Payment delays, cyber risk gaps and BNPL challenges

October 15, 2024

By Rachael Kennedy

Welcome to The Global Treasurer's latest Weekly Digest, your go-to source for the week's top insights and updates tailored for treasury professionals. What are the most popular articles from this week? We've put together a list, so you never miss out. In this issue, you'll find:

• New UK regulations allow banks to hold suspicious payments for up to four days, raising concerns in the property market over transaction delays.
• A PwC survey shows only 15% of companies measure the financial impact of cyber risks, leaving many exposed.
• The BNPL boom is driving sales but complicates cash flow and credit risk for treasury teams amid tighter regulations.

We’re here to ensure you stay informed, inspired, and ready to tackle the week ahead.

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TOP READS

NEWS

New Four-Day Freeze on Suspicious Payments Sparks Mortgage Concerns

The UK banking sector is set to implement new regulations allowing banks to place a four-day hold on suspicious payments starting at the end of October. The government’s intent is to reduce the rising tide of fraud, which now accounts for a third of all crime in England and Wales. However, the introduction of this extended pause has stirred unease among those involved in high-stakes financial transactions, particularly in the property market, where timing is crucial. Under the new rules, banks will have the right to delay any payment for up to 96 hours if they have reasonable grounds to suspect fraudulent activity. This represents a significant shift from the current protocol, which mandates that payments must be processed or declined by the end of the next business day. Read More

REPORT

Lack of Cyber Risk Quantification Leaves Companies Financially Exposed, PwC Report Finds

A new PwC report reveals a significant gap in how companies quantify and manage their cyber risks financially. The 2025 Global Digital Trust Insights survey, which polled 4,042 business and technology executives from 77 countries, found that only 15% of organizations are measuring the financial impact of cyber risks to a significant extent. This low adoption rate of cyber risk quantification practices could leave many companies financially vulnerable to cyber threats. The report, released on September 30, 2024, highlights several key areas where organizations are falling short in their cyber risk management efforts. Read More

INSIGHTS

The BNPL Boom: Understanding the Treasury Impact

?The Buy-Now-Pay-Later (BNPL) boom is reshaping consumer finance, but it poses significant challenges for treasury teams. While BNPL boosts retailer sales, it also delays revenue recognition and shifts credit risk to BNPL providers, impacting cash flow and financial planning. Credit risk is a concern as lenient credit checks increase the chance of defaults, which could rise sharply in an economic downturn. Regulatory scrutiny is tightening globally, potentially altering the BNPL model and affecting liquidity. Treasury professionals need to adjust cash flow models, conduct scenario analyses, and monitor regulatory developments closely. Understanding BNPL’s implications and integrating it into risk management is essential for navigating this evolving landscape and mitigating broader financial risks. Read More

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