The investment will help OFX capitalise on the benefits of cloud software to improve services to small and medium sized enterprises.
Leading online payment services provider, OFX, has announced a $6.1 million investment in the cloud software provider TreasureUP in a move which could see it significantly increase the speed and efficiency of the services it offers to clients.
In what is the company’s largest single strategic investment to date, TreasureUP will enable currency broker OFX to expand the services it offers to small and medium sized enterprises. Services such as automated hedging policies, currency risk management products and an FX pricing platform will be integrated into OFX’s existing platform so its online sellers can benefit from the speed, convenience and security TreasureUp’s software offers.
TreasurUp is one of a number of exciting tech companies bringing innovation into the world of finance. While real time currency market is already freely available, executing FX currency transactions with a defined hedging policy often feels rooted in out dated manual processes. These are slow, labour intensive and can be liable to human error.
TreasureUp solves these problems with cloud based software which simplifies hedging for FX forwards, spots and limit orders and offers automated order/invoice and forecast hedging.
OFX gas seen its corporate client segment grow rapidly. With European banks already moving to offer this service to local businesses, they hope this investment will help Australian, APAC and global banks to adopt the same solution to improve services for their clients.
Skander Malcolm, CEO of OFX, said: “As we’ve grown our Corporate and Online Seller segments, which now contribute more than 50% of annual revenue, the value in providing risk management toolkits for clients has become increasingly apparent. This investment will accelerate our strategy to grow in our Corporate and Online Seller segments by strengthening our capability to deliver leading edge treasury risk management toolkits to clients to manage their FX risk. Further, it demonstrates how we can enhance the client value proposition through proactive M&A.”
TreasureUp is continuing to update its software with future advances including liquidity management, AI based cash flow forecasting and commodities hedging solutions for banks to offer their SMEs.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.