The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Working capital receives an electronic boost

Over two-thirds of corporates are experiencing improvements in their working capital processes because of the introduction of electronic invoice presentment and payment (EIPP) systems.

More encouraging for the banks trying to push these services to treasury departments is news that 37% of corporates are experiencing improvements in their process efficiency beyond their expected levels of success, while 32% report a beneficial impact on customer service levels.

There is, however, a flip-side. Only one third of the survey respondents - sponsored by Citigroup - actually use the EIPP systems. A fifth had considered an electronic solution but had rejected the notion while almost 50% of the respondents were satisfied with the paper-based processes in place.

Citigroup, however, is more than satisfied with the results. "We are pleased to see that the results of this survey confirm our efforts around the world. We see EIPP use growing among clients, especially in north America and Europe," says Maria Mandler, global head of EIPP services at Citigroup's global transaction services.

The main reason for implementation, according to the survey, is the streamlining of accounts payable and receivable. A reduction in DSO and costs are secondary factors. "In fact, clients are creatively using EIPP with invoice discounting and financing to decrease DSO, and EIPP with netting is becoming a powerful global liquidity management tool," adds Mandler.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree