Preliminary world factoring statistics announced by FCI at RFIx event in London on 14th of March, indicate that the factoring industry volume shows once more positive signs with many markets showing significant growth. These advances seem to indicate that the flat growth experienced during the previous two years is behind us, and that the industry has found an accelerated gear in 2017.
The total volume estimated for 2017 amounts to 2,472 billion euro, which represents a growth of 4% over 2016 where it reached 2,376 billion euro. FCI Members account for 62% of global factoring volume, 88% is estimated international volume and 55% estimated world domestic volume.
Cross border two-factor volume in the first 2 months of 2018 seem to indicate that the most challenging times have passed and that this sector will continue the trend favourably this year.
European markets show a 7% increase; however, it must be remembered that the figures collected are expressed in euro and some markets involved like UK and Turkey, which account for a substantial part of European volume are suffering high volatility in their currency and hence figures record a drop - which would change to a positive figure were it not for the currency fluctuation.
The rest of the “mature” markets like France (+4%) Germany (+10%) and Italy (close to +10%) show a continued upward trend, as well as most of the other EU countries. It is worth highlighting that the Polish market increased by +24% and the Belgian by +11%.
In 2017, volumes in South America grew by 9% thanks to Brazil, which increased over 11% and Argentina 21% whilst the Chilean market reported a negative figure. The future of Factoring in the region looks very promising and expectations indicate that the figures will certainly continue to grow.
The North American market figures are reported to be declining and both Canada and the USA aggregated figures are at -3%, stemming in part from the continuous drag in cross border trade out of Asia and the deteriorating traditional retail environment.
Africa shows a 9% volume increase exactly the same as that of South Africa from which it greatly depends. The apparent drop in the Egyptian volume is once more due to the currency volatility and if it were expressed in Egyptian Pounds, the variation would exceed 40%. It must be remembered that the data is an estimate based on the figures of the existing Members of FCI and hence subject to modification. It is hoped that the efforts of new players will soon start to show positive results.
Asia declined once again by -4%. This was, as said earlier, highly influenced by the decline in China and by the results of other traditional strong players such as Japan (-25%). In the opposite field, we find Hong Kong (+10%), India (+10%), and Singapore (+7%); nice growth figures also reported in Malaysia, Thailand and Vietnam.
The Middle East is beginning to show significant positive results with an overall +6% led by Israel (+7%) and Lebanon (+9%) and no negative figure reported, an indication that the market is also recovering from the impact of the declining commodity prices experienced the previous two years.
The FCI Global Factoring Statistics present on an annual basis the key factoring data around the world. They cover domestic and cross-border factoring volume collected from almost 390 members in 90 countries.
The full final statistical report will be released in May 2017 and will also be made available on the FCI website.
FCI was set up in 1968 as a non-profit global association for factoring companies around the world. Today, FCI has grown into the world's representative factoring network and association with close to 400 members in 90 countries and member transactions representing nearly 90% of the world’s international cross border factoring volume. In 2016 the activities of IFG (International Factors Group) were integrated into FCI. Today, FCI is truly the global representative body for the Factoring & Receivables Finance Industry.