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February 5, 2022

Filings buzz: payments sector – 15% increase in supply chain & logistics mentions in Q3 2021

GlobalData research reveals filings references to supply chain and logistics of companies in the payments sector

By Andrew Hillman

Mentions of supply chain and logistics within the filings of companies in the payments sector rose 15% between the second and third quarters of 2021.

In total, the frequency of sentences related to supply chain and logistics between October 2020 and September 2021 was 40% higher than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings.

When companies in the payments sector publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Supply chain and logistics is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether supply chain and logistics is featuring more in the summaries and strategies of companies in the payments sector, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned supply chain and logistics at least once in filings during the past twelve months - this was 19% compared to 13% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to supply chain and logistics.

Of the 50 biggest employers in the payments sector, Sberbank was the company which referred to supply chain and logistics the most between October 2020 and September 2021. GlobalData identified five supply chain & logistics-related sentences in the Russia-based company's filings - 0.07% of all sentences. Royal Bank of Canada mentioned supply chain and logistics the second most - the issue was also referred to in 0.07% of sentences in the company's filings. Other top employers with high supply chain & logistics mentions included HDFC Bank, Santander and Grupo Elektra SAB.

Across all companies in the payments sector the filing published in the third quarter of 2021 which exhibited the greatest focus on supply chain and logistics came from Ally Financial Inc. Of the document's 1,150 sentences, 16 (1.4%) referred to supply chain and logistics.

This analysis provides an approximate indication of which companies are focusing on supply chain and logistics and how important the issue is considered within the payments sector, but it also has limitations and should be interpreted carefully. For example, a company mentioning supply chain and logistics more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into supply chain and logistics have been successes or failures.

In the last quarter, companies in the payments sector based in the United States were most likely to mention supply chain and logistics with 0.03% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in Oceania mentioned supply chain and logistics in just 0.01% of sentences.

GlobalData is the parent company of Electronic Payments International and its sister publications.

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