December 15, 2015
- Payments and cash management has risen rapidly up the corporate agenda
- Large corporate CFOs lead the way on adoption of new payments systems
- More mid-market CFOs view payments and cash management as an opportunity
Six out of 10 CFOs from mid-market and large corporate firms say they would like to see the same flexible payments technology in their business’ finances as they enjoy in their personal finances, according to a HSBC survey.
Innovations such as contactless payments and mobile banking have helped provide improved speed, reliability and control for individuals and CFOs believe new technology could deliver similar benefits in their payments and cash management systems.
Of the CFOs that embrace consumer payments technology, 84 per cent foresee a major change in their business payments systems over the next five years. They are also 50 per cent more likely to be aware of new business payments systems and 70 per cent more likely to place a priority on their adoption.
The findings also show that more than half of the CFOs (54 per cent) believe payments and cash management has become more important to the success of their business in the last five years.
Commenting on the findings, Frances Howell, HSBC’s UK Head of Payments and Cash Management (PCM), said: There is significant technological change going on at the moment in terms of payments. The first place CFOs will likely experience new technology is in their personal lives and this can lead them to ask why they do not have the same levels of convenience at work.
The findings highlight clear distinctions in attitude between mid-market and large corporate CFOs. Despite viewing payments and cash management as more important to their business’ success and a greater opportunity, only 29 per cent of mid-market CFOs have adopted two or more new payments systems in the past three years, compared to almost half (49 per cent) of all larger firms.
Payments and cash management used to be seen as an important but unremarkable part of a business, says Eddie Norton, HSBC’s Head of PCM Europe. This survey shows, however, that businesses are increasingly recognising payments and cash management as vitally important to help drive growth.
For companies of all sizes, especially those working with global supply chains or in multiple markets, ensuring cash is in the right place at the right time is vital. Meanwhile, like all of us, CFOs are seeing and experiencing the benefits of new payments technology in their personal lives. Those who embrace this new technology in their personal lives recognise the benefits and opportunities it can offer in their business lives.
HSBC UK CFO survey: key findings
- 59 per cent of CFOs want the same flexible technology in their business’ finances as in their personal finances
- 84 per cent of CFOs who use consumer payments technology foresee a major change in their business payments systems over the next five years.
- CFOs who use consumer payments technology are 50 per cent more likely to be aware of new business payments technology and 70 per cent more likely to prioritise their adoption
- 54 per cent: the percentage of CFOs who believe payments and cash management has become more important to their business’ success over the past five years
- Mid-market CFOs are a fifth (21 per cent) more likely than their large corporate counterparts to view payments and cash management as important to the success of their business; and,
- A third (34 per cent) more likely to see new payments technology as an opportunity
- 48 per cent of larger firms’ CFOs have adopted two or more new payments systems in the past three years – compared to only 29 per cent of mid-market CFOs
About the research
Working with leading polling organisation YouGov, HSBC and H+K Strategies interviewed 113 CFOs working in 73 MME firms (£50-500m turnover), and 40 larger corporate firms (£500m+ turnover).
The HSBC Group
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,100 offices in over 72 countries and territories in Asia, Europe, North and Latin America, and the Middle East and North Africa. With assets of US$2,549bn at 30 September 2015, HSBC is one of the world’s largest banking and financial services organisations.
HSBC Payments & Cash Management
HSBC Global Payments and Cash Management provides cash management services to customers globally, including Fortune 500 multinational companies, top-tier local corporates, middle market companies, SMEs, financial institutions and government bodies.