A new Treasury FinTech Index that questioned 734 corporate treasurers around the world demonstrates that companies are planning to significantly increase their spending on financial technology (FinTech).
A dominant majority of corporate treasurers at the world’s top revenue-ranked corporations expect to be investing heavily in FinTech solutions over the next year. UK participants in the Treasury FinTech Index are forecasting a 14.5% rise in 2017 in their spending in this area.
Singapore and Australia follow close behind with a planned 12.2% increase.
According to the new global benchmarking Index from B2B consultancy, East & Partners, which was carried out in conjunction with Contentive Media, publishers of the GTNews treasury website bobsguide, nearly seven in 10 (69%) of UK treasurers are forecasting an increase in their FinTech outlay for 2017.
Peers in Singapore (67%) are again close behind, with 66% of participating Chinese firms saying they will spend more in FinTech next year. By contrast, only 28% of US treasurers expect higher FinTech expenditure with only France lower (24%).
The appeal of FinTech to corporate treasuries is reflected in the comments of a more proactive treasurer from a French EUR3.3bn food manufacturer, who told the researchers: “These new technologies and solutions are only going to get better and better. I expect them to have more impact on the tools we use to run our financial management systems.”
The new Index also finds that corporate treasurers are reporting that their companies are directly investing in FinTech, with the trend set to grow as Asia takes the lead. Approaching a third (30.9%) in China report their company has already invested, with over 40% exploring FinTech investment opportunities. Singapore (25.8% / 37.6% – respectively) and Hong Kong (21.3% / 29.8% – respectively) follow behind.
Paul Dowling, East & Partners principal analyst, and one the report authors, said: “The adoption of FinTech by the treasury function at leading global corporates is clearly underway. It is led by the UK and Singapore, but China is set to catch-up thanks to the investments it is directly making in these technologies.”
“What is surprising,” continued Dowling, “is that the US’ ranking in the adoption of treasury FinTech, languishes behind virtually all of the 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.
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