The trend toward globalisation has been ongoing for many years. Most customs barriers have fallen and technologies have adapted such that goods and services can be traded almost free of border constraints.
But for CFOs, three phenomena complicate the situation. First, regardless of the progress made for goods and services, transfers of funds still involve multiple constraints on currencies, local banking regulations, foreign exchange controls, multiple bank communication standards and intermediary bank networks… In addition, cost considerations, security requirements, and the need for flexibility and immediacy have never been so critical. And finally, regardless of the country or industry – and probably regardless of the company’s size – CFOs are no longer exempt from cross-border issues.
In the end, it’s necessary to juggle an entangled mess of communication networks and transfer formats that have grown incredibly complex, where each connection point is a potential vulnerability.
Moving toward international infrastructure
Suffice it to say that these badly organised international payment circuits are a major barrier to productivity and provide the ideal playing field for fraudsters. CFOs desperately need global infrastructures, which are emerging through various international standards and innovative product packages.
To learn more about this topic, watch this video.