capital||Utilities||1000||500||Legacy System||Reval Cloud Platform||1Q15|
|Reval||Mission Rock Residential, LLC||Real Estate||500||80||Legacy System||Reval Cloud Platform||2Q16|
|Reval||Ortho Clinical Diagnostics||Medical Devices||3800||1700||SAP||Reval Cloud Platform||4Q15|
|Reval||Scenic||Leisure, Travel & Tourism||300||50||Legacy System||Reval Cloud Platform||3Q15|
|Reval||Snowy Hydro||Healthcare||1000||500||Legacy System||Reval Cloud Platform||4Q14|
|SAP||Al-Sayer Group||Automotive||1000||500||Legacy System||SAP TRM||1Q16|
|SAP||JVL Agro Industries||Food Production||1600||660||Legacy System||SAP TRM||3Q15|
|SAP||Roche||Biotechnology||91750||49200||Legacy System||SAP TRM||4Q15|
|SAP||Sigma Aldrich||Biotechnology||9600||2785||Legacy System||SAP TRM||4Q14|
|SAP||UOL-Universo On-Line||Internet||2500||700||Legacy System||SAP TRM||4Q14|
|SAP||VDL Weweler||Automotive||150||20||Legacy System||SAP TRM||4Q14|
|SAP||Wipro||Information Technology and Services||172912||7735||Legacy System||SAP TRM||4Q15|
|Wolters Kluwer||Banco Santander||Banking and Financial Services||50578||23800||Murex||OneSumX Regulatory Reporting solution||1Q16|
|Wolters Kluwer||Bank BGŻ BNP Paribas||Banking and Financial Services||7590||2290||Legacy System||OneSumX for risk management||2Q16|
|Wolters Kluwer||Bank Pocztowy S.A.||Banking and Financial Services||1417||110||Misys Kondor+||OneSumX for risk management||1Q16|
|Wolters Kluwer||Housing and Development Bank||Banking and Financial Services||2500||270||Sungard AMBIT||OneSumX for risk management||1Q16|
|Wolters Kluwer||Taiwan Business Bank||Banking and Financial Services||4795||18030||Misys Kondor+||OneSumX Regulatory Reporting solution||2Q16|
Source: Apps Run The World, July 2016
An expanded version of this report covers the top 50+ TRM vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2014-2015 product revenues.
Their 2015 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Definition Of Treasury And Risk Management (TRM) Applications
Treasury and Risk Management applications are designed to automate corporate and banking functions pertaining to managing cash and liquidity, identifying and measuring financial risks as well as other assets, collaterals and underlying instruments that could impact an organization’s ability to sustain itself financially and operationally, while meeting regulatory requirements.
The market for treasury and risk management applications covers standalone and/or integrated products that automate business processes to support corporate treasury operations (including the treasuries of financial services enterprises) with the corresponding financial institution functionality and optimize related cash management, deal management, and risk management functions as follows:
- Cash management automation includes both discrete and interlocking treasury processes involving electronic payment authorization, bank relationship management, cash forecasting, and others.
- Deal management automation includes processes for the implementation of trading controls, the creation of new instruments and asset classes, market data interface from manual or third-party sources, and others.
- Risk management automation includes performance analysis, various metrics calculations used in fixed-income portfolio analysis, market-to-market valuations, energy trading and risk management, and compliance with regulations and standards such as Basel III, Dodd Frank, European Market Infrastructure Regulation, Financial Accounting Standard, International Financial Reporting Standards, Single European Payments Area, Solvency II, and others.
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world. The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.