Global Survey Validates the Emergence of a New Practice Area in Enterprise IT Valued at $30 Billion

By AIT News Desk On Mar 28, 2022

Corporate Leaders are practicing Enterprise Liquidity Management to protect balance sheets, drive new post-pandemic growth opportunities

Kyriba, (“the Company”) a global leader of cloud-based finance and IT solutions, announced the results of a major IDC survey commissioned by Kyriba. The global survey results of over 800 corporate finance executives validate the emergence of a new practice area in Enterprise IT that includes risk management, payments, real-time connectivity, treasury management and working capital finance. The survey further confirms that predictive analytics, APIs, and artificial intelligence are key integrated technologies required by financial leaders to optimize enterprise liquidity.

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“There is a massive opportunity here for vendors to step in and help CFOs as their role changes. Taken together, we estimated the total available market for such Enterprise Liquidity Management software at $30 billion in 2021, but the longer-term opportunities for software vendors are much larger”

Leading CFOs leverage technology integration to unify financial data and processes

The survey highlights a group (“leaders”) who outperformed the survey set in operational efficiency, technology adoption, and process maturity:

Enterprise Liquidity: 51% of leaders can produce a consolidated view of cash and liquidity in under one hour compared to 8% of the less equipped companies;
Risk Reduction: 79% of leaders have implemented very effective payment fraud prevention with only 16% of laggards reporting confidence in their programs; 69% of leaders effectively hedge to protect their liquidity with less than 5% of laggards reporting well performing hedge programs;
Real-Time Decisions: 93% of leaders leverage real-time insights compared to only 36% of less digitized organizations, while 85% of leaders integrate real-time data from partners and third-party members into their enterprise platforms;
Investing in Technology: 51% of leaders and 43% of all respondents are planning to increase expenditures on liquidity platforms.

CFOs confirm the emergence of a liquidity management practice

“CFOs’ new mission is to identify and activate all possible sources of liquidity to continually adapt to new global volatility. This survey confirms that very digitized organizations are inventing new liquidity management practices that mitigate risk while optimizing treasury, payments and working capital finance enterprise-wide and in real-time. Their CFOs deliver actionable intelligence downstream to business decision-makers by transforming data through AI and API-enabled platforms. We are witnessing the birth of a new category of software – Enterprise Liquidity Management,” said Samuel Guillon, SVP Strategy at Kyriba.

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“We believe that liquidity management platforms can help CFOs improve the new practices they have already established to build resilience, generate value and unlock growth,” said Guillon.

Liquidity management is reshaping the vendor software market to create a new estimated $30b business

“Overall, the survey findings show the increasing importance of liquidity to financial leaders. The Office of the CFO is becoming a liquidity office, driving transformation through data-driven business decisions. Financial leaders demand systems that are built to aggregate, analyze and disseminate data. This need is driving the emergence of intelligent platforms built upon APIs and unified data. The survey demonstrates that CFOs recognize the need to invest in the tools, skills and resources to manage liquidity at an enterprise level,” said Kevin Permenter, Research Director, Financial Applications at IDC.

“There is a massive opportunity here for vendors to step in and help CFOs as their role changes. Taken together, we estimated the total available market for such Enterprise Liquidity Management software at $30 billion in 2021, but the longer-term opportunities for software vendors are much larger,” said Permenter.

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