Corporate treasurers overhaul payment chains as supply chain liquidity pressures grow

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Treasurers overhaul payment chains

Highlights

Citi reports a 40 per cent year-on-year surge in payment network volumes in H1 2026, driven by rerouted trade flows and AI investment.
Seventy-two per cent of treasurers now prioritise extracting trapped supply chain liquidity, with AI adoption in management rising from 16 to 45 per cent in two years.
JPMorgan estimates S&P 1500 companies hold over $700 billion of trapped liquidity, while Hackett puts the figure at $1.7 trillion due to financing inefficiencies.

Digital tools reshape trade finance flows

As reported by Financial Times, a recent Citigroup study based on internal client payments data and a survey suggests companies are not only reorganising physical supply chains but also changing the financial plumbing behind them.

Citi says payment network volumes across all sectors rose 40 per cent year on year in the first half of 2026, reflecting both rerouted trade flows and stronger activity linked to artificial intelligence investment. The bank points to China sourcing more agricultural products from Latin America and a sharp rise in tech-export payments, including a 90 per cent jump from Taiwan to Singapore.

The same study indicates that 72 per cent of treasurers now rank extracting trapped liquidity from restructured supply chains as a top priority. Citi says treasury teams are being pressed to unlock cash embedded in supplier relationships and inventory, while 45 per cent are using AI for supply chain management, up from 16 per cent two years earlier, and 72 per cent are using digital technologies such as blockchain, up from 57 per cent in 2024.

Capital efficiency and market risks come into focus

Consulting and banking estimates underline the scale of the issue. JPMorgan estimates S&P 1500 companies hold more than $700 billion of trapped liquidity inside supply chains because of financing inefficiencies, while Hackett puts the figure at $1.7 trillion.

The push to modernise custody, liquidity and payment systems could improve capital efficiency, but it also carries broader implications for investors and companies. Greater reliance on digitisation and AI may increase exposure to cyber attacks, while wider blockchain adoption could eventually make it easier for companies to move away from a dollar-centred cross-border payment system if geopolitical tensions intensify.

For corporate leaders, the search for spare liquidity also signals caution beneath stronger trade and earnings sentiment. Rising investment demands, higher interest rates and persistent uncertainty are forcing companies to compete harder for capital, making financial supply chains an increasingly important indicator for the wider economy.

In our earlier article on how wars and tariff pressures are reshaping global trade, we explained that companies are redesigning supply chains and shipping routes to build resilience, even at higher cost. We also highlighted the WTO’s view that some of these shifts could persist beyond current conflicts, with regional trade expanding and AI-related demand helping support global trade growth forecasts despite ongoing disruption risks.

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