Factors Chain International (FCI) and International Factors Group (IFG) have successfully entered a union to form the world’s largest factoring network.
Taking effect on January 1, 2016, the combined organisation now represents more than 400 institutions in over 90 markets worldwide. The combined annual turnover of the enlarged network represents 75 per cent (1.7 trillion US-Dollars) of the total revenues of the factoring industry (2.3 trillion US-Dollars) and 90 per cent of cross-border factoring revenues. The enlarged network creates one legal framework for its members, making it easier for them to do business. It will also allow the industry to speak with a single voice to national as well as supranational regulators.
The union of the two globally leading factoring networks was first announced in November 2015 following the approval by the stakeholders of both FCI and IFG. The combined organisation is under the legal auspices of Factors Chain International (FCI). It is headed by Michel Leblanc, Chairman of the Executive Committee of FCI and Deputy Vice President of the National Bank of Canada; Peter Mulroy, Secretary General; and Erik Timmermans, the former Secretary General of IFG who now acts as Deputy Secretary General. The combined organisation is headquartered at the current seat of FCI in Amsterdam, Netherlands, with a branch office in Brussels, Belgium. The first Annual Meeting of the new organization will take place in Cape Town, South Africa, in October 2016.
The enlarged network will continue to act as a strong voice for the global factoring industry. Its main focus will be on educating its stakeholders and the market on cross-border factoring. FCI will therefore continue to expand its training programmes for finance professionals and spread best practice across the world. It will also put a stronger focus on innovation, exploring new services and products in the receivables finance area and defining standards for them. The enlarged FCI will also continue to strengthen its regional approach with a particular focus on emerging markets such as Africa. This includes establishing new regional chapters and strengthening existing ones, thereby helping members to expand their businesses in tomorrow’s growth markets.
Peter Mulroy, Secretary General of FCI, said: “The union of FCI and IFG is a significant milestone for the global factoring industry. By combining the dedicated strengths of each organisation, we are creating one strong voice representing the whole industry. This will greatly benefit our members with a common legal framework for cross-border factoring established for the first time. The new organisation will enable the growth of export factoring around the world and continue to move the industry forward.
Erik Timmermans, Deputy Secretary General of FCI, said: “As the factoring industry continues to grow globally, it is more important than ever to have a strong global voice representing the industry. The members of IFG recognise the huge number of advantages of the union with FCI and I am delighted to see that this step has now become reality. The combined organisation will create new business opportunities for all members and greatly increase our regional reach. We are thereby helping organisations to expand into new markets and grow their businesses.”
About FCI / IFG
Founded in 1968, Factors Chain International (FCI) is a global network of leading companies, whose common aim is to facilitate international trade through factoring and related financial services. Headquartered in Amsterdam, Netherlands, FCI has over 400 members in 90 countries, and is by far the world’s largest factoring network. On January 1, 2016, the FCI has entered a union with International Factors Group (IFG) to create a combined global factoring network representing 90 per cent of cross-border factoring revenues worldwide.