2025’s challenges and transformations in corporate finance
by Ben Poole
Bank integration provider AccessPay has announced the release of its ‘Finance Trends 2025’ report. This marks the third year that firm has published the report, which is based on an online survey of finance professionals in the UK. It explores finance and treasury teams’ digital transformation status, ISO 20022 preparations, and approach to fraud management. It also presents a deep dive into the financial services, legal and retail sectors.
Anish Kapoor, CEO of AccessPay, explains, “In contrast to our personal lives, where highly automated digital banking and payments are now the norm, banking processes for businesses and institutions are full of manual processes. In our annual survey of finance and treasury professionals, we wanted to understand the state of finance transformation in corporates and financial institutions and determine how and where they are focusing their digitisation efforts as we start 2025.”
Business challenges: a fine balance
The economic turbulence of the past few years has left a lasting impact. While inflationary pressures eased in 2024, finance teams continue to operate in a challenging environment characterised by stagnant growth, weak demand, and rising costs. Unsurprisingly, 42% of respondents cited regulatory risk and compliance as top concerns, while optimising business costs and driving growth emerged as primary objectives.
Staff costs remain a sticking point. Following the UK’s October 2024 budget, which raised employer National Insurance Contributions from April 2025, organisations are bracing for higher expenses. This coincides with the Employment Rights Bill, set to introduce additional protections for employees in 2026, further increasing the cost burden on firms.
Meanwhile, inflation remains volatile. October 2024’s higher-than-expected inflation figures, driven by surging energy costs and trade frictions, have kept input costs under scrutiny. Finance teams are increasingly tasked with balancing efficiency with strategic investments in technology, people, and facilities to secure long-term growth.
Finance transformation: digital strides amid manual processes
Despite the ubiquity of digital solutions in personal finance, the corporate world lags behind. 69% of surveyed organisations reported being in the midst of finance transformation, characterised by a hybrid of manual and digital processes. Only 13% have fully digitised their operations, while another 13% plan to embark on transformation initiatives in the coming year.
Operational efficiency drives finance transformation for 56% of respondents, followed by improved financial reporting metrics (44%). Manual processes continue to dominate, particularly in areas like cash management. A striking 71% of organisations still retrieve bank statements manually, compared to only 18% using multi-banking portals with real-time reporting. This inefficiency not only hampers productivity but also heightens the risk of fraud.
Emerging technologies like cloud computing, payment automation, and Account Name Verification (ANV) tools are gaining traction. Cloud adoption is particularly impactful, enhancing accessibility, enabling real-time data visibility, and reducing overhead costs. Yet, while cloud technology has seen substantial uptake, generative AI (GenAI) remains in its infancy, with just 7% of respondents implementing it to date. That said, 28% plan to incorporate AI-driven solutions, highlighting a growing appetite for innovation.
ISO 20022’s call to action
The migration to ISO 20022, the global standard for financial messaging, represents a significant milestone for the finance function. Offering richer, more structured data, it promises to revolutionise payment processes and financial reporting. However, the survey reveals a worrying lack of preparedness: 26% of respondents were unaware of ISO 20022, and only 21% had reviewed their data collection processes.
The urgency is clear. From May 2025, UK financial institutions must include Purpose of Payment (PoP) codes and Legal Entity Identifiers (LEIs) in all CHAPS transactions. By November 2026, payments with unstructured addresses will be rejected, demanding significant overhauls in data management practices. Despite these deadlines, only 19% of organisations have begun collecting the necessary data.
Finance teams that act now can gain a competitive edge. Bank integration technologies, designed to be ISO 20022-compliant, offer an efficient path forward by automating compliance and minimising disruption. However, a coordinated effort is required to bridge the communication gap between corporates and financial institutions to ensure a seamless transition.
Fraud prevention’s persistent battle
Fraud remains a pressing concern for finance teams, with invoice fraud, impersonation scams, and unauthorised online payments topping the list of threats. The first half of 2024 saw a record £47.2 million in non-personal authorised push payment (APP) fraud, according to UK Finance. Alarmingly, 78% of invoice fraud cases targeted business accounts, and APP fraud through intrabank transactions surged by 106%.
The report highlights the importance of a multi-layered approach to fraud prevention. Staff training ranked as the most widely adopted measure, implemented by 58% of respondents. Confirmation of Payee (CoP) and ANV technologies follow closely, offering robust defences against payment fraud by verifying account details during transactions. However, the reliance on manual checks in some sectors limits their effectiveness.
Payment automation is another key tool in the fraud prevention arsenal. By reducing manual interventions in compiling and authorising payments, automation not only enhances efficiency but also mitigates the risk of internal fraud. Yet, the adoption of such tools remains inconsistent across industries, underscoring the need for broader implementation.
Sector comparisons
In the sector-specific deep dive, AccessPay’s report reveals that the financial services sector stands out as the most digitally advanced in comparison to legal and retail. With 21% of respondents reporting fully digitised finance processes, it far exceeds the cross-sector average of 13%. The majority of firms, 58%, are actively pursuing financial transformation, integrating both manual and digital processes to modernise their operations.
Operational resilience and security are critical priorities in this sector, alongside the usual drivers of efficiency and growth. These concerns align with the stringent regulatory environment financial services firms navigate, particularly as they prepare to comply with the 2025 operational resilience regime. Fraud prevention also ranks highly, with finance teams adopting robust measures to address invoice and impersonation fraud. Staff training is a key pillar of defence, implemented by 63% of respondents, while technological tools like transaction monitoring and payment screening complement these efforts.
In contrast, the legal sector lags in digital adoption, reflecting its reliance on manual processes. None of the respondents in this sector reported fully digitised finance systems, and only half actively pursued transformation. The primary motivations are improving operational efficiency, cited by 70% of respondents, and enhancing financial reporting metrics, mentioned by 60%. Cost reduction also features prominently, reflecting the legal sector’s focus on managing headcount and overheads.
ISO 20022 compliance appears to be more top-of-mind in the legal sector, particularly for conveyancing solicitors affected by upcoming mandatory data requirements. However, while awareness is high, the implementation of supporting technologies is still limited. Automation tools, such as those for bank statement reconciliation, have seen moderate adoption, but more advanced solutions remain underutilised.
Fraud prevention efforts in the legal industry are less developed compared to financial services. Staff training is implemented in only 40% of organisations, and manual controls are even less common, suggesting that this sector has considerable room for improvement.
The retail sector occupies a middle ground between the three sectors in terms of financial transformation. A substantial 77% of respondents report undergoing a mix of manual and digital processes, with cloud technology adoption leading the charge. Retailers view financial transformation as an opportunity to improve reporting metrics, enhance operational resilience, and bolster efficiency. However, fraud prevention does not rank as highly in this sector, with only 8% of respondents citing it as a major driver for change.
Interestingly, the retail industry places greater emphasis on cryptocurrency adoption than other sectors. While far from mainstream, 23% of respondents have implemented cryptocurrency solutions, and 31% see it as a high priority. This focus reflects retailers’ desire to cater to evolving consumer payment preferences, even as fraud risks tied to online transactions remain a concern. Fraudulent online payments and impersonation scams are flagged as significant risks, yet the adoption of robust preventive measures remains uneven, with many organisations lacking structured training or manual controls.
Charting the path forward
Finance teams in 2025 find themselves at a crossroads. The dual imperatives of cost optimisation and growth demand bold steps toward finance transformation. The transition to ISO 20022 offers a timely opportunity to modernise processes, while advanced technologies like cloud computing and AI hold the promise of reshaping finance operations. However, these gains hinge on overcoming entrenched manual practices and addressing critical gaps in fraud prevention and regulatory compliance.
As the Finance Trends 2025 report underscores, the road ahead is as challenging as it is promising. For finance leaders, the mandate is clear: embrace change, invest in technology, and cultivate resilience to navigate an uncertain future.
“Finance and treasury teams play a vital role in helping companies perform at their optimum, but there is still a lot of progress to be made in terms of digital transformation,” added Kapoor. “Many are focused on day-to-day operations and regulatory compliance but struggle to understand the extent to which technological advances can transform the finance function. This is where AccessPay comes in with its consultancy services to advise on finance transformation and its bank-integration technology platform to assist with payment automation, ISO 20022 readiness, and fraud prevention.”
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