United We Stand

EACT Summit 2025 Building on Professional Resilience

The 2025 annual European Association of Corporate Treasurers (EACT) Summit, held in Brussels in April, served as a timely reminder that treasurers across the community possess an increasingly welcome voice in the face of adversity. The plenaries, keynotes, and breakout sessions, here in summary, underscored the value of treasury’s contribution.

Day One

In his opening address of the 2025 EACT Summit – the seventh such event – François Masquelier, Chair, EACT articulated the thoughts of all when he said: “More than ever, our profession has been put in the spotlight.” Conference, he proposed, would offer the assembled community “a much- needed opportunity to discuss and review the changes being faced by the profession”.

Indeed, with most treasurers dealing with “multiple geopolitical crises and tumultuous market activities”, Masquelier suggested that the full programme of keynotes and breakout sessions over the two days would complement the “fantastic environment in which to share best treasury practices beyond national borders”.

The number of countries now represented has reached 21, with new associations from Cyprus, Denmark, and the Baltic region. EACT membership, at a time when the challenges confronting treasurers seem to be multiplying, is a point of focus, noted Masquelier. And with the European regulatory environment increasing in complexity when the need is to enhance competitiveness through simpler regulations and harmonisation, the role of EACT remains firmly as an advocate for its members.

Following the opening address, in her Macroeconomic Overview, Sarah Carlson, Senior Vice-President, Moody’s paid close attention to current extraordinary times, and the impact of US tariff policies on global economic growth, highlighting uncertainty and risk. The transmission mechanisms of tariffs to the economy, including private consumption, investment spending, and public finances, were explained. It was noted that the indirect effects of tariffs, such as increased tension with China, and the potential for stock dumping in European markets, raise the economic stakes, not least in the outcomes of changes in the post-Second World War security order, and the compulsion to increase defence spending
in Europe.

In terms of sovereign risk and policy choices, challenges encountered by European countries in managing debt and interest burdens are driving the need for fiscal consolidation, it was said. Economic growth is now a vital component in reducing debt, with policy choices now in the spotlight. As a guide for European competitiveness, the Draghi report (The future of European competitiveness) was referenced for its focus on regulatory reforms and the deployment of savings and human capital. However, questions were raised as to whether current economic and geopolitical challenges will lead to significant policy changes and increased competitiveness in Europe.

Entirely appropriately, EACT’s efforts in advocacy and collaboration with other organisations were highlighted in the session EACT in Action: Updates for Treasurers. With the EU Commission’s focus on competitiveness, simplification, defence, and security, the importance of advocacy in shaping policy decisions, and the role of EACT in providing input from corporate treasurers, is accentuated. As indeed is the need for concrete ideas and feedback from the treasury community to influence policy makers effectively.

Shifting the topic to the role of the Global Legal Entity Identifier Foundation (GLEIF), it was explained how the legal entity identifier (LEI) verification of payee (VOP) protocol functions as part of the new EU Instant Payments regulation. The benefits of automated verification include speed and precision, reducing treasury’s workload. The process of integrating LEI into corporate systems, including working with FIs and ERP service providers, was also explained, as was the potential of the verifiable LEI (vLEI) for future digital identity and cross-border payments.

Closing this session was a look at the I-OPS initiative, (Issuer Operations Collective/European Capital Market Connect), a coalition focusing on simplifying bilateral processes and standardising operations for issuers of corporate bonds and commercial paper in Europe. The aim, it was noted, is to redress the challenges faced by corporate issuers, especially smaller firms, including fragmentation, high costs, and the need for improved operational efficiency. It was added that I-OPS will complement existing initiatives, with the ultimate aim of increasing capital market participation in Europe.

In the opening day’s plenary session, the European Payments Initiative (EPI) was introduced as a means of counterbalancing the dominance of US credit cards by promoting European payment solutions. The initiative, covered also in the breakout sessions of day two, aims to cover all payment situations in Europe, offering a range of value-added services, such as QR codes and near field communication (NFC) for instant payments.

EPI, it was explained, leverages instant payments regulation, and existing tools such as the Netherlands’ iDEAL direct transfer system, and the Wero platform (with integrated mobile banking apps and standalone apps), the latter having already achieved 80% market penetration in Belgium, France, and Germany. Works-in-progress, such as the digital euro, are also being considered. The EPI goal is to achieve full roll-out to all 27 EU countries by the end of 2026.

In the presentation Towards Real-time Liquidity, it was established that corporates must now prepare for 24/7 client service expectations, especially as regulation in the Eurozone is improving reachability and speed (seven to 10 seconds expected by November 2025), this in part facilitated by the roll-out of ISO 20022 standard messaging, and boosted by the arrival of AI (the latter tackled in depth during the session AI and Your Transformation Journey).

That said, with central banks not yet operating 24/7, liquidity management challenges still exist outside normal business hours. It was observed too that real-time speed also increases fraud risks. New regulatory requirements such as VOP are emerging to try to tackle these issues, and treasurers must build internal controls to balance speed with security.

With emerging tech, it was explained that the use of blockchain and tokenisation is enabling so-called atomic settlement (where initiation and settlement are both simultaneous and instant). The wider concept of tokenised infrastructures was hailed as promising faster, risk-free settlement, especially for high-value currencies. The future integration into the payments chain of some CBDCs, it was suggested, is expected as early as 2026.

When seeking liquidity optimisation, the potential to reduce cash buffers via tokenised intra-day liquidity sweeps was acknowledged. The idea of B2B payments and embedded finance was revealed as a commercially successful addition to a card payment, with a 25% increase of revenues potential often cited by adopters.

Meanwhile, real-time reconciliation – critical for new business models such as pay-per-use and just-in-time – was said to enhance credit management, working capital, and client trust. And finally, the programmability of payments, where smart contracts enable conditional payments and treasury automation, was lauded for creating the potential to auto-invest surplus cash or issue debt in real-time via blockchain.

The bottom line, it was emphasised, is that treasurers need to be part of these projects to ensure favourable departmental outcomes. Treasury must therefore adapt tools, data, and organisational structures accordingly. Cross-functional collaboration will be essential, with finance engaging sales, marketing, and tech-teams as early as possible, with treasury at the table, and even leading, from the start of all transformation initiatives.

The session AI and Your Transformation Journey delivered a cash flow forecasting case study with Caisse Nationale des Caisses d’Epargne et de Prévoyance (CNCP), which finances the French Social Security system. CNCP borrows about €1bn daily on the financial market, and uses AI to improve its cash flow forecasts. It uses a three-step process: data collection, model selection, and back-testing. An autoregressive integrated moving average (ARIMA) model is deployed here, which, it was said, has reduced the error rate in cash flow prediction from 13.3% to 8.5%.

Moving on, during a discussion on AI implementation and security, it was noted that the different types of AI tools offer a range of security levels, and that these must be understood and discussed before implementation. And as a preliminary to any AI project, it was stressed that data organisation and preparation is essential; there are no shortcuts at this stage.

However, it was demonstrated how a Jupyter Notebook (a type of Integrated Development Environment) and AI- generated code can be easily used to create interactive documents and reporting. In this instance, a data framework with a USD-equivalent column was created using data grouped by currency. The demonstration highlighted the speed and efficiency of AI in generating financial reports and calculations. The value of other AI-based labour-saving solutions, such as bespoke ChatGPT creations for organisations, was also touched upon in this session.

The panel discussion Payments – Focus on Innovation and Fraud took attendees into the realms of instant payment regulation and fraud prevention, as they impact treasurers. The panel discussed the benefits of instant payments, including enhanced cash visibility, reduced settlement delays, and improved operational efficiency, but also reviewed the importance of master data governance and the use of the LEI for improved fraud prevention. The panel agreed on the need for a broader set of solutions to prevent payment fraud, including checks before payment execution, and integration with other business tools.

The recorded prevalence of fraud outside Europe, and the need for global fraud prevention measures, also came under the spotlight. This brought into play the limitations of VOP, and the need for additional controls and checks, with the panel in agreement on the value of digital infrastructure and standardised data in the context of fraud prevention.

The panel moved on to explore the challenges and pain points of cross-border payments, issues including uncertainty, delays, and hidden costs. Here, it was said that the adoption of Swift GPI, and better client-servicing by banks, could provide real-time visibility into payment status. The importance of structured data for improving cross- border payment efficiency was emphasised. In particular, the migration to ISO 20022 was hailed as an answer to the call for payment data harmonisation across different geographies, with panel agreement on the benefits of using rich data for better payment processing.

Day one of conference was brought to a conclusion with the keynote of Pierre Fersztand, Global Head, Cash Management, Trade Solutions, Payments and Factoring, BNP Paribas. In Celebrating a Decade of Journeys to Treasury – Partnerships, Innovation and the Road Ahead, treasury should be central to the delivery to senior management, and the media, of a new future vision highlighting the link between humans and technology. The proposal, it was told, necessarily brings experienced cash managers and treasurers together with their junior colleagues, the sharing of a broad base of treasury experiences being a core element of future success.

While other notions were examined, including the importance of collaboration between banks, treasurers, and fintechs in driving innovation and improving efficiency, Fersztand finally turned to Project Agorá.

A group of more than 40 private sector financial firms (organised by the Institute of International Finance and including BNP Paribas), the Bank for International Settlements (BIS), and a group of leading central banks, is looking to build upon BIS’ unified ledger concept. The project team is currently exploring how tokenised commercial bank deposits can be integrated with tokenised wholesale central bank money to create a core public-private programmable platform. It is still very much a work in progress.

At a broader level, Fersztand announced that a forum, to be held in Paris, would facilitate a rounded discussion on the future of treasury and the role of AI, geopolitics, and European sovereignty.

Day Two

The global themes of ESG, sustainability and commercial power were tackled in the keynote address, Europe’s Energy Outlook – ESG, Energy Prices and AI’s Energy Demand, by Roman Filipoiu, CFO of Slovakian gas supplier, SPP-distribucia. Filipoiu explored the technical challenges around sustainability, specifically emphasising the shared responsibility of all regions to act now on how electricity is generated, delivered and consumed. However, the practical difficulties in meeting the existing broad spectrum of approaches used in different national electricity delivery systems were highlighted.

There will be political challenges ahead in building appropriate green networks at scale, Filipoiu believes. As the consumption of electricity will only increase, especially as AI becomes more prevalent, and data centre demand expands to keep up, there is a reliability issue with alternative sources, he noted.

Water turbines cannot be used everywhere, the wind is unpredictable, and there are obvious variable regional efficacies among other current renewables such as solar power. With traditional sources unable to be ramped up immediately to fill the power demand gaps, if the green agenda is to be pursued, Filipoiu suggested that natural gas will be an increasingly important component in balancing loads and maintaining electricity supplies.

He argued that unless Europe can solve its green power storage, supply and delivery challenges, with the unstoppable rise of AI, ultimately it will limit its own role in the next technological revolution. Huge investment is essential, which ultimately plays to the strengths of treasury decision-making.

As the breakout sessions of day two commenced, Alternative Payment Methods for B2C and Merchant: Challenges and Opportunities considered the evolving European payment landscape (also covered in the opening day’s plenary session).

The discussion initially focused on the shift from traditional payment methods, such Visa and Mastercard, to alternative networks. It was observed that while consumers are largely indifferent to specific payment networks, they will actively prioritise convenience and security, some preferring prepaid cards for their online transactions. One industry goal is to create a universal digital wallet that supports multiple payment scenarios, including in-store, online, and P2P transactions. The panel explored the idea of different enrolment options for cards and accounts, with the aim of creating a default payment wallet for European users (possibly based on the existing Wero platform, referred to previously).

A key driver of the wallet initiative is to reduce Europe’s dependency on the dominant international card schemes while offering users an easier and secure payment experience. It was also established that to be truly effective, in terms of efficiency and adoption rates, pan-Europe policy collaboration between merchants, payment initiatives, policy- makers, and regulatory bodies, would be necessary.

The breakout session Data-Powered Treasury: Unlocking ISO 20022 reviewed the implementation and benefits of the XML-based ISO 20022 that will replace legacy formats such as Financial Information Network (FIN) by November 2026. It was noted that more high-value payment systems worldwide are moving to the new standard. With 3,000 corporates currently connected to Swift, the panel suggested that ISO 20022 capabilities will significantly enhance corporate-to-bank flows. A working group, with corporates, banks, and technology vendors, ensures that new capabilities within the scope of the standard will meet the evolving needs of stakeholders.

For corporates, those needs include more structured and detailed remittance information, and improving reconciliation and forecasting opportunities. The opportunity for more process automation will, it was said, mean fewer false positives in payment screening, enhanced STP rates, and certainly reduced risk of data loss or manipulation across the payment chain.

The ISO 20022 corporate experience was shared by Fabian Trostorf, Cash Manager, Projects, Bayer, a global healthcare and crop science company. The firm has a centralised set-up for payments, with commercial and treasury payments managed separately. Now live on ISO 20022, Trostorf explained that standardised payment formats and reduced maintenance effort, as well as improved payment tracking capabilities with a growing list of banks, are now a reality for his team.

For a successful migration to ISO 20022, the panellists agreed that all stakeholders, including banks, service bureaux, IT and finance, should be fully engaged to ensure alignment. At the corporate end, Swift’s test facilities should be leveraged to validate the new format before engaging with banks. This, it was explained, will involve running ‘penny tests’ as soon as possible to identify any issues in the production environment. It was also advised that master data adjustments will be necessary to establish correct implementation.

The panellists revealed that tracking capabilities will soon be extended to commercial payments, and that an instant cash reporting API will be offered in support of real-time access to account balances and statements. A new ‘stop and recall’ feature will empower corporates to take instant remedial action within the tracker, while payment preparation functionality will provision for standardised information to be used in specific payments.

At the session’s conclusion, corporates were encouraged to engage as soon as possible with their banks and Swift, making sure they are up to speed with all current and future ISO 20022 capabilities and value-adding services.

The call for trade finance process transformation was the focus of Scaling Digitalisation of Guarantee Management and Trade Finance. As an establishing shot, an audience vote was taken on the degree of responsibility treasury takes for managing trade finance operations. Results showed that 46% are fully in charge, 46% partially in charge, and 8% said it was not part of their remit. It was pointed out that these figures approximate with PwC’s 2024 Global Treasury Survey, which cited 52% of treasury respondents as taking an active role in trade finance.

Among trade finance participants, challenges of note include operational decentralisation, the lack of visibility, and control over processes. Process digitisation was seen as progress, a straw poll concerning the tools used for trade finance operations showing a mix of in-house built systems, TMS, and third-party specialised systems.

It was noted that the market trend was towards those specialised platforms over in-house systems, with clear value attached to the flexibility of a platform such as Komgo. This steered the panel towards a brief exploration of the potential of new API standards to simplify connectivity between corporates and banks.

A discussion followed on the future of trade finance and the potential of AI to enhance automation and risk management. Komgo, it was revealed, has already embedded this technology within its platform, for example in managing text in trade guarantees. Further potential use cases have been identified in centrally administering parent company guarantees.

Despite the panel’s enthusiasm for new technologies, it was acknowledged that certain challenges persist around the delivery of digital guarantees. It was also pointed out that a number of blockchain-based trade finance initiatives have collapsed simply because they required the rebuilding of networks of thousands of stakeholders, demanding unsustainable levels of investment and time. In certain regions, and for smaller trade participants, there was agreement that while the technology is robust, the issue of scalability was unlikely to be resolved anytime soon.

Debt Dynamics: Navigating Capital Structure in Changing Markets considered debt levels, and attitudes, in the context of current US and European market activities. As a snapshot, the dominance of the US market in non-equity funding, the shift from bank funding to private credit markets, and the growth of private credit instruments in Europe, were realities, spurred on in part by the impact of more demanding post- financial crisis regulations on bank behaviour, and the rise of private investors in the credit market.

Despite current market pressures, default rates are currently low. However, the panel anticipates an increase sooner rather than later. There is however a dry powder of capital waiting to be deployed, perhaps maintained by the impact of recent market volatility on economic growth. Nonetheless, it was made clear that market conditions are just one piece of the puzzle; unique organisational needs drive the timing and approach to restructuring.

Therefore, when managing capital structures, ‘out-of-the-box thinking’ and internal resource optimisation is required before seeking external funding. This demands a full understanding of the financial health of the organisation, and the impact this has on its debt management strategies, as well as a deep understanding of market dynamics. The role of treasurers in advising on debt structure and proactively managing relationships with stakeholders is now at a new level of importance.

A more recent aspect of consideration around financing is ESG and sustainability. Its significance and value, however, met with varied opinions from the panel. The lack of financial benefit and burden of effort around ESG-linked financing were highlighted, alongside the challenges of meeting regulatory requirements. A balanced approach to ESG considerations in financing decisions was thus called for.

The panel moved the conversation on to communication and stakeholder management, with a noted difference in strategies between listed companies and private entities. Nonetheless, it was stressed that clear communication with banks, rating agencies, and other stakeholders (such as suppliers and credit insurers) was vital, especially now. Described as ‘proactive relationship management’, relationships between the company, its banks and other stakeholders, must be kept active, even in good times.

Again, treasurers have a role to play. The list of contact points should notably include financial advisers, investment bankers, lawyers, accountants, and tax advisers. The communicative approach, it was suggested, is the most effective means of securing financing opportunities when needed.

The topic of innovation in working capital and SCF steered the agenda for the day two plenary, and closing session, What’s New in Working Capital and SCF? Panellists were keen to underscore the importance to treasury of digitisation and fintech integration, particularly where many companies are still relying on basic solutions such as spreadsheets for cash flow forecasting. However, it was recognised that challenges – such as funding pressure and regulatory concerns – persisted as treasuries press for the introduction of real-time liquidity and cash flow forecasting.

In seeking improvements in working capital management, while the need for co-ordination across different departments was stressed, it was also suggested that AI has an increasingly clear role in improving elements such as inventory management and cash flow forecasting.

Although it was agreed that SCF remains a useful tool for buyers and sellers, the complexities of inventory finance, where a business uses its inventory as collateral for a loan to buy more, means large volumes are necessary to justify implementation costs. It also raises certain accounting issues.

These include the potential for inaccuracies in inventory valuation, its depreciation, and the impact of financing costs on financial statements. All could influence a firm’s ability to accurately report its financial position and performance, with the subsequent bearing this could have on securing future financing.

An alternative, in the form of ‘payment with terms’, was introduced by the panel. This, it was said, has proven to be a successful model for firms of all sizes across Germany. A supplier is paid on the agreed due date by the buyer’s appointed payment service provider (in this case Orbian), which then invoices the buyer for reimbursement of the paid amount, but offering the buyer payment terms that take it beyond its original agreement, effectively extending the buyer’s terms.

This improves the buyer’s working capital without adding debt because the cash used to pay the supplier, which benefits by knowing it will be paid on time, is not debt on its balance sheet but part of its operating activities. Unlike SCF, the model does not require procurement team involvement: it can be a treasury-led decision as to how many payments run through this model rather than direct through the buyer’s own bank accounts.

The plenary session also touched on sustainable SCF, its role in supporting supplier sustainability, and its increasing uptake. It was noted how ESG ratings are now influencing the pricing of invoice discounting and providing incentives for suppliers to improve their sustainability practices.

In the regulatory space, the panellists observed that the 2023 EU proposal to amend rules on late payment in commercial transactions, reaching a consensus among stakeholders is experiencing some difficulty. One key change to existing legislation is a maximum payment term of 30 days. It was reasoned that this now raises the importance of market- driven terms, and the role of bodies such as the EACT in advocating for corporate interests. The latter was a thought echoed in the closing remarks of the session and indeed across the whole conference.