When the World Health Organization declared the COVID-19 outbreak a global pandemic at the beginning of 2020, few of us realised just how fundamentally the world would change in its wake. With businesses having to transform their business models and working practices seemingly overnight, risk appetites and funding needs also altered. Michael Ellis, Managing Director of EQ Riskfactor tell us why.
With their customers’ needs and expectations changing so rapidly, lenders had no choice but to reassess their approach to decision-making. Unsurprisingly, they have to display more caution when assessing risk, even for those clients that weren’t experiencing challenges before the pandemic. Though recovery from the global health crisis is underway, the social and economic uncertainty it left behind is still a concern, and risk management in the global receivables finance market is more important than ever.
As part of our commitment to supporting lenders and SMEs to successfully and safely navigate the new economic landscape, we undertook some research into strategic priorities in 2021 for global finance organisations as part of the EQ Riskfactor Receivables Finance Global Outlook report. We surveyed finance leaders from the UK, US, Germany, France, and the Netherlands, and this first report closely examines their views on the changes they saw in 2020, and their predictions and strategies for 2021.
We learned from the report that global finance leaders understand the importance of technology and innovation, and are focused on digitising their operations as a way of future proofing their organisations.
Technology as a Transformation Driver
With the pandemic forcing more businesses to shift online, digital transformation has been a key theme for business success in the ‘new normal’.
The whole article was published in the World Factoring Yearbook 2021. If you want to read it all, you can order the Yearbook here.