Business is changing, so is finance.
With the advent of globalization and modern technology, the financial environment is going through significant development changes. Financial leaders are challenged to take risks and responsibilities to meet the demands as the business and corporate sectors heavily rely on them.
As they face a new era, they are expected to diversify businesses through mitigating new technology risks. In order to forecast financial solutions, they will be responsible for studying past reports, properly manage the status quo, and be ready to create the future.
Here are the three major trends emerging in the Finance sector.
The Digital Era
Technology, as identified by business executives to be the most important external force determining businesses, is not a recent phenomenon.
Business industries have been using technology in gearing up its efficacy.
- Customer-centric features and functionalities are being utilized through the use of mobile and technological devices by third-party payment systems like Confident Vision Dallas, Paytm, Mobikwik, etc. to minimize bookkeeping mistakes.
- Automation is rapidly substituting the banking jobs; thus a change in the skill sets of the business and financial organizations is required.
Business is becoming data-driven in decision making.
- Data analytics technology is noticeable in the financial and business sectors as corporate institutions use data analytics in gaining an edge over competitors and improve customer care system.
- Financial institutions like banks and firms are attentive on refining their performance by the use of data analytics techniques.
As everything goes digital, cybersecurity is critical for the finance industry. As a result, innovations are being done as a keen level of prospect about the cybersecurity, and emerging trends are in line with improving the safety.
The Evolving Roles of CFOs
Business and financial organizations should be transformed by advancing the speed of business by the financial leaders. The role of the Chief Financial Officers (CFO) continues to evolve in this new era of finance. CFOs should not only limit themselves to the boardrooms, bean-counters, and sit in the workplace.
Part of their job evolves to:
- IT management
- Business strategy responsibilities
In the early 2000s, a series of corporate scandals have been thrown to CFOs and financial organizations. It enabled the industry to manage the mitigation in a global context. In 2015, IBM identified technology as the most important external force shaping the business and financial sectors.
As they grow the business, many finance professionals have to manage new challenges in a complex, economic, and global environment to better business than ever before. They understand all the operations in the industry, it is expected from them to invest in financial technology as capital asset and investment.
Another factor that empowers them is the decline of the role of COO. They lead the company within managing the operational background and manufacturing and supply responsibility.
While CFOs are taking the role over procurement and IT, CFOs are now expected to:
- Strategize planning responsibilities.
- Solidify their background in finance to understand the systematic and objective side of businesses further.
- Responsible for improving the overall business model innovation in associating performance to plan implementation.
The Rise of Millennials Workforce
Millennials are game-changers. They have different values and working styles than many adult employees. As new technology is enabling a more mobile workforce, they best suit in the industry as they are highly motivated, educated, and tech-savvy group of young professionals.
A dichotomy of aging employees who are struggling in adapting the fast-paced-heavy-technology business environment paved the way for the Millennials in redefining the working environment. Technology provides them greater flexibility to control their work schedule, and this generation desires this organizational balance. They are natural born explorers, and they are motivated to change the world. They bring with them productivity, agility, and efficiency. Thus, it is best to anchor with them in redefining businesses goals.
On the other hand, for the millennials to give their optimum performance, business leaders should adapt to the ways of operation of this emerging generation. It includes planning about their pay, benefits, and a more dynamic and empowering work environment.
Financial technology or FinTech is the newest buzzword. It is evident that it is passing and affecting our daily lives. It changed and is continuously changing the business and corporate world. This is a revolutionary period that CFOs and financial organizations need to address and pace with the change.
If financial planning is better changed, businesses and the corporate world will emerge.