Three TreasurySpring colleagues walk into a bar…

Three TreasurySpring colleagues walk into a bar… This isn’t the start of a bad joke, but instead the welcome event at Deutsche Börse Group’s 2023 Global Funding and Financing Summit. As a first-time attendee, I was in equal parts excited about the opportunity and mindful of what I could learn.

Here are my three personal takeaways from our packed agenda of meetings and keynote talks on themes ranging global macroeconomic trends, evolving regulatory landscape and innovation in financial markets.

[01] Banks are hunting, and willing to pay, for regulatory beneficial liquidity.

It’s no secret that central banks around the world have been aggressively raising rates. Although higher yields are welcomed by liquidity providers, they dramatically increase the cost of funding for those in need of capital. Consequently, banks are trying to maximise their funding efficiencies – and they are still willing to pay.

A key theme from many of the day’s events was the importance of regulatory beneficial capital. Term funds with favourable collateral will continue to attract a yield premium because of the benefits it offers to the borrowers. This makes TreasurySpring, with our unique ability to provide liquidity from pools that would otherwise not have access to these markets, well positioned to maximise yields available to clients. That exciting prospect leads to…

[02] Good things come to those who wait.

This year TreasurySpring celebrates its fifth year of issuing FTFs. I’m sure if six years ago you asked some of the multinational banks with which we now work whether a fintech could play a role in supporting their vast balance sheets, their answer would have been a definitive no. Today, it’s a different story and now we’re a trusted partner to many of the well-known names and offer ever-growing value to both them and our clients.

During the summit, it was rewarding to see that the TreasurySpring brand is gaining traction and starting to make a (small yet growing) dent in this multi-trillion-dollar market. Many conversations we had during the event were instigated by others approaching us, which I’m told is a world apart from the early days when the founders and early employees worked tirelessly to get a single meeting. This resonates with the importance of compounded effort – like our term funding, the best outcomes don’t always happen overnight!

[03] But there is still more we can do.

During our trip we met with multiple banks, some of which we already partner with on our portal and several others who expressed an interest in working together in the future. Ever changing regulation, the continuing need to drive efficiencies and growing competition are leaving banks in search of opportunities to innovate. They see how TreasurySpring’s ability to adapt and work to their specific requirements can help them to deliver products quickly that suit their specific needs. This means more opportunities for them, more products available for us in the future, and ultimately more choice for our clients, so watch this space.

Overall, the summit was hugely insightful for all the right reasons. It highlighted how far TreasurySpring has come in a few short years and offered encouragement for the road ahead. To end how I began: three TreasurySpring colleagues walk into a bar and the bartender says, “more liquidity”!