ESG influence on corporate cash investing slumps

A growing number of corporates are pulling back from sustainable finance products, according to new data from TreasurySpring’s annual ESG survey, conducted in partnership with the London Stock Exchange and the Association of Corporate Treasurers (ACT).

The 2024 edition of the survey, now in its third year, reflects responses from corporate treasurers managing an estimated £80bn in cash balances. It suggests a shift from broad ESG enthusiasm to more targeted and financially grounded strategies.

Just 30% of respondents said ESG currently influences their cash investment decisions, down sharply from 63% in 2022. Meanwhile, 55% of firms reported they are not invested in any institutional ESG products, up from 32% last year.

While this could be read as a retreat from ESG, the findings point more to a process of recalibration. Against a backdrop of geopolitical tensions, inflation, and tightening regulation, firms appear to be adopting a more pragmatic lens by balancing long-term sustainability ambitions with short-term risk and liquidity needs.

The report also tracks shifting risk perceptions around ESG investing. Although greenwashing remains the top concern, cited by 44% of respondents, this is down from 69% in 2022, indicating that corporates may be gaining confidence in the quality and reliability of ESG-labelled products.

Outside of investment, ESG appears to be gaining traction in other areas. The share of respondents who said sustainability considerations were influencing supply chain decisions rose to 47% in 2024, up from 35% the previous year. Treasury professionals also reported steady demand for short-term financing products that align with sustainability goals.

“While ESG adoption may be slowing, the commitment to sustainable finance is maturing,” commented Nigel Owen, Head of Corporate Origination, TreasurySpring. “Companies are moving beyond broad ambitions toward more focused, credible approaches, prioritising operational impact, investor alignment, and measurable results. The challenge now is delivering on that commitment with the practical constraints of today’s world.”

 

Factoring volume dips 3.9% but optimism holds steady

The latest year-end survey from the Secured Finance Network (SFNet) shows a 3.9% decline in factoring volume in the second half of 2024, driven largely by a slowdown in US activity. Despite this, industry sentiment remained broadly positive heading into 2025, with key indicators pointing to resilience in the face of macroeconomic uncertainty.

The decline in total volume was primarily attributed to weaker domestic performance, which outweighed gains in international factoring. Funds in use among survey participants dipped by 1.7% between the first and second half of 2024. Average days sales outstanding held steady at 45.8 days.

While activity has slowed, SFNet members appear to be taking a measured view. The combined factoring sentiment score edged up to 70.5, comfortably above the neutral threshold of 50. Portfolio performance posted a more significant gain, rising by 6.4 points to 77.3, reflecting a continued focus on credit quality.

The survey was conducted prior to the latest round of US tariff announcements, but respondents had already flagged broader concerns about slowing consumer confidence and the knock-on effects of a shifting rate environment. Nonetheless, the sector’s counter-cyclical appeal remains intact.

General US business conditions rose modestly by 1.1 points to 63.6, and many in the industry expect factoring volumes to rebound if banks reduce their exposure to riskier credit segments. The industry is also likely to benefit from heightened vigilance around accounts receivable performance, a key risk area when economic conditions tighten.

While short-term demand has softened, SFNet members appear to be positioning for growth opportunities later in the year, particularly if external shocks drive a renewed focus on liquidity and working capital.

 

AI-driven scams fuel 43% rise in payment fraud across Europe

Digital payment fraud is on the rise across Europe, with new data showing a 43% surge in attempted fraud in 2024 compared to the previous year. According to Tietoevry Banking’s latest Payment Fraud Report, the jump is being driven by increasingly sophisticated social engineering tactics and the growing use of artificial intelligence.

Based on over 3.7 billion transactions and nearly 200,000 fraud cases, the report highlights a dramatic rise in social manipulation scams, which climbed 156% year-on-year. Phishing attacks also saw a significant 77% increase. Techniques such as deep-fake voice impersonation, AI-generated phishing emails, and QR code scams are making fraud harder to detect for both financial institutions and consumers.

The report reveals a steep upward trend in the overall rate of detected fraud. In 2022, European banks identified 2.65 fraud cases per 100,000 transactions. That rose to 3.89 in 2023, and jumped again to 5.57 in 2024 – a near doubling in just two years.

Alongside more advanced tactics, criminals are also ramping up efforts to recruit money mules – individuals who allow their bank accounts to be used for laundering stolen funds. In 2024, cases involving money mules rose significantly, with young adults the primary target. Over 80% of those involved were men in their 20s, often lured through social media, fake job adverts, and peer networks. The report also found that some victims of investment fraud were unknowingly drawn into money laundering schemes.

While banks continue to evolve their fraud detection capabilities, Tietoevry Banking warns that criminal innovation is outpacing regulation. The findings are based on transaction data across several countries, including Norway, Sweden, Denmark, Finland, Germany, Spain, the UK, and Ireland.

 

Hong Kong launches expert panel to digitise trade finance with cargo data

The Hong Kong Monetary Authority (HKMA) has launched an Expert Panel on Project Cargoˣ to drive innovation in trade finance by unlocking the potential of cargo data. The initiative, developed in partnership with the Transport and Logistics Bureau (TLB) and Airport Authority Hong Kong (AAHK), aims to boost access to finance for SMEs and streamline trade processes using digital infrastructure.

Project Cargoˣ builds on the HKMA’s Commercial Data Interchange (CDI), a secure platform for sharing commercial data. The Expert Panel, made up of key stakeholders from banks, cargo data providers, trade associations and government agencies, will deliver a roadmap by the end of 2025 for digitising transport data across sea, road and air, with future integration into CDI.

“In today’s complex global trade landscape, many businesses, in particular SME traders, need more digitalised and efficient trade finance solutions,” said Eddie Yue, Chief Executive of the HKMA. “Cargoˣ will help resolve some long-standing pain points in trade finance for banks, ultimately boosting efficiency and driving industry-wide innovation.”

A series of proof-of-concept trials is planned for 2025 and 2026 with pilot banks and strategic partners, testing how cargo data can improve the accuracy and speed of trade finance. This work will be supported by the TLB’s new Port Community System, a blockchain-based platform for tracking cargo across multiple modes of transport.

“The Port Community System is expected to lead the logistics and trading industries to new heights of digitalisation,” said Amy Chan, Commissioner for Maritime and Port Development at the TLB. “We look forward to unlocking its potential in facilitating trade finance and supporting SMEs.”

Cissy Chan, Executive Director, Commercial at AAHK, added: “The Cargoˣ initiative continues the momentum of digitisation in the air cargo industry. We look forward to working with like-minded organisations to strengthen Hong Kong’s trade finance ecosystem.”

 

BoE launches renewed RTGS system to bolster UK payment infrastructure

The Bank of England’s renewed Real-Time Gross Settlement (RTGS) service, known as RT2, went live on 28 April 2025, marking a significant milestone in modernising the UK’s core payment infrastructure. The upgrade aims to enhance resilience, expand access, and foster innovation in wholesale settlement services.

RT2 introduces a more flexible and secure settlement engine, featuring increased perimeter security, improved dual-site functionality, and a modular architecture designed for quicker recovery from disruption. These enhancements are expected to strengthen the system’s ability to handle evolving cyber threats and operational challenges.

A key component of the renewal is the adoption of the ISO 20022 messaging standard, which facilitates richer, more structured data in payment messages. This change is expected to improve interoperability between domestic and international payment systems, enhance fraud detection capabilities, and enable more efficient transaction processing.

The renewed RTGS service also aims to broaden access by accommodating a larger number of account holders and offering streamlined onboarding. This approach is designed to promote competition and innovation within the UK financial sector by enabling a wider range of institutions to settle in central bank money.

On its first day of operation, RT2 settled payments totalling £778bn, demonstrating its capacity to handle significant transaction volumes. The Bank plans to continue enhancing the service beyond launch, with future developments focusing on extended operating hours, new API capabilities, and support for synchronised settlement, reflecting the evolving needs of the payments industry.

 

FIS launches cloud-native treasury platform to boost real-time cash visibility

FIS has launched a next-generation version of its treasury and risk management platform, aiming to help CFOs and corporate treasurers accelerate decision-making and unlock real-time cash visibility through enhanced cloud-native capabilities. The FIS Treasury and Risk Manager – Quantum Cloud Edition is designed to support larger transaction volumes, increased enterprise connectivity and real-time risk analysis. Hosted on the public cloud, the platform provides a step change in flexibility, with quicker implementations, faster product upgrades and smoother rollouts of new functionality.

With global corporates under increasing pressure to improve forecasting and respond more swiftly to market changes, the Quantum Cloud Edition enables treasurers to integrate real-time data from multiple sources - such as enterprise resource planning (ERP) systems and bank APIs - via a newly launched Liquidity Hub module. This centralises insights to support dynamic cash management and capital allocation.

The original version of Quantum will remain available to both new and existing clients. FIS says the updated solution offers CFOs and treasurers “more harmonious workflows” to navigate rising capital costs, market volatility and broader financial risk exposure while maintaining holistic visibility across the money lifecycle.

 

Danske Bank teams up with Position Green to support corporate ESG strategy

Danske Bank has formed a partnership with ESG platform provider Position Green to strengthen its support for larger business customers looking to improve their sustainability performance. The collaboration will provide Danske Bank’s business clients with discounted access to Position Green’s ESG software and e-learning resources. The tools are designed to help companies simplify their ESG data collection, identify risks and opportunities, and translate sustainability metrics into strategic insights.

While recent EU proposals aim to streamline sustainability reporting and reduce the number of companies required to disclose ESG data, Danske Bank believes the strategic importance of ESG remains undiminished.

“It remains important to work proactively and strategically with ESG to map and manage a company's ESG risks and opportunities,” said Christina Krath, Head of Sustainability, Business Customers at Danske Bank. “This can help strengthen the company’s competitiveness both in the short and long term.”

As part of the partnership, Danske Bank will also offer advisory support and financing options to clients undertaking ESG-related initiatives. Krath noted that insights from ESG analysis could help identify cost-saving opportunities or prompt a shift in supply chain strategy, with the bank ready to provide financial guidance and support where needed.

 

Finastra service aims to ease ISO 20022 transition

Finastra has launched a new Transformation Service to help financial institutions manage the transition from MT to ISO 20022 MX messaging standards ahead of Swift’s 2025 CBPR+ deadline. Part of Finastra’s Financial Messaging platform, the service is designed to support seamless translation between multiple message formats, minimising disruption as institutions adapt to the new standards. It enables banks to receive and send ISO 20022 messages even if their back-office systems are not yet fully upgraded.

Available via SaaS or API-based integration, the Transformation Service offers flexible deployment options for banks, financial institutions, and corporates with complex messaging requirements. Users can access the microservice through Finastra’s new Self-Serve Portal, with a “try before you buy” feature to test capabilities before full implementation.

The service automatically incorporates updates from annual market infrastructure releases and allows for custom enrichment and message handling. Finastra says this will ensure ongoing compliance and operational continuity during and after the transition. Finastra’s platform has been validated as a Swift Compatible Interface and is CBPR+ ready, providing reassurance to customers facing tight implementation timelines.

 

Mastercard expands stablecoin capabilities across global payments network

Mastercard has unveiled a suite of new capabilities to support stablecoin transactions from wallet to checkout, positioning itself at the forefront of digital asset integration into mainstream finance. The offerings are designed to allow businesses and consumers to use stablecoins for everyday payments, from earning rewards and spending at over 150 million merchant locations, to withdrawing funds into bank accounts via Mastercard Move. The firm is partnering with major crypto-native platforms such as MetaMask, Kraken, Binance and Crypto.com to enable seamless access to stablecoin services through traditional card infrastructure.

As part of its stablecoin strategy, Mastercard is also rolling out merchant settlement options in partnership with Nuvei, Circle and Paxos, giving businesses the flexibility to receive payments in stablecoins such as USDC. This effort is underpinned by Mastercard’s Crypto Credential system, which simplifies remittance transactions using verified usernames to enhance trust and transparency.

In cross-border applications, Mastercard is leveraging its Multi-Token Network (MTN) to power real-time settlements and redemptions using on-chain tokenised assets. Partners including Ondo Finance, JPMorgan Chase and Standard Chartered are already integrated into the MTN ecosystem. The card network is also collaborating with OKX to launch a co-branded card, offering users easy access to funds while expanding engagement with the Web3 economy.

Mastercard says the move reflects growing confidence in stablecoins as a tool for programmable, efficient payments. As regulatory clarity improves, the company is betting on increased demand for trusted, integrated solutions that connect traditional finance with emerging digital infrastructure.

 

Panax and Airwallex team up to streamline global cash management

AI-driven cash management platform Panax has partnered with global payments provider Airwallex to simplify cross-border payments and enhance liquidity control for finance teams. The collaboration allows Panax users to directly execute international payments and foreign exchange (FX) transactions within the platform, eliminating the need to toggle between multiple banking systems. With access to multi-currency accounts, finance teams can pay out in over 60 currencies across 120 countries, gaining a more integrated view of global cash flows.

By embedding Airwallex’s infrastructure, Panax customers can benefit from streamlined workflows and real-time execution. The platform’s AI offers insights on trends, anomalies and funding needs that can now be acted upon instantly, helping teams optimise liquidity and reduce risk.

According to Panax co-founder Niv Yaar, the goal is to bring full visibility, control and execution into a single interface. “Finance teams can now manage and execute the entire cash management flow in one place, at a lower cost,” he said.