UK corporates are leaning more heavily on manual FX instruction methods this year despite sharp swings in sterling, according to new data from MillTech.
Email is now the second most common execution channel at 42% – a ten‑point rise from 2024 – while phone‑based instructions climbed to 40%. This comes as nearly half of firms (48%) report losses on unhedged FX exposure, prompting finance teams to extend hedge lengths and increase hedge ratios to shield their balance sheets.
The MillTech UK Corporate FX Report 2025, based on insights from more than 250 senior finance leaders, shows hedging activity rising for a third straight year as volatility intensifies. Overall hedging participation has reached 78%, with firms protecting a larger share of their exposure and locking in rates for longer.
Yet this shift is happening alongside mounting operational strain: limited internal expertise is now the top FX challenge, followed by cost calculation and securing credit lines. In response, corporates are accelerating investment in automation, AI and outsourcing, targeting reporting, trade execution and end‑to‑end FX workflows to improve speed, accuracy and control.
Despite this push toward modernisation, manual processes remain deeply embedded, widening the gap between what firms need and how they operate. Outsourcing is becoming more important as companies seek specialised skills and scalable operating models, while demand is growing for digital multi‑bank platforms with advanced automation.
