Repatriated cash would go to financial technology as it improves performance metrics
As policymakers debated corporate tax reform and repatriation incentives, many organizations began evaluating how an influx of capital could be used to support long-term growth. While stock buybacks and debt reduction have historically dominated discussions around repatriated funds, a growing number of finance leaders have shifted their attention toward technology investments that can improve efficiency, visibility, and financial performance.
A survey conducted by C2FO found that nearly half of finance and treasury professionals would bring overseas cash back to the United States if tax policies became more favorable. Among those respondents, technology investment ranked as the top priority, ahead of research and development and trade finance initiatives. The findings underscore the growing importance of fintech investment as companies seek new ways to optimize operations, strengthen supply chains, and improve working capital management.
The survey also highlights a broader trend: finance leaders increasingly view financial technology as a strategic tool for driving measurable business outcomes rather than simply reducing operational costs.
KANSAS CITY, Mo., Dec. 12, 2017 — If the Trump administration were to cut taxes for corporations or approve a repatriation tax holiday, a new survey reveals that 46 percent would return the cash to the United States. These findings were released today from C2FO, the world’s market for working capital®, which surveyed 274 finance and treasury professionals at the AFP 2017 Treasury & Finance Conference in October 2017.
When asked where exactly the addition of new cash would be invested, aside from paying down debt or typical buy-backs/investor derivatives, respondents put technology updates (62 percent) and short-term, low-risk investments (59 percent) at the top of their lists. The remaining respondents said research and development (46 percent) and trade finance programs for suppliers (14 percent).
“Historically, companies have leveraged repatriated cash to buy back stocks, pay shareholder dividends, and even support acquisition activities, however we are beginning to witness a reprioritization in their investment. In the age of digital transformation, cash spend has shifted towards high yield, low-risk growth strategies including digital innovation,” said Sean Van Gundy, managing director of working capital advisory for C2FO.
Fintech Can Improve Performance Metrics
Financial technology is becoming an attractive investment due to its potential to improve performance. An overwhelming majority (95 percent) of financial professionals surveyed agree that financial technology can improve their performance metrics.
When asked which metrics were the most important in measuring success, the majority (63 percent) selected working capital position, 25 percent chose EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and the remaining 12 percent were evenly split between DSO (Days Sales Outstanding) and DPO (Days Payable Outstanding).
“It’s encouraging to see that companies agree that fintech is mission critical to their long-term financial performance,” added Van Gundy. “Based on the survey results, with finance and treasury professionals focusing on working capital position versus singular metrics like DPO, it’s more important than ever to prioritize investment in trade finance technology that increases supply chain visibility for better risk management and working capital optimization.”
The C2FO survey illustrates how corporate priorities have evolved as organizations focus more heavily on technology-driven growth strategies. Rather than relying solely on traditional uses for repatriated cash, many finance professionals see fintech investment as a way to improve working capital management, strengthen financial performance, and enhance supply chain visibility.
As digital transformation continues to reshape corporate finance, investments in trade finance technology and other financial tools are likely to remain a key area of focus. Companies that leverage these solutions effectively will be better positioned to optimize liquidity, manage risk, and support sustainable growth in an increasingly competitive marketplace.
About C2FO®
C2FO is the largest working capital marketplace in the world. Companies across the globe use C2FO to increase their operating income while simultaneously producing vital working capital flows to their supply chains. C2FO is a leader in retail, industrial, manufacturing, energy, healthcare, technology, telecom and transportation sectors. C2FO is Collaborative Cash Flow Optimization. Learn more about C2FO at http://www.c2fo.com.
Methodology
C2FO conducted this research at the AFP 2017 Treasury & Finance Conference, held October 15-18, 2017, in San Diego, CA. The 274 respondents were treasury (81 percent) and finance (19 percent) professionals.
