2017 world factoring statistics

18-May-2018

FCI announces the final world factoring statistics 2017. Following the provisional statistics published in March, the revised outcome now shows a 9% increase worldwide reaching a figure of €2,598,298m. China witnessed the most significant revision, where, against the initially reported figure of € 282,000m representing a 7% decrease the previous year, feedback from CFEC and the Chinese Banking Association (CBA) indicates thatthe correct estimate is € 405,537m: an increase of 34%. Seemingly, for the first time we have been successful in retrieving complete official figures from these two Chinese associations which represent the national commercial factoring companies and bank factoring activity respectively. The previously reported figures did not include the volume of the commercial factors and this of course significantly influenced the entire scenario and has resulted in a positive impact on the global growth figure reported for 2017. 

In 2017, FCI members accounted for 60% of the total world factoring volume and 88% of the total world cross border factoring volume. Total member’s international volume grew by 7%. 

The European region grew by +7% and accounts for 65% of global volume. The UK market, which accounts for +20% of European volume continues to suffer from the high volatility of its currency, recording a decrease in volume of -1%, in part stemming from the Brexit crisis. However, the rest of the mature Western markets like France +8%, Germany +7%, Belgium +11%, Italy +9%, Portugal +10% and Denmark +13% all show a continued upward trend. However, large increases were reported in the CEE region, including Bulgaria +50%, Czech Rep +26%, Hungary +58%, Poland +12%, Russia +21% and Romania 13%. Turkey’s reduced exports pulled down its total market figure, declining by -1%.

The Asia region grew by 18%, and accounts for 25% of global volume. The growth was led by China +34%, generating €406bn in volume, which allowed them to surpass the United Kingdom as the largest factoring market in the world. We also witnessed solid increases in the greater China region of Hong Kong +9%, Singapore +9%, Taiwan +5%. However, Japan -25% and Korea -7% both reported declines.  

The Americas region grew by +5% and accounted for 8% of global volume. It was led by a surging Latin America, which increased by nearly +12%. Brazil grew by +11%, Mexico by +4% and Argentina by +21%. Chile was the only large market in Latin America that suffered a decline, dropping -9%. North America lost momentum, the US decreasing by -3%, and Canada by -4%, in part impacted by the continuous drop in cross border factoring activity and the effects of a few large retail bankruptcies. 

Africa and the Middle East regions grew by +6% each respectively. Africa is of course highly dependent on South Africa, which accounts for nearly 79% of the total African market and grew by +5%. Morocco and Israel increased both by +25% and 7% respectively but was offset by declines in both Egypt -24%, Tunisia – 9% and Mauritius -19%. 

FCI is the global representative body for factoring and the financing of open account domestic and international trade receivables. With close to 400 member companies in 90 countries, FCI offers a unique network for collaboration and cooperation to foster cross-border factoring. FCI is in its 50th year and will celebrate its golden anniversary during the 50th Annual Meeting in Amsterdam, Netherlands, 10-15 June.