News from IFG – May 2015

 

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The Factoring Industry has again shown important growth in 2014. At IFG we are finalizing our yearly Global Industry Activity Report (GIAR) but the estimated figures for the EU, presented by the Economics and Statistics Committee of the EUF on 1. April show already an increase of turnover of 6,54% in the 28 EU member states. For the first time, the GDP penetration (factoring turnover compared to GDP) is above 10% in the EU.

This industry plays an important role in the financing of the real economy, supporting development of SME’s and employment and this in combination with very low risks for the financial institutions.

Nevertheless, there are still lots of challenges ahead. How can the Factoring Industry harmonize its legal and product environment, how to share best practices with emerging markets, how to position the specific approach of factoring compared to new initiatives in Supply Chain Finance and Alternative Lending, how to embrace new technologies, how to cope with increased regulation and compliance issues: these are just a few of the questions you are confronted with daily.

Since more than 10 years now, IFG has taken the lead in focusing not only on day-to-day cross border business between members, but also on these important issues for the industry. The three pillars of IFG’s activities: Connect – Educate – Influence are becoming increasingly relevant in today’s business environment.

Our Annual Meeting in Vienna (18-21 October) will be the yearly event for many of you to share experiences and to learn about new trends in the Industry.

In terms of Education, we organized in cooperation with the local legislators, the Egyptian Factoring Association and Afreximbank a highly successful Symposium and Factoring workshop in Cairo. Our University Certified Course on Finance of International Trade (COFIT) continues to be the reference for education in our industry and I look forward to the IFG Academy week in June which is part of COFIT and for which it is still possible to register students. EBRD entered into a cooperation agreement with IFG to obtain access to our e-foundation course, available in five different languages. This will definitely give more access to best practices in the emerging markets.

The Influence part of our activities become increasingly important.

The Factoring Industry needs to have a strong and unified voice globally in order to communicate better and more consistently about the key advantages of this industry in terms of financing the real economy whilst controlling the financial risks.

As in the past, IFG members as well as the entire Factoring Industry can count on our efforts to create this strong voice.

Erik Timmermans

Rep. Secretary General

IFG

 

For more info www.ifgroup.com

See our latest newsletter : http://www.ifgroup.com/wp-content/uploads/2013/11/IFG_Voice_Newsletter_april.pdf