37% of CFOs pause capital spending as economic uncertainty bites

Over a third of CFOs have already paused parts of their capital spending plans for 2025, as economic uncertainty and policy ambiguity prompt a cautious stance among finance leaders, according to a June poll by Gartner. The survey of 197 finance executives found that 37% had halted some capital outlays, with 3% reporting cuts of more than a quarter of their planned spending. Only a small minority indicated any increase in capital expenditure for the second half of the year, reflecting a defensive posture in response to persistent inflation, high interest rates, and geopolitical volatility.

Cost-cutting is also high on the agenda, with 67% of respondents either planning reductions, currently executing them, or having already completed cost-saving measures in 2025. The most commonly targeted areas include lower-return software, nonessential travel and external contractors.

Despite the pressure on budgets, investment in artificial intelligence remains a key priority. The survey revealed that 33% of finance leaders are cutting in some areas while actively reallocating resources to higher-impact technology investments, with AI at the top of the list.

The appetite for AI spending aligns with a broader shift in strategy: many CFOs are moving from broad experimentation to more focused deployments that promise clearer returns. Internal automation, cybersecurity and upgrades to financial systems are being prioritised, even as other capital projects are delayed.

The recent passage of a US spending and tax bill has given CFOs greater clarity on several accounting-related policies, including depreciation and R&D expensing. While this may open the door for renewed capex planning in the coming months, broader macro risks continue to weigh heavily on decision-making.

“We are seeing that even as CFOs tighten cost controls and pause on large-scale investments, they’re not retreating from AI,” commented Alexander Bant, Chief of Research in the Gartner Finance practice. “Instead, they’re sharpening their focus - shifting from broad experimentation to targeted enterprise use cases that offer measurable impact.”

 

Germany-China trade trial slashes document time to two hours

A proof-of-concept trade transaction between Siemens, Commerzbank, and Fr. Meyer’s Sohn (FMS) has demonstrated the potential for end-to-end digital document exchange between Germany and China, reducing processing time from around two weeks to less than two hours.

The controlled pilot involved the digital transmission of an electronic bill of lading (eBL) and other original trade documents under an export letter of credit. It leveraged Enigio’s trace:original technology and its interoperability with the Chinese TradeGo platform, using international DCSA standards as the common language between systems. While the trial did not involve the movement of physical goods, the digital workflow closely mimicked real-life trade transactions and is being seen as a blueprint for future cross-border digitisation.

For corporate treasurers and CFOs, the implications are significant. Fully digital documentation can offer faster settlement times, lower compliance risk, and greater visibility across the trade lifecycle, particularly when dealing with complex instruments like letters of credit. With processing times compressed to under two hours, the approach also opens the door to more efficient liquidity planning and working capital management.

The simulated transaction saw Siemens acting as exporter, Commerzbank as the advising bank, and a major Chinese bank as the issuing bank. FMS issued the eBL using trace:original, then Siemens packaged and transmitted the full set of documents through a secure digital envelope to Commerzbank and the receiving parties. The use of interoperable platforms meant that original documents could move seamlessly and securely between jurisdictions without the need for paper equivalents.

“This successful proof of concept is just the beginning, and a step forward to eliminate obstacles in the usage of digital shipping documents under letters of credit,” said Gerhard Heubeck, global head of trade finance at Siemens. “It can contribute to make operations across our global supply chain more efficient and paper-less.”

The pilot is one of the first involving a German bank and a Chinese counterpart to test fully digital trade document exchange using interoperable systems. While many digital trade initiatives remain confined to proprietary networks or single corridors, this project demonstrated the feasibility of open, cross-platform integration. It also signals growing momentum behind eBL adoption following the UK’s Electronic Trade Documents Act and similar regulatory moves globally. Siemens and Commerzbank are now exploring how to expand these capabilities across their wider trade ecosystems.

 

SS&C to acquire Calastone in £766m deal

SS&C Technologies has agreed to acquire Calastone, the global funds transaction network, in a deal valued at approximately £766m (US$1.03bn). Subject to regulatory approval, the acquisition is expected to complete in the fourth quarter of 2025.

Calastone will become part of SS&C’s Global Investor & Distribution Solutions division, strengthening the group’s position in fund administration, transfer agency services and financial technology. The integration aims to create a unified, real-time operating platform across the asset and wealth management value chain.

Founded in 2007, Calastone connects more than 4,500 organisations across 57 markets and operates the world’s largest funds transaction network. Its infrastructure supports automation in fund trading, settlement and distribution, areas often hampered by operational inefficiencies and manual processing.

Calastone’s acquisition follows several years of international growth under The Carlyle Group, which took a majority stake in 2020. That partnership helped Calastone diversify its offering to support exchange-traded funds (ETFs) and digital investments.

“Calastone has built an impressive network and platform, and together we will create a more connected, automated and intelligent global fund ecosystem,” commented Bill Stone, Chairman and CEO of SS&C Technologies. “This combination reinforces our commitment to delivering innovative, scalable solutions to reduce complexity and enhance outcomes for the asset and wealth management industry.”

 

EU sets AI code of practice in motion as CFOs eye future compliance

The European Commission has published a voluntary Code of Practice for general-purpose AI, offering model providers a structured path to comply with the EU’s forthcoming AI Act. Although the new code is primarily aimed at developers of foundational models, finance professionals are being advised to pay close attention, with future phases of the regulation set to impose obligations on users of high-risk AI systems, including those in treasury and finance.

Developed by a group of 13 independent experts with input from over 1,000 stakeholders, the Code is intended as a preparatory tool for the AI Act’s implementation. The Act enters into application on 2 August 2025, with enforcement for general-purpose AI models beginning from August 2026 for new systems and August 2027 for existing ones.

The Code focuses on three core areas: transparency, copyright, and safety. It introduces a Model Documentation Form to help providers clearly articulate model capabilities, training data, and limitations. For copyright compliance, the Code suggests practical policies for ensuring adherence to EU intellectual property law. Meanwhile, the safety and security section outlines risk mitigation strategies for advanced models that could pose systemic threats, such as enabling misuse or creating loss-of-control scenarios.

While the document is strictly voluntary, signatories who align with the Code may benefit from reduced administrative burdens and greater legal certainty as the AI Act is rolled out. The Commission is also preparing further guidance to clarify the scope of general-purpose AI rules before they enter into force.

Though the Code primarily addresses developers, finance leaders are being urged not to overlook the downstream impact. “While CFOs and finance functions are not the primary audience of the recent Code of Practice framework, they will still face distinct compliance obligations under the AI Act when deploying high-risk AI systems in their operations,” said Thomas Gavaghan, global head of product solution and strategy at Kyriba.

These obligations, he noted, include “risk assessment, human oversight, and data governance, which the Act mandates for users of high-risk AI systems.” Treasury teams using AI for forecasting, credit risk assessment, or payment fraud detection may fall within this scope, depending on the final regulatory guidance.

Gavaghan described the Code as “an important foundation” but emphasised that CFOs will need to focus on the user-specific requirements of the broader AI Act as it evolves. By preparing early, he added, finance leaders can “harness AI as a strategic, trustworthy tool for financial management.”

With the regulatory framework taking shape and compliance deadlines approaching, corporate finance teams may soon need to establish governance processes that balance innovation with accountability, particularly where AI is used to inform material decisions or manage sensitive financial data.

 

Cloud adoption surges as financial firms prioritise AI and resilience

Financial services firms are accelerating their shift to the cloud, with 87% increasing investment over the past two years, according to a global survey by the London Stock Exchange Group (LSEG). The trend reflects a shift in priorities: rather than cost savings alone, firms are now targeting scalability, operational resilience, and AI enablement. The study of 453 senior executives found that 82% of organisations now operate with hybrid or multi-cloud strategies. Regulatory pressures, such as the EU’s Digital Operational Resilience Act (DORA) and GDPR, are prompting 84% to refine their approaches. Meanwhile, operational resilience is a top concern, with 92% of respondents calling it critical or very important when selecting cloud providers.

Security risks remain prominent. Nearly half of firms cite cyberattack sophistication as their primary concern, followed closely by data privacy and breach risks. Yet the value of cloud adoption is clear: 54% of firms report tangible benefits, particularly in risk management, customer engagement and data access. Notably, 83% of firms using cloud for risk management have already completed migration.

Return on investment is increasingly measured in strategic terms. Over half of respondents assess success by scalability (51%), while 47% cite revenue growth and improved security. Only 34% prioritise immediate cost reduction, though 61% still report lower IT infrastructure costs, especially in EMEA and APAC.

AI is also fuelling demand. Some 91% of firms are already using or planning to use cloud to support AI within the next year, with generative AI (60%), fraud detection (50%) and risk management (50%) among the top use cases. Investment firms lead in maturity, with 84% of respondents saying their organisations are advanced in AI adoption.

 

Inflation rises in both US and UK to keep rate cut hopes in check

Inflation ticked higher on both sides of the Atlantic in June, clouding the outlook for interest rate cuts despite signs of underlying progress. In the US, annual headline CPI rose to 2.7% in June, up from 2.4% in May and slightly ahead of the 2.6% consensus. Core inflation, which excludes food and energy, edged up to 2.9% from 2.8%, though it came in just below expectations.

“On the surface of things, this should be taken as a reasonably encouraging inflation report,” said Nathaniel Casey, investment strategist at Evelyn Partners. While headline inflation crept higher, core inflation remained below 3%, and shelter costs continued their gradual decline. However, Casey warned that “a slight tick up in core goods” may suggest early signs of inflationary pressure from tariffs.

Markets are now focused on President Trump’s threatened 30% tariffs on imports from the EU and Mexico, due for a decision by 1 August. “The continued uncertainty around future tariff rates could still make the Federal Reserve and Powell hesitant to want to cut rates,” Casey added, despite Trump’s recent claim that “we have no inflation.”

Meanwhile, UK inflation also surprised to the upside. Annual CPI rose to 3.6% in June, from 3.4% in May, keeping it well above the Bank of England’s 2% target. The data comes just weeks ahead of the central bank’s next base rate decision on 7 August.

“This morning’s inflation data feels like it has added significance,” said Paresh Raja, CEO of Market Financial Solutions. “The Bank has cut rates while inflation was above target in the past. This moment should be no different.”

Paul Noble, CEO of Chetwood Bank, was blunter: "While there is no clear path to fix our predicament, the prospect of further pinching and hiking from the chancellor is making people up and down the country wince. The cost of living continues to spiral, and nothing that is being done seems to make a difference.”

 

U.S. Bank completes fully digital trade finance transaction

U.S. Bank has completed its first trade finance collection using a fully digital process, becoming the first American bank to carry out such a transaction via WaveBL’s blockchain-based platform. The deal marks a shift toward faster, more secure and transparent trade documentation in the U.S. banking sector. In the transaction, U.S. Bank acted as the presenting bank for a large U.S.-based exporter. Mediterranean Shipping Company (MSC) issued the electronic bill of lading and facilitated the shipment. All documents were transmitted electronically, eliminating the need for couriers and reducing processing time from several days to just minutes.

Previously, transactions of this kind relied on physical document transfers, often vulnerable to delays caused by weather, strikes, or geopolitical disruptions. By digitising the process, U.S. Bank aims to help clients reduce costs and increase reliability across their trade and working capital activities.

“Our clients are looking for smarter, more efficient ways to manage their import and export activities,” said Christine Bravo, senior vice president at U.S. Bank. “This fully digital process is a step toward delivering the speed, transparency and reliability businesses need in today’s trade environment.”

The bank’s move reflects a broader industry push to modernise trade finance through electronic documentation. The Digital Container Shipping Association (DCSA), whose members include most of the world’s largest container lines, has committed to issuing 100% electronic bills of lading by 2030.

 

HSBC debuts non-recourse receivables finance offering

HSBC has launched a non-recourse receivables finance solution aimed at helping corporates unlock liquidity, reduce counterparty risk, and improve working capital metrics. Known as Receivables Advantage, the offering enables businesses to sell receivables to HSBC and receive advance payment of up to 100% of the invoice value, subject to conditions.

The structure transfers buyer credit risk to HSBC, protecting sellers from losses due to non-payment or insolvency, provided the buyer is not already in default. The facility is designed to be scalable across markets and sectors, with flexibility in pricing structures and repayment terms. Payment for eligible invoices can typically be credited within 24 hours once the agreement is in place.

To initiate the solution, clients undergo a due diligence process, after which they sign a receivables purchase agreement transferring ownership of qualifying receivables to the bank. Sellers remain responsible for managing customer relationships, invoicing, and keeping HSBC informed of any changes affecting the receivables.

HSBC notes that the facility is structured in a way that may support derecognition of receivables from the balance sheet, which could improve financial ratios such as days sales outstanding (DSO), free cash flow and gearing. However, this outcome depends on transaction-specific factors and remains subject to auditor judgement. HSBC does not provide accounting or legal advice, and clients are advised to seek independent professional guidance.

For corporate treasurers, the solution may offer a strategic tool to strengthen liquidity while maintaining competitive credit terms for customers. As economic uncertainty persists, demand for non-recourse receivables finance is expected to grow among firms seeking to enhance financial resilience without adding leverage.

 

AI tool helps airline cut FX hedging costs in Citi–Ant pilot

Citi and Ant International are piloting an AI-enabled forecasting solution that is designed to help airline clients improve foreign exchange (FX) risk management and reduce hedging costs. The solution combines Citi’s Fixed FX Rates offering with Ant International’s Falcon Time-Series Transformer (TST) model, an AI tool developed to enhance forecasting accuracy using large historical datasets.

The initial pilot has been completed with a leading Asian airline, where early transactions reportedly led to a reduction in FX hedging costs. While specific figures were not disclosed, the firms noted that improvements in forecasting accuracy can help corporates hedge more selectively, potentially lowering overall FX costs.

Ant International’s TST model, built with close to 2 billion parameters, has been trained to identify patterns in time series data to support more accurate forecasting of sales and currency exposure. The model has achieved over 90% accuracy in internal use cases, and is intended to help businesses improve their budgeting, liquidity planning, and risk mitigation strategies.

The pilot focuses on the aviation sector, where FX volatility and complex multi-currency operations can weigh heavily on financial performance. By pairing the AI-driven forecasting tool with Citi’s Fixed FX Rates solution, which allows businesses to secure FX rates in over 70 currencies for a defined period, the initiative aims to support improved predictability in pricing and margin management.

Citi and Ant International say the solution could also benefit sectors beyond aviation, including e-commerce and travel, where transaction volumes are high and FX exposure material. The firms plan to continue developing the tool and expanding its application to other industries.

 

Bloomberg to add EBS Market data to FX benchmark

Bloomberg Index Services Limited (BISL) has reached an agreement with CME Group to incorporate EBS Market’s spot foreign exchange transactions into its Bloomberg FX Fixings (BFIX) benchmark. The move is intended to enhance the benchmark’s accuracy and transparency by expanding the range of market data sources.

EBS Market, a primary venue for FX trading and part of CME Group, provides firm liquidity through a central limit order book and no last-look pricing. Its inclusion is designed to offer market participants a broader pool of transaction data to support price formation, particularly for large orders from the buy side.

The integration of EBS Market data into BFIX aims to improve alignment between benchmark rates and actual market activity, helping reduce tracking error and execution risk for users. Bloomberg noted that the change supports BFIX’s goal of delivering “reliable, representative and transparent” fixings for global currency markets.

A formal market consultation will be launched later this year to collect industry feedback on the proposed methodology update. Subject to the outcome of the consultation, implementation is expected in early 2026.

 

Tata Steel completes first paperless import with full bank integration

Tata Steel has completed its first fully paperless import shipment using an electronic bill of lading (eB/L), marking a significant step toward digitising cross-border trade and enhancing supply chain sustainability. The coal shipment, which travelled from Queensland, Australia to Dhamra Port in Odisha, India, was carried out under a letter of credit and supported by full digital documentation and end-to-end bank integration.

The transaction involved coordination between Tata Steel India, ICICI Bank, TS Global Procurement, Standard Chartered Bank (Singapore), and ICE Digital Trade, which provided the eB/L platform. By digitising the bill of lading process, the company eliminated the need for physical courier services, reducing delays, documentation risk, and environmental impact.

“This is a big step forward in making our supply chain smarter and more eco-friendly,” said Peeyush Gupta, Vice President – TQM, GSP & Supply Chain, Tata Steel. “By embracing eB/L, we are cutting through traditional bottlenecks and setting a new standard for how goods move globally.”

The eB/L transaction builds on Tata Steel’s previous efforts to digitise its trade finance processes. The company has already piloted blockchain-based paperless exports to partners in the UAE and Bangladesh, and is expanding these capabilities across regions and shipment modes. Its broader digital agenda includes platforms like Digi Bill for paperless invoice submission and Margdarshak for vehicle tracking and rerouting.

For corporate treasurers, such transactions highlight the growing role of eB/Ls in enhancing documentation speed, compliance, and operational control while supporting broader environmental goals in global trade.

 

Corpay launches unified finance platform in UK

Corpay has launched Corpay Complete in the UK, a platform designed to help businesses address the operational challenges caused by disconnected finance systems and growing cost pressures. The tool brings together accounts payable, expense management, and domestic and international payments into a single environment, aiming to improve control and reduce inefficiencies.

The move comes as UK finance leaders report rising strain on budgets and capacity. Recent data shows that 63% of UK CFOs cite cost control as their top priority, while only 36% say they have real-time cash flow visibility. Manual processes remain widespread, with more than half of global finance professionals spending over 10 hours per week on invoice processing. Just 5% of finance teams are fully automated, according to the Institute of Financial Operations & Leadership’s 2024 survey.

Corpay Complete is intended to support finance teams in automating workflows, improving oversight and reducing administrative workload. It integrates with existing ERP and accounting systems and is designed to provide same-day invoice processing, custom approval flows, and improved visibility into corporate spend.

The platform also includes options for managing travel and purchasing expenses via corporate cards and secure virtual cards. For businesses with international payment needs, the solution includes FX capabilities designed to support transparent, cross-border transactions across over 200 countries and 145 currencies.

 

Same Day ACH drives network growth in Q2

The ACH Network in the US processed 8.7 billion payments worth $23.3 trillion in the second quarter of 2025, marking a 5% increase in volume and a 7.9% rise in value year-on-year. Same Day ACH transactions continued to lead this growth, with volume rising 15% to 336.4 million payments and value increasing 22% to $980.3 billion.

For the first half of 2025, Same Day ACH processed 662.4 million payments totalling nearly $1.9 trillion, reflecting growing demand for faster clearing and settlement across consumer, business and government payment flows.

Business-to-business ACH activity also saw strong gains, rising 10.6% to over 2 billion payments in Q2. Meanwhile, healthcare claims payments grew 9.9% year-on-year to reach 138.2 million.

The figures point to continued adoption of faster payment capabilities in the US as corporates and institutions seek more efficient and predictable cash flow management options