Corporate treasurers ramp up their spending on FinTech
New Treasury FinTech Index shows that corporate treasurers worldwide are significantly spending on financial technology and ready to spend more.
(24 October 2016 - Global) A dominant majority of corporate treasurers in the world’s top revenue–ranked corporations are planning to increase their spending on FinTech (financial technology) over the next year, according to new global benchmarking research.
Treasurers in the UK lead this trend forecasting a 14.5 percent rise in their FinTech spend for the coming year, with Singapore and Australia following close behind with a planned 12.2 percent increase.
Nearly seven in 10 (69 percent) of UK treasurers forecast an increase in their FinTech outlay for 2017, with peers in Singapore (67 percent) and China (66 percent) close behind. By contrast, only 28 percent of US treasurers expect higher FinTech expenditure with only France lower (24 percent).
The appeal of FinTech to corporate treasury is reflected in the comments of a treasurer from a French 3.3 billon euro food manufacturer: “These new technologies and solutions are only going to get better and better, and having more impact on the tools we use to run our financial management systems”.
This insight into corporate treasuries use and appetite for FinTech come from the findings of the new Treasury FinTech Index, produced in partnership by East & Partners, the market-leading B2B financial industry research, analysis and consulting business, and Contentive Media, publisher of treasury websites bobsguide and GTNews.
The Index also finds that corporate treasurers are reporting that their companies are directly investing in FinTech, with the trend set to grow with Asia leading. Approaching a third (30.9 percent) in China report their company has already invested, with over 40 percent exploring FinTech investment opportunities. Singapore (25.8 percent/ 37.6 percent - respectively) and Hong Kong (21.3 percent/ 29.8 percent - respectively) follow behind.
Paul Dowling, East and Partners principal analyst, and one the reports authors, said, “The adoption of FinTech by the treasury function of leading global corporates is clearly underway, led by the UK and Singapore but with China set to catch-up with the investments its directly making in these technologies.
“What’s surprising”, he added, “ is the US’s ranking in the adoption of FinTech, languishing behind virtually all of these other global players”.
The Treasury FinTech Index is based on direct interviews with treasurers across eight key global markets: Australia, China, France, Germany, Hong Kong, Singapore, the UK and the US. A total of 734 corporate treasurers participated in the survey, from a defined population of the Top 800 revenue ranked corporates conducted in August 2016.
For more information about the report, click here.
About East & Partners
East & Partners is a leading specialist business banking market research and analysis firm. The firm’s core expertise is in the provision of analysis and advisory services tailored for the commercial, business and institutional banking markets across Asia Pacific, Australasia, Europe and North America.
The delivery of accurate quantitative analysis on businesses exploding demand for sophisticated transaction, FX, debt, treasury, investment and advisory banking services and products has been uniquely addressed by East's "bottom up" research methodologies since 1987, based on many thousands of customer interviews with CEOs, CFOs, treasurers and business owners.
East's multi-client demand side research and consulting work has enabled the firm to partner virtually every major domestic and international bank present in the geographies the firm operates in.
About GTNews
GTNews, part of the bobsguide group, is the leading global knowledge resource for over 65,000 treasury, finance, payments and cash management professionals. Online, GTNews is updated daily and provides subscribers with access to an archive of over 9,000+ treasury articles, special reports, commentaries, research, polls, news, webinars, and whitepapers – all with a global focus.
The GTNews editorial team encourage industry experts to share their knowledge on key issues facing treasury and finance professionals, including best practice in cash and liquidity management, corporate financial planning and analysis, regulatory changes, trends in the financial supply chain, risk management and the pursuit of internal efficiencies.
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