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 released by East & Partners.
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.”