The Rise of Mid-Market Treasury Solutions



In the past, cloud-based treasury management systems targeted large companies almost exclusively, but now TRM creators are looking to the mid-market enterprise for expansion opportunities. TRMs have helped large companies automate their services for years, and mid –market firms are looking for systems that can yield the same benefits on a smaller scale. In the future, competitive TRM companies will need to cater to this crowd so they don’t miss out on lucrative partnerships and business opportunities.

The Demand Is on the Rise

The number of mid-market treasurers is on the rise, and they need effective tools for business management. These professionals need and expect online access to treasury functions and are willing to switch management systems to get it. Online access comes with a host of benefits like speed, automation, integration and distributed access. As mid-market firms gain a greater market share, TRMs must meet this new demand.

What Mid-Market Wants

What are these mid-market professionals looking for? Affordable functionality. They don’t need a wide array of bells and whistles and favor simple and workable solutions. Middle market customers want to be able to connect with banks and manage cash flow. Additionally, automated features for payroll or other payments are highly desirable. Most importantly, these clients are looking for systems that can cater to their changing and evolving needs.

Scaling Treasury Management Systems

At the moment, most treasury management systems focus on larger businesses and what they require to remain competitive in the market. Mid-market professionals are hungry for systems that are scaled to their needs. While these firms have similar needs, smaller enterprises don’t need overly complicated or intricate management software. Instead, they want user-friendly interfaces designed for the unique challenges of the middle market.

Analyzing the Cost

In a year, the average middle market firm will spend $30,000 to $50,000 before factoring in credit, capital markets and DDA services. As far as TRM companies are concerned, capturing even a fraction of this market is highly beneficial in terms of growth and expansion. Conversely, companies are looking for cost-effective services that will deliver on functionality. Subscriptions for newer mid-market treasury solutions are typically a few hundred dollars per person and can be purchased in multiple-year subscriptions.

The middle market is on the rise and it is here to stay. For TRM and banking firms, this market is essential for market growth and expansion, but these professionals know what they want. Enterprise that can effectively gear TRM services towards this niche will find a wealth of clients ready for effective management software.