Financial institutions

Survey shows non-bank financial institutions prioritize

Atlanta, Georgia, May 12, 2022 (GLOBE NEWSWIRE) — Today, Strategic Treasurer and Kyriba release the results of the Non-Banking Financial Institutions (NBFI) survey. The survey questions probed NBFIs on their plans, activities and priorities and collected details ranging from account usage to AI/ML adoption and collateral management. The results clarify where the NBFIs are currently in their operational structure and what priorities they will focus on in the short term.

Key findings included the following:

1. Security and fraud prevention, compliance and efficiency. The survey asked respondents to rank seven competing demands in order of priority. Looking at the most chosen options as first and second priorities, security and fraud prevention was a clear concern at 66%, with compliance second at 45% and efficiency (related to process) lagging but still significant at 33%.

2. Disbursement preferences: personnel, technology, structure. Nearly half of the NBFIs surveyed use or implement centralized staffing (payment factory, shared services center of excellence), while another half use/implement specialized technology such as a hub of payment. Current use of payments on behalf of (POBO) is lagging, but expected adoption is robust.

3. Comparative analysis: personal best. The majority of NBFIs (62%) focus on metrics that compare their current performance to their historical performance. The rest largely compare to companies in similar industries, while some also compare to those of comparable size or level of complexity.

“The results are clear, AI and machine learning are critical growth areas for companies that prioritize security and fraud prevention,” said Steve Bullock, Vice President of Financial Services and Insurance at Kyriba. “This year’s survey builds on the previous iteration and expands the respondent pool to include the entire NBFI industry vertical, generating more detailed and focused results than the previous year, which only was only about insurance companies.”

The NBFIs are a unique group of organizations with a unique set of pain points and goals. The results explore the priorities of this under-examined vertical. Craig Jeffery, Founder and Managing Partner of Strategic Treasurershares his thoughts on NBFIs ranking security/fraud as their top priority.

“Costs and reputational damage are serious concerns for any business. NBFIs are highly regulated, and the fines, fees, and reputational damage that comes with ignoring people makes compliance a top priority. Seeing payment-intensive businesses place such a high priority on security and fraud prevention is important for this industry vertical and instructive for other industries,” said Jeffrey.

The NBFI survey asked more than 40 questions and was asked by more than 70 respondents to CFOs, treasury and cash managers, where 64% of surveyed companies’ annual revenues exceeded $1 billion, including more of 10 billion dollars for 27% of all questioned. The vast majority were North American companies (91%). This survey is designed as a benchmarking guide for corporate treasury. More detailed survey results are available via a downloadable report and a webinar today, May 12, at 2:00 p.m. EDT. The webinar features Craig Jeffery from Strategic Treasurer and Steve Bullock from Kyriba. Replays will be available on the Strategic Treasurer’s website after the event.

About the Strategic Treasurer

Strategic Treasurer provides consulting services in cash management, security, technology and compliance. Corporations, banks and fintech providers around the world rely on their leading advisory services and research. Strategic Treasurer is headquartered in Atlanta and consultants based across the United States. To learn more, visit strategictreasurer.com.

About Kyriba Corp.
Kyriba empowers CFOs, Treasurers and their IT counterparts to transform treasury, payments, working capital and connectivity solutions to enable liquidity as a dynamic, real-time driver of growth and value creation . Kyriba is a secure and scalable SaaS platform that leverages artificial intelligence, automates payment workflows and enables thousands of multinationals and banks to maximize growth, protect against fraud and financial risk losses and reduce operational costs. With more than 2,500 customers worldwide, including 25% Fortune 500 and Eurostoxx 50 companies, Kyriba handles more than 1.3 billion banking transactions per year and 250 million payments for a total value of 15 trillion dollars a year.

Kyriba is headquartered in San Diego with offices around the world. For more information, visit www.kyriba.com.