CFOs tighten overhead while keeping growth targets in sight

CFOs are entering 2026 with a sharper focus on operational efficiency, aiming to curb overhead growth without slowing revenue momentum, according to Gartner’s latest 2026 Budget Assumptions Survey.

The poll of 142 chief financial officers and senior finance leaders, conducted between August and September 2025, found that 64% plan for selling, general and administrative (SG&A) budgets to rise more slowly than revenues. More than half (54%) expect SG&A growth to trail revenue by one to five percentage points, signalling a clear intent to contain operating costs while sustaining top-line expansion.

“CFOs are signalling that operational efficiency, not just revenue growth, will define success in the coming year,” said Randeep Rathindran, Distinguished Vice President, Research, at Gartner. “A focus on SG&A discipline reflects a concerted effort to right-size overheads even as organisations pursue top-line expansion.”

Gartner’s data show that finance leaders are prioritising selective, rather than sweeping, reductions in operating expenses. Around 37% of CFOs expect modest savings of one to two percent, while 42% are targeting deeper cuts of three to five percent of total operating expenditure (OPEX).

The approach reflects a preference for calibrated cost containment that preserves essential capabilities. Many CFOs are seeking productivity gains through automation, data-driven decision-making, and process redesign rather than broad headcount cuts.

The functions most likely to face SG&A reductions in 2026 are human resources (57%), corporate IT (53%), legal and compliance (40%), corporate finance (36%), and marketing (27%). Gartner notes that this pattern highlights a growing willingness to reconfigure traditional support roles amid conservative hiring plans and accelerating digital transformation.

AI-driven automation is expected to play a significant role in that shift. Forty-two percent of CFOs foresee at least some reduction in headcount within support functions as AI becomes more effective in handling rule-based and judgment-based work. About one-third anticipate reductions of between one and five percent, suggesting a measured adoption curve rather than sweeping workforce replacement.

Beyond overhead control, CFOs are leaning on product-mix optimisation and headcount discipline to safeguard margins against cost pressures. Over half (51%) expect contribution margins for core products or services to increase next year, and 44% anticipate a one- to five-point shift toward higher-margin offerings in their product portfolios.

Rather than relying solely on expense reductions, many firms are looking to reshape their revenue base toward more profitable segments, an approach that aligns with steady, if cautious, demand forecasts for 2026.

Despite conservative hiring plans, CFOs expect personnel expenses to climb. Nearly half of respondents project direct labour rate increases of more than four percent, reflecting continued tightness in skilled labour markets and, in some regions, immigration constraints. Around three-quarters assume average annual merit pay rises of three percent.

“While financial leaders are conservative on overall headcount increases in 2026, they are also factoring in the likelihood of higher costs for personnel and third-party spending, adding to the pressure of achieving operational efficiency,” added Rathindran.

The findings point to a year of careful balancing acts: maintaining growth ambitions while enforcing cost discipline and absorbing higher wage bills. For CFOs, 2026 looks set to test whether technology-driven efficiency can truly offset inflationary pressures and sustain profit margins.

 

Asia corporates brace for tariff turbulence 

A study by Crisil Coalition Greenwich finds that many large Asia-based corporates are staying calm in the face of escalating US tariffs, opting to wait rather than react prematurely. While one in three expects a negative business impact within the next year, most say they are already well prepared.

More than half of companies surveyed across 12 Asian markets believe recent tariffs will have little or no effect on their operations, reflecting years of diversification and supply chain adjustments. Since the first wave of tariffs in 2018, many corporates, particularly in China, have redirected exports to alternative markets and reduced exposure to US banks.

South Korea stands out as a sharp exception. Sixty percent of South Korean firms expect new tariffs to hurt their businesses, after Washington imposed a 25% duty on most Korean goods in April 2025, later reduced to 15% following negotiations. Unlike their Chinese peers, many South Korean exporters had not diversified supply chains or markets, leaving them more vulnerable to trade shocks.

India is also likely to feel the strain after the US doubled tariffs on Indian goods to 50% in August. Although the full impact remains unclear, Crisil Coalition Greenwich expects a high proportion of Indian corporates to be affected.

The research shows that 40% of large corporates across Asia have already implemented or are planning strategies to mitigate tariff exposure. Many are focusing on downstream diversification by identifying new distributors and markets, often routing exports through a “hub country” before reaching the US. Upstream diversification remains a secondary focus, with India, Vietnam, Indonesia, Mexico, and Poland emerging as key alternatives for sourcing and production.

This strategic shift is helping companies avoid sharp price increases. As of the second quarter of 2025, only 5% of corporates had raised prices in response to tariffs. Strong balance sheets have given firms the flexibility to absorb higher costs temporarily, preserving customer relationships amid policy uncertainty.

While tariffs are creating challenges, some sectors are seeing benefits. Increased supply in alternative markets has driven down input costs for certain firms. One Indian utility told researchers that cheaper Chinese raw materials were helping offset other pressures.

At the same time, new trade dynamics are accelerating interest in de-dollarisation. Several Chinese corporates told Crisil Coalition Greenwich they are seeking to settle trade in alternative currencies, citing concerns over US financial dominance. The trend, once viewed as long term, is now gaining momentum as companies seek to reduce reliance on the dollar.

Since 2017, the share of Asia-headquartered corporates using Asian regional banks for trade finance has risen from 68% to 73%, with 37% now naming an Asian bank as their lead provider. Over the same period, usage of US banks has fallen from 31% to 23%, driven largely by Chinese companies scaling back ties in response to tariff risks.

Against this backdrop, 27% of large Asia-based corporates say they want their banks to provide more tariff-related information and cross-border trade insights. Many also call for flexible credit support and better communication on market and currency developments.

As one company representative put it, banks should “keep their credit commitment and make sure we can get funds when we need them” while sharing timely market intelligence.

The study also finds that as corporates focus on navigating tariff disruption, the region’s shift towards trade finance digitalisation has slowed. The proportion relying on non-digital channels rose to 62% in 2025, as companies prioritise personal engagement and tailored advice from their banks.

Crisil Coalition Greenwich conducted 789 interviews with corporates generating at least US$500mn in annual revenue across 12 Asian markets between April and July 2025.

 

Ripple enters corporate treasury arena with US$1bn GTreasury deal 

Ripple has agreed to acquire treasury management platform GTreasury for US$1bn, marking its entry into the corporate treasury market and strengthening its position in enterprise payments and digital assets. The deal gives Ripple access to GTreasury’s client base of large multinational corporates and its established expertise in cash, risk, and liquidity management.

Ripple says the acquisition will allow CFOs and treasurers to manage both traditional and digital assets, including stablecoins and tokenised deposits, within a single platform. The combined offering aims to help corporates unlock idle capital, move funds instantly, and improve real-time liquidity control.

Brad Garlinghouse, Ripple’s chief executive, said the integration of Ripple’s blockchain infrastructure with GTreasury’s platform would “bring the best of both worlds, so treasury and finance teams can finally put their trapped capital to work, process payments instantly, and open up new growth opportunities.”

Renaat Ver Eecke, chief executive of GTreasury, described the deal as “a watershed moment for treasury management,” adding that joining Ripple would accelerate the shift from managing capital to “activating it.”

GTreasury’s software is widely used for cash forecasting, FX, and risk management, with compliance frameworks that meet global regulatory standards. Its long-standing reputation in corporate treasury technology complements Ripple’s growing role in cross-border payments and digital asset solutions.

Once complete, Ripple says the integration with GTreasury will enable corporate clients to earn yield on short-term assets through repo markets, make real-time cross-border payments, and better manage liquidity across currencies and asset classes. The transaction is expected to close in the coming months, subject to regulatory approval.

 

IRSG warns of growing regulatory fragmentation 

The International Regulatory Strategy Group (IRSG) has launched a Global Regulatory Coherence Dashboard to assess how aligned financial regulations are across major policy areas and to highlight where divergence is increasing. The findings point to rising global regulatory fragmentation, particularly in emerging areas such as digital assets and artificial intelligence, creating new challenges for UK financial and professional services.

The dashboard maps areas where the UK can demonstrate leadership in promoting international alignment, as well as those where fragmented regulation may hinder efficiency and market access. According to the IRSG, global coherence is essential to maintaining financial stability, supporting innovation, and ensuring a connected economy.

The analysis identifies several areas for collaboration between the UK, international standard setters, and other jurisdictions. These include sustainable finance, where consistent adoption of the International Sustainability Standards Board’s disclosure framework is seen as critical, and operational resilience, where greater interoperability of regulatory regimes would strengthen financial system stability.

In other areas, the report calls for more immediate action. For digital assets, it recommends that the UK leverage its expertise in distributed ledger technology and tokenisation to shape international standards while finalising its domestic regime for stablecoins and cryptoassets. On AI, it urges the UK to maintain a technology-neutral approach and support the development of shared voluntary standards to promote cross-border interoperability.

The IRSG also highlights the need for new strategies to manage data flows, suggesting that the UK continue using bilateral and adequacy agreements while pursuing broader multilateral recognition frameworks.

Overall, the research concludes that coherence tends to emerge where global frameworks already exist, whereas newer, politically sensitive policy areas remain more fragmented, posing both risks and opportunities for the UK’s financial and regulatory leadership.

 

ACH B2B payments climb as Nacha advances cross-border rules 

The steady migration from cheques to digital payments continued in the third quarter of 2025, with Nacha reporting a 10% rise in business-to-business transactions on the ACH Network. Nearly 2.1 billion B2B payments worth US$16tn were processed in the quarter, representing 69% of total ACH value. Payments made via Same Day ACH rose 15% year-on-year to US$585bn, underscoring the continued shift towards faster settlement options.

Overall ACH Network volume reached 8.8 billion payments valued at US$23.2tn, up 5.2% and 8.2% respectively from the same period in 2024. September saw a record 120 million Same Day ACH payments, more than 20% higher than a year earlier.

The latest figures reinforce findings from the Association for Financial Professionals’ 2024 Digital Payments Survey, which showed cheque usage in B2B payments has dropped from 81% in 2004 to just 26%. Nacha attributes the transition to the speed and security of ACH payments, which are increasingly seen as a more efficient option for businesses.

At the same time, Nacha members have approved a package of rule changes to improve the efficiency and transparency of International ACH Transactions (IATs). The updates are designed to simplify compliance and make it easier for financial institutions and corporates to send and receive cross-border ACH payments.

One rule revises the definition of an IAT to help originators and originating banks determine when a transaction qualifies as cross-border. Others focus on enhancing data quality, including new fields to capture a person’s date of birth for sanctions screening and a distinct return code for sanctions-related issues. Nacha has also recognised that the offshore counterpart in an IAT may be a non-traditional financial institution, such as a payment service provider, and will now require US institutions to register IAT-specific contacts in the ACH Contact Registry.

Nacha reported around 121 million IATs in 2024, a figure expected to rise as regulatory updates and digital adoption make ACH a more attractive option for international transactions.

 

MAS launches BLOOM to expand digital settlement options 

The Monetary Authority of Singapore (MAS) has launched BLOOM, a new initiative aimed at extending settlement capabilities in tokenised bank liabilities and regulated stablecoins. The framework will allow financial institutions to experiment with digital settlement assets across multiple currencies and jurisdictions, while adopting standardised approaches to risk and compliance.

BLOOM, which stands for Borderless, Liquid, Open, Online and Multi-currency, builds on the foundations of Project Orchid. That earlier programme explored use cases for a potential digital Singapore dollar and developed the underlying infrastructure for digital money. Insights from more than ten trials under Project Orchid have since informed commercial offerings such as programmable rewards by DBS and conditional payment solutions by OCBC.

MAS said BLOOM responds to growing private sector interest in tokenised forms of money as settlement assets for wholesale applications, including corporate treasury management, trade finance and automated, or “agentic”, payments. The initiative will initially support G10 and major Asian currencies, with both domestic and cross-border settlement capabilities.

The project brings together a consortium of financial institutions and technology providers to tackle key operational challenges. One focus area is the distribution and clearing of settlement assets to enable interoperability between networks and smooth transfer and redemption of different asset types. Participants in this stream include Circle, DBS, OCBC, Partior, Stripe and UOB.

A second workstream will test programmable compliance controls that automate checks and lower the cost of cross-border settlement. Ant International and StraitsX will lead this area using the Programmable Compliance Toolkit developed under the Global Layer One initiative.

A third stream will explore agentic payments, where AI-driven systems initiate and execute transactions automatically within defined parameters to optimise timing and reduce manual workload. Coinbase and DBS are among those involved.

MAS described BLOOM as a step forward from Project Orchid, complementing ongoing work on asset tokenisation under Project Guardian and global infrastructure design through the Global Layer One initiative. The authority has invited additional institutions and regulators to join future trials.

 

Mastercard unveils tools to simplify and secure B2B payments 

Mastercard has announced two new initiatives aimed at improving the integration and control of business-to-business (B2B) payments: Commercial Connect API and a new clearing controls capability. The developments form part of Mastercard’s wider strategy to make corporate payments faster, more flexible, and easier to embed within business platforms.

The new Commercial Connect API is designed to simplify how B2B platforms connect to Mastercard’s issuer network and virtual card systems. Instead of integrating multiple separate interfaces, businesses will be able to use a single scalable connection to access Mastercard’s commercial payment services. The company says this will help shorten implementation times for embedded finance solutions and improve access to commercial credit through existing corporate tools.

Pay4You will be the first to use the new API, providing clients across Europe with enhanced management of tail spend. Mastercard plans to expand the API’s functionality in 2026 to include additional payment capabilities across enterprise systems.

The second feature, clearing controls, allows financial institutions to apply transaction restrictions after authorisation but before settlement. This extension of Mastercard’s virtual card controls enables issuers to block non-compliant transactions based on factors such as merchant category or value limits, helping to reduce chargebacks and strengthen oversight. The capability is expected to be particularly relevant for the travel sector, which faces some of the highest chargeback rates globally.

The company also continues to expand its embedded virtual card number programme, integrating with platforms such as SAP Concur, SAP Taulia, Grasp Technologies, and others to improve automation and data reconciliation.

Mastercard’s latest initiatives come as corporate demand for modernised payment tools rises. According to a Gartner survey cited by the company, 77% of CFOs plan to increase technology spending in 2025, with almost half expecting to raise budgets by 10% or more. Mastercard’s updates aim to meet that demand by combining improved connectivity with greater operational control across the B2B payments ecosystem.

 

J.P. Morgan Payments expands Oracle integration with new AI-driven tools 

J.P. Morgan Payments has deepened its collaboration with Oracle, launching new and enhanced integrations within Oracle Fusion Cloud Enterprise Resource Planning (ERP) and Oracle Simphony point of sale (POS) systems. Announced at Oracle AI World 2025, the updates aim to simplify treasury operations and improve payment efficiency through embedded banking and artificial intelligence capabilities.

The features include an integrated account validation service within Oracle Cloud ERP that enables users to verify recipient account details before payments are made, reducing the risk of error and fraud. A second integration allows clients to issue J.P. Morgan Payments virtual cards directly from the ERP platform without additional technical setup, helping streamline supplier payments and expense management.

J.P. Morgan has also gone live with its first client on the Oracle Simphony integration, which connects the bank’s Commerce Suite to Oracle’s POS system for in-store transaction processing.

Beyond these launches, J.P. Morgan’s Integrated Banking for Oracle Cloud ERP now includes real-time balance visibility via APIs and pre-configured support for Single Euro Payments Area (SEPA) transactions, allowing smoother cross-border payments within the EU. These enhancements form part of the bank’s broader effort to provide out-of-the-box connectivity for payments, reporting, and trade finance through Oracle’s ecosystem.

The announcement follows earlier partnerships between J.P. Morgan and Oracle, including treasury, trade, and commerce integrations unveiled in 2024. Clients such as UBQ Materials, Avis Budget Group, and FedEx are already using the services to automate reconciliation, reduce manual processes, and improve working capital management.

The new capabilities sit within the J.P. Morgan Payments Partner Network, which combines the bank’s payment infrastructure with more than 80 third-party integrations. By expanding its Oracle collaboration, the bank aims to bring together its financial expertise with Oracle’s cloud and AI technologies to deliver more connected and data-driven treasury solutions.

 

BNP Paribas AM launches global environmental infrastructure fund 

BNP Paribas Asset Management has launched the BNPP Environmental Infrastructure Income Fund, a new global strategy investing in listed companies involved in power, water, waste, and transport infrastructure. The fund targets sectors expected to benefit from major public investment programmes in Europe and the US aimed at strengthening energy security and upgrading critical infrastructure.

The strategy focuses on defensive environmental infrastructure assets that generate stable, inflation-linked revenues through long-term contracts and regulated returns. By concentrating on utilities and industrials with predictable earnings, the fund seeks to deliver consistent dividend income and lower volatility than broader equity markets.

The fund will hold between 70 and 90 companies drawn from a global universe of around 350 firms. It will prioritise investments across three main areas: power and digital networks, water and waste management, and transportation infrastructure. A quantitative portfolio construction approach will be used to optimise for high dividend yield, strong earnings visibility, and low volatility.

Managed by Edward Lees and Ulrik Fugmann, co-heads of BNPP AM’s Environmental Strategies Group, the fund carries Article 9 classification under the EU’s Sustainable Finance Disclosure Regulation, signalling a strong environmental focus. It avoids exposure to cyclical or fossil fuel-linked assets and instead targets projects supporting decarbonisation and sustainable resource use.

BNPP AM said the new strategy complements its existing range of environmental funds, including the Clean Energy Solutions Fund and regional Environmental Solutions Funds, which together span global, European, and emerging market exposures. The firm ranks second globally in active thematic investing by assets under management.

The launch comes amid growing recognition of infrastructure investment as a key lever for achieving climate goals. According to BNPP AM, maintaining and modernising global infrastructure will require around US$69tn in investment by 2035, creating long-term opportunities for investors seeking stable returns with positive environmental impact.

 

DBS and BSF partner to boost Asia-GCC trade and payments 

DBS and Banque Saudi Fransi (BSF) have signed a memorandum of understanding to expand trade finance and payment capabilities between Asia and Saudi Arabia, supporting growing economic activity across the Asia–Gulf Cooperation Council (GCC) corridor.

The partnership, formalised during the Sibos financial services conference in Singapore, will focus on trade settlement, financing, and regional currency clearing solutions. Both banks aim to strengthen financial links for corporates and consumers engaged in trade, investment, and remittance flows between the two regions.

Trade between Southeast Asia and GCC countries reached around US$130bn in 2023, with a further US$50bn in new trade flows projected by 2027, according to DBS. Trade between China and the GCC is also expected to double to nearly US$1.9tn by 2035, with Saudi Arabia playing a key role as the bloc’s largest economy.

DBS and BSF plan to explore reciprocal trade financing for their respective clients, including instruments such as letters of credit, guarantees, and trade loans. The banks will also consider joint financing arrangements to enhance capacity and risk management.

In payments, both institutions will seek to use each other’s clearing networks to improve access to regional currencies. DBS provides clearing services across seven major Asian markets, while BSF facilitates Saudi Riyal settlements.

BSF is also evaluating the use of DBS GlobeSend, a cross-border payment solution covering over 100 markets and 60 currencies, to enable same-day transfers to DBS’s global payout network of more than 1 billion accounts and wallets.

 

Pleo launches cash management suite for UK and German finance teams 

Spend management fintech Pleo has introduced a new cash management suite designed to give finance leaders complete visibility and control over company funds. The add-on, available initially in the UK and Germany, consolidates bank and Pleo accounts into a single dashboard, enabling finance teams to track, manage, and optimise liquidity in real time.

The tool allows users to automate fund transfers, manage balances across multiple currencies, and eliminate foreign exchange fees by using multi-currency accounts and cards. By combining spend visibility and liquidity management in one platform, Pleo aims to reduce manual work and support faster, data-driven financial decisions.

The launch follows Pleo research showing that poor visibility remains a persistent challenge for finance leaders. Nearly one in four UK businesses (23%) said they are not confident in their ability to avoid financial risks due to limited oversight, while a similar share expressed dissatisfaction with procurement visibility and stress-testing processes. More than a quarter (26%) of CFOs admitted they lack confidence in making excess cash work harder through strategic investment.

Pleo said the new suite is designed to address these concerns by automating liquidity flows and providing a clear overview of company finances across accounts and currencies. Finance leaders can set transfer rules to ensure funds move where and when they are needed, while real-time insights help them manage working capital more effectively.

The firm described the product as a step toward removing the complexity of fragmented cash management systems and giving finance teams the tools to focus on growth rather than administrative tasks.

Pleo Cash Management is now available as an add-on for existing customers in the UK and Germany, with rollout to Denmark and the Netherlands planned next.

 

SGX FX partners with BBVA to boost LatAm FX liquidity 

SGX FX has entered a strategic partnership with BBVA to expand foreign exchange liquidity across Latin America, marking a key milestone in SGX FX’s growth plans for the Americas and emerging markets.

Under the agreement, BBVA will set up a distribution engine in the NY4 data centre, giving international participants direct access to liquidity in major regional currencies. The collaboration combines SGX FX’s established global network with BBVA’s market-making expertise in Latin America to improve pricing depth and connectivity for cross-border FX participants.

The initiative is designed to strengthen SGX FX’s role as a gateway to emerging market currencies while supporting the development of more transparent and efficient regional trading infrastructure. For BBVA, one of Latin America’s largest FX providers, the partnership represents an opportunity to extend its reach to a wider base of institutional clients through SGX FX’s international platform.

Both firms said the collaboration will help align liquidity distribution between local and global markets, enhancing efficiency for traders and investors seeking exposure to Latin American currencies.

The partnership forms part of SGX FX’s broader strategy to diversify its liquidity network and strengthen ties with leading regional banks. By combining advanced connectivity with local market expertise, the two institutions aim to build more resilient and accessible FX markets across Latin America and other emerging economies.