Every company and industry is impacted by digital technologies, such as the cloud, big data and social media. The finance department is also increasingly subject to digital transformation finance. An independent survey by the specialist recruitment firm Robert Half reveals that finance digitalization (91%) is going to be the main investment focus for finance directors.
Today, the cloud, mobile technologies, social media and big data are an integral part of economic life. However, the question arises whether companies are sufficiently equipped to cope with a digital upheaval. More than three-quarters (79 per cent) of CFOs are confident that they can meet the growing challenges of digitalizing their financial department. Only one-fifth do not feel up to it (19%).
Financial technology in the digital age
Companies born to offer a fully digital financial service must base their added value on the use of advanced technologies and the latest programming languages, which make all operations flexible and fast, and above all, allow them to have quick and automated access to a huge amount of data.
Financial services institutions face the challenge of engaging with their customers through the channel of their choice. They must provide consistent and intelligent interactions in a timely, secure and financial regulatory manner. They must therefore make a greater commitment to their customers. A committed supplier increases its chances of success in its market.
New technologies disrupting the workforce
Finance digitalization is a heavy and topical issue for companies of all sizes, which are, overall, lagging behind their counterparts. The financial system must adapt to these digital challenges facing businesses.
Traditional financial services institutions, constrained by often rigid historical systems and processes, are under enormous pressure to renew quickly to retain and attract new clients. They are facing competition from much more agile “FinTech” institutions capable of rapidly launching new mobile services that respond quickly to customer needs. Fintechs clearly impose a new economic model on the market.
Traditional banks do not digitalize on the model of Fintech realities, the reason is that these are mostly in situations close to technological lockdown. In other words, changing its technological structure has high costs of passage, to the point of discouraging the change itself. This happens because traditional banks find themselves using obsolete information and operating systems, but which are now embedded throughout the organization.
As the digital age transforms the finance industry
Digital finance must adapt to the company to take advantage of the opportunities offered by its various data sources. However, we must not forget that simply collecting data will never be enough. Advanced data science and analytical skills are required to interpret and extract useful information, as EPM (entreprise performance management) tools are essential to this task.
The company must have day-to-day analytical resources so that the financial department can conduct enterprise-wide analytical initiatives. The tools that enable these innovative FP&A (Financial Planning & Analysis) functions integrate technologies such as AI (artificial intelligence) and machine learning, which offer the finance department new capabilities.
Become a leader in finance digitalization
Finance digitalization is still in its infancy, and the financial system should be much more in demand tomorrow than it is today.
Digital platforms allow you to optimize and secure your Procure-to-Pay processes through automation. Trustpair, the B2B Payment Fraud Prevention Platform, helps you to better collaborate between Finance, Procurement and Compliance teams by providing solutions for automated checks of third-party banking details. Its Artificial Intelligence-based technology continuously monitors vendor data to alert you to any detected errors or anomalies. Payments are secure and teams save time.
Request a demo with our expert team to know more about Trustpair Platform.