OFX invests $6.1M in TreasurUp to better service SME hedging strategies
1 July 2021 – OFX, a leading online foreign exchange and global payments provider, is set to bolster its growing Corporate and Online Seller client segments with a $6.1 million investment in European treasury management cloud software company TreasurUp. Its largest strategic investment to date, TreasurUp enables banks to better service small and mid-sized corporates (SME) with automated hedging policies, currency risk management products and a FX pricing platform. In time, OFX will integrate the services to its existing platform so that its Corporate and Online Seller clients can benefit from the convenience, security, and controls TreasurUp’s software brings.
While real-time currency market data is readily available, the execution of foreign currency transactions within a defined hedging policy, along with cash flow forecasting and liquidity management has long been a manual, time-intensive process in Excel for treasurers, which can lead to human error.
TreasurUp, a spin-off by Netherlands-based Rabobank and now funded as a major co-investor by OFX, works to alleviate these pain points for small and mid-size corporates by providing cloud-based software tools that simplify hedging for FX spots, forwards, swaps and limit orders, while enabling automated order/invoice and forecast hedging. As a white label solution for banks both the software and deep category expertise that TreasurUp offers bolsters the traditional commercial banking proposition. It brings significant advantages to banks by solving problems for corporate clients through cutting edge capability delivered via a multi-channel cloud solution with ERP integrations.
“Banks around the world are challenged with new business models and technology for small and medium-sized corporate clients. TreasurUp aims to bring them back into the competitive arena with online services that are completely designed around SMEs. To do so, TreasurUp will expand its unique online foreign exchange hedging module whilst developing new modules like liquidity management and cash flow forecasting. OFX’s global presence, products, platform and service excellence will help boost these ambitions,” says Niels van Daatselaar, CEO and co-founder of TreasurUp.
With European banks moving quickly to offer the service to local businesses and following significant growth in OFX’s corporate client segment, the investment aims to facilitate Australian, APAC and global banks adopting the solution to better service clients conducting cross-border trade.
Skander Malcolm, CEO of OFX, said: “As we’ve grown our Corporate and Online Seller segments, which now contribute more than 50% of annual revenue, the value in providing risk management toolkits for clients has become increasingly apparent. This investment will accelerate our strategy to grow in our Corporate and Online Seller segments by strengthening our capability to deliver leading edge treasury risk management toolkits to clients to manage their FX risk. Further, it demonstrates how we can enhance the client value proposition through proactive M&A.”
Future-state iterations of TreasurUp’s software will involve liquidity management, AI based cash flow forecasting and commodities hedging solutions that banks can offer to their SME’s.