Are the Days of the TMS Finally Numbered?

Once the new kid on the treasury technology block, the TMS concept is now in its fourth decade. While, for some, it remains the pinnacle of technology and treasury process in perfect harmony, certain TMS offerings sit on legacy stacks that cannot capture the full potential of AI and automation. This is compounded by alternative options for treasurers that could be more cost-effective and simpler to implement.

Originally housed on-premises and the preserve of the largest, wealthiest companies on the planet, the TMS has become a more attainable technology solution over the past decade. The global TMS market was estimated to be worth $5.1bn in 2023, which is tipped to reach $12.6bn by 2030 with an anticipated compound annual growth rate of 13.8%.^[1] Much of the recent growth has been attributed to TMS providers offering SaaS or cloud-based solutions that do not take up real estate in a corporate headquarters.

Jan-Willem Attevelt, Co-Founder, Automation Boutique reminisces: “When I came into corporate treasury 12 years ago, the cloud was not even a ‘thing’. Everything had to be installed on-premises. This led to higher costs as treasury had to involve the IT department to plan the implementation, keep it running, and back it up.”

Dark clouds looming?

While the total cost of ownership of a TMS may have become slightly more affordable in recent years, there are still some significant barriers to entry for companies looking to deploy a ‘single source of truth’ for their treasury departments.

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