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DATA DIGEST
The Economist Intelligence Unit Report 2015 - Financing the Fragile Economic RecoveryFinancing the Fragile Economic Recovery
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2020
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We surveyed 300 corporate treasury and finance executives about how they are traversing new risks and growth opportunities
EIU Report 2015: Participants
Consumer goods
13%Financial services
11%Construction & real estate
8%Retail6%
Healthcare, pharmaceuticals & biotechnology
5%Transport, travel & tourism
5%
LocationsSectors included
Currency, regulatory and inflation risks, and sluggish growth are the biggest worries
Other concerns: Currency risk 38% Regulatory risk 36% Inflation risk 32%
growth was their main concern
59% of respondents said sluggish
weak recovery is seen as
the new normal
With real GDP growth in the
28 EU countries at just 1.4% in 2014
EIU Report 2015: Concerns
Many treasurers said they view all of these risks as an “inherent part of doing business”
What are executives spending most of their time on and how do their views on different regulations stack up?
2/3spend a very or fairly large
amount of time on regulatory compliance but this is generally positive
Is this time well spent?
75%of EMEA
respondents say “yes” for the Payment
Services Directive
76%of EMEA
respondents think time spent on
EMIR is worth it
70%of American
respondents think time implementing Dodd-Frank is well spent
16%of all respondents
believe Solvency II is worth the time and
costs of implementation
EIU Report 2015: Activities
“If [increased regulation] means the industry becomes more disciplined and takes more care of the risks we have, then on the
whole that is a good thing” Richard Garry, Group Treasurer, IMI plc
Treasury departments are struggling to meet KPIs
How are roles changing?
BUTsay leadership teams are increasingly consulting
them on strategy
73%don’t think their treasury
departments have the time or resources to fulfil these new responsibilities
56%
EIU Report 2015: Roles and responsibilities
“I haven’t heard many [treasurers] say they are getting more staff or budget” David Blair, Managing Director, Acarate
do not feel equipped to achieve a lowcost of financing
73%do not have the time and
resources for effective risk management
do not have the time and resources to build good relationships with banks
72%78%
Technology is helping to improve:
EIU Report 2015: Technology
57%53%
34%
Decision-making
Data quality
Cost-cutting
61%It’s not a big enough priority
66%
Think it will reduce reliance on banks
Some companies think partnering is risky
62%
But for some...
But...
Partnering with FinTech firms is a big talking point
Investment in technologywithin treasury departments
is expected to continue forthe next 12–24 months
1/3 of respondents expect to make heavy
investments in technology