Global Factoring Volume reaches all time highTuesday 2 June 2015
Global factoring volume reaches all time high of € 2,348 billion euros in 2014,
up 6.3% from 2013
- Strongest growth of factoring in Europe (+8%) and the Americas (+8%)
- Argentina, Morocco, UAE, Turkey and Singapore among markets with
particular strong growth of the factoring industry
- Asian factoring market grows 3% compared to 2013 while African
factoring volume is down 9%
Amsterdam, June 2, 2015 – The global factoring market has reached a volume of €2,348 billion in 2014, which is the highest figure ever recorded. The world factoring total grew by 6.3% from €2,208 billion last year with Europe and the Americas being the fastest growing markets. These figures were today released by Factors Chain International (FCI), a leading network of global factoring companies, as part of the Global Factoring Statistics 2014. However, the growth recorded in 2014 is below the annual growth rate (CAGR) of 11% for the last 20 years. This is mainly due to slower growth of the factoring volume in Asia, the second biggest factoring market in the world. Domestic factoring accounted for €1,857 billion or 79% in 2014 while the share of international factoring was 21% of the total market, equivalent to €490 billion. Despite the continuous challenges in the global economy international cross-border factoring increased by 22% and remained the driver of future factoring growth.
Europe, the largest factoring market worldwide, was the strongest growing region in 2014 as the factoring volume increased by 8% to €1,463 billion (2013: €1,354 billion). This is the highest growth rate for the European market since 2011. The growth has mainly been driven by the strategic emphasis towards factoring by the commercial banking sector which controls approximately 90% of Europe’s factoring volume. In particular, the UK, France, Germany and Italy remain the largest factoring markets in Europe and have all grown last year. Within the region, the fastest growing markets were: Lithuania (+101% to €5.55 billion), Malta (+66% to €296 million), Turkey (+29% to €41.23 billion), and Switzerland (+24% to €3.83 billion). Factoring in the UK grew 14% to €350.62 billion last year.
The Americas (+8% to €206.63 billion) also showed strong growth as a region. The US factoring market had a particularly strong increase of 17% from last year to €97.67 billion. Brazil remained the second largest market in the Americas with a volume of €31.78 billion (+1%). The third and fourth largest factoring markets in the region, Mexico (-9% to €25.49 billion) and Chile (-3% to €24.85 billion), both saw a decline in the factoring volume.
The Asian region accounted for more than half of the total cross-border factoring volume in 2014. But in strong contrast to the global trend the factoring market in the region only grew by 3%. The second largest factoring market globally now has a volume of €614.99 billion with China remaining the strongest market in the region. With a volume of €406.10 billion, the country’s share of the Asian factoring market is 66%. China managed to counter the trend in Asia as the local market grew by 7%. In stark contrast, Japan (-34% to €51.07 billion) and Taiwan (-22% to €56.68 billion) experienced a clear reduction in volume in 2014.
In Africa, factoring declined by 9% compared to 2013 and the market now has a total volume of €21.09 billion. The decline was led by South Africa, which experienced a 19% decline in volume, from €19.4 billion in 2013 to €15.9 billion last year. In 2014, South Africa accounted for 75% of the total factoring volume in Africa, a decline from 90% only five years ago. This clearly indicates that factoring is on the rise in other parts of the continent as well. In fact, Morocco was the strongest performer in the region as the local factoring market there grew by 52% to €4.2 billion.
“Overall, the factoring industry experienced another solid year of growth despite a volatile economic environment. Even as international trade softened due to the uneven economic recovery and as we witnessed the plummeting of commodity prices, along with quite a volatile foreign exchange environment, the factoring industry grew by 6.3 per cent in 2014”, Peter Mulroy, Secretary General of Factors Chain International (FCI), commented on the developments. He further said: “Europe continued to be the dominant region in the world. Asia has experienced a very strong growth since the start of the financial crisis; however, 2014 was a much more challenging year, especially in the Greater China region. In general, the factoring industry’s volume continued to excel around the world.”
The FCI Global Factoring Statistics present on an annual basis the key factoring data around the world. They cover domestic and cross-border factoring volume collected from over 271 members in over 70 countries.
The full statistics are also available at the FCI website: www.fci.nl/about-fci/statistics
Founded in 1968, Factors Chain International (FCI) is a global network of leading companies, whose common aim is to facilitate international trade through factoring and related financial services. Headquartered in Amsterdam, Netherlands, FCI has over 275 members in 73 countries, and is by far the world’s largest factoring network, with member transactions representing nearly 90% of the world’s international correspondent factoring volume.