Treasurers push banks for practical innovation

Large European companies are becoming more demanding of their cash management banks, with many prioritising customer service, ease of use and practical workflow improvements over broad claims about digital innovation, according to Crisil Coalition Greenwich.

Its ‘Voice of Client - 2025 Europe Cash Management Study’ is based on 1,020 interviews with companies generating more than €500m in annual revenue across Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.

The report finds that corporates remain unimpressed by bank innovation in cash management, despite heavy investment by banks in digital platforms and client-facing systems. Crisil says the disconnect reflects a simple point: treasury teams judge innovation by whether it improves everyday workflows, not by how much banks spend on technology.

Pricing remains the leading factor when large European companies choose cash management providers, cited by 63% of respondents with sales above €2bn, unchanged from 2024. Customer service ranked next at 58%, down from 62%, followed closely by ease of doing business at 57%, down from 58%.

Digital banking capabilities matter, but they are not the top priority. Some 44% cited digital capabilities as a key selection criterion, down from 46% in 2024. Breadth of international network was cited by 42%, down from 46%, while size of credit commitment fell to 41% from 45%.

Other criteria were more mixed. Risk, fraud prevention and cyber security rose to 31% from 29%, while existing relationships in ancillary products such as trade finance increased to 24% from 17%. International product capabilities fell to 29% from 31%, ease of implementation dropped to 22% from 26%, product capabilities slipped to 17% from 18% and error-free execution fell to 16% from 19%. Advice and insights were unchanged at 25%.

The findings suggest banks face pressure to improve the basics of cash management, particularly where corporate clients still see pain points. The report says companies give banks sub-par satisfaction scores for documentation and account opening, with no improvement in those areas since 2021.

Treasury teams are also pursuing their own modernisation plans. Over the next 12 to 18 months, 42% of large European companies plan to upgrade or change connectivity with banking providers, while 41% are adopting multi-banking solutions, including multi-bank liquidity tools, transaction initiation or reporting. A further 40% are working on instant or real-time payments, up from 37% in 2024.

Real-time liquidity solutions are gaining traction, cited by 31%, up from 26%. Reconciliation solutions, including virtual accounts, were cited by 27%, down from 29%. Crypto-based transactions, digital tokens and currencies remain marginal, cited by just 2%, unchanged from 2024.

Bank relationship strategy is also shifting. Nearly 30% of large European companies expect to reduce business with specific cash management providers because of optimisation and consolidation plans.

Relationship consolidation is the biggest driver of providers losing business, cited by 27%, followed by service-level assessments at 25%. Conversely, international banking coverage and changes in business volume are the strongest drivers of providers gaining business, each cited by 30%. Digital services and banking solutions were cited by 23% as a reason providers may gain business, versus 14% as a reason they may lose it.

Throughout the Crisil Coalition Greenwich research, the data points to a more assertive approach to bank relationship management. Companies are not waiting for banks’ innovation agendas to solve their operational problems. They are upgrading connectivity, adopting multi-bank tools, preparing for real-time payments and consolidating business with providers that can offer stronger service, broader coverage and easier day-to-day execution. In cash management, the priority is not innovation for its own sake, but practical improvements that make treasury work faster, cleaner and less fragmented.

 

CFOs urged to move AI beyond pilots

CFOs risk falling behind on AI unless they move beyond isolated pilots and build systems that allow the technology to deliver measurable value at scale, according to Gartner research. Speaking during the opening keynote at Gartner’s Finance Symposium/Xpo 2026, Clement Christensen, VP analyst, and Tamara Shipley, VP analyst in the Gartner finance practice, said finance leaders are still investing too heavily in productivity use cases rather than the infrastructure, governance and talent needed to change business outcomes.

Gartner data presented in the keynote showed that 84% of finance AI spending is focused on individual productivity and process improvement use cases. Just 16% is directed towards use cases that could materially change business outcomes.

“If CFOs are feeling stuck in the piloting phase of AI, it’s likely because they’ve built an accidental factory: lots of new machines, but no systems to enable and connect them,” said Christensen.

That imbalance is contributing to what Gartner describes as “hopeful disappointment”. Executives remain optimistic about AI, but the returns have not yet matched expectations. Some 71% of typical finance teams report low impact from their AI investments, while 62% of CFOs say fewer than a quarter of their AI initiatives deliver measurable benefits.

“With AI, it’s simply unnecessary and untrue to think finance must achieve efficiency gains before it can drive higher value outcomes,” said Shipley. “Breakaway firms prioritize their investments differently. They prioritize upside over cost-cutting.”

Gartner’s central argument is that CFOs should stop treating AI as a set of disconnected tools or use cases. Instead, finance leaders need systems that connect people, data, knowledge, governance and machines in ways that allow AI to be productive across the organisation.

Governance is presented as part of that scaling challenge, rather than only a control mechanism. “Governance is not just about controls, guardrails and risk,” said Shipley. “It is just as much about making things go faster.”

Talent is another constraint. Gartner research shows that only about 30% of finance talent currently qualifies as digital talent, meaning employees who can build a technology solution when they encounter a problem. Breakaway firms, by contrast, are targeting 90% or more.

Christensen said finance leaders cannot solve that gap through recruitment alone. “Finance leaders must democratize technology work now and empower their people because it simply won’t be possible to hire all the digital talent they need,” he said. “Finance work is technology work.”

Gartner recommends that CFOs bring AI investments together across the enterprise and assess them as a portfolio. Finance leaders should consider whether each investment accelerates future AI deployment, supports revenue growth or builds reusable assets such as knowledge, governance and data products.

“The system that finance leaders build to empower people and machines to work better together is just as important as the machines themselves,” said Christensen. “In short, CFOs need to build a factory on purpose.”

 

Corporates lift FX hedging as volatility bites

Corporates increased their FX hedging activity in the first quarter of 2026 as geopolitical volatility pushed companies to protect more of their currency exposure for longer, according to new research from MillTech. The firm’s Q1 2026 Corporate Hedging Monitor, based on a survey of 250 senior finance decision-makers at UK and US corporates, found that average hedge ratios rose to 57%, from 49% in the previous quarter. MillTech said this was the highest level recorded since it began tracking the data in Q1 2024.

Average hedge tenors also increased, rising to 6.62 months from 6.33 months. That was the longest average tenor since Q3 2024, suggesting companies are looking to secure greater certainty over currency exposure as market conditions remain unsettled.

The increase in hedging came against a backdrop of losses from unhedged FX exposure. Nearly all corporates surveyed, at 96%, reported losses from unhedged currency exposure due to geopolitical tensions in Q1.

However, the scale of those losses fell sharply. Average losses from unhedged FX exposures were under £1m, compared with more than £2m per quarter in 2025. MillTech said the combination of higher hedge ratios and longer hedge tenors reflected a more proactive approach to FX risk management, which appears to have helped companies protect more capital during the quarter.

The most common FX impacts from geopolitical developments were higher import costs and increased volatility in earnings or cash flow, each cited by 22% of respondents. Higher hedging costs were cited by 18%.

Credit availability was the top external factor influencing hedging decisions, cited by 18%, while central bank policy and inflation rates were each cited by 16%. MillTech said the Iran war has increased price pressures while colliding with the Fed’s easing trajectory.

Eric Huttman, chief executive of MillTech, said: “Q1 2026 showed that firms are doubling down on defensive FX risk management strategies as they steer through even greater uncertainty. It was a challenging quarter, but businesses prepared themselves well, hedging their exposures to protect capital and boost their businesses’ stability.”

Huttman added that losses of nearly £1m per firm from unhedged FX risk show currency volatility remains “a multi-billion-pound problem on both sides of the Atlantic”.

 

Project Agorá moves towards live testing

Project Agorá has shown that tokenisation could help reduce inefficiencies in wholesale cross-border payments, with the public-private initiative now expected to move towards real-value testing. The project, convened by the Bank for International Settlements (BIS) and the Institute of International Finance, has tested multi-currency settlement using tokenised central bank reserves and tokenised commercial bank deposits.

Participants include the Bank of England, Federal Reserve Bank of New York, Bank of France on behalf of the Eurosystem, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank and more than 40 private sector financial institutions. The Bank of Canada has also joined the project.

A newly published report on the project’s exploratory phase says tokenisation can support safe and secure wholesale cross-border settlement while preserving the legal character of central bank reserves and commercial bank deposits.

The prototype showed that atomic settlement is achievable across currencies and jurisdictions. This would allow wholesale transaction chains to settle on an all-or-nothing basis, reducing the risk that one part of a linked cross-border transaction settles while another fails.

Project Agorá also found that a layered architecture can allow central banks to retain autonomy over national currencies and operations while participating in an interoperable shared platform. Privacy can be protected at both balance and transaction level, while still supporting regulatory compliance.

Legal analysis found that settlement finality is achievable across all seven participating jurisdictions, although further work is needed to define the technical, operational and contractual requirements that best fit each legal framework.

The report also says the modular design could support new payment capabilities, including conditional and always-on payments. Future enhancements could cover anti-money laundering, counter-terrorist financing, sanctions compliance and fraud detection as data-sharing and regulatory frameworks develop.

For banks, payment providers and corporate treasury teams, the significance lies in the attempt to modernise wholesale cross-border settlement without separating it from central bank money and commercial bank deposits. This could be a potential solution to the many corporate cross-border flows that still depend on systems that can be slow, hard to track and constrained by cut-off times.

BIS Innovation Hub projects are experimental, and Project Agorá remains at the testing stage. But the move towards real-value testing suggests tokenised settlement infrastructure is advancing from conceptual design towards more practical assessment.

 

Africa growth holds despite financing strain

Africa’s economy is forecast to remain resilient in 2026 despite geopolitical tensions, tighter financing conditions and global supply shocks, according to the African Development Bank’s latest ‘African Economic Outlook’. The report estimates that the continent recorded average GDP growth of 4.4% in 2025, supported by improved macroeconomic management, stronger agricultural output, elevated commodity prices and structural reforms. Growth is projected to ease to 4.2% in 2026 before rebounding to 4.4% in 2027.

Africa remains among the world’s faster-growing regions, with 22 economies expected to post growth above 5% in 2025. The outlook is uneven, however, with higher energy and import costs linked to Middle East disruption weighing on some regions.

East Africa is expected to remain the fastest-growing region, although growth is forecast to slow from 6.6% in 2025 to 5.9% in 2026, before recovering to 6.4% in 2027. West Africa is projected to remain broadly stable, with growth of 4.7% in 2026, compared with an estimated 4.8% in 2025.

North Africa is forecast to slow to 4.0% in 2026 from 4.4% in 2025, reflecting weaker tourism demand from Gulf states and wider supply chain disruption. Central Africa is one of the few regions expected to accelerate, with growth rising to 3.8% from 3.6%, supported by sustained high oil prices. Southern Africa is set to remain the weakest region, slowing to 2.1% from 2.3% amid weaker mining and agricultural output and higher energy costs.

Inflation is expected to remain elevated at 10.4% in 2026, adding pressure to fiscal and external balances. The report warns that exchange rate depreciation, financial market volatility and tighter external financing could amplify debt vulnerabilities.

A central finding is Africa’s development financing gap, estimated at more than US$1.3 trillion a year to meet the Sustainable Development Goals. The bank says reforms could unlock up to US$1.43 trillion annually, including US$469bn from stronger tax and non-tax mobilisation and US$299bn from improved public investment efficiency.

Institutional investors, including pension funds, insurers and sovereign wealth funds, manage around US$4 trillion in assets, but less than 2.7% is allocated to African infrastructure and productive sectors. The report also notes that Africa’s stock market capitalisation reached US$1.2 trillion in 2024, nearly six times higher than two decades ago, although activity remains concentrated in South Africa, Egypt, Nigeria and Morocco.

 

US opens door to digital trade instruments

J.P. Morgan Payments is expanding its electronic bill of exchange offering to the US, as legal changes in New York create a clearer framework for digital negotiable instruments in trade finance. The bank said the move will give US clients additional financing options and support working capital management by replacing paper-based bills of exchange with electronic alternatives. Electronic bills of exchange, or eBoEs, are designed to give suppliers greater certainty over collection while allowing buyers to secure extended payment terms.

New York is set to join more than 30 US states in adopting amendments to the Uniform Commercial Code, with Article 12 allowing electronic bills of exchange to be legally recognised, transferred and enforced in a similar way to paper instruments. The legislation is due to take effect in June 2026.

As a major financial centre, New York’s adoption of the rules could support broader use of digital trade instruments by multinational companies. Negotiable instruments remain widely used in global trade, but their reliance on paper has limited scalability, slowed processing and increased operational friction.

J.P. Morgan’s US eBoE offering uses Enigio’s trace:original solution to support the creation, management and storage of electronic negotiable instruments governed under the UCC amendments. The bank first launched its eBoE product in the UK in 2025 under the Electronic Trade Documents Act 2023. Mobile Technology Network South Africa completed the first transaction using the offering for a shipment of goods from Asia to the UK.

“The move from paper to digital is not just about efficiency, it is about empowering corporate treasurers, procurement and sales directors, and operations managers to optimise working capital, streamline processes, and future-proof trade operations,” said Heather Crowley, global head of trade and working capital product at J.P. Morgan Payments.

 

Mastercard tests instant cross-currency settlement

Mastercard has taken part in a Eurosystem-led pilot testing instant cross-currency payments on the TARGET Instant Payment Settlement platform. The pilot, conducted with Danmarks Nationalbank and Sveriges Riksbank, tested TIPS cross-currency functionality, known as TIPS X-CCY. Mastercard Move was among the first participants to process transactions through the pilot setup.

Payments were settled atomically between euros and Danish kroner, meaning both currency legs were completed simultaneously. That structure is designed to reduce settlement risk by avoiding a situation where one side of a cross-currency transaction settles while the other does not.

The pilot included inbound and outbound transaction flows under the One Leg Out Instant Credit Transfer scheme. Mastercard said it performed both entry-leg and exit-leg payment service provider roles in the cross-currency setup, testing the process from initiation through to final settlement.

The exercise tests whether cross-border payments can be executed and settled instantly at infrastructure level, rather than relying on slower correspondent banking or intermediary-heavy models. For banks and fintechs, the model could reduce integration complexity, improve liquidity management and make payment outcomes more predictable.

Central bank money settlement is also an important part of the test. By connecting to public payment infrastructure, regulated non-bank payment service providers can potentially support instant cross-border flows while operating within central bank governance, European Payments Council scheme rules and ISO 20022 standards.

Faster cross-currency settlement with simultaneous completion of both currency legs could have several implications for treasurers, by reducing timing risk, improving visibility over outgoing and incoming flows, and making liquidity planning easier across European corridors.

Mastercard said the pilot forms part of its strategy to build direct connectivity to payment infrastructures. Mastercard Move supports domestic and international transfers across more than 200 countries and territories and over 150 currencies, connecting to bank accounts, digital wallets, cards and cash endpoints.

 

Balance expands real estate treasury platform

Balance Cash has expanded availability of its multi-bank treasury and cash management platform for real estate operators managing complex, multi-entity portfolios. The platform is designed for multifamily operators, real estate investment firms, private equity-backed real estate groups and commercial property organisations with cash spread across multiple banks, properties, entities and lending structures.

Balance said many real estate operators accumulate dozens or hundreds of accounts as portfolios grow through acquisitions, property expansion, lender requirements or decentralised operating models. That can create fragmented treasury structures, limiting visibility over liquidity and making it harder to optimise idle cash.

The platform sits above existing bank relationships rather than replacing them. Its purpose is to centralise treasury visibility, automate cash management workflows and help firms generate yield on idle balances across multiple accounts without requiring them to consolidate banking providers or restructure their treasury operations.

Demand for treasury modernisation has increased as higher interest rates have made cash optimisation more visible to real estate finance teams. In that environment, idle balances are no longer just an operational issue. They can have a direct effect on portfolio efficiency and financial performance.

Balance is positioning the platform around several real estate treasury needs, including centralised liquidity visibility, multi-bank orchestration, operational cash optimisation and automation across distributed entities.

 

NatWest turns to AI for trade finance controls

NatWest has partnered with Cleareye.ai to automate parts of its trade finance operations and strengthen financial crime controls. The bank will implement ClearTrade, Cleareye.ai’s AI-powered platform for trade document processing and compliance checks. The system is designed to extract and classify data from complex trade documents across both digital and paper formats.

ClearTrade will also carry out automated examinations against International Chamber of Commerce rules, which are widely used to standardise documentary trade processes. NatWest said the platform will support trade-based money laundering checks and broader compliance controls, while reducing operational risk.

The partnership reflects the continued pressure on banks to modernise trade finance, an area still shaped by manual document review, paper-based processes and complex regulatory checks. For corporate clients, delays in document processing can slow shipment release, financing and payment flows, particularly where letters of credit, guarantees or other documentary trade instruments are involved.

Automating document extraction and compliance review could help NatWest process trade transactions more quickly while maintaining stronger oversight of financial crime risk. The bank said the aim is to provide customers with a simpler and safer trading experience, while helping staff deliver a more productive service.

For corporates, the test is whether this kind of automation reduces the delays that still sit around paper-heavy documentation. Quicker checks on letters of credit, guarantees and other trade documents can make shipment, financing and payment timings easier to manage, especially when transactions involve multiple jurisdictions and compliance reviews.

The agreement also shows how AI adoption in trade finance is moving towards targeted operational use cases rather than broad experimentation. Banks are looking for tools that can handle document-heavy workflows, support regulatory requirements and reduce manual intervention without weakening controls.

 

Co-op prices £350m sustainability bond

Co-op has priced a £350m sustainability bond as part of a refinancing aimed at extending its debt maturity profile while preserving financial headroom. The 8.25% sustainability senior notes are due in 2031 and form a leverage-neutral transaction. If completed, the proceeds are expected to be used to redeem Co-op’s existing £350m senior notes, which mature in July 2026.

The offering is expected to be issued at par on or around 11 June, subject to customary conditions. The notes are expected to be listed and admitted to trading on the Official List of The International Stock Exchange. They are also expected to be guaranteed on a pari passu basis with Co-op’s existing term loan and revolving credit facility.

For Co-op, the transaction extends the maturity of existing bond debt at a time when the group is pursuing longer-term plans. It has set an ambition to reach 10 million active members by 2030, up from a previous target of 8 million. The group has also proposed joining forces with Southern Co-op, in a deal that would add 300 outlets and 300,000 members if completed.

“Our Co-op is more than 180 years old, and now we’re strengthening it for the next 180,” said Rachel Izzard, CFO at Co-op. “By refinancing bond debt, we’re maintaining our financial resilience and widening our options, so we can keep sharing value with members, colleagues and communities in the years ahead.”

The bond is being issued under Co-op’s Sustainable Bond Framework. Eligible projects include spending with Fairtrade suppliers and on-site renewable energy generation. Co-op said member research conducted this month found sustainable food supply chains ranked as the top issue surveyed members most wanted businesses to act on, followed by sustainable use of resources. The research was based on 36,300 member responses gathered between 20 March and 28 May, weighted to represent Co-op’s member base.

 

Garanti BBVA launches Request to Pay API

Garanti BBVA has launched a Request to Pay API that allows businesses to manage collections directly from their own systems, following a pilot with Turkish energy company Uludağ Elektrik. The BKM-integrated API enables companies to generate payment requests without logging into Garanti BBVA’s digital channels. Customers then receive the request through their banking app and can settle the bill with a single confirmation.

The solution is designed to reduce friction in recurring and invoice-based collections, particularly where payments are still affected by manual processes, missed bills or failed direct debits caused by insufficient balances.

The API allows payment requests to be embedded into existing systems, which can make collections faster and easier to track. That is relevant for companies managing large customer bases, where even small improvements in payment completion and collection timing can affect cash flow visibility and working capital.

It is built on the FAST infrastructure developed by the Central Bank of Türkiye and BKM. It uses BKM’s Easy Address System, known as KOLAS, allowing businesses to send secure payment requests to individual or corporate customers without needing to share IBAN details.

Garanti BBVA is targeting the solution at SMEs, commercial and corporate clients. Businesses can apply through the Garanti BBVA Developer Portal and complete integration through a fully digital onboarding process.

 

PingPong and Visa launch card-to-account payments

PingPong has partnered with Visa to launch a card-to-account payment solution that allows businesses to pay supplier invoices using existing commercial credit cards, even where the supplier does not accept card payments. The offering has been developed under Visa’s Business Payment Solution Provider programme. PingPong said it is one of three foundational providers selected for the programme, supported by its licensing, compliance infrastructure and global payout capabilities.

The product is aimed at mid-market and enterprise finance teams looking to use commercial card rails for invoices that would otherwise be paid by bank transfer. Under the model, the buyer pays by card and the supplier receives funds as a standard bank transfer, typically on a T+0, T+1 or T+2 basis for most currencies.

PingPong said suppliers do not need to onboard or change their payment processes. For buyers, the main benefit is working capital flexibility, with the ability to defer cash outflow by more than 45 days without taking on additional debt.

The solution supports payments to suppliers in more than 170 countries and over 25 currencies. Businesses can use PingPong’s web portal without integration or connect through an API to enterprise resource planning systems and treasury management systems.

The partnership offers treasurers the opportunity to extend commercial card utility beyond supplier acceptance limits. Many suppliers do not take cards, particularly in the UK and EU, which can leave card-based working capital benefits unavailable for large parts of corporate spend. By routing card-funded payments into supplier bank accounts, the solution gives buyers another option for managing invoice timing, liquidity and supplier payments without changing the supplier relationship.