Inevitably throughout the cash and treasury management products and services market for banks and corporates there is considerable overlap and duplication. One supplier can be good at some products, while another excels in different products and services. When the regions and markets also overlap, it is inevitable that they think about getting together in some way, to extend their coverage marketwise and regionally, and to increase the depth and range of their functionality. Done carefully and sympathetically this works to benefit of the companies and their customers.
The latest example is how Gresham Technologies plc, a leading software and services company that specialises in providing real-time data integrity and control solutions (primarily with capital markets clients although they do have some corporate users), have completed the acquisition of B2 Group provider of cash management and payments integration solutions.
Gresham Technologies and B2Group take
Not surprisingly the two parties are pleased with the new arrangement. Ian Manocha, Gresham CEO, commented:
- “We’re delighted to be announcing today’s acquisition of B2 Group. This exciting combination creates an industry leader in multi-bank integration and control solutions for corporates, banks, insurers and asset managers, it strengthens our cloud capabilities and gives us a platform to further accelerate our growth.
- We have strategic plans for our combined organisation and remain committed to delivering innovative products, excellent support and industry expertise to our customers”
Phil Boland and Marc Binck, B2 Group co-founders, commented: “Joining with Gresham will enable us to take our innovative multi-bank solutions to a global market. Gresham shares our passion for customers and understands how to support the growth of a successful and talented financial technology team. We are delighted to be joining Gresham.”
Gresham will take B2 Group’s full product set to the global market as part of the Clareti portfolio with B2’s ‘Multi-Bank Integrator’ being renamed as “Clareti Multi Bank”.
The software platforms of both companies use same JAVA based and open API technology, so Boland claims that they will be able to connect their different systems very easily.
What does it mean for corporate treasury department?
Since 2009 B2’s Multi-bank Integrator solution has developed into one of the leading Aggregator solutions for the corporate treasury department.
Use of ‘Clareti Multi Bank’ by Corporate Customers:
Source & Copyright©2018 - Gresham Technologies plc
B2 Group provided a secure managed service (to bank standards) from high-availability data centres which use well established infrastructure and procedures. The banking integration uses their in-house Adapters for connecting to SWIFT and to bank host-to-host services, and provides a secure document exchange services, combined with flexible integration with corporate systems.
For years B2 have been selling their solution to corporate treasury departments as, “A one stop shop for all their disbursement processing and cash visibility regardless of what internal systems they have and what banks they use, as B2 already have relationships and links to the customer’s banks via SWIFT or H2H. It is a complete end-to-end service.”
With tighter integration into Gresham’s Clareti platform, Bolland expects implementation times to be reduced. Tapping into the capabilities from Clareti open up the potential to deliver greater automation and wider governance to the Treasury department, through it’s data integrity controls and analytics.
The other new services that corporate treasury departments will be offered include:
- Clareti Analytics: will be able to use the new visibility of the company’s cash position to be able to predict balances, and produce cashflow forecasts
- Clareti Accounts Receivables Management.
The current pricing structure of all services will be unchanged.
CTMfile take: This takeover/new partnership makes a lot of sense in many different ways. However, the success of this new venture will depend on whether the cultures of the two companies gel, whether the integration of the different systems really works, and on the corporate treasury department’s assessment of whether it makes sense or not.
Bank connectivity - which is most cost-effective: Host-2-Host or SWIFT?
Neither is automatically the cheapest, it all depends ………. Remember: SWIFT figures show that only 45% of Fortune 500 corporates are connected direct to SWIFT
Multi-Bank Integrator from The B2 Group improves corporate-to-bank connectivity
Early usage indicates connection to B2’s Multi-Bank platform could be cheaper than directly using bank’s host-to-host or SWIFT links
Understanding and exploiting your corporate treasury technology stack
Craig Jefferey, Managing Partner, Strategic Treasurer on structure & key drivers in treasury technology, & role of Treasury Aggregator