SAN DIEGO & PARIS–(BUSINESS WIRE)–Kiriba, (“the Company”), a global leader in cloud-based financial and IT solutions, today announced the results of a major IDC survey commissioned by Kyriba. 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, time connectivity real estate, cash management and working capital financing. The survey further confirms that predictive analytics, APIs, and artificial intelligence are the top integrated technologies required by finance executives to optimize business cash.
CFOs leverage technology integration to unify finance data and processes
The survey highlights a group (“leaders”) that outperformed the entire survey in terms of operational efficiency, technology adoption and process maturity:
- Business liquidity: 51% of managers can produce a consolidated view of cash and liquidities in less than an hour compared to 8% of the least equipped companies;
- Risk reduction: 79% of leaders have very effective payment fraud prevention in place, and only 16% of laggards say they have confidence in their programs; 69% of leaders hedge effectively to protect cash, with less than 5% of laggards reporting successful hedging programs;
- Real-time decisions: 93% of leaders leverage real-time information, compared to only 36% of less digitized organizations, while 85% of leaders integrate real-time data from third-party partners and members into their enterprise platforms;
- Investing in technology: 51% of executives and 43% of all respondents plan to increase spending on liquidity platforms.
CFOs confirm the emergence of a liquidity management practice
“The new mission of CFOs is to identify and activate all possible sources of liquidity to adapt continuously to the new global volatility. This survey confirms that highly digitized organizations are inventing new liquidity management practices that mitigate risk while optimizing cash, payments, and working capital funding enterprise-wide and in real time. Their CFOs deliver actionable insights downstream to business decision makers by transforming data through AI and API platforms. We are witnessing the birth of a new category of software – Enterprise Liquidity Management,” said Samuel Guillon, SVP Strategy at Kyriba.
“We believe that liquidity management platforms can help CFOs improve new practices they have already established to build resilience, drive value and unlock growth,” Guillon said.
Liquidity Management Reshapes Vendor Software Market to Create New Business Estimated at $30 Billion
“Overall, the survey results show the growing importance of liquidity for financial executives. The Office of the CFO becomes an Office of Liquidity, driving transformation through data-driven business decisions. Financial leaders demand systems designed to aggregate, analyze and disseminate data. This need is driving the emergence of intelligent platforms based on unified APIs and data. The survey demonstrates that CFOs recognize the need to invest in the tools, skills and resources needed to manage cash at the enterprise level,” said Kevin Permenter, Research Director, Financial Applications at IDC.
“There is a huge opportunity here for suppliers to step in and support CFOs as their role changes. Taken together, we estimated the total market available for such enterprise cash management software to be $30 billion in 2021, but the longer-term opportunities for software vendors are far greater,” Permenter said.
The IDC white paper, commissioned by Kyriba, A New Practice Area Emerges for CFOs: Enterprise-wide Liquidity Management, doc #US48341221, November 2021, is available here.
The survey was conducted online by IDC in August 2021 among 811 treasurers based in the United States (31%), Europe (53%) and Asia (16%).
About Kyriba:
Kyriba empowers CFOs, Treasurers and their IT counterparts to transform treasury, payments, working capital and connectivity solutions to enable liquidity as a dynamic, real-time driver of growth and value creation . Kyriba is a secure and scalable SaaS platform that leverages artificial intelligence, automates payment workflows and enables thousands of multinationals and banks to maximize growth, protect against fraud and financial risk losses and reduce operational costs. With 2,000 customers worldwide, 25% of which are Fortune 500 and Eurostoxx 50 companies, Kyriba handles more than 1.3 billion banking transactions per year and 250 million payments with a total value of 15 trillion dollars per year.
Kyriba is headquartered in San Diego with offices around the world. For more information, visit www.kyriba.com.