Corporates prioritise core systems as trade digitalisation accelerates

Global corporates are taking a deliberately foundational approach to trade digitalisation, with most focusing on strengthening core infrastructure before scaling newer technologies such as artificial intelligence and digital assets. That is the central finding of Future of Trade: Digitalisation, the latest survey of 1,200 C-suite and senior leaders released by Standard Chartered.

Nearly seven in 10 respondents say their short- to medium-term priority is building robust digital foundations, particularly cloud computing. AI (55%) and digital assets (50%) rank close behind as key drivers shaping the next phase of trade digitalisation, but the report notes that firms are hesitant to deploy them at scale until their underlying systems and data architecture can support more advanced workflows.

“Global trade is undergoing a profound transformation, and digitalisation is accelerating the pace of change and reshaping how businesses connect, transact, and grow,” said Michael Spiegel, the bank’s global head of transaction banking. “By prioritising connected data flows, compliance, and consistency, corporates are setting the stage for technologies like artificial intelligence and digital assets to scale responsibly and efficiently. When these underlying layers are strong, innovation can accelerate and sustain long-term growth across global value chains.”

The findings indicate that despite broad enthusiasm for next-generation technologies, many companies remain constrained by fragmented processes. More than half of respondents cite poor interoperability and a lack of integration as the biggest barriers to progress. Regulatory and implementation challenges compound the issue, leaving many trade flows reliant on paper documentation and manual handoffs.

The report highlights two areas where corporates see the greatest potential for reducing this structural friction. First, digitally-enabled commerce frameworks such as Digital Economy Agreements (DEAs) are viewed as essential for addressing cross-border inconsistencies. Respondents say DEAs can help streamline regulatory requirements and improve interoperability across markets. More than half hope additional jurisdictions will join existing agreements or establish common digital standards.

Second, 80% of firms are turning to external partnerships to accelerate digitalisation. Collaboration with fintechs, technology providers, and other third parties is helping corporates overcome internal capability gaps, particularly in areas such as cloud deployment, workflow automation, and data integration. Respondents say these partnerships are increasingly important for reducing cost and implementation timelines.

The report also shows that corporates are leaning heavily on banking partners for guidance as digital assets, tokenisation, and AI-enabled trade tools gain traction. More than 80% of surveyed firms want advisory support on digitalisation strategies and emerging digital-asset use cases, suggesting that treasury and trade finance teams are seeking clearer roadmaps before making larger-scale investments.

For treasurers, the findings point to a familiar theme: technology adoption is gathering pace, but progress hinges on strong data foundations, interoperable systems, and consistent regulatory frameworks. As corporates continue to balance innovation with operational readiness, the next stage of digital trade growth is likely to depend as much on connectivity and collaboration as on the technologies themselves.

 

Businesses settle into ‘constant adaptation’ as trade uncertainty persists

Global businesses are adjusting to a prolonged period of trade volatility as firms work to diversify supply chains, manage rising costs, and seek growth in new markets. That is the picture emerging from HSBC’s latest Global Trade Pulse Survey, which gathered responses from 6,750 decision-makers across 17 markets.

The findings suggest that, after a difficult start to 2025, companies are beginning to find their footing. More than eight in 10 firms are now diversifying supply chains to mitigate risk, and 67% feel more certain about how trade policy will affect their business compared with six months ago.

This sense of clarity is helping businesses plan more proactively, even against a backdrop of tariff changes and shifting geopolitical relationships. Half of respondents intend to enter new markets, while 66% expect costs to rise over the next six months as tariffs, customs duties and transport expenses continue to build.

HSBC’s survey shows a marked improvement in firms’ understanding of the policy environment. Some 77% say recent trade policy changes are easy to understand, aligning with a broader global pattern of increased preparedness. Revenue fears have also eased: 22% now expect a hit of more than 25% over the next two years due to supply chain disruption, down from 37% in the previous survey.

Market differences are beginning to emerge. Businesses in the US report the greatest confidence in navigating regulatory changes, with 52% saying they feel well informed and prepared. That compares with 35% in Europe and 32% across East and North Asia. Respondents in all regions point to diversification not only as risk mitigation but also as a growth strategy, with Europe (40%) and Southeast Asia (36%) ranking as the most attractive destinations for expansion. North America and East/North Asia follow at 32% each.

Vivek Ramachandran, Head of Global Trade Solutions at HSBC, said the shift reflects a broader mindset change: “Improved clarity over trade and tariffs has emboldened businesses to plan ahead, with many seeing international trade not as a risk, but as an opportunity to reinvent.”

To manage ongoing cost pressures, companies are pursuing multiple strategies in parallel. More than three-quarters are passing through costs, renegotiating supplier terms or investing in automation and AI to offset rising expenses. Many are also rethinking revenue models, with 47% rebalancing products and services and 43% exploring mergers or acquisitions. Supply chain reshaping is widespread: 75% are reassessing or have already altered where major processing and assembly take place.

As firms adapt to these conditions, the survey suggests that a long-term shift is under way. International expansion, operational flexibility and improved risk visibility are becoming core components of trade strategy rather than temporary responses to disruption.

 

US corporates risk missing out on higher returns as cash allocation choices diverge

Research from Clearwater Analytics indicates that US companies may be forgoing millions in potential returns depending on how actively they manage their cash holdings. The analysis highlights a widening performance gap between firms that regularly adjust allocations in line with market conditions and those that maintain more static strategies.

Most corporates continue to hold excess cash in money market funds and short-term Treasury bills, balancing liquidity needs with yield. However, Clearwater warns that the Federal Reserve’s second rate cut of the year in October has immediate consequences for returns, since yields on these instruments track movements in the policy rate. Treasurers who adjust portfolios quickly in response to easing cycles can capture higher yields before they fall further.

Clearwater’s data shows that corporates using dynamic allocation strategies (shifting between cash, money market funds and short-duration bills) have earned an average annual return of 5.5% since 2023. Those avoiding frequent changes earned 3.5% on average over the same period. For companies managing large cash balances, even small basis-point differences can translate into meaningful financial flexibility. As Matthew Vegari, Clearwater’s head of research, put it: “50 basis points, multiplied by hundreds of millions of dollars means additional flexibility and more buffers against tariff-induced inflation.”

The findings come as many firms face pressure from persistent inflation, higher input costs and signs of cooling in the labour market. With borrowing costs still elevated and tariffs contributing to price volatility, cash management has become a more strategic lever in preserving margins and supporting investment plans.

Uncertainty around the Fed’s policy trajectory adds another layer of complexity. A wide divergence of views among policymakers is making it harder for corporates to set expectations around the pace of rate cuts. The Fed’s decision in October to halt the run-off of its balance sheet, citing tightening liquidity conditions in money markets, also underscores the need for treasurers to monitor short-term funding dynamics closely.

For finance teams, Clearwater’s research reinforces the importance of reviewing cash segmentation policies, stress-testing allocation assumptions and ensuring investment strategies align with both liquidity needs and shifting rate conditions.

 

Compliance slip-ups keep 56% of companies out of new markets

Over half of global companies are being prevented from expanding overseas because they miss invoicing or tax compliance deadlines, according to new research from Basware. The report warns that growing regulatory demands, combined with fragmented internal systems, are pushing many finance functions toward a “compliance breaking point”. The findings come from Basware’s ‘Beyond the Checkbox: Compliance as Strategy Report 2025’, based on a survey of 400 finance leaders and an analysis of 272 million invoices.

The study reveals that 56% of organisations have been unable to move into new markets due to compliance failures, while 36% have incurred fines after submitting incorrect tax audits. Nearly four in ten (39%) have also seen invoices rejected because of tax or invoicing errors. For treasurers and finance teams, these failures create financial and operational risks far beyond administrative inconvenience. Late or incorrect submissions can delay payments, disrupt supply chains and strain relationships with customers and partners, all of which directly affect working capital and liquidity planning.

Basware’s invoice analysis highlights the scale of the problem. Despite a global shift toward e-invoicing mandates, 57% of invoices still arrive as PDFs or paper documents, representing US$783bn worth of non-compliant transactions flowing through corporate systems last year. These formats require manual handling, increase error rates and make it harder for companies to keep up with constantly changing local regulations.

Finance leaders recognise the severity of the issue but often lack the visibility required to manage it effectively. The report shows that 91% of CFOs view limited transparency in compliance processes as a major operational risk. A third of organisations (32%) regularly breach compliance through incorrect tax audits, reflecting deeper structural weaknesses in finance data and controls.

Only a minority of companies have developed mature, embedded compliance capabilities. Just 29% have comprehensive platforms to manage compliance across jurisdictions, and only 11% have cross-functional teams in place. However, the organisations that have invested in these structures report far better outcomes: 83% say they rarely face fines and consistently outperform peers on revenue and profitability.

The research suggests momentum is building, with 92% of finance leaders planning to establish cross-functional compliance teams. For treasurers, this shift toward centralised oversight and automated processes could reduce the risk of invoice rejection, improve cash visibility and strengthen the reliability of global payment flows.

Basware’s findings indicate that compliance is moving from a back-office obligation to a core pillar of international growth strategy and companies that fail to modernise risk being locked out of new markets.

 

Fed faces “agonising” call on December rate cut

The Federal Reserve is heading into one of its most difficult decisions of the year as policymakers weigh whether to cut interest rates in December, according to Rob Kaplan, vice chairman of Goldman Sachs and former president of the Dallas Fed.

Kaplan describes the upcoming choice as “agonising,” arguing that the Fed is confronting conflicting signals from the labour market and inflation. Speaking to host Allison Nathan on the Goldman Sachs Exchanges podcast, he said hiring has slowed to “stall speed,” but the root cause of the weakness is unclear. Some of the softness may be structural, he suggested, pointing to “matching issues,” where employers struggle to fill some roles even as new graduates struggle to find work. “If it turns out that a lot of this weakness is matching related, I don't know that monetary policy is the tool to deal with [it],” Kaplan said.

Inflation adds to the complexity. Although businesses are still absorbing higher costs, Kaplan warned that many firms are likely to pass on those pressures to consumers in 2026. “With inflation running this much above target, I think that that would, in my former seat, make me very uncomfortable and make me really want to be confident - more confident than I am right now - about what's going on in the labour market,” he said.

Kaplan outlined two potential paths. One option is for the Fed to hold rates steady in December and cut in January if labour conditions deteriorate further. But he noted that such a delay “could lead to political opposition from the administration.” The more likely scenario, he said, is that the Fed proceeds with a cut next month.

The risk is that a rebound in hiring or more persistent inflation could later force the central bank into a harder policy reversal. In that case, Kaplan said a “modestly restrictive” stance may be more appropriate than returning policy to a neutral setting.

 

EU regulatory overhaul set to reshape liquidity management, warns EBA

The Euro Banking Association (EBA) has warned that a wave of EU regulatory reforms will have major implications for how banks and payment service providers manage liquidity, with particular pressure expected from the rapid shift towards real-time settlement. A report from the EBA’s Liquidity Management Working Group examines the combined impact of three initiatives: the Instant Payments Regulation (IPR), the proposed Payment Services Regulation (PSR), and the proposal for Payment Services Directive 3 (PSD3). Together, they mark one of the most significant overhauls of the European payments landscape in more than a decade.

“The transition to real-time, always-on payments will reshape liquidity management as we know it,” said Krister Billing, Chairman of the Liquidity Management Working Group.

The report finds that greater uptake of instant payments, particularly by corporates and merchants handling higher-value transactions, is likely to amplify intraday liquidity volatility. Because instant payments settle on a gross, near real-time basis across a 24/7/365 cycle, payment service providers will need to maintain sufficient liquidity around the clock rather than within traditional business hours.

This shift could require institutions to hold larger liquidity buffers, diverting resources from other operational priorities and creating new demands on forecasting, funding and cash-position monitoring. For corporate treasurers, the move to always-on settlement may increase pressure on banking partners to offer real-time balance visibility, automated sweeps and more dynamic intraday liquidity tools.

The EBA also highlights the structural impact of PSD3 and the PSR in widening access to EU payment infrastructures. PSD3 introduces formal direct access rights for non-bank payment service providers to regulated payment systems, supported by protections under the Settlement Finality Directive. This expansion is expected to boost competition and innovation across the payments ecosystem.

However, non-bank providers entering these systems will face new operational expectations, including managing their own technical connectivity and maintaining independent oversight of intraday liquidity positions. The report notes that these responsibilities will require enhanced risk management processes to avoid settlement disruption or reputational harm.

Taken together, the three regulatory initiatives signal a more open and instantaneous payments environment across the EU. The EBA paper stresses that firms now need to prepare for higher liquidity demands, more complex operating models and tighter risk controls as real-time payments become the norm.

 

84% of UK manufacturers push ahead with nearshoring despite challenges 

Most UK manufacturers plan to bring supply chains closer to home, but widespread gaps in data visibility and rising regulatory pressure risk undermining those efforts, according to research from Dun & Bradstreet. The survey of 500 senior risk, compliance and procurement professionals finds that 84% of UK manufacturers intend to nearshore or localise at least half of their supply chain. The shift reflects global volatility, increasing geopolitical risk and tighter regulatory demands, all of which are prompting firms to rethink long-standing offshoring strategies.

However, the report highlights a significant disconnect between ambition and operational readiness. Fewer than half of manufacturers (47%) use their own data to guide decision-making, limiting their ability to assess supplier resilience, anticipate disruption or identify bottlenecks deeper in the chain. Nearly two-thirds (64%) say they feel more pressure than a year ago to understand their wider supplier networks, underlining how regulatory changes and market uncertainty are tightening oversight requirements.

Operational constraints are a major contributor to the information gap. Manufacturers cite lack of time or resources (42%), insufficient data (41%) and workload concerns (40%) as the main barriers preventing them from analysing their supply chains more effectively. As a result, many firms report direct consequences: 41% experience quality control issues, 38% face delivery delays and 35% incur higher operational costs due to limited visibility.

Supplier concentration adds another layer of risk. More than a quarter of respondents (27%) say dependence on single or limited suppliers is a recurring challenge, while an equal share point to data integration and system compatibility issues as a frequent obstacle when working with partners.

Regulatory demands are also intensifying. Over the past 12 months, 42% of UK manufacturers identified tariffs and sanctions as a major supply chain challenge, compared with 34% globally. Looking ahead to 2026, a third see regulatory change as one of their biggest risks, and one in five describe it as the most difficult issue to solve.

 

UBS and Ant International explore blockchain settlement for cross-border liquidity

UBS and Ant International have agreed to collaborate on blockchain-based settlement and liquidity tools, marking another step toward real-time cross-border treasury infrastructure. The partnership, formalised through a memorandum of understanding in Singapore, centres on using tokenised deposits and distributed ledger technology to improve the speed and transparency of global fund movements.

Under the agreement, Ant International will test UBS Digital Cash, a blockchain payment platform first piloted in 2024. The system enables near-instant transfers and is intended to support Ant International’s treasury operations across multiple markets. By shifting internal settlement flows onto a shared ledger, both organisations aim to reduce frictions associated with traditional payment cut-off times, correspondent networks and multi-currency reconciliation.

The collaboration will also examine how tokenised deposits could operate within a connected payment and liquidity setup. This includes linking UBS Digital Cash with Ant International’s proprietary Whale platform, a blockchain-based treasury management system. The combined approach is designed to create a real-time, multi-currency environment in which Ant International’s entities can move funds between jurisdictions more efficiently while maintaining full visibility over balances and flows.

For corporate treasurers, the project highlights growing momentum around tokenised cash instruments and blockchain-enabled settlement processes. As banks and payment providers test these models, the implications could include faster intraday liquidity access, improved cash pooling across time zones and more automated cross-border payment pathways. The removal of batch processing constraints also has the potential to support more active liquidity management, particularly for firms operating across Asia-Pacific and Europe.

The collaboration fits within broader efforts across the industry to modernise cross-border infrastructure, including projects exploring wholesale central bank digital currencies, interoperable deposit tokens and programmable settlement mechanisms. While these initiatives remain at varying stages of development, they signal a gradual shift toward systems that can handle 24/7 fund flows with stronger auditability and reduced settlement risk.

UBS and Ant International plan to continue exploring joint innovations in the coming months, focusing on transparent, ledger-based settlement models and mechanisms for managing liquidity across multiple currencies. The partnership reflects both firms’ interest in testing practical applications of tokenisation and assessing how blockchain tools can support global treasury operations at scale.

 

Trovata introduces stablecoin service for corporate treasury workflows

Trovata is expanding its treasury platform with a stablecoin service aimed at modernising how corporates manage internal payments and liquidity. The service, branded CORP$, will give finance teams the ability to hold and use dollar-backed stablecoins issued under US regulatory oversight, integrating them directly into existing cash-management workflows.

Set to launch in December, the initial focus is on automating intercompany payables and receivables. These flows can involve hundreds of entities operating under strict legal and accounting frameworks, often creating reconciliation delays, timing mismatches and high internal transaction volumes. Using a tokenised dollar instrument offers a way to move value instantly between group entities while maintaining a clear audit trail. Over time, Trovata expects the service to support cross-border payments and other treasury use cases.

CORP$ will run on the USDP stablecoin issued by Paxos, with all underlying assets held in cash, US Treasuries and repurchase agreements. A major global financial institution will provide custody for the fiat reserves. Within Trovata’s environment, balances held in stablecoin form will earn credits that can be used to offset subscription fees or partner-related costs such as bank fees, travel spending or cloud services.

For treasurers, the development reflects a wider shift toward exploring tokenised cash and blockchain-based payment rails for internal liquidity movements. While adoption across the corporate sector remains limited, stablecoins have increasingly been tested as an alternative settlement mechanism where predictable value, speed and programmable workflows are required. The structure of CORP$, centred on a regulated issuer and transparent collateral, signals an attempt to align these tools with institutional governance and risk standards.

The partnership with Paxos provides Trovata with access to established blockchain infrastructure, while also ensuring issuance and custody sit within regulated frameworks. As more treasurers assess digital-asset rails for operational use cases, the move adds another option for firms seeking faster settlement, lower internal transaction costs and improved visibility over group-wide liquidity.

Trovata expects adoption to grow as corporates look for ways to automate internal flows and prepare for potential future use cases in global payments. The stablecoin service will be embedded directly into the platform’s existing cash-management interface, aiming to reduce onboarding friction for treasury teams exploring digital settlement methods.

 

Embedded finance gains momentum as procurement seeks digital efficiency

Procurement teams are accelerating their shift toward digital processes, and embedded finance is emerging as a central tool in that transition, according to new research from Mastercard. The findings indicate broad alignment between buyers and suppliers on the need to modernise procurement and payment workflows, but many organisations still face uncertainty about cost, complexity and implementation.

The whitepaper reports that nearly eight in ten buyers now view procurement digitisation as a top corporate priority. Suppliers are even more decisive, with previous research showing that 93% consider payment digitalisation essential to their business plans. The shared urgency reflects a wider push to reduce manual processes, strengthen security and improve data visibility across the supply chain.

Embedded finance is becoming a key mechanism for that shift. Around three-quarters of buyers see embedded finance as a short- to medium-term opportunity to unlock value, particularly through connected procurement and payment platforms that reduce friction between trading partners.

The research also highlights strong conviction about longer-term impact. Eighty-three percent of buyers believe embedded finance will influence the future shape of procurement, citing potential gains in speed, transparency and control. Even among firms that have not yet adopted embedded finance, 76% expect to do so within the next two years, suggesting that uptake is likely to accelerate as awareness grows.

Despite this momentum, adoption barriers remain. Some organisations continue to be cautious due to concerns about integration, security, supplier readiness and the return on investment for new systems. The report examines common misconceptions and contrasts them with the experiences of existing users, pointing to evidence that perceived obstacles often diminish once procurement and finance teams work within fully digital, embedded environments.

For corporate treasurers, the findings signal a broader convergence between procurement and financial operations. As embedded finance becomes more integrated into procurement systems, treasury teams may gain improved visibility over outgoing payments, better control of working capital and stronger data flows across the purchase-to-pay cycle.

 

U.S. Bank unveils AI-driven cash forecasting tool with Kyriba

U.S. Bank has introduced an AI-enabled cash forecasting and liquidity management tool, developed in partnership with Kyriba, to help finance teams improve real-time visibility across global cash positions. The new service, U.S. Bank Liquidity Manager, is integrated within SinglePoint, the bank’s treasury platform, and is aimed at both mid-sized and large corporates managing multi-bank, multi-entity structures.

The tool combines traditional forecasting methods with Kyriba’s Cash AI engine, which analyses historic cash flows, learns from ongoing transactions and adjusts predictions as conditions change. Alongside forecasting, the system brings together automated daily cash positioning, reconciliation, scenario planning and real-time reporting by account, bank, entity and region.

A key feature for corporate treasurers is consolidated multi-bank reporting. Liquidity Manager aggregates balances and transactions across North American and global banks, reducing the need to pull data from several portals and helping teams access a single, up-to-date picture of company-wide liquidity. Automated management of zero-balance accounts is also included, supporting firms with complex cash pooling structures.

The tool is designed to cut down on manual work by centralising workflows and reducing the number of disparate systems used for cash visibility. This includes automated data feeds, streamlined reconciliation and tools that support exception management and operational oversight. By shifting routine activity into a single interface, finance teams can spend more time assessing liquidity risks, evaluating funding requirements and planning short-term investment decisions.

The launch aligns with U.S. Bank’s wider updates to SinglePoint, announced in late 2025, which aim to improve analytics, reduce manual interventions and enhance visibility of operational blind spots.

 

HSBC UAE launches cross-currency cash concentration offering

HSBC UAE has introduced a cross-currency cash concentration service, giving corporate clients the ability to automatically consolidate balances across multiple currencies and entities into a single operating currency. The UAE is the first market to roll out the capability, with other MENA locations expected to follow. The solution allows cash held in different currencies to be swept and converted in near real time at prevailing spot FX rates, creating a centralised liquidity position that is easier for treasury teams to monitor and deploy. By automating both the sweep and the underlying conversion, the system is designed to reduce manual interventions, improve visibility and support faster decision-making across global cash structures.

For treasurers managing fragmented balances or operating in volatile FX environments, the service offers a way to reduce idle cash, simplify working capital management and align liquidity with funding needs. Consolidated positions also allow teams to better control FX exposure, particularly where subsidiaries generate cash in currencies that are not required at group level.

The bank notes that the tool is intended to support organisations facing increased pressure to access liquidity quickly and maintain a clear view of cash across markets. The ability to pool currencies into a single account can help firms improve forecasting accuracy, streamline short-term investments and ensure liquidity is available when required, regardless of where it is generated.

As cross-currency cash concentration becomes more widely adopted, it is likely to play a greater role in corporate treasury structures in regions with high FX turnover and multi-entity operating models. HSBC’s launch in the UAE reflects demand from multinational and regional firms looking to centralise liquidity management and reduce operational friction associated with multi-currency cash pools.

The service forms part of HSBC’s broader investment in liquidity and cash management technology across the MENAT region, as clients seek greater efficiency, transparency and control over global cash flows.

 

Zone & Co debuts ERP-native global payments tool

Zone & Co has introduced Zone AP Payments, a global payments tool built directly into enterprise resource planning (ERP) systems to support full accounts payable automation. Developed in partnership with TransferMate, the system enables domestic and cross-border vendor payments to be initiated, approved and reconciled entirely within the ERP environment.

The launch is aimed at replacing the multi-step workflows that often require separate banking portals, manual uploads and duplicated checks. By combining invoice processing with embedded payments, the tool is designed to streamline the procure-to-pay cycle and improve visibility over settlement status.

Zone AP Payments supports payments to more than 200 countries in 140 currencies. Transfers are routed through TransferMate’s regulated infrastructure, providing compliance checks, traceability and access to competitive FX rates. According to the firms, settlement can be completed on the same day for many corridors, with real-time synchronisation ensuring that reconciliation occurs as soon as the payment is executed.

The tool integrates with Zone & Co’s broader AP suite, which already includes invoice capture and workflow approval modules. Together, these functions are intended to give finance teams a consolidated view of obligations and cash outflows, reducing delays associated with fragmented systems.