Preparing for the future
Is digital transformation the future for the financial sector? None of us knows for certain what the future will hold, but we all have the accountability to be thinking about what’s possible and to prepare for it. In the finance industry, that means working now to get the correct people and technology in place to benefit from the inevitable financial commotion ahead. That’s not likely to happen without a clear vision and strategy for finance in a digital world. Now is the time to step back and ensure your roadmap to that forthcoming is clear. Below are five predictions for the financial market with the impact of automation and digital transformation.
Is digital transformation the future for payment systems?
The finance factory: Transactions will be touchless as automation and blockchain become the norm for finance operations.
In the years ahead, cloud-based ERP, automation, and cognitive innovation will continue to grow rapidly, creating opportunities to essentially create a more simplistic process and free up resources. Adding blockchain to the mix will only quicken this movement. As this evolution picks up speed, the capacity of humans to add value will be unleashed.
Some find it motivating to speculate about finance disappearing under the crush of digital innovation. Yes, finance will likely be leaner, but that will typically be a function of headcount in operational finance (order-to-cash, procure-to-pay, transactional accounting, etc.). Meanwhile, prospects for support from business finance (business partnering, reporting, planning, budgeting, forecasting, etc.) and specialized finance (tax, treasury, IR, etc.) will continue to grow at a quick rate than before.
Will digital transformation transform the services of accounting and finance firms?
The role of finance: With operations automated, finance will fix their attention on business insights and service.
With the increase of digital transformation and automation, the financial world will evolve, accountants and financial firms may not carry out their tasks manually, but their ability to read and understand technical financial systems and provide consultancy and value will be key. That will need quality understandings and exceptional customer service. Some finance firms will evolve into full-fledged business service centers.
Real-time analytics impacting customer requirements
- Finance cycles: Finance goes real-time. Periodic reporting will no longer solely drive operations and decisions.
When both actuals and forecasts can be formed instantly at request, traditional cycles become less applicable. The old difference between operational and analytical data begins to dissolve. Finance firms will still need to meet exterior requirements for cyclical information, but external stakeholders may also want more frequent performance data. Market-leading businesses will be working with a new vision. You’re not forecasting once a month or quarterly. It’s all happening in real-time.
When information becomes instantly available to those who need it, traditional cycles become unnecessary. That frees people up to focus on discovering new insights and acting on them.
Real-time data and analytics will become necessary in the evolving technical world.
Is digital transformation the future? Will this impact the number of Self-Service Terminals?
Self-service: Self-service will become the norm. Finance will be uneasy about this.
Actions ranging from budget queries to report production and more will be automated. Over time, smart managers will learn what kind of business information an individual needs, and provide that information proactively. As that future unfolds, data in dated spreadsheets will be replaced by visually rich data that is instantly accessible and easy to use.
The future for creating new operational models
Operating models: New service delivery models will emerge as robots and algorithms join a more diverse finance workforce.
Companies will assess the advantages of automation. Automation delivers a new control for managing costs, one that allows financial firms to re-examine their organisational processes, where work gets done, and what kinds of procedures no longer require human intervention.
The hunger for transformation among all industry players is at an all-time high. But at the same time, firms require lower-risk options to digitalize.
To reduce the number of isolated, inflexible solutions, firms will want to seek a connected, scalable and sustainable platform approach that enables them to simultaneously maintain high levels of output, quality, and customer service – while creating opportunities for sustainable innovation.
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