Global East Analyst Meeting Insights - November 2023
(20 November 2023 - Global) East & Partners global analyst team share valuable "on the ground" insights into what is moving commercial banking markets. The following analyst meeting summary provides a unique breakdown of emerging research, CFO/treasurer focused thought leadership opportunities and 2024 outlook.
Global Business FX Shake-Up
With the shift by American Express to "decommission" its international business FX offering by ceasing operations outside of the US, which bank or non-bank providers are stepping in for ex-AMEX customers and why?
As one of the fastest growing non-bank providers in multiple markets covered in East & Partners Global Business FX services across the USA, Canada, United Kingdom, France, Hong Kong, Singapore, Australia and New Zealand, will AMEX's sudden departure present a prime opportunity for quickly growing non-bank players such as OFX, World First, Convera, Monex, Atlantic Partners Asia or Wise to make further inroads?
Or will incumbent domestic and international bank majors continue to fight back on key product, service, technology and price points?
Longditunal Summary of Trade Profile by Country
Aggregating proprietary research derived form East & Partners long running Trade & Supply Chain Finance and Business FX services, East is investigating the concept of whether are more enterprises are importing/exporting/both relative to a decade ago. More importantly, why? Secondary data sources are dated or incomplete, making it exceedingly difficult for financial services providers to determine the accurate "size of the pie" in terms of number of defined importers and exporters in respective markets across Australia, New Zealand and Asia.
What is driving nearshoring/offshoring/friendshoring impulses among CFOs and treasurers recalibrating their supply chains to tap into emerging trade corridors as cost pressures and inflation begin to bite on the bottom line? How much does thie vary by segment?
UK CFOs Uncertain of Pension Schemes’ Endgame Objective
A majority of British CFOs are uncertain about the ultimate objective of their defined benefit (DB) pension schemes, according to Cardano research conducted by East & Partners. While 72 percent of CFOs believed their DB pension scheme to be in good financial health, over one in two stated their scheme was above their long-term funding target (LTFT) and almost one in five stated they were close to, or in, a buyout surplus as reported by IPE Correspondent Pamela Kokoszka.
“We are surprised by the level of uncertainty expressed by CFOs in our report "New world, new decisions: The CFO perspective - resolving DB dilemmas in a new funding landscape". The findings clearly show a wide range of outcomes playing out a year after the crisis causing many to pause and think about their future pension strategy. Many corporate sponsors would “clearly” welcome more support in determining the right endgame. There is a lot to think about and the market continues to evolve. Even those considering buyout need to manage this carefully in view of a key consequence of the crisis which is the imbalance which still exists between liquid and illiquid assets in pension scheme portfolios" commented Cardano Advisory Head of Corporate Advisory Services, Sinead Leahy.
“Sponsors and their DB pension schemes have undergone unprecedented change over the last 12 months. From decades of deficits, we are now seeing an increasing number of schemes finding themselves in surplus, or at least on track with their long-term funding targets. The findings show that for the most part, CFOs are unsure about what this new world means for their pension schemes. There is a clear sense of wanting to exercise greater influence over their schemes. The relationship between CFOs and their schemes is about to become a lot closer as the endgames become more defined and their conclusions near" stated Cardano Advisory Senior Director, Nick Gibson.
2024 Business Banking Outlook
What’s ahead for business banking markets and global economic growth?
Which opportunities, challenges and trends are proving critical for businesses and their funding partners to navigate out of the current state of uncertainty and "two speed" growth?
Utilising East & Partners’ ongoing global primary voice of the customer intelligence and analytics, the 2023/24 Outlook offers a clear and evidence-based indication of what may lie ahead. Helping equip banking and finance leaders with a greater understanding of what lies behind today’s complex markets, enabling them to develop more robust strategies focused on the ultimate goal of sustainable growth.
The intelligence of decision makers, by decision makers - download your free copy of East & Partners 2023 Outlook now.