9NOVEMBER 2021that understanding regional regulation is the biggest challenge for tech CFOs and treasurers as they expand outside their home territory, an issue cited by 39 percent of respondents. This figure is higher still amongst US tech companies, of whom 41 percent placed this as their no.1 challenge. Concerns around regulation are not restricted to finance professionals but are reflected across the C-Suite. For example, IBM's recent survey of 3,000 CEOs places regulation in CEOs' top three challenges. Liquidity issues also pose potential headaches for tech CFOs, particularly resulting from lower than forecast revenues, delays in receivables collection and supply chain failure. A notable development between the studies in June and December 2020 was that continued access to credit became more important, with an increase from 3 percent to 12 percent of tech companies citing this as their top liquidity issue. Leveraging technology to facilitate growthDespite the challenges associated with international growth, tech CFOs are well-positioned to identify and realize the digital solutions that will help reduce friction, create efficiencies and facilitate new business models. Fewer CFOs and treasurers believe they are constrained by lack of digital solutions for managing real-time liquidity than those in other industries, helping to minimise cash buffers and optimise working capital to allow higher investment in growth and relieve pressure on credit facilities. The past six months has also seen a substantial leap in interest amongst tech CFOs for digital solutions to improve supply chain efficiency. In June 2020, 19 percent placed this as their no. 1 supply chain priority; six months later, this had grown to 35 percent. Seventy percent placed supply chain digitisation in their top three priorities.Doing business betterA final, encouraging finding from the study was how tech CFOs' and treasurers' focus is not just on growth and the tools to facilitate it, but how to do business. While 13 percent placed environmental, social and governance (ESG) issues in their top three international trade and supply chain priorities in June 2020, this had grown to 19 percent within six months. We expect this trend to continue growing strongly to reflect wider C-Suite priorities. For example, KPMG reported that 80 percent of CEOs in the technology industry believe that managing ESG factors will be crucial to achieving long-term growth. While international growth is challenging, there are ways to overcome obstacles. CFOs can leverage banking partnerships to understand and comply with regional regulations, particularly in more challenging and disparate markets in Asia, Africa and the Middle East. Digital technologies can help reduce supply chain friction and create financial and operational efficiencies. And banking partners that share the company's commitment to ESG excellence can help tech CFOs do business better.About Borderless Business· Includes 164 technology companies headquartered in US, France, Germany and UK as part of a 1,008-respondent quantitative survey · 52 percent of respondents were CFOs or finance directors; 48 percent senior treasurers · All businesses have a turnover of over $500m and plan to take advantage of opportunities outside of its home region within the next 12 months Tech CFOs and treasurers should focus not just on growth and the tools to facilitate it, but how to do businessJeremy Amias
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