• Trump’s return to presidential office promises to challenge regulatory structures.
• Beyond the US, payment regulation is aimed at making payments cheaper, faster, and more innovative.
• The SWIFT ISO 20022 compliance deadline in November 2025 will require banks and corporate treasuries to update systems.

Without a doubt, the regulatory landscape for the year ahead is set to be demanding, with key developments including Swift’s ISO 20022 compliance deadline in November, evolving AI regulation, and the European Union’s (EU) latest updates to payment frameworks through PSD3 and the Instant Payments Regulation. Amid tightening compliance pressures, financial crime also remains a growing concern, adding to the complexity for businesses navigating these shifts.

Apologies to readers for the pun in the headline, but it was there for the taking! After all, the regulatory outlook for the remainder of the year has been much debated as US President Trump returned for his second term, promising trade tariffs and a bonfire of regulations – with many going straight in the bin. 

Interestingly, Bank of England officials in the UK have pushed back implementation of the new Basel 3.1 capital adequacy regime until 2027, as they await clarity on the US approach to capital controls now that Trump is in office. The EU is probably fearful that a regulatory and risk gap may open up between what banks can invest, and in what regions, against their capital bases if a universal adoption of the global regime isn’t followed. 

The down-the-line impact on corporate treasuries if more capital is available for mergers and acquisitions (M&A), loans, corporate bonds and so on – not to mention the inflationary potential of a possible boom on US financial markets in the event of any relaxation – is still to be seen in these early days of the new presidency. 

But one thing is certain: the regulatory outlook will change with Trump in charge. As an example, the green finance and ESG arena have already been hit as he signed an executive order to pull out of the Paris climate mitigation agreement for a second time upon his ascension. DEI also looks to be in trouble. Within days of taking office, Trump moved to scale back DEI initiatives across the federal government and federal contractors, with parts of the private sector following suit.

A regulatory freeze was another executive order signed to stop US Federal agencies from issuing any new rules until Trump has full control of the government, amidst promises of a bonfire of regulations – or at the very least a policy whereby old ones have to go if new ones are enacted. This is an effort to cut down on red tape.      

Capital adequacy confusion

“Personally, I don’t think there is enough water under the bridge since the 2008 crash and the collapse of Silicon Valley Bank (SVB) and Credit Suisse in 2023 to tinker with the global Basel III capital adequacy rules,” said Royston Da Costa, Assistant Treasurer at Ferguson, a multinational value-added plumbing and heating product distributor. 

“The collapses of SVB and Credit Suisse reminded people what a failed bank can look like and of its potentially disastrous impact on corporate payment, investment and supply chains around the world. It was only averted in these cases thanks to government action.”   

“It must be remembered that Trump has made a number of statements in relation to any future trade or policy talks with rival nations. However, we have to wait and see what the actual outcome will be,” added DaCosta. 

“I don’t want to comment about any of Trump’s mooted 25% tariffs against China and others [at the time of interviewing, no such charges on imports to the US had yet been applied]. Ditto with his comments about the US taking over Greenland from Denmark in a geopolitical move designed to stymie any undue Russian or Chinese influence over North Pole trade routes and natural resources.” 

“But I do advise my peers to actually look at the detail, not the rhetoric of Trump to see what actually results,” he continued. “2026 is also generally expected to be a good year for economic growth in the US once the new government settles in, and we get through this year.” The huge investment released by the now defunct Inflation Reduction Act (IRA) will continue to impact the growth potential of the US economy as well – and, by extension, the world. As ever, if the US grows it helps the UK, Europe and the rest of the world to grow.   

Patrick Kunz, Managing Director, Pecunia Treasury & Finance and Founder of the Treasury Masterminds network, is in agreement that President Trump sees the world “very pragmatically” and in a transactional way. 

He is also aware the dollar (USD) needs to remain the world’s reserve currency. “Trump will protect that position,” said Kunz, adding that nevertheless: “US business and consumers need to thrive – and if that means introducing or increasing tariffs for foreign products or companies, then I believe he will do that despite any risk.”  

But, what Trump often forgets is that some regulations are hard to change or implement, at least in a short four-year term of office that goes very quickly. “Some of his envisaged changes might even be illegal, or at least subject to legal challenge, such as ideas around restricting the rights of US-born people to automatic citizenship and changing the US labour market that way. He also seems to have a lot of priorities, so not all of his grand plans will necessarily become reality – purely due to the vast scope of them and his limited time in office.”     

Kunz added, “I guess in the short-term we’ll see more protectionism and a stronger USD. Mid- to long-term the situation will stabilise and normalise, as it always does.” 

Elsewhere, Kunz believes the same principle applies on the non-Trump general global regulatory front as well. “Regulation always settles in eventually and becomes the ‘new norm’. Its driving factors come from several sources, but most noticeably regulations are enacted to deliver: 

• Protection
• Control
• Or enforcement

“The EU Instant Payments Regulation (IPR) promised us a lot for instance. But European banks are too slow or reluctant to implement it (as it costs them money), so they have needed to be forced. The latter enforcement regulatory driver applies here, although the drivers do often overlap somewhat,” he noted.

“The EU’s EMIR, MiFID and MMF reform agenda comes from a protection aspect. Avoiding a crisis in the financial markets is the paramount driver here. This is very difficult though as financial markets nowadays are very global, interconnected and react much faster to movements than was previously the case. For example, we saw Credit Suisse go down in a matter of days only recently.” 

Can more rules and regulations avoid that scenario fully in future? Kunz doubts it. “Usually, new regulations only create extra burdens on investment banking and corporate treasuries. We find ways around them concerning controls, tax or whatever it is – or a new product comes along with new and different risks.” The rise of ETFs after the 2008 crash is an example of this.       

PSD3 and IPR changing EU payments 

As Kunz alluded to, the third iteration of the EU’s Payment Services Directive (PSD3), which incorporates the IPR, is on its way. This requires payment service providers (PSPs) in the euro area to charge the same or lower fees for instant payments as they do for regular transfers is a gamechanger. The same stipulation applies to PSPs outside the euro area by 2027, offering corporates’ faster payments at a cheaper fee. 

As Gareth Lodge, Principal Analyst, Celent, noted, “While many countries in Europe have had forms of instant payments for years, the EU Instant Payment Regulation is designed to deliver the same universal experience as the single euro payments area (SEPA) across the entire continent. Universal acceptance and consistent rules and experience for all users offer clear benefits. 2025 will see which banks pull away from the pack as they embrace the opportunities that instant payments can bring.”  

As a brief aside, Lodge also noted that European initiatives such as EPI and Wero are going mainstream. “The European Payments Initiative (EPI), previously known as the Pan-European Payments System Initiative is a unified digital payment service backed by 16 European banks and PSPs. Its aim is to allow European consumers and merchants to make next-generation payments for all types of person-to-person (P2P) transfers and retail transactions via a digital wallet, called Wero. Wero is based on instant account-to-account (A2A) payments, catered for under SEPA, and will eliminate intermediaries in the payment chain and associated costs.

All of this means a lot of change in the European payments landscape. But hopefully in a beneficial way (once the pain of transition is over), certainly for corporate treasurers at least.

More generally, the over-arching PSD3 will also encourage more access and data sharing by further encouraging the adoption of open application programming interfaces (APIs) as a means of connectivity and easier data exchange. This should open up the payments marketplace to more new entrants, competition, and hopefully, cheaper pricing via the use of open banking and finance techniques – continent-wide aggregated payment processing is one possible end-use. 

The rise of open APIs is a technology trend mirrored in China, the US, and indeed globally with differing regulatory approaches to it. The technology trend forces change in and of itself. Whether regulators want to control it is another matter, but some kind of rules are necessary to ensure resiliency, privacy, anti-fraud and other measures are applied.     

“PSD3 will be good,” commented Kunz, “as it acknowledges the fact that banks are not monopolists for payments anymore in a fintech-enhanced environment. It also acts as a further EU spur to open and speed up information sharing and connectivity in financial services (FS) via the encouragement of more open API usage. This is welcome.”     

“But the EU does need to be mindful of ‘over-regulation’. The EU might be able to regulate harsher than other jurisdictions in payment and other sectors, but that could limit its innovative capacity and harm the growth of certain fintechs. We already see the EU lagging behind in this area.” 

“All the present big fintechs in the payments arena either come from Asia or the US, almost none are from the EU, with only a few exceptions. Getting the balance right between regulating and letting technology rip to evolve markets is always an issue.”    

“Throughout the remainder of 2025, I will be excited to see this battle between innovation and regulation in action,” said Kunz. Certain regulations can ‘force’ innovation (in instant payments or open API access for instance). But other rules may come from a protectionary standpoint and could therefore potentially harm innovation. Getting the balance right in the EU is crucial. Even if the idea comes from a good place innovation may shift to a less regulated market if it isn’t done well.”   

Anti-fraud initiatives  

Despite the potential downsides, the enhanced consumer protection and fraud detection measures in PSD3 via better Strong Customer Authentication (SCA) procedures is welcome – according to Kunz. He pointed to the rising tide of financial crime and fraud levels that we’ve since in recent years as a concern. Sanction compliance has also become a bigger concern for treasurers in an increasingly unstable geopolitical world.  

The Verification of Payee (VoP) service under the IPR is useful in the fight against crime, alongside strengthened SCA under the over-arching PSD3 regulation in Europe. Knowing who beneficiaries are beforehand is very important in the context of instant payments. Trying to prevent rising levels of fraud in the diminishing amount of transaction time available to financial institutions (FIs) in a real-time payment world isn’t easy, so anything that can help is welcome. 

The pan-European Fraud Pattern and Anomaly Detection (FPAD) solution from EBA Clearing is also of great interest in this area, as it seeks to deliver anonymised data, to comply with privacy stipulations, in a federated data solution that is dedicated to stopping fraud and financial crime by identifying suspicious activity faster with AI technology mining the data. After all, criminals share information on the dark web, so why shouldn’t FIs share information in the fight against them? A common anti-fraud taxonomy is being developed by the 50+ FPAD users in Europe and this should ultimately benefit end users such as corporate treasurers.

Swift is seeking to replicate this anti-fraud effort on a global scale. It has also deployed a federated data and AI investigate tool this year. The new Swift AI-powered anomaly detection service will be able to draw on the billions of transactions that flow over the Swift network to better identify and flag suspicious transactions. Banks can then take appropriate action in real time to stop fraud. It’s a case of using shared data and AI’s ability to spot suspicious activity to fight back against criminals, who themselves are increasingly using AI.  

Spotlight on artificial intelligence 

The emerging artificial intelligence area is a case in point when trying to ‘get the balance right’ between innovation and oversight. The EU has its AI Act, for example, which is the first-ever legal framework on AI. It could act as a global template for others to follow if they don’t want to just let the technology rip and aren’t concerned about governance issues. 

The EU AI Act (Regulation 2024/1689) lays down harmonised rules on artificial intelligence, providing AI developers and deployers with clear requirements and obligations regarding specific uses. At the same time, however, the regulation seeks to reduce administrative and financial burdens for businesses, in particular small and medium-sized enterprises (SMEs) to encourage uptake of this useful nascent technology. Getting the balance right, while still ensuring an AI tool doesn’t go off script is the challenge.  

The AI Act is part of a wider EU package of policy measures to support the development of trustworthy AI, which also includes the AI Innovation Package and the Coordinated Plan on AI. Together, these measures seek to guarantee the safety and fundamental rights of people and businesses, while strengthening uptake, investment and innovation in AI across the EU. 

However, there is no doubt China and Asia already have a lead in this AI field and that Trump is targeting it too, so the EU will have to be careful it doesn’t scare AI investors away. The US’ $500 billion Stargate joint venture Initiative recently announced to fund the country’s future infrastructure for AI is a clear statement of intent that it wants to dominate the emerging AI field that will likely come to dominate 21st-century economics. 

China’s launch of the open source-enabled DeepSeek AI in January 2025 shows that it is serious too. The advent of DeepSeek, which so impacted US tech company stock prices and global financial markets in January 2025, could open up a space for Europe to enter the AI race in the future, as the entry stakes just got a lot cheaper. 

Theoretically, others could run their own AI models based on the DeepSeek model – and without the specific Chinese political restrictions applied. As such, the AI field, its regulation vis-à-vis geopolitical tensions, and future end-use just became very interesting. 

“I think the AI Act is diligent and well-meant regulation, but overly protective,” noted Kunz. “It will make the EU much less competitive for AI or tech-related initiatives. Founders will just go to the US or China to build there, as it is much easier. We already see this happening. China is massively ahead of Europe on AI and technology usage already in business and in daily life.”    

“So far AI in treasury has not been revolutionary because it’s often merely an extension of established Machine Learning (ML) techniques, automation, or data analytics end uses,” said Kunz. “However, it is only a matter of time until this changes, and treasury is more directly impacted by AI than it is at present. 

“The technology will bring bigger use cases in future in both information management and cashflow predictions very very soon. Not only will AI be deployed in cash flow forecasting (CFF) but also in heavy information processing procedures involving trade finance or securitisation programmes. AI can additionally help in better debt management. Asking a ChatGPT tool to find relevant clauses for a certain action to take in a 500+ page loan documentation can save loads of time, for example, and enhance efficiency.”   

ISO 20022 messaging 

Returning to the payments arena, but this time from an Asian and global perspective, Yvonne Yiu, Co-Head of Global Payments Solutions, Asia Pacific at HSBC, is focused on the Swift deadline for November 2025 this year, when all banks on its platform must use the more data-rich ISO 20022 messaging standard, which relies on the XML coding language if they want to access its global interbank payment network. 

The Swift ISO 20022 migration will see the end of its old MT messaging series. More character space on ISO 20022 enables more end uses and extra efficient payment processes for everyone in a financial supply chain, including treasurers. Many of the bigger banks have already moved to the standard – and are aiming to bring corporate clients along with them.

Yiu is pleased that HSBC has already enabled its global network of more than 50 markets to receive and forward SWIFT CBPR+ (ISO 20022-enabled) messages. Ditto the newly migrated domestic markets that can exchange ISO messaging. Indeed, HSBC has embarked on a multi-year project and will introduce changes to its online digital channels and further updates to its various payment file formats to not only meet these requirements but ensure fast benefits, justifying its investment. 

But smaller banks and others, including corporate treasuries themselves, must also migrate to ISO 20022 as well in order to get the full industry-wide benefits, without undue reliance on vendor-supplied converter tools.   

“We’ve been encouraging clients across our global network to proactively assess their readiness for ISO 20022,” said Yiu. “This is so that they can fully leverage the enriched and structured payment data to achieve improved transparency and accuracy.” 

“A crucial step on this journey is collaborating with ERP and TMS providers to determine the necessary changes and upgrades,” continued Yiu. “These changes may include accommodating new data requirements, such as debtor addresses and ultimate creditor details, in order to meet changing industry standards.”    

“Adopting ISO 20022 is not just about compliance,” added Yiu. “It’s also a transformative opportunity for the payments industry. By embracing ISO 20022, organisations can unlock significant efficiencies and greatly improve their operational capabilities.  We are committed to partnering with our clients throughout this journey, sharing expertise and providing support to ensure a seamless transition.”  

Celent’s Lodge is in agreement that 2025 is a pivotal year for ISO 20022, with deadlines for the US FedWire service imminent alongside the Swift MT migration, which will finally complete this year after much frustration among treasurers. 

“As with any complex migration, it will always be a challenge for everyone to be 100% ready by the Swift November 2025 deadline,” admitted Lodge. “By then, all payment messages sent or received through the Swift network must be based on ISO 20022 to encourage universal adoption and access to the more charter and data-rich XML-based standard. There have been herculean efforts by many so far, yet arguably the hard work actually starts next year.” 

2026 is when banks need to ensure they double down on their efforts to maximise the benefits that ISO 20022 investment can bring – not just for themselves but for treasury functions, too.

Standing on shifting sands

All this change – within Europe and without – will take shape in 2025 and alter the future of payments, trade, ESG, and beyond.  Potential trade wars are another thing to watch in what could be a volatile year.  

For corporate treasurers, navigating the remainder of the year will require both pragmatism and adaptability. Regulatory shifts, geopolitical uncertainty, and technological advancements are converging to reshape the financial landscape. The balancing act between compliance and innovation will be crucial, not only in Europe but across the globe.

One certainty amid all the uncertainty is that treasurers will need to engage more actively with their regulatory environments. Whether it’s leveraging real-time payments, harnessing AI’s potential, or ensuring seamless ISO 20022 adoption, those who anticipate the impact of regulatory change rather than merely react to it will be the best placed.

Yet, if history is any guide, regulation rarely moves in a straight line. Loopholes emerge, unintended consequences surface, and markets adjust in unexpected ways. Perhaps the real question, then, isn’t whether treasurers will ‘come up trumps’ in 2025, but whether they will be agile enough to play the hand they’re dealt.

The post Will treasurers come up Trumps? Top regulations to watch in 2025 appeared first on Trade Finance Global.

• As the new year begins, corporate treasurers naturally find themselves wondering what lies ahead – and how best to prepare.
• Here, experts from across the industry offer their reflections and predictions on everything from AI to ISO 20022 and improved FX risk management.
• So, what might 2025 look like for corporate treasurers? Which are the hottest opportunities to embrace, and the biggest risks to avoid?

Treasury never sleeps. Well, treasurers might (if the job isn’t keeping them awake too much!) but the profession itself continues to evolve at speed. 

Tech is undoubtedly a major driving force in this evolution. “Every year there is a tech-related buzzword,” quipped Steven Lenaerts, Head of Global Channels and Digital Onboarding, BNP Paribas. “In the past, it’s been blockchain and application programming interfaces (APIs), which are still relevant, but in 2025 I believe it will be artificial intelligence [AI] – which was already a hot topic last year, but is only going to become hotter, in my view.” 

Royston Da Costa, Assistant Treasurer at Ferguson agreed, pointing to the rise of generative AI (GenAI) tools such as ChatGPT and Claude. He noted that 2024 discussions – especially at large industry conferences like EuroFinance (held in Copenhagen in October) – focused on how these technologies could revolutionise treasury functions. 

“It was early days at EuroFinance, but the impact of generative AI on the workplace was under discussion, particularly ChatGPT and other large language models (LLMs).” Discussion, and practical application, of LLMs will only continue to increase in 2025.

Practical use cases for AI in treasury

While many still see AI as a tool of the future, it is already transforming treasury operations, empowering teams to reduce risks, improve accuracy, and focus on strategic growth. Use cases (this list is by no means exhaustive) include:

1. Cash flow forecasting: More accurate predictions using historical and external data.
2. Risk management: Simulating FX, interest rate, and credit scenarios to optimise risk management strategies, such as hedging.
3. Automated reporting: Creating tailored compliance and performance reports, including areas such as ESG.
4. Liquidity insights: Real-time monitoring and portfolio optimisation.
5. Payment efficiency: Intelligent routing and anomaly/fraud detection.
6. Workflow automation: Drafting policies, standardising data, and automating routine tasks including form filling for KYC.
7. Cost savings: Identifying overspending and benchmarking bank and vendor fees.
8. Decision support: Supporting refinancing, liquidity planning, FX risk management, and debt optimisation, for example.

Roadblocks to overcome

It is not just GenAI that is making waves in treasury: many banks and vendors are also working hard to make the most of predictive AI. But not all tech vendors are quite up to speed, yet. As Da Costa noted, “Treasury management systems (TMSs) will reach a tipping point in that they will have to decide whether to embrace new tech like AI or stick to existing inflexible technology structures.”

Lenaerts agreed, adding, “Not everybody is at the appropriate level of maturity yet. AI adoption requires a progressive, iterative approach – for banks, vendors, and corporates. Also, AI builds on API connectivity, data management and sharing initiatives, and so forth to deliver the best results. As yet, there is no standard best practice approach here, but decisions will still need to be made for organisations to remain competitive.”

Meanwhile, Bob Stark, Head of Strategy & Enablement at Kyriba, highlighted a crucial prerequisite for AI adoption: robust data management. “There is no AI strategy without a data strategy,” he stressed. He also cautions that most tech platforms aren’t yet ‘AI native’ and that people, processes, and technology all need to align to get the most out of any AI project – or indeed any other implementation. “Otherwise, it’s just a superficial test case project or a matter of garbage in, garbage out.”

Another piece of advice from Stark for any treasurers wanting to leverage AI in 2025, especially for cash forecasting, is that they will need data mastery and appropriate ongoing governance and oversight to get the most out of any AI applications. “A clear idea of ‘what do I want to achieve?’ is necessary before embarking on any AI project focused on improving cash forecasting, or the numerous other use cases that are possible.” 

These use cases, he said, are typically designed to achieve enhanced automation and efficiency, compliance improvements, and more robust security. But on the latter, Stark warned that AI can be an attack and a defence mechanism in this field. As such, “Cybersecurity must be a top priority for 2025.”

Given the pervasive nature of AI, the challenge for treasurers will be to leverage it strategically, ensuring that it enhances efficiency, strengthens security, and delivers actionable insights without compromising governance or increasing vulnerabilities. 

Achieving this will form part of a wider digital transformation remit for treasury teams, which, of course, also includes digitising paper processes, leveraging digital advances to improve old ways of working, and even upgrading business models.

Building a modern treasury

In fact, digitisation underpinned many treasury transformation projects throughout 2024, enabling teams to achieve greater efficiency and real-time operational capabilities. “In 2025, treasurers will continue to focus on leveraging technology, whether to reduce manual processes such as reliance on paper documentation within trade finance or to drive innovative payment solutions like seamless, contactless payments,” said James Fraser, Global Head of Trade & Working Capital at J.P. Morgan Payments.

He believes that the advancements in real-time treasury management present significant opportunities for the industry as well. With the integration of faster payments, more open APIs, and open banking payment methods, treasury teams can now better automate and expedite the capture of transaction data. This enables more efficient and accurate real-time management of cash positions, creating more predictable cash flow.

“This trend empowers treasurers to navigate a landscape where payments can be initiated anywhere, anytime, in any currency, and through a variety of platforms, from ACH to mobile wallets. The modern ‘always-on’ payment ecosystem will particularly benefit financial institutions (FIs) that maintain robust security and controls.” 

Digging deeper into real-time payments

Indeed, the rise of instant payments, particularly in the European Union through the Instant Payment Regulation (IPR), was a major milestone in 2024. Matthew Davies, Head of Global Payments Solutions, EMEA, and Global Co-head of Corporate Sales, GPS, Bank of America (BofA), noted, “The introduction of instant payments across the EU is an important milestone in the evolution of its financial infrastructure. We’re focused on ensuring clients can seamlessly receive instant payments and providing real-time visibility to help better manage liquidity and market shifts.” 

Nevertheless, it is important to distinguish between instant payments and on-time payments, as not every company is focused on the need for 24/7 instant payments. “Many of our large corporate clients have existing technology, infrastructure and processes prepared for batch processing of payments – for example, to pay software subscriptions or salaries at a certain date. On time payment here might be more relevant and cost-effective,” said Davies.

Wim Grosemans, Global Head of Product Management, Payments & Receivables, Cash Management at BNP Paribas, has seen a handful of high-profile corporates really wanting to accelerate their real-time capabilities. 

But, he said, definitions of ‘real-time’ differ, depending on if you focus on the cash balance reporting implications or other up/downstream impacts. “For me, it simply means being able to move liquidity in real-time at any point in time, and confirming it – whether by cross-border instant payments, or other means. But regardless of the definition, I do see it being a constant theme for 2025.”    

Another topic that interests Grosemans and his clients is SEPA Instant Credit Transfers (SCT Inst). “Now that the transaction limit on SCT Inst transactions is set to be removed, it may become an instrument of significant treasury traffic. Money can be moved over the weekend too. This all contributes towards the shift towards real-time treasury but will require collaboration between banks and corporates to manage the liquidity challenges.”

Preparing for ISO 20022

Within the payments and cash management space, ISO 20022 migration will also likely be a continued theme for 2025. “Large corporate customers are gearing up for ISO 20022 compliance ahead of the banking deadline later this year, but there is some frustration that there has not been a more unified approach in terms of timing or transition that was more in step with the banking community,” said Jacqui Drew, Global Head of Account Management at ION Treasury, which includes the Reval and Wallstreet brands among many others. 

“Treasury teams are seeking assurance that the technology they have available will be compliant, flexible and able to cater to new and old payment formats,” she noted.

Stark agreed, adding, “Most finance leaders, including treasury and payments teams, remain concerned about the ISO 20022 XML messaging standardisation drive and the imminent migration as well. While the delayed Swift-mandated 2025 deadline does not apply directly to corporates, there is concern about which banks will continue to support MT messaging and which will fully switch to XML-based messaging.” Smaller banks are in the frame, and other non-bank partners in the payment chain may cause issues too.  

“This may lead to a ‘blending’ of message formats that means finance teams will demand translation tools to avoid rebuilding file import and export processes in their ERP and other finance systems,” cautioned Stark. 

Though ISO 20022 offers numerous potential benefits, for now, the complexity and uncertainty are making life harder for many treasurers, who have other priorities to contend with.

Bracing for macro headwinds

One of these areas of focus is, of course, managing market risk, and making appropriate cash and liquidity decisions. Davies elaborated, “Financial markets, and particularly the present interest rate environment, have brought an increased focus on liquidity management. For example, treasurers need to make sure there isn’t idle liquidity sitting around, centralise their cash position, and pay down debt.”

In this regard, Stark said, “Geopolitical and economic instability are live issues,” due to ongoing wars with their impact on oil and gas prices, free market access, trade routes and so on. “Treasury teams are under pressure to support re-shoring of supply chains, mobilisation of liquidity and increased agility in banking partners, should business changes be required.”       Such shifts could be needed in the event of sanctions, interest rate moves, or other economic shocks or major strategic decisions. 

Upcoming geopolitical events look set to create yet further uncertainty. The commencement of Donald Trump’s second term as US President, Germany’s elections in February 2025, and high-stakes midterm elections in the Philippines in May are just a few key moments to watch. Each event has the potential to shift market conditions, impact trade policies, and create new challenges for corporates.

Understandably, said Stark, this is leading to a renaissance in aligning technology with better practices in business continuity planning (BCP) and risk mitigation, with a specific focus on foreign exchange (FX) hedging and liquidity planning.   

Davies could not agree more. “Treasurers want to make sure their business is ready to adapt to rapid currency fluctuations, so we spoke with a number of clients in 2024 about the benefits of guaranteed rates and FX netting solutions, for example.” And these conversations only look set to intensify as this year unfolds.

In a similar vein, Seth Phillips, CEO and Co-Founder of Bound, a fintech providing automated currency hedging strategies, believes that 2025 will see treasury teams focus on tech that enhances proactive decision-making around FX risk. He noted, “The macro instability we’re seeing isn’t going away anytime soon. Treasurers need tools that can help them act decisively, and stay in control, regardless of what markets get up to.”

The ultimate aim of this kind of tech is ensuring greater predictability and stability in cash flows, he explained. “Automating FX hedging – not just the workflows but the strategic decision-making process as well – helps treasury teams take currency risk off their plate, so they can focus on bigger-picture financial goals.”

Never do nothing

While treasurers clearly have many tech, macro, and strategic changes to contend with in the year ahead, what all of these trends demonstrate is that the world isn’t slowing down. So, neither can treasury teams. In fact, if there is one major lesson from 2024 to carry into the next 12 months, it’s that the real risk isn’t always in trying something new – it’s in standing still.

The post Never stand still! Taking treasury to the next level in 2025 appeared first on Trade Finance Global.

Bidding 2024 goodbye is the perfect opportunity to reflect on the wonderfully unpredictable world of trade, treasury, and payments. TFG have been proud and excited to stand in the middle of a whirlwind of roundtables, interviews, conferences, and community participation. Here are some of our top trends and standout moments from last year:

Top highlights of 2024

• 65,000,000 organic impressions
• 1,737,014 readers
• 144,751 average monthly readers
• 32 podcasts
• 57 videos
• 6 magazines
• 6 guides
• Relaunch of TFG’s platform

Most trending hubs and topics on TFG

1. Incoterms 2020 rules
2. Letters of credit and UCP
3. Structured finance
4. Documentary collections
5. Electronic trade documents

Top Headlines

1. UK invoice financing startup Stenn put into administration after HSBC application
2. Lloyds Bank completes its first WaveBL electronic Bill of Lading transaction
3. France joins MLETR club, recognising ‘Titre Transférable Électronique’
4. EU confirms January 2025 start for final Basel rules
5. Choosing the right Incoterm: Ex Works (EXW) vs. FCA

Top Podcasts

1. Absa on the trade finance distribution revolution and closing the $2.5tn gap
2. Using deep-tier supply chain financing’s potential to unlock capital
3. Risk management in trade finance: How a CITR certification can help
4. Year ahead: Swift CIO on balancing uneven payments regulation and advancing CBDC
5. TXF’s Jonathan Bell reflecting on 10 years in the commodity finance industry, and 10 years moving forward

Top Videos

1. 20 years and counting: What does the future hold for CDCS and documentary credits
2. Corporate and bank perspective on adopting the ETDA: Use case with Trafigura
3. SACE: increasing Italian exports, the push strategy and greening supply chains
4. What does Basel IV look like for the trade credit insurance market?
5. Andrea Tang on the future of trade documents and digitalisation

Read our full ‘2024 unwrapped’ for the full charts here.

TFG remain grateful to all our readers, viewers, listeners, followers, and subscribers. See you in 2025, for what promises to be another year of transformation, unpredictability, and inclusion in trade, treasury, and payments!

The post Trade Finance Global’s 2024 Year in Review appeared first on Trade Finance Global.

At the beginning of this year, we looked ahead and made a series of predictions for what we thought would be the biggest trends in trade, treasury, and payments throughout 2024. 

As the year winds to a close we’re revisiting our predictions to see how well they measured up to reality. Let’s dive in!

Prediction #1: Uncertainty will underpin the macroeconomic landscape (again)

We started our prediction list with a bit of a lob ball – but we sure hit it out of the park. Our prediction that uncertainty would dominate the global macroeconomic landscape in 2024 was spot on. 

The year was marked by slowing global growth, persistent inflationary pressures, and geopolitical disruptions. Central banks maintained cautious monetary policies, and China’s continued economic slowdown weighed heavily on global trade. Energy markets also faced volatility due to fluctuating oil prices amidst geopolitical tensions, including ongoing conflicts in Ukraine and the Middle East. Extreme weather and strike action around the world also disrupted global supply chains this year.

Adding to the complexity, elections in more than 60 countries helped to change the faces of leadership around the globe. Some of these, like Donald Trump’s re-election in the USA and the ensuing tariff threats and protectionist rhetoric, leave the world on edge leading into the new year.  

Overall, 2024 helped reaffirm that uncertainty is the only certainty in the world. 

Prediction #2: Supply chain finance expects lacklustre growth

Our prediction of sluggish growth in supply chain finance (SCF) during 2024 ended up being broadly accurate. The trade finance gap expanded and market conditions remained challenging, with tightened liquidity, cautious lending, and ongoing derisking by banks.

Geopolitical tensions, higher borrowing costs, and reduced risk appetite created a challenging environment for SCF in 2024, which strained access for some but created opportunities for non-traditional financiers to have an increasingly prominent role, with fintechs and alternative lenders stepping in to meet demand.

The broader SCF ecosystem saw slow but strategic innovation, with players focusing on simplifying processes and expanding coverage into underserved markets. While the sector didn’t experience transformative growth, it continued to evolve, positioning itself for a more robust recovery in the years ahead.

Prediction #3: Standards and frameworks will take centre stage

At the beginning of the year we predicted that developing standards and frameworks for digitalisation and ESG would be the emphasis in 2024. We got that one right. 

In November, COP29 opened with an agreement on standards for the creation of carbon credits, and tradeable permits tied to greenhouse gas emissions used by governments to measure and limit emissions. 

On the digitalisation side, the adoption of the UNCITRAL Model Law on Electronic Transferable Records (MLETR) gained momentum. Notably, France joined the cohort of countries recognising electronic transferable records, marking a significant step towards global digital trade harmonisation.

Work also continues at UNCITRAL on developing a comprehensive international convention to standardise negotiable cargo documents across multiple transportation modes. The group expects to complete this in late 2025.

These developments show an acceptance of the need for collaborative progress, focusing on establishing adaptable and technology-agnostic solutions to meet evolving digital and sustainability challenges.

Prediction #4: Increased demand will drive growth in trade credit insurance

Our prediction that demand for trade credit insurance (TCI) would grow in 2024 was well-supported by market developments. The ICISA industry report published this year (albeit reporting on FY 2023) showed that trade credit insurance has seen steady demand, bolstered by evolving global trade dynamics and rising counterparty risks.

According to the report, throughout the year insured exposure grew by 4.5%, totalling €3.2 trillion; premiums written increased by 5%, amounting to €8.2 billion; and claims paid rose by 11.4%, reaching €3.2 billion. Penetration rate also increased to 15.07% for 2023, up from 13.16% one year earlier, with currency exchange rates playing a role.

This increase was largely driven by the role that these products play in protecting businesses from the risk of non-payment, which became increasingly prevalent given the economic uncertainties in the market.

Prediction #5: Solving complex issues will be key to fintech survival

Our prediction that fintechs would face a make-or-break year in 2024 was well-founded. The reality of the fintech landscape this year has highlighted both the promise and perils of the sector, with advancements in artificial intelligence (AI), instant payment systems, and blockchain juxtaposed against the financial struggles of some once-promising companies.

Blockchain, once the trendy new technology that everyone hyped, is finally starting to become more mainstream. After what felt like endless white papers and Proofs of Concept (POC), the technology has started being applied to real-world problems to reduce costs, increase efficiency, and improve customer experience. 

Replacing Blockchain as the hot new tech in town is AI. AI is impacting trade finance and payments by promising to automate risk assessments, fraud detection, and personalisation, particularly in supply chain resilience and operational efficiency. The adoption of AI in the financial sector has surged, with global AI spending expected to exceed $300 billion by 2026, according to industry reports.

Unfortunately, the year ended with news on several bank and non-bank lenders collapsing, notably, ABN Amro’s receivables finance team, Stenn and Kimura Capital. This will likely have compounding effects on appetite to lend to SMEs in 2025.

Prediction #6: An infrastructure revolution for payments

Our prediction that 2024 would mark a transformative year for payments infrastructure was accurate in part, though the anticipated revolution was more evolutionary than revolutionary. 

The adoption of ISO 20022, while significant, has been slower than expected in transforming cross-border payments, and the promise of central bank digital currencies (CBDCs) and distributed ledger technology (DLT) for payments remains largely unrealised.

ISO 20022 adoption expanded globally, especially among larger banks, leveraging the data-rich messaging standard for competitive advantage. However, smaller institutions and developing markets have lagged behind. While some progress was made in using ISO 20022 to improve payment transparency and speed, its broader benefits have yet to be fully realised.

Despite these challenges, the payments industry did make strides in cloud integration and real-time solutions, fostering incremental improvements rather than wholesale transformation.

Prediction #7: Technology will aid decision-making in treasury

Our prediction that technology would transform treasury operations and decision-making in 2024 was largely accurate. Tools like APIs and AI are increasingly becoming mainstays for the contemporary treasury leader, though challenges such as privacy concerns and inconsistent liquidity management adoption remain. By identifying patterns, forecasting cash flow, and simulating liquidity scenarios, AI has begun to enable treasury teams to make faster, more informed decisions. 

However, widespread adoption of real-time liquidity management tools has been slower than anticipated. While these systems can be powerful tools amidst changing market conditions, smaller firms tend to struggle with the cost and complexity of their implementation. Additionally, privacy and data security concerns continue to stand in the way of a deeper integration, as companies weigh the risks of exposing sensitive financial data to digital platforms.

The treasury transformation is ongoing, with many organisations leveraging APIs and AI for operational efficiency, but broader challenges suggest that the evolution will continue well beyond 2024.

Prediction #8: ESG is here to stay

At the beginning of the year, we predicted that ESG would remain central to business strategies in 2024. While this has largely remained the case, the conversation around sustainability took an unexpected turn over the course of the year. While progress was made in areas like harmonised reporting standards and carbon credit frameworks, a quieter, more cautious tone has emerged in corporate ESG efforts.

The enthusiasm that once surrounded ESG has faded. Concerns about greenwashing have given rise to “green hushing,” where companies downplay or stay silent on their sustainability efforts, either as a defensive move or due to diminished prioritisation. This trend has seeped into treasury functions, making the integration of ESG into financial strategies more subdued.

Despite this dip, the outlook for ESG remains promising. The regulatory environment, especially in Europe, is forcing companies to rethink sustainability as a strategic imperative rather than a checkbox exercise. Treasurers, in particular, are realising the potential of ESG investments to drive long-term growth and resilience without compromising profitability.

COP29, branded the “Finance COP,” was a milestone event, resulting in a global framework for tradeable carbon credits and substantial commitments by developed economies to finance green transitions in developing nations. These advances reflect growing regulatory and financial pressure to align global trade with sustainability goals.

The hope is that 2025 will reignite corporate enthusiasm for ESG, with treasury teams leading the charge towards sustainable finance, influencing supply chain practices, and embedding ESG into core business operations.

So, how’d we do?

Looking back at our predictions from the start of the year and comparing them to how events across the trade, treasury, and payments industries played out, we’re pretty happy with our predictions!

Of course, we can’t take all the credit. To make these predictions to spoke with some pretty smart experts across the industry and, well… stole a lot of their ideas, because they are the experts after all!

These trends reaffirmed the importance of staying informed, collaborative, and flexible. As we prepare for 2025, our new year’s resolution is to remain committed to tracking these developments, engaging with industry experts, and sharing insights to help our readers stay informed.

Here’s to another year of making bold predictions – and seeing how they stack up!

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Our data team poured through the analytics of hundreds of podcasts, videos and stories published on Trade Finance Global in 2024, to bring you most loved podcasts, videos and stories of the year.

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Estimated reading time: 6 minutes

Treasury is not what it used to be, and that’s all thanks to a convergence of new technologies, changing values, and the push for more inclusivity. Formerly a primarily back-office function where treasurers focused solely on the numbers, treasury is becoming more of a strategic, tech-driven role. 

As we get ready for 2025, Trade Finance Global (TFG) spoke with our Editorial Board Member Eleanor Hill to explore the biggest trends in the world of treasury: technology, ESG, DEI, and the power of people.

Treasury meets technology: the new normal

In the past, treasury was defined by its heavy reliance on spreadsheets and manual calculations. Tedious processes often made it difficult to innovate, leaving treasurers with the same set of challenges year after year. 

Now, all of that is changing. 

Technology, particularly artificial intelligence (AI), is transforming the way treasurers do their jobs and also the expectations placed upon them. AI has evolved far beyond just automating mundane tasks; it is helping treasury teams dive deeper into forecasting, risk management, and even policy formulation.

Hill said, “If you speak to treasurers about what they want to fix with AI, it’s cash flow forecasting. The cash flow forecasting has been the number one issue for people for as long as I’ve been writing about treasury.”

These innovations have led to impressive strides in real-time liquidity forecasting, predictive analytics, and even making AI a kind of personal assistant—offering insights and drafting preliminary strategies. 

But with great power comes great responsibility.

Hill said, “There’s a lot of interesting applications of AI going on for sure, but always with caution.”

AI isn’t just a set-it-and-forget-it solution; it brings with it ethical concerns and new complexities. Questions about energy consumption and inherent biases in data are critical to the conversation, especially when AI usage is scaling across industries. 

As technology becomes more deeply embedded in treasury functions, treasurers must embrace the potential of AI while staying vigilant about its broader impacts. This new normal requires an ability to think critically about the role of technology in corporate finance, making it crucial for treasury teams to build robust governance around data use, privacy, and AI implementation. 

ESG: the comeback story?

Two years ago, it felt like ESG (environmental, social, and governance) initiatives were at the heart of every corporate conversation, especially within treasury. Sustainability was a priority, and treasury teams were eager to align their financing and supply chain solutions with broader ESG goals. 

But in 2024, the enthusiasm seemed to fade. The conversation around ESG was more subdued, with companies appearing to step back from their earlier commitments. 

Hill said, “There’s been a lot of concern around greenwashing, and there’s this new trend of green hushing. There are a couple of ways of it people might hush up what they’re doing as a defensive move, or people are just doing it passively. But it is filtering into treasury.”

Despite this dip, there are reasons to believe that ESG could make a strong comeback in 2025. Regulatory pressure is mounting, and treasurers are realising that sustainability is more than just a checkbox on a form. 

When viewed through a strategic lens, ESG doesn’t have to mean sacrificing profits or adding a layer of bureaucracy. Instead, it represents an opportunity for long-term growth, resilience, and alignment with stakeholder expectations.

Hill said, “When you look at ESG investments, people tend to think that, ‘Okay, I’m going to be compromising my investment performance by choosing an ESG investment.’ But that is not necessarily true.”

The regulatory environment, particularly in Europe, is pushing companies to rethink how they report on and integrate sustainability into their core operations. Treasurers have the unique role of linking these regulatory requirements with actionable, finance-driven solutions, helping their organisations turn ESG from a buzzword into a core business strategy.

The hope is that 2025 will see treasury teams once again leading the charge towards more sustainable finance. They have the ability to shape corporate behaviour, influence supply chain practices, and ensure that financial products align with a company’s long-term ESG goals. 

Diversity in treasury: still a long road

When we think about the treasury sector, it’s impossible to ignore the lack of diversity. Treasury, particularly at the leadership level, has long been dominated by men. Despite more women entering the industry in recent years, there is a clear drop-off in senior positions.

Hill said, “If I look back at the panels that I’ve moderated over the last year or so, they were 90% men, and it’s probably 80% white. There’s a huge discrepancy in terms of the general population and the people that are coming into treasury.”

The pipeline is there, but the glass ceiling remains a significant barrier. Diversity, Equity, and Inclusion (DEI) initiatives are crucial for ensuring that a diverse range of voices is not only heard but also represented in decision-making roles.

Diversity is not just about getting women and underrepresented groups into treasury roles; it’s about ensuring they stay, thrive, and lead. One of the ways to achieve this is through increased visibility. If young professionals cannot see themselves in leadership roles, it’s hard for them to aspire to them.

Hill said, “If you can’t see it, you can’t be it. It’s that element. Making sure that we really are showcasing the talent that’s out there.”

Interestingly, the rise of AI adds another layer to the diversity challenge. Studies show that men are using AI tools at work more frequently than women, which is starting to create a gap in productivity and opportunity. If this trend continues unchecked, the treasury sector may see further disparity, rather than progress, when it comes to DEI. 

Skills for the future: it’s about the people

Once, the treasurer’s role was defined by technical skills—deep knowledge of cash management, risk, and balance sheets. Today, the job is evolving into something far more dynamic. 

Treasury professionals are no longer hidden in the back office; they are sitting at the table with the C-suite, making strategic decisions that impact the entire company. The skills required for this transformation are not purely technical; they are increasingly about the ability to communicate, connect, and think strategically.

The role is now less about crunching numbers and more about asking what these numbers mean for the business and how they can be used to drive strategy forward.

Treasurers are now tasked with telling the story behind the numbers, and translating data into insights that support business growth. This makes skills like data storytelling, emotional intelligence, and the ability to influence stakeholders absolutely crucial. 

The treasurer’s role has never been so people-focused. Investing in human capital, ensuring well-being, and prioritising continuous learning are no longer nice-to-haves; they’re essential elements of a thriving treasury team. 

The future of treasury is about balancing technical acumen with a deep understanding of people—both the teams they lead and the stakeholders they serve.

Hill said, “Focus on your people. They are the ultimate corporate asset, not your data.”

—

Treasury is changing, and fast. The days of being confined to spreadsheets are long gone. Treasury professionals are stepping into a broader, more influential role within their organisations, driving strategy through technology, sustainability, diversity, and people-centric leadership. 

The challenges are many—ethical AI use, bringing ESG back to the forefront, ensuring diversity truly becomes embedded in corporate culture, and adapting to an ever-expanding skill set. But these challenges are also opportunities for treasury teams to reshape their roles and, by extension, the future of their organisations. 

As we look towards 2025, it’s clear that the future of treasury isn’t just about managing finances; it’s about leading change—in technology, in sustainability, and in people.

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Estimated reading time: 1 minute

2024 has been a tumultuous year for the treasury industry, marked by impediments to trade, new and unfamiliar regulations, geopolitical risk, and numerous other challenges.

This makes it nearly impossible to predict how the industry will look by this time next year. 

But we have enough to speculate on what forces will steer treasury in 2025.

Eleanor Hill, Trade Finance Global’s (TFG) treasury guru, identified five key factors: 

• Artificial intelligence (AI) alongside other technologies;
• Data becoming a corporate asset;
• A resurgence of environmental, social, and governance (ESG) among the community – especially the G;
• Similarly for diversity, equity, and inclusion (DEI);
• Focus on soft skills to balance the growth of tech.

Watch the full video for more.

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It focuses on concrete ways for the industry to adapt AI to their operations, improving efficiency and innovation. The overview also highlights the challenges involved in implementing AI in the highly regulated financial services sector and recommends ways to facilitate integration. 

For example, industry-level accepted practices, AI sandboxes, and streamlined regulations could all smooth the path for an AI-powered future of banking.

The whitepaper argues that AI opportunities are transformative, even for those who have not yet leveraged AI tools into their operations. 

To facilitate entry for companies at the start of their AI journey, the whitepaper includes a ‘composable Gen AI’ roadmap and a description of the specific capabilities of AI and how they can fit into firms’ operations. 

Some inherent challenges in AI surround ethical and sustainability concerns. In its application in banking, increased regulation and cybersecurity risk pose unique challenges. Overall, however, the outlook is optimistic. 

“Gen AI represents a sophisticated human-computer interface that democratises technology for daily users. Such technology-driven growth can flourish when there is room for practical application – with balanced oversight – to enable the industry to advance without stifling the needed breakthroughs”, said Boon Hiong Chan, Deutsche Bank’s Asia Pacific Head of Securities &  Technology Advocacy and Industry Applied Innovation Lead.  

Kodex AI has been developing ways to incorporate AI into the financial services industry by leveraging Large Language Models to extract and analyse data from financial documents. 

“Our mission is to help the financial services industry unlock the full potential of this transformative technology. We are committed to addressing the complexities and challenges associated with adopting Gen AI by providing strategic frameworks and practical insights that can guide the industry forward,” said Thomas Kaiser, Co-Founder of Kodex AI.  

Deutsche Bank, which invested in Kodex AI in 2023 through its Corporate Venture Capital group, has been focusing on innovation and incorporating new technologies into its daily operations. This forms part of the bank’s strategy of investing in start-ups that directly impact its activities and increasing productivity to support their activities through expertise and resources—enabling Deutsche to promote industry-leading solutions while being the first to take advantage of new innovations. 

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• Companies in the middle market have become more attractive to banks, according to Visa’s Middle Market Growth Corporates Working Capital Index.
• Working capital solutions need to be tailored more to meet middle-market needs.
• Customised bank offerings could help with this sect of companies.

With banks constantly looking to achieve growth objectives and remain competitive, middle-market growth corporates present an opportunity hidden in plain sight. These companies, which in some cases reach $1 billion in annual revenue, are in fact large enterprises in the making: attractive targets for banks. 

As growth corporates continue to look at working capital solutions as an important part of their growth strategy – helping them to enter new markets, expand their products and upgrade their systems – banks are exceptionally well-positioned to support these working capital needs. 

According to Visa’s 2024-2025 Middle-Market Growth Corporates Working Capital Index, growth corporations have become adept at using working capital solutions, such as working capital loans, bank lines of credit, overdrafts from corporate bank accounts, corporate and virtual credit cards, and invoice financing and factoring, to take advantage of global opportunities—particularly during times of economic uncertainty. 

The Index found that the use of working capital solutions as an important part of a corporate growth strategy, rather than merely as an emergency cash flow stopgap, has increased by 16%. It’s worth noting that 48% of growth corporates that have used working capital solutions saw improved working capital ratios, while one-quarter saw improved cash conversion cycles. 

Additionally, the Index revealed that those growth corporates using working capital solutions are nearly twice as likely to have experienced improvements. Evidently, these are effective solutions in optimising business health and operational efficiencies.

As middle-market growth corporates increasingly view working capital solutions as a much-needed tool for supporting business efficiency and development, banks have an opportunity to bring such solutions to those who have not yet taken advantage of them.

Existing working capital solutions aren’t tailored to middle-market needs 

With a growing need for working capital support, growth corporate CFOs and Treasurers are looking for smooth access to working capital solutions. However, according to the Index, nearly one-third say their working capital options don’t match their business needs. 40% of growth corporates in Central Europe, the Middle East, and Africa cited this as their largest pain point.

This stems from the fact that banks have traditionally focused on catering specific products to small businesses or large enterprises, and not the middle market. To meet the unique needs of this business segment, banks have an opportunity to bring deep industry expertise to the table, moving beyond generic financial services to tailored, sector-specific insights and products. 

Capitalising on a growth opportunity  

Nearly 23% of middle-market growth corporates have expressed a desire for 

banks to better serve their financial needs. They would like to see banks, who have both the lending experience and working knowledge of their industry and region, design working capital solutions that fit their particular business requirements. 

By customising loan products and payment schedules that also sync with client’s dynamic cash flow patterns, banks can deliver personalised financing solutions, thereby winning the trust and business of growth corporates. 

Growth corporates are eager to take advantage of flexible solutions that offer them the ability to tap into external working capital for whatever strategic or tactical purpose is most relevant at that point in time. The Index revealed that despite their popularity, only 36% of growth corporates were able to secure traditional working capital loans over the previous year. Instead, there is a growing preference for solutions that offer operational agility and quick access to funds without the need to apply for a loan when the need for funds presents itself.

Banks can meet this need through solutions with revolving credit, such as bank lines of credit, as well as with corporate and virtual card solutions. The Index reveals the use of corporate and virtual cards is on the rise, going from 10% in 2023 to 14% in 2024. In addition to their flexibility, virtual accounts also come with enhanced tracking features and improved cash flow predictability. Employment of bank lines of credit has also increased by  26% among growth corporates, compared to 19% last year. 

Visa is one such company, through which banks can offer middle-market clients business card and virtual card solutions; these will clients to better manage cash flow and take advantage of external working capital in order to meet strategic growth objectives. Such solutions automate expense tracking and seamlessly integrate with job-costing systems for enhanced efficiency. They address growth corporates’ desire for an easy-to-access, well-rounded financial solution: one that comes from a trusted advisor. 

For banks, offering customised working capital solutions that meet the unique needs of middle-market growth corporates is an ideal way to capture this important market segment, taking advantage of rapidly growing businesses that have been hiding in plain sight. 

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At ITFA’s 50th annual conference in Cyprus, Trade Finance Global’s editor Deepesh Patel, sat down with NLN Swaroop, Global Product Head for Sustainable Trade Finance, Innovation, Financial Institutions, Capital Management and Asset Distribution, HSBC Board Member, Trade Finance Investment Ecosystem (ITFIE) at ITFA.

They discussed ITFA’s Trade Finance Investment Ecosystem—or ITFIE—an industry group of trade finance practitioners that focuses on developing trade as an asset class. 

The intention is to facilitate and expand how capital is brought to trade finance, by developing enabling frameworks and solutions.

The initiative should accelerate the rollout of trade finance solutions across the industry.

Swaroop detailed the parties involved in ITFIE: “We have a group of institutional investors, banks, fintech, and capital providers (such as pension funds, insurance treasuries, and family offices) coming together in this group and looking at challenges more closely in a collaborative way to find solutions for the future.”

Watch the full interview for more.

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