Over half of payments businesses are planning to change financial partners ahead of the UK’s exit from the European Union
New research amongst payments professionals presented by Saxo Payments at European Payment Summit
New research conducted by ground-breaking payments innovator, Saxo Payments, has revealed the potential impact of the UK’s exit from the European Union amongst payments professionals. Anders la Cour, founder and CEO of Saxo Payments presented the findings at the European Payment Summit, in The Hague, as he examined the opportunities for the next generation of cross border payments.
When asked about the potential impact of the UK’s exit from the European Union, more than a third of those who responded to the Saxo Payments survey said they are considering moving operations currently in the UK before the country’s exit. Over half said they plan to change financial partners.
The research also revealed that whilst 37% would like to have just one banking relationship to facilitate cross border payments, the reality is that a third currently have five or more.
“Clearly the UK’s exit from the EU is taking considerable thinking time for businesses right across the Union”, said Anders la Cour. “And one area that needs to be addressed is stability in the processes that businesses use for cross border payments. Whatever else might happen, they want to have certainty about cash flow and costs.
“Indeed, our piece of focused research amongst payment professionals suggested that there is an appetite for businesses to find a third party one-stop-shop to provide the platform for their cross border payments with nearly 60% advocating this approach, driven by a desire to reduce external costs and improve cash flow.”
At the European Payment Summit, Anders la Cour discussed whether the next generation of cross border payments means the end of correspondent banking.
The digital space is shifting the payments landscape. But the correspondent banking infrastructure is stopping businesses with international trading ambitions being truly global because they have to manage many banking relationships in many countries. Anders la Cour suggested that the answer is a whole new ecosystem which is rapidly emerging to provide the infrastructure for business to business cross border payments without any need for correspondent banks.
*Saxo Payments conducted online research amongst its own customers and prospects and the European Payment Summit database, February 2017.