C2FO survey shows corporate treasurers pursuing trade finance in 2017

• 75% of corporate treasurers seek innovation in trade finance technology in the year ahead

London — An overwhelming majority (75 percent) of 100 European corporate treasurers are prioritising their technology investments in the area of trade finance heading into 2017, according to the second annual Treasurer Survey from C2FO, the world’s largest market for working capital®. Trade financing, which typically involves both domestic and international transactions, covers a variety of key strategies including supply chain and invoice finance as well as the increasingly popular dynamic discounting.

The increased focus on innovation comes at a time when corporate regulation such as BEPS, Basel III and KYC (32 percent), currency fluctuations/market volatility (28 percent) and low interest rates (27 percent) are leading cash and liquidity concerns for corporate treasurers in the new year.

“As the political and macro-economic landscape continues to shift, there is pressure on corporate treasurers to add value for shareholders in the boardroom,” said Colin Sharp, SVP EMEA at C2FO. “Successful treasurers are finding such value by embracing technology solutions to enhance trade finance while simultaneously creating a healthier supply chain.”

The survey found that technology will continue to support the role of the treasury function, as it drives additional benefits for the whole organisation. In fact, nearly three quarters (74 percent) of the corporate treasurers surveyed said that roles in treasury will be revolutionised by technology innovation in the next three years.

Corporate treasurers who are relying on technology innovation for trade finance this year, have high expectations in the areas of cash management (31 percent), supply chain and dynamic discounting (30 percent combined), as well as risk management/supplier risk (20 percent).

“Trade financing technology has the power to be a critical-value added resource for any treasurer’s toolkit,” said Andrew Burns, ‎Director, at C2FO. “It presents a competitive advantage for corporate treasurers looking for efficient ways to manage working capital and generate better return on cash.”