These viewpoints have been advocated by Katja Palovaara, EY FinTech Growth Programme Lead,

“We are delighted to welcome Treasury Delta to the EY Fintech growth programme, a six-week initiative designed to propel the most promising fintech’s on their journey to success. Treasury Delta’s innovative digital platform stands out, promising a transformative impact on the future of financial transactions with its exceptional efficiency and cost-effectiveness. Their customer-centric approach and commitment to automation herald a new era for treasury projects. Treasury Delta’s participation in our programme highlights the vibrant evolution of the industry and the exciting opportunities that await. We are looking forward to working together with Treasury Delta to support their next stage of growth.”

Interview

treasuryXL recently caught up with Treasury Delta founder, Padraig Brosnan, to hear more about this development and what it means for the business.

For some of our readers who have not heard of Treasury Delta, can you summarise what your service offering is and what problems you are solving?

Treasury Delta has brought to market a platform that has effectively digitised a corporate treasury tender/rfp in the area of transaction banking. Many of your corporate readers will have experienced rfp type projects in the areas of cash management and treasury management system (TMS) selection. Having conducted extensive primary market research, three key problems kept arising in this space namely;

1. Projects went on for several months longer than anticipated
2. Forecasted costs (internal and external) far exceeded budget
3. Human resource issues arose because of pressurised and unrealistic timelines leading to additional stress and demotivation.

Using digital technology, Treasury Delta is striving to eliminate these pain points and minimise the friction on the customer journey for both buy and sell-side.

What is the importance of being selected on this EY fintech programme?

This is one of the most prestigious fintech programmes in the UK and having gone through a very competitive selection process it provides further validation of our business model where our core theme is around industry collaboration. In order to advance Treasury Delta to the next stage of our development we are acutely aware we need professional advice and expertise on how to navigate and scale the business. This is where support and guidance from the EY team adds real value and as the programme progresses, we’re eager to learn and assimilate knowledge transfer.

One most notable publication highlighting Treasury Delta was; “Myths and basics of RFPs”  by François Masquelier. He outlined how the platform makes the lives of the buy-side and sell-side easier when it comes to rfps. Can you please elaborate on this?

Sure, when I first presented Treasury Delta to François, prior to him publishing “Myths and basics of RFPs”, he immediately understood the pain points we were looking to solve. As Chair of the European Association of Corporate Treasurers (EACT) and widely recognised as a thought leader in the industry, François is in regular contact with corporates, banks, TMS vendors, Big 4 firms and treasury consultancy houses. He reiterated the problems they each faced when it comes to corporate treasury rfp type projects so, we had an in-depth conversation where I outlined the benefits for all stakeholders.

In summary, for the buy-side (corporates and/or treasury consultants), the platform streamlines and simplifies the project thereby reducing time, hassle and costs. When it comes to the sell-side, unlike a refinancing or project finance related transaction, there is normally only one winner on a cash management or TMS contract. Therefore, some banks and vendors incur excessive opportunity costs as part of submitting their proposals and if they get short-listed this cost increases even further. By collaborating with banks and TMS vendors, Treasury Delta is working towards addressing this cost issue on the sell-side so that we can minimise the project costs and improve operational efficiency across the various counterparties.

What’s next for Treasury Delta and where do you see the business going?

Right now, as part of the programme, we’re proactively working with EY on how we develop the business and refine our strategy. We’re in a very niche area of banking and corporate treasury but it’s a global niche and we’ve identified a number of ways on how we can monetise the business. In order to execute this strategy over the next few years our focus will predominantly be on tech and therefore we need to raise additional capital to invest into this side of the business. We have two routes-to-market on the buy-side namely; corporates and treasury consultants. To scale the business and grow the valuation our focus is on the latter cohort as there are multiple economies of scale with this SaaS type business model. The most recent use cases we transacted involved some of our strategic partners and treasury consultants namely; Pecunia Treasury and Finance and Cugavadi. Some of the use cases we’re currently working on involves both of these firms and a global consultancy firm. It’s now clearer that our business is going in the direction of a fintech service provider to these firms so that they can execute a higher volume of corporate treasury rfp type transactions in a more efficient and cost-effective way on behalf of their clients.