Palm, a Swedish-Dutch financial technology startup company, has secured $6.1 million in seed funding to change the enterprise treasury management works. In the funding round, Speedinvest and Target Global supported the company, and Upfin, Liquid2, Greens, an angel investor Job van der Voort, Unknown, the Founder and CEO of Remote, and Philippe Teixeira da Mota, a former Hedosophia partner.
Vision of Palm
Palm was started by Gurjit Pannu and Christian Sobkowski the co-founders both of them had strong experiences with Uber and PayPal. Pannu, who began his professional career at Morgan Stanley, has been managing billion-dollar treasuries for over a decade, having worked with Uber, Levi’s, and remote, was able to identify a gap in the market for a better way to manage money at large firms. Sobkowski’s experience in the area of PayPal as an expert in financial services management permits him to reveal many ideas to broaden the enterprise’s actions across Europe.
Critical Need and Efficiency
The enterprise treasury management sector is an exception and has always experienced inefficiencies and a slowdown of progress. A survey by the European Association of Corporate Treasurers noted that cash forecasting has been a top priority in Europe for treasurers in the past five years. This is an area that Palm seeks to address as its platform offers treasury teams an aggregated view of the past and future cash flows in an integrated solution.
Another advantage of Palm is that it can be realized in several weeks, unlike most traditional systems that take months to deploy. Such a swift entry is essential for organizations for efficient adaptation to evolving financial environments is critical. According to Palm, the implementation of best practices in managing materials daily brings down the operating cash balance by more than 30%.
Palm’s AI improves cash forecasting accuracy
Palm also extracts data from other sources such as bank accounts, financial systems, and past transaction histories feeding them into the platform. To be precise, this way of data collection makes sure that the AI possesses all the information about the company’s cash inflows and outflows. The AI is also capable of engaging in complex analyses of past data to extract patterns. These algorithms can estimate future cash flow needs to a higher degree of efficiency than conventional techniques that may involve manual input and fixed models. Palm’s AI offers self-generated accuracy ratings for their predictions. These scores enable the treasury teams to gauge the degree of certainty that the AI model has regarding the predictions made by the model.
Palm’s platform also enables users to run different scenarios and stress tests. Through analyzing trends, the AI can recreate realistic financial environments and demonstrate how they might affect the cash flow, to be ready in advance. These are policy-driven funding recommendations that enable the rebalancing of cash and check positions without the need for their reviews. This not only contributes to improved accuracy of results but also results in even better operational performance.
Impact and Future Prospects
Palm has established a platform that can help it address various issues associated with the management of cash in hundreds of bank accounts and subsidiary companies. This capability is particularly important when an enterprise is large and has operations in numerous locations worldwide to meet regulatory standards. The automated elements allow treasury teams to make timely decisions which in turn minimizes the risks of the realization of a situation where there are not enough funds to support operational needs.
Palm needs the new funds to build up headcount and it will mainly focus on the product and the engineering team. It plans to improve its platform and strive to release newer solutions that will accommodate the changing dynamics in the enterprise treasuries. Offering best-of-breed, scalable, cash management solutions is why Palm has an opportunity to shape the future of enterprise treasury management.
Conclusion
Palm’s recent $6.1 million seed funding round proves its mission to transform enterprise treasury management is entering a new phase. Palm has been backed by investors and has a good vision for future growth to make a lasting imprint in the financial technology sector.
