Filings Buzz in payments: Digitalisation down 18%, cybersecurity up 25%

Meantime, covering the same period, mentions of cybersecurity within the filings of companies in the payments sector were 25% higher.

In total, the frequency of sentences related to digitalisation between October 2020 and September 2021 was 266% higher than in 2016 when GlobalData 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. Digitalisation 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 digitalisation 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 digitalisation at least once in filings during the past twelve months - this was 87% compared to 64% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to digitalisation.

ICICI: top for digitalisation mentions
Of the 50 biggest firms in the payments sector, ICICI Bank was the company which referred to digitalisation the most between October 2020 and September 2021. GlobalData identified 129 digitalisation-related sentences in the India-based company's filings – 3.3% of all sentences. Haci Omer Sabanci mentioned digitalisation the second most – the issue was referred to in 3.2% of sentences in the company's filings. Other top employers with high digitalisation mentions included Santander, State Bank of India and China Construction Bank.

Across all companies in the payments sector the filing published in the third quarter of 2021 which exhibited the greatest focus on digitalisation came from Mitsubishi UFJ Financial Group. Of the document's 1,798 sentences, 94 (5.2%) referred to digitalisation.

This analysis provides an approximate indication of which companies are focusing on digitalisation 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 digitalisation 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 digitalisation have been successes or failures.

The frequency of sentences related to cybersecurity between October 2020 and September 2021 was 125% higher than in 2016.

To assess whether cybersecurity 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 cybersecurity at least once in filings during the past twelve months – this was 90% compared to 80% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to cybersecurity.

Of the 50 biggest firms in the payments sector, Grupo Elektra SAB was the company which referred to cybersecurity the most between October 2020 and September 2021. GlobalData identified 22 cybersecurity-related sentences in the Mexico-based company's filings – 1.7% of all sentences. Sberbank mentioned cybersecurity the second most – the issue was referred to in 1.3% of sentences in the company's filings. Other top employers with high cybersecurity mentions included Truist Financial Corp, American Express and Banco Santander.

Across all companies in the payments sector the filing published in the third quarter of 2021 which exhibited the greatest focus on cybersecurity came from Huntington Bancshares. Of the document's 1,308 sentences, 40 (3.1%) referred to cybersecurity.