The pandemic, sustainability and now international conflict, are bringing profound changes, the impact of which no industry or business will be spared. Although the pandemic has offered the supply chain finance sector huge growth opportunities - global volumes up by nearly 50% from the pre-pandemic period - this growth has come with the strings attached as the industry needs to change to maintain the momentum of the ‘new normal’. These changes are already happening and will predetermine the development of SCF in the years to come:
- Corporates are now fast-tracking their decision-making when it comes to approving supply chain finance programmes. Many of those, who don’t have SCF programmes are now seeing it as a big priority. Therefore, many financial institutions are rushing into implementing SCF programmes, which they didn’t expect to happen so quickly.
- With technology shifting rapidly, the sector is seeing new initiatives to better connectivity between buyers, suppliers and funding providers, including aligning banks and fintechs, which was one of the major developments of the last year.
- In the wake of recent climate change summits, complying with ESG has become a new imperative. Financial institutions and corporates are shifting their focus to increasing sustainable investment, with new costs and risks involved.
- As a result of the 2008/2009 banking crisis, the receivables finance sector new regulation and compliance. Regulators increasingly require bottom-up risk rating of receivables and the impact of Basel III/IV increases pressure on banks and their risk-rated capital frameworks. Technology is becoming critical in dealing with the challenges of these regulatory demands and making the right investment.
The 8th annual Supply Chain Finance Summit, which will take place in London, 26 April will address the scope and breadth of what is happening in SCF today and across various domains.
“The SCF Summit attempts to offer some coherent guidelines and discussion on to what’s lying ahead for the industry and shows the way it can take advantage of the new, post-pandemic economic order in becoming more resilient, fairer and progressive,” says Michael Bickers, Managing Director of BCR Publishing.
Discover more and register to attend