Top Drivers of a POBO/COBO Strategy

More companies are moving to streamline their payments and collections with on-behalf-of structures. And a recent NeuGroup survey revealed that:

• Nearly 100% of firms report that visibility, control over bank accounts and associated cash, and reducing fees are among the top three drivers for deciding to implement a POBO/COBO structure.
• Issues related to FX management rank lowest as drivers for POBO/COBO implementation.
• The lack of FX considerations driving implementation could be explained by the fact that POBO/COBO is still largely a predominant single-currency phenomenon, with most current structures in North America (USD), 32%; Europe (EUR), 22%; and Asia (where USD still dominates trade payments), 22%