Alternative financing “is here to stay” according to experts who spoke at the fourth annual Falcon Group trade and corporate finance forum, held this week in Dubai, U.A.E.
This year’s forum focused on the shift in lending power away from global banks, and outlining “the new financial landscape”. Presentations addressed how the power of global banks is waning, just as that of non-bank financiers is increasing, with speakers suggesting that there has been a permanent shift in the financial landscape – resulting in more diversified funding options for corporates seeking capital for growth.
“Corporates do not want to have to depend on the fickle nature of banks,” said Philip Jan Kok, portfolio manager at Galena Asset Management, Trafigura Group. “Yet a machine doesn’t run without oil, and there is real need for funding.”
“The banking sector doesn’t understand us,” added Suri Penubolu, director of marketing and business development at global solar cell manufacturer Microsol. “And their off-the-shelf solutions cannot keep up with our ever-changing and developing requirements.”
“The value of alternative financiers goes well beyond simply filling the gap left by global banks scaling-back lending,” said Kamel Alzarka, chairman of Falcon Group during the event’s panel discussion. “They are flexible, and, perhaps most importantly, are able to move quickly – providing bespoke solutions to fast-growing corporates.
“The financial crisis made the value of alternative financiers clear, but the need or desire for their offerings will last, even if global banks were to return to their former stability.”
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.