Survey Shows Non-Bank Financial Institutions Prioritizing Security, Compliance, Efficiency
AI and ML Investments Expected to Grow, Supporting Security and Fraud Prevention
[Atlanta, GA] May 12, 2022 — Today, Strategic Treasurer and Kyriba release the results of the Non-Banking Financial Institution (NBFI) Survey. The survey’s questions probed NBFIs on their plans, activities, and priorities and gathered details ranging from account use to AI/ML adoption and collateral management. The results clarify where NBFIs are currently in their operational structure and what priorities they will focus on in the near term.
Among the top findings were the following points:
- Security & Fraud Prevention, Compliance, and Efficiency. The survey asked respondents to rank seven competing demands in order of priority. Looking at the options most chosen as the top and second highest priorities, security and fraud prevention was a clear concern at 66%, with compliance in second place at 45% and efficiency (process-related) trailing but still important at 33%.
- Disbursement Preferences: Staff, Technology, Structure. Almost half of the NBFIs surveyed are using or implementing centralized staffing (payment factory, shared service center of excellence), with another near-half using/implementing specialized technology such as a payment hub. Payments on behalf of (POBO) lags in current use, but anticipated adoption is robust.
- Benchmarking: Personal Best. A majority of NBFIs (62%) are focused on metrics that compare their current performance to their historical performance. The rest largely benchmark against companies in similar industries, while some also benchmark against those of a comparable size or complexity level.
“The results are clear, AI and Machine Learning are critical growth areas for companies who are prioritizing security and fraud prevention,” said Steve Bullock, Vice President of Financial Services & Insurance at Kyriba. “This year’s survey builds upon the previous iteration and extends the respondent pool to include the entire NBFI industry vertical, generating more detailed and focused results compared to the previous year, which only looked at insurance companies.”
NBFIs are a unique grouping of organizations with a unique set of pain points and goals. The findings explore what this under-examined vertical prioritizes. Craig Jeffery, Founder and Managing Partner of Strategic Treasurer, shares his thoughts about NBFIs’ ranking security/fraud as their top priority.
“Cost and reputational damages are serious concerns for any company. NBFIs are highly regulated, and the fines, fees, and reputational damage that come with ignoring that make compliance a major priority. Seeing companies that are payment intensive rank security and fraud prevention as such a high priority is significant for this industry vertical and instructive to other industries,” said Jeffery.
The NBFI Survey asked 40+ questions and was taken by 70+ CFO, treasury, and cash manager respondents, where 64% of respondents’ companies’ annual revenues exceeded $1 billion, including more than $10 billon for 27% of the surveyed set. The vast majority were North American corporates (91%). This survey is designed as a benchmarking guide for corporate treasury. More extensive results from the survey are available via a downloadable report and a webinar today, May 12, at 2PM EDT. The webinar features Craig Jeffery of Strategic Treasurer and Steve Bullock of Kyriba. Replays will be available on Strategic Treasurer’s website following the event.
Strategic Treasurer provides consulting services for treasury management, security, technology and compliance. Corporate clients, banks and fintech providers throughout the world rely on their advisory services and industry-leading research. Strategic Treasurer is headquartered in Atlanta, with consultants based throughout the US. To learn more, visit strategictreasurer.com.
Kyriba empowers CFOs, Treasurers, and their IT counterparts to transform treasury, payments, working capital, and connectivity solutions to activate liquidity as a dynamic, real-time vehicle for growth and value creation. Kyriba is a secure, scalable SaaS platform that leverages artificial intelligence, automates payments workflows, and enables thousands of multinational corporations and banks to maximize growth, protect against loss from fraud and financial risk, and reduce operational costs. With over 2,500 clients worldwide, including 25% of Fortune 500 and Eurostoxx 50 companies, Kyriba manages more than 1.3 billion bank transactions per year, and 250 million payments for a total value of $15 Trillion annually.
Kyriba is headquartered in San Diego, with offices globally. For more information, visit www.kyriba.com.