Current Trends and Innovations for Financial Organizations to Navigate 

Current Trends and Innovations for Financial Organizations to Navigate 

CFOs intend a great deal of change in finance analytics, technology, and processes to future-proof the finance organization and propel business growth, but their priorities will probably be shaped by emerging trends.

This article highlights trends that will shape future finance sectors. The financial organization as a whole does not have a rank order, but each position may have a significant impact on processes, talent, technology, organizational structure, and technology.

Digital Integration is Causing a Skills Gap

The evolving requirements for digital competences must be addressed in talent plans. Financial organizations will encounter skill and competency gaps in areas such as vendor management, IT fulfillment, and data interpretation and manipulation as a result of the sectors integration transformation. Keep in mind that financial directors need to consider how they hire, train, and retain employees in addition to offering them opportunities for professional advancement.  A financial organization’s ability to make wise decisions will be severely hampered by a lack of digital competences.

Demand for Data That Is Ready for Decision-Making

Let data owners to be involved in governance when appropriate, rather than imposing a single, universal approach on all of them. By optimizing data for decision-readiness rather than accuracy and precision, this aids the financial function.

In actuality, this entails establishing the relationship between financial and operational data, combining more intuitive data alongside highly-governed data. However, it also leads to modifying financial governance standards for non-financial performance data in order to build trust in internal reports. Additionally, it need to present chances to concentrate enhancements in data quality on regions that yield the most financial gains.

Finance Analytics’ (Re)Centralization

Many firms are moving their financial analytics into scalable, centralized models under the direction of a finance center of excellence (COE), as the finance sector looks to cut costs while enhancing analytical understanding. This is also noticed on finance news magazines such as  Prillionaires News, where its apparent most organizations are looking to get rid of redundancy and employ more effective and efficient means. Getting information from such magazines will keep you updated on various ways finance analytics’ (re)centralization is happening.

In hub-and-spoke arrangements, for instance, data scientists manage data mining, collecting, synthesis, and modeling from the finance COE at the center. 

Reports Are Available Whenever Needed

Advances in technology and financial reforms are making it possible for internal stakeholders to obtain enhanced analytics along with real-time access to self-service data.

In order to provide on-demand reporting, CFOs need to consider what technology will make this possible, how data governance should be implemented as reporting grows to incorporate both financial and nonfinancial data, and what kind of expertise finance will require to provide insightful analysis in this kind of environment.

Developing ERP Fourth Era

More and more core finance applications are being offered by software suppliers on the cloud, where intelligence tools like machine learning and artificial intelligence (AI) are integrated into the ERP instead of being an add-on.

What capabilities are made possible by intelligent platforms like AI, ML, and blockchain, and how can ERP be used to enhance data insights and support organizational outcomes are the concerns facing the banking sector.

The Revolution in AI Has Started

Almost every financial activity will be optimized or transformed by AI in the next ten years. Leaders in finance should consider how this will impact their role, train new skill sets into their staff, and investigate the investments required for AI.

Inquire about the data infrastructure you’ll need to enable AI, how you’ll create it, and how you’ll build the requisite capabilities. And start by considering the easiest tasks where AI can be used.

RPA Jeopardizes Internal Control Measures

As digital technologies such as robotic process automation (RPA) proliferate, finance must set up appropriate internal controls to guard against financial reporting risk without unduly slowing down implementation.

Strike a balance between RPA governance and efficiency, and decide whether internal controls are appropriate to implement around your bots.

Summing it Up

One often overlooked growth lever comes from the ideas and resources provided by suppliers. Organizations will need to use key partnerships to gain a competitive and strategic advantage as well as manage risk as they grow more and more dependent on their suppliers for critical competencies and as they collaborate with even more suppliers in a variety of roles. 

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