A staggering 99 percent of Hong Kong finance leaders cite operational difficulties due to inadequate spend management systems, according to Airwallex’s latest Spend Management Report.

The report was curated based on a survey of 200 senior finance professionals in Hong Kong-based small-to-medium-size companies.

It highlights the increasing difficulties in managing global spend, driven by factors like evolving supply chains, the rise of hybrid work models, and the complexities of navigating multi-currency transactions and regulatory compliance.

Fragmented tools result in fragmented finances

The survey found that 78% of finance leaders report inefficiencies and unreliability in their current systems, leading to delays and errors in managing global expenses.

Additionally, 95% of respondents cited a lack of real-time visibility into spending patterns as a major challenge, hindering accurate forecasting, informed decision-making, and effective financial management.

Disconnected tools and manual processes further exacerbate these inefficiencies.

75% of respondents reported using different tools to manage spending outside their home markets, resulting in delays in invoice and bill payments.

These delays can strain relationships with suppliers, with 41% of finance leaders reporting payment delays and 20% stating that late payments have hindered supplier negotiations.

The report also emphasizes the difficulty in identifying areas of overspending and non-compliance, with 85% of finance leaders expressing concerns.

Outdated tools and cumbersome reimbursement processes, reported by 82% of respondents, further complicate financial decision-making.

How unified platforms address spend management challenges

The Airwallex report suggests unified spend management platforms as a solution to these challenges.

These platforms aim to streamline financial operations, reduce errors through automation and integration, and improve financial visibility.

The report cites the example of HYROX, a company with international operations, which successfully adopted a unified approach to spend management using Airwallex.

This resulted in improved control over budgets, streamlined reconciliation processes, and increased confidence in navigating international markets.

While unified spend management platforms offer significant benefits, the report acknowledges potential barriers to adoption, such as cost constraints and integration complexities.

However, it emphasizes that focusing on long-term savings and efficiency improvements can justify the initial investment, and that successful implementations can address integration concerns.

Nick Chiu, Head of Sales, SME & Growth, Hong Kong at Airwallex, stresses the importance of modernising spend management for businesses engaged in cross-border operations.

“Hong Kong businesses are pursuing global growth more than ever, but inefficiencies in spend management create real challenges.

Adopting a unified platform is key to managing cross-border transactions and multi-currency expenses seamlessly.”

Featured image credit: Edited from Freepik