- New report shows high levels of market optimism with 81% of global professionals in receivables finance forecasting growth in 2021
- The U.S. had the most optimistic outlook globally, while The Netherlands was the most optimistic in Europe
- Technology is the key global priority for receivables finance leaders during 2021 followed by improving the ability to innovate
- The study conducted research with leaders around the globe to compare regional differences
EQ (Equiniti Group plc) is delighted to announce that its risk management business, EQ Riskfactor, today launches a series of new reports called the Receivables Finance Global Outlook.
EQ Riskfactor’s established risk management technology uses automation to identify potential frauds using advanced analytics which highlight unusual activity, so that lenders can investigate and reduce risk. The technology also helps lenders to eliminate manual processes saving time and money.
The new EQ Riskfactor Receivables Finance Global Outlook report surveyed senior decision makers from the receivables finance industry across the UK, US, Germany, France and the Netherlands. The report explored the impact of Covid-19 on the industry during 2020 and how this had marked differences across countries. For example, in the US 57% of respondents saw demand decrease to some degree, 40% saw demand increase and almost a quarter (22%) saw up to 50% more demand.
Conversely in the UK, only 30% saw an increase, with the majority seeing growth of 10% or less. Within Europe the Netherlands saw a significant 68% increase in demand, compared to 52% in France and 48% in Germany.
The report also investigated revenue and growth predictions for 2021. The market optimism was clear globally with 81% predicting growth. This confidence reflects the thoughts of the market globally that 2021 will be a turning point in what has been a challenging time for many lenders and their clients.
When asked about their top business priorities moving forward, the top three in order were: The deployment of artificial intelligence and machine learning (38% globally), improving the ability to innovate (37% globally) and recruitment, development and retention of employees (34% globally).
As a result of the pandemic, businesses across many different sectors have accelerated their plans for digitalisation to continue providing service to their customers. Consumers have already become accustomed to receiving fast and efficient service online, and their expectations in this area are rising.
The full report is available to read and download here.
Michael Ellis, Managing Director, EQ Riskfactor, commented:
“Our new report shows a strong level of optimism globally across all of the countries we surveyed and it is clear that receivables finance will have a key role in driving the recovery during and post pandemic. It was also clear that the pandemic has focused leaders towards speeding up their digitalisation strategies and unsurprisingly technology is a key strategy for 2021. Digital customer onboarding is an increasing priority, driven by a desire to minimise customer acquisition costs and deliver an enhanced customer journey.”
Michael Ellis continues: “Managing risk throughout the pandemic is a key priority for our clients. Our technology uses advanced workflow and automation to drive efficiency and manage client, debtor and portfolio risk. Covid-19 has caused global disruption and led many SMEs to re-evaluate their business models, risk appetites and funding needs. It has also prompted lenders to overhaul their approach to lending decisions. Our technology is ideally placed to help and support lenders as they cope with the consequences of the pandemic and future lending needs.”