Corporates discover the benefits of bundling
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Corporates discover the benefits of bundling

Chief financial officers and finance directors have much to gain from bundling treasury services if they can convince senior management that such offerings deliver value for money.

Photo: iStock

There are many reasons why corporates like the subscription model.

Firstly, it enables them to sell a product or service once while generating ongoing predictable revenues – a particularly appealing proposition for early-stage companies seeking funding to support expansion.

Secondly, it presents opportunities for upselling and cross-selling supplementary offerings that have proved particularly lucrative in the digital media space. It is also easier to pass on increased business costs to subscription customers through scheduled price increases.

This is true for treasury services as well.

“With the emergence of new and predominantly digital sales and distribution channels, demand has pivoted away from buying individual transactional services at a particular price point,” says Ole Matthiessen, global head of cash management at Deutsche Bank.

He says corporates are increasingly looking for solution bundles.

Pricing of FX has been historically opaque, making it difficult for treasury managers to understand how much they are paying, with limited visibility of spreads and fees.

“We have found the industry to be very supportive of fixed pricing,” says Sam Hunt, CTO at MillTechFX.

Big benefits

The dynamic in corporate treasury has changed considerably in recent years.

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