Strong US CPI data reduces chance of imminent Fed cuts 

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% on a seasonally adjusted basis in January, after rising 0.4% in December, according to data from the US Bureau of Labor Statistics. Annually, headline inflation increased 3.0%, up from 2.9% in December. Annual core inflation rose 3.3% over the last 12 months.

The index for shelter rose 0.4% in January, accounting for nearly 30% of the monthly all items increase. The energy index rose 1.1% over the month, as the gasoline index increased 1.8%. The index for food also increased in January, rising 0.4% as the index for food at home rose 0.5% and the index for food away from home increased 0.2%.

The index for all items less food and energy rose 0.4% in January. Indexes that increased over the month include motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares. The indexes for apparel, personal care, and household furnishings and operations were among the few major indexes that decreased in January.

“The US CPI data, both headline and core, exceeded expectations on a monthly and yearly basis,” commented Harun Thilak, Head of Global Capital Markets NA at Validus Risk Management. “The strength was widespread across the underlying components. This has diminished the likelihood of a Fed rate cut this year, with markets now pricing in the next full Fed rate cut for the December meeting. Following the data release, as anticipated, both the USD and US yields saw an increase.”

 

Majority of CFOs plan to boost technology budgets in 2025

Despite the ongoing economic and geopolitical disruption, CFOs are planning significant technology budget increases, viewing digital investments as crucial for growth and efficiency, according to Gartner, Inc.

A Gartner survey of 301 CFOs and other senior finance leaders, conducted from September through October 2024, found that 77% of respondents plan to boost spending in the technology category, with almost half 47%) of CFOs intending to increase spending by 10% or more in 2025 compared to last year. The results underscore the critical role of technology in driving profitable growth and efficiency across industries.

Conversely, spending on staff compensation is trending downwards, with only 61% of CFOs planning to increase average employee compensation in 2025, compared to 71% in 2024 and 86% in 2023. The proportion of CFOs planning to boost average employee compensation by 10% or more fell from 16% in 2023 to 11% in 2025. While 70% of respondents planned increases of 4% to 9% in 2023, only 50% are planning the same amount in 2025.

“The continued focus on technology aligns with developments in traditional and generative AI, which promise to drive new offerings, enhance decision-making, and boost productivity,” said Randeep Rathindran, Distinguished VP, Research in the Gartner Finance practice. “Although the cooling labour market gives organisations more negotiating power on compensation, CFOs should remain sensitised to the potential risks of attrition and low engagement as prices for household necessities remain stubbornly high.”

Most sectors are prioritising technology spending in 2025. In the retail sector, cost of goods sold (COGS) and compensation are likely to see increases as organisations aim to enhance product quality and customer interactions. Meanwhile, in the banking sector, compensation and external services are also prioritised to attract technical talent and outsource non-strategic work.

Organisations have been sustaining a high pace of technology spend increases over time - 50% of CFOs had already planned to boost the technology budget by 10% or more last year, and 43% planned the same in 2023.

 

The Arnott’s Group awarded for cash forecasting success

The Arnott’s Group has been named a Highly Commended Winner in Treasury Today’s 2024 Adam Smith Awards Asia. The annual industry benchmark for corporate treasury achievement honours the most innovative and transformative treasury initiatives across the Asia-Pacific region.

The Arnott’s Group - one of Australia’s most iconic food manufacturers, with a portfolio of brands including Arnott’s, Tim Tam & Shapes, V8, Messy Monkeys, Freedom Cereals, and 180degrees - was recognised in Treasury Today’s Best Cash Flow Forecasting Solution category.

“Our separation from Campbell’s presented us with an immediate need to build an independent, modern treasury function from the ground up,” said Joanne Parnell, Treasurer, The Arnott’s Group. “GTreasury’s cloud-based platform eliminated our reliance on manual Excel processes and automated our entire treasury operations, from cash forecasting to FX deal capture. The results continue to speak for themselves: we’ve cut payment preparation time by 30% and reduced our monthly close cycle by a full day.”

Among The Arnott’s Group’s measurable improvements across its treasury operations since implementing GTreasury include reduced daily cash reconciliation and payment preparation time by 30% through automation. Treasury has transformed month-end closing from a 1.5-day process to just half a day and shifted from monthly to daily journal preparation, with entries now completed within hours. Team onboarding and training have also been streamlined through intuitive cloud-based workflows.

 

StanChart, Animoca Brands and HKT form JV to issue HKD-backed stablecoin

Standard Chartered Bank (Hong Kong) Limited (SCBHK), Animoca Brands, and HKT have entered into agreements to establish a joint venture (JV) with the intention to apply for a license from the Hong Kong Monetary Authority (HKMA) in the new regulatory regime (subject to the passage of the Stablecoins Bill) in order to issue a Hong Kong dollar-backed stablecoin.

Standard Chartered has a track record of working with stablecoin issuers globally, allowing the JV to utilise its bank-grade infrastructure and rigorous governance fully. Animoca Brands will leverage its industry expertise and network in the Web3 space to enable the JV to tap into crypto-native opportunities. They will explore innovative use cases across the Web3 ecosystem conducive to the JV’s long-term growth. HKT, a technology, media, and telecommunication provider, will use its mobile wallet expertise to enable the JV to develop stablecoin use cases, aiming to enhance both domestic and cross-border payments.

The three firms have been jointly participating in the HKMA stablecoin issuer sandbox launched in July 2024 to explore how stablecoins can play a key role in the development of financial markets and payments by bridging Web3 and traditional finance, thus strengthening Hong Kong’s position as a global digital assets hub. The JV is strategically positioned to be among one of the first issuers to pioneer this market in the region.

 

Surecomp acquires ELCY to boost digital trade finance adoption and collaboration

Surecomp has announced the acquisition of ELCY Ltd, a UK-based digital trade finance solution provider. This strategic move is designed to reinforce Surecomp’s commitment to driving digital trade finance transformation through innovation and collaboration. The ELCY multi-bank solution, elcyMBP, will become a module on Surecomp’s RIVO platform.

Founded in 2001, ELCY Ltd is closely aligned with Surecomp in heritage, vision, expertise and technical infrastructure. A SaaS native solution also powered by Amazon Web Services (AWS), ELCY has a strong customer franchise across Europe and Asia with many large multinational firms, particularly in the commodities sector, using elcyMBP to streamline workflows and centralise bank communication. 

In welcoming ELCY customers and technology onto RIVO, Surecomp says it prioritises business continuity and a seamless customer experience while creating access to a broader global network and extended functionality. 

 

BNY sends largest instant payment in US History

The Clearing House and The Bank of New York Mellon Corporation (BNY) have announced the successful completion of the largest instant payment in US history and the first-ever payment on the RTP network exceeding $1 million, following the recent increase in the network’s transaction limit. The $10 million inter-company liquidity management payment, from global transfer agent Computershare, to an account at another financial institution, marks a significant milestone in the evolution of instant payments, unlocking new opportunities for businesses to move money faster, optimise cash flow, and streamline financial operations.

The payment from Computershare highlights the growing demand for higher-value instant payments, providing a seamless alternative to traditional wire transfers and cheques while improving liquidity management. Currently, over 285,000 businesses rely on the RTP network each month to send and receive payments.

For corporates, real-time higher-value payments are critical for managing large supplier transactions, moving wealth management or brokerage funds between accounts, funding payrolls, responding to unplanned liquidity needs, and ensuring the immediate settlement of obligations. The RTP network provides businesses with 24/7 availability, immediate funds availability, and enhanced payment transparency – offering tools that are crucial for navigating today’s complex financial landscape.

“This achievement represents a major step forward in modernising high-value payments for our clients,” said Jennifer Barker, Global Head of Treasury Services and Depositary Receipts at BNY. “By leveraging the expanded transaction limits on the RTP network and BNY’s position at the forefront of capital markets, we are empowering our clients to operate with greater agility and supporting their long-term financial success. It’s another example of how BNY is enhancing payment solutions to meet evolving business needs with speed, transparency, and efficiency.”

 

MAS and ABS to establish new payments entity in Singapore

The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have jointly announced that a new entity will be set up to consolidate the administration and governance of Singapore’s national payment schemes to position these schemes for the next stage of growth. The entity will also collaborate with MAS on the development of Singapore’s national payments strategy, ensuring a safe, efficient and innovative payments infrastructure.

The country’s national payment schemes, such as Fast And Secure Transfers (FAST), Inter-bank GIRO System, PayNow and Singapore Quick Response Code (SGQR), are widely used by businesses and consumers in their daily activities, offering a broad range of options for domestic and cross-border payments. These schemes are administered and governed by specific scheme administrators, namely, Singapore Clearing House Association (SCHA), ABS, MAS and Infocomm Media Development Authority (IMDA). The consolidation of the administration and governance of these schemes under a single entity is an attempt to enhance coordination and decision-making across national payment schemes, enabling financial institutions and payment service providers to better harness opportunities in global payments and spur further growth and innovation in Singapore’s payments sector.

The new entity will be governed by senior representatives from MAS and the financial services industry, who will provide strategic direction to the entity’s management team. Additionally, industry committees will be formed under the new entity to engage banks, payment services providers and key user groups such as industry and business associations to support strategy development. There will be no changes to the operations and scheme rules of the national payment schemes as they are consolidated to the new entity. Further details on the entity name, governance structure and board composition will be announced later this year.

 

ISO 20022 implementation at Fedwire Funds Service pushed back to July 

For the past several years, Federal Reserve Financial Services (FRFS) has worked with the industry to prepare for the implementation of the new ISO 20022 message format for the Fedwire Funds Service. The FRFS says that the industry has made significant progress and accomplished many key milestones.

However, after careful consideration of industry requests and assessment of customer readiness, FRFS has decided to reschedule the Fedwire Funds Service ISO 20022 implementation from 10 March to 14 July 2025. This move is aimed at providing customers and vendors who are not ready additional time to better prepare for the transition to the new ISO 20022 format.

The Fedwire Funds Service will remain on the current message format (i.e., Fedwire Application Interface Manual (FAIM) 3.0.7 format) until 14 July. FRFS says it will announce its final “go” or “no go” decision for 14 July no later than 27 June.

 

Moody’s unveils platform to navigate global risks enterprise wide

Moody’s has launched a unified risk platform. Maxsight is designed to help businesses decode risk and unlock opportunity across third-party relationships, supply chains, and compliance processes.

Organisations face unprecedented risks, from financial crime to geopolitical volatility and extensive global counterparty networks. Moreover, diverse regulations and governance issues, like corporate social responsibility and human and environmental rights, add complexity when managing counterparty risk. Moody's screening databases record thousands of risk events and create unique risk profiles each day of the year. Consequently, monitoring these risk factors requires teams to understand hundreds of data points, each potentially needing further assessment or investigation.

With enhanced data quality and capabilities, the Moody’s platform streamlines data acquisition and helps improve monitoring, reporting, and risk assessments, facilitating a unified view of risk across different workflows.

Maxsight also aims to help bridge the gaps between an organisation’s existing data and systems while supporting external data integration, improving scalability. Data interoperability can help all teams in an organisation access the same data for different tasks, fostering better decision-making based on shared risk intelligence.

 

TaxTec and WTS Hansuke collaborate on withholding tax reclamation solutions

Tax practice and international financial services consultancy WTS Hansuke has entered an official collaboration with withholding tax firm TaxTec Group Limited. This collaboration is designed to enhance the consultancy’s client services, specifically in the area of withholding tax reclamation on foreign securities, and will include joint marketing initiatives, client cross-referrals, knowledge sharing, and other shared projects.

Recent research from TaxTec revealed that investors globally leave some $16bn of withholding tax on foreign securities unreclaimed each year. For UK investors in foreign securities the unreclaimed volume is over $1.3bn, in the US over $3.8bn.

“The market has been crying out for a fully digital withholding tax reclamation service that draws on AI to make reclaims as smooth and easy as possible,” said Graham Tilbury, Partner, WTS Hansuke. “Now TaxTec have got there first. On top of the reclamation process, we can now offer our clients up-to-date views of reclamation status, alongside a predictive forward view of both process and portfolio.”

 

Regions Bank looks to help companies streamline cash flow

Regions Bank has announced its latest offering designed to help treasury management clients better manage cash flow, optimise liquidity, reduce risks and more clearly anticipate business needs. The banks’ clients now have the option of using Regions Embedded ERP Finance, powered by Koxa, to seamlessly connect financial data to their own enterprise resource planning (ERP) systems.

Currently, business clients manually enter or upload financial data from their Regions accounts into their own ERP systems that they use to manage money, track sales, oversee inventory, manage customer relationships and more. With the new solution, clients can immediately access and review financial accounts and data in real-time within their own ERP platforms. 

The bank says its clients can now create fully automated reports, like transactions and balances, from bank accounts for reconciliation. For future enhancements, Regions is currently developing an additional capability designed to enable clients to initiate ACH and wire payments for vendors, reimburse expenses, and manage payroll from their Regions Bank account without leaving their accounting software.

Full auditability is also possible. Companies can easily account for permissions and enhance their internal controls to help mitigate fraud risk. This solution can track the user, IP address and time stamp when each payment is submitted and approved, helping ensure the accuracy of each transaction.

Currently, Regions Embedded ERP Finance will connect with Workday, Oracle NetSuite, Microsoft Dynamics 365 Business Central, and Sage Intacct.  The bank says that additional ERP platforms and capabilities are expected to be added over time.

 

ETR Digital unveils electronic trade instrument service

ETR Digital has established a brand-new independent business, bringing to market a new tech application that it says is simple to adopt. ETR Digital specialises in transforming working capital performance and access to liquidity, by delivering digital negotiable instruments (DNIs) that make trade faster, cheaper, fairer and more secure.

ETR Digital’s promissory notes and bills of exchange are delivered in partnership with a globally recognised electronic signature and ID verification provider, ensuring standardisation, speed and security alongside the benefits DNIs offer to all participants in global supply chains. These include improved cash flow and access to funding, maximising use of available facilities and enhanced return on capital.

The development work of the last two years, coupled with the extensive trade and supply chain finance experience of the ETR Digital team, which includes Dominic Broom, Roger Hynes and Howard Royds - the team formerly at Arqit Trade Secure - and Wayne Mills and Toby Schumacher, places ETR Digital in prime position to assist businesses and financial institutions in adopting this simple yet transformational technology, a statement from the firm said.