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TMS provider’s business model: the Reval Cloud Platform

Reval has been operating its cloud-based Software-as-a-Service for corporates since 2001 when it began providing hedge accounting and compliance technology for corporate derivative users to help them comply with the then new FASB hedge accounting rules. Since then they have been continually expanding their offering so that today it covers the full range of treasury and risk management, integrating cash, liquidity and risk management capabilities, as well as hedge accounting and compliance, on a single, cloud-based platform. It serves 600+ corporate clients world-wide, provides over 70,000 daily rates and processes over 3m trades/month. The Reval Cloud Platform is supported by four regional centres using a follow- the-sun concept and by 500+ employees in 12 regional offices across North America, EMEA and APAC. What has driven this global expansion and where are CEO and co-founder Jiro Okochi and his team taking Reval next?

Financing the growth

To finance this growth, Reval has historically invested over 30% of its annual revenue in R&D, remaining dedicated to continuous innovation and quality. The company is backed by top tier investors, including Goldman Sachs. Currently, Reval is self-funded, relying solely on its operating capital to invest in its products & services.   

Cloud-based ecosystem 

From its inception, Reval has been a multi-tenant SaaS solution. Today it is essentially a cloud-based ecosystem where, as they put it, “Corporates, partners, and banks can connect, collaborate, and co-create value.” To attract participants Reval’s platform has had to offer:

  • comprehensive functionality for clients/partners to connect with and invest in, long-term
  • ease of connection for  all types of participants
  • business gravity/pulling power, which  the platform attracts for corporates, financial institutions and partners.

Reval’s Straight Through Processing Community

Source & Copyright©2015 - Reval

Reval’s aim has been to create a Treasury and Risk Management (TRM) ecosystem that fosters the exchange and co-creation of value within the platform. 

Packaging the functionality – Reval CORE and Reval CHOICE

Because Reval is a fully-integrated platform operating on a single source of code, its depth and breadth of functionality developed over the past 16 years has enabled the provider to shift its strategy from simply selling a “product” to selling packages built on the Reval Cloud Platform. Two distinct types of corporate user of their TRM ecosystem emerged - the large MNC corporate treasury department with more developed needs, which they had always served, and the smaller, less complex treasury operation in need of treasury best practices and automation. So Reval developed two packages:

  • Reval CHOICE™ for advanced treasuries: A comprehensive access TRM package where treasury and finance teams work with Reval experts to assess and determine the best set of integrated functionality for their unique needs
  • Reval CORE™ for the underserved mid-market: A preconfigured package of core treasury functionality built on TRM best practices to deliver instant visibility, automation, and control over basic treasury activities. 

CORE users can upgrade to the CHOICE package if they require, just by turning on the functional modules they want as part of their subscription to the Reval Cloud Platform. 

Exploiting the Reval Cloud Platform for bank services delivery

To help banks provide services that are attuned to and complement the way corporate treasuries work, Reval now offers Reval INSIDE™, a package which provides liquidity management functionality that integrates seamlessly into the banks’ electronic banking platform and into their web portal. Included in this package are: cash management, cash flow forecasting, global cash pooling, and cash balance manager. 

The Reval cloud-based TRM ecosystem

Source & Copyright©2015 - Reval

Reval’s business model going forward

The main focus of Reval’s business model going forward will be, as Justin Brimfield Chief Marketing Officer explains, to “focus on the user experience by continuing to deliver packages of treasury and risk management functionality in the various ways different markets want to consume it.” 

CTMfile take: Most TMS services and systems in future will be cloud based solutions. This means that it is no longer just the functionality that matters, it is the whole TMS ecosystem experience which is vital. For corporates the key differentiators between the TMS will be the scale and range of service partners and corporate member(s that fosters the exchange and co-creation of value within the platform), ease of use and support in the ecosystem.

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