Receivable Finance: Economic, Regulatory, and Technological Impact in 2022

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FCI

On July 07, SME Banking Club, together with FCI and ING Commercial Finance Polska, organized a webinar on the topic of receivable finance: economic, regulatory, and technological impact in 2022.

At the very beginning, Betül Kurtulus (FCI) presented global statistics on receivable finance to trace the general trends both over certain periods and across the regions.

Based on FCI 2021 Global Factoring Statistics global factoring volumes have increased by 13,5% compared to 2020. Europe maintains the driving force accounting for 68% of global factoring turnover. As for the CEE region – factoring volumes increased by 34,8 % in 2021 y/y.

In the next part of the webinar, Magdalena Ciechomska-Barczak (ING Commercial Finance Polska) presented ING’s results and forecast for the Polish market.

She noted that the increase in the factoring turnover in Poland (+33% in Q1 2022 y/y) is strongly correlated with the region’s GDP, inflation, and increase in the number of customers. In turn, the increase in the number of factoring customers in Poland was caused by the following reasons:

1. Digitalization.

2. GDP growth.

3. Inflation.

4. Overprovisioning.

5. The cash flow demand.

Magdalena Ciechomska-Barczak gave a positive forecast, expecting this year to be a very good one for the factoring industry.

However, there are some threats to further growth in the second half of 2022:

1. The Slowdown in GDP growth.

2. The Risk of recession and global crisis.

3. The Risk of worsening customers’ financial situation.

4. The Risk of fraud.

5. The Higher costs of funding – a further increase of basic rates by the National Bank of Poland.

In the last part of the webinar, Olena Gryniuk (SME Banking Club) presented the results of the SME Banking Club’s Annual Digital Factoring Study, which showed the state of the digitalization of the factoring industry in the CEE region at the beginning of 2022: 17 factoring companies implemented an online factoring application, and 12 companies offer fully digital factoring process.

To learn more details, watch the full webinar below: