Most finance leaders struggle to keep up with e-commerce growth, investigation reveals

Two-thirds (66%) of finance leaders say their team is unable to keep up with the pace of e-commerce, according to an investigative report by Hokodo, a provider of flexible payment terms for European merchants and marketplaces, in partnership with the B2B Ecommerce Association.

B2B e-commerce is evolving rapidly – ​​the market is expected to reach $2.641 trillion in 2024 – but the Hokodo report revealed that many finance functions are not future-proofed. In fact, an industry survey of CFOs and finance leaders found that almost one-fifth (17%) of finance leaders believe their finance team is not future-proofed.

Barriers to future-proofing finance functions come down to a lack of balance between growth and control. Nearly half (46%) of respondents struggle to balance financial control—policies used to manage financial resources and ensure accurate reporting—with strategic growth initiatives. When asked if e-commerce has made it harder to manage financial control, a majority (39%) of finance leaders agreed. Only 5% strongly disagreed.

Louis Carbonnier, Co-Founder and CEO of Hokodo, commented: “Despite the fact that the B2B commerce industry is digitizing at a rapid pace, our investigation revealed that finance teams face numerous barriers and simply cannot keep up with the pace of e-commerce. Future-proofing starts with technology support for the finance team. Whether it’s through reports like this one or our digital trade credit offering, our mission is to ensure that all finance leaders are ready to embrace the future of B2B commerce.”

In addition to finding the right balance between growth and control, finance leaders face obstacles related to cash flow and payment terms. The study found that the top three challenges for finance leaders are managing working capital and cash flow unpredictability (66%), cutting costs (49%), and managing payments and payment terms (44%).

Worryingly, these challenges are preventing finance leaders from innovating and ensuring their finance function is future-proofed. The study found that other key barriers to innovation include budget constraints (66%), resistance to change (54%) and lack of capability (37%).

Christopher Gee, UK Lead at the B2B Ecommerce Association, added: “It’s reassuring that this report offers a pragmatic approach to automating finance processes. The report provides timely insights and valuable strategies for anyone navigating the complex world of B2B finance, balancing efficiency with growth.”