Wednesday 29th May, 2013

Supply chain finance (SCF) has continued to exhibit strong growth in the last two years, according to latest research from Demica, which reveals average annual SCF growth rates between 30% and 40% at major international banks, as reported in Finextra. The SCF market - in which transaction banks provide top corporates with short-term financing to pay suppliers - is expected to continue to expand strongly to the end of the decade, although the pace of growth will moderate to 20-30% per annum by 2015, and 10% per annum by 2020.

The research - conducted amongst the European top 25 banks, plus a qualitative sample of international banks from Asia, Australasia, Africa and the United States and 14 mulit-national corporations - picks out the growth of e-invoicing systems as a significant market accelerator in the near future. Financiers believe that the highest growth of SCF currently originates from the US and Western Europe, in particular the UK and Germany. Eastern Europe, India and China are considered the top three regions with future SCF market potential.