When the C-Suite have questions, they look to the FP&A team for answers, which usually means that anyone responsible for FP&A within a company probably has a lot on their plate. Finance has also been able to work closely with marketing and sales with 66.7% of respondents stating that they’ve been able to collaborate with them closely. By subscribing to our newsletter, you agree to the Terms and Conditions.

DeFi combines decentralized technologies such as blockchain, smart contracts, and digital assets to create a truly open financial system. AI and ML have proved their value in diverse applications for financial services. Digital transformation for automation particularly helps enhance customer experience and security without passing on costs to financial services firms. Security and compliance are crucial problems of financial services/ solutions. Cloud-enabled applications provide increased security to the entire system and scale data for critical functions like consumer payments, credit scoring, statements and billings. The DeFi architecture consists of Cryptocurrencies and other services like decentralized exchange protocols, Web3-ready infrastructure, non-fungible tokens , and peer-to-peer protocols.

Saumil Shah – Chief Strategy Officer

We’re looking towards the future with eight predictions for the finance function of 2025. The technologies needed to reimagine finance are here and they will only get better. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.

So, more than three-fourths of global wealth managers see digital transformation as the top priority. This has led to a number of technological improvements within financial institutions, with automation and artificial intelligence at the heart of this change. Banks started reassessing the way they deliver services shifting focus to comprehensive digitalization, building online platforms and IT systems, and creating better customer experience. A few decades ago, the idea of having a good “customer experience” may mean having a pleasant experience at a physical bank or other financial services firm. Today, it may include anything from being able to access an account from multiple channels, to getting a question immediately answered by a chatbot or robo advisor, to receiving automated real-time notifications.

Leveraging Digital Transformation in the Financial Services Sector

This level of understanding is always important, but it’s essential in an uncertain time. They have a clear strategy, vision and set of strategic objectives that are widely understood in the enterprise. Everyone knows what they are going to do and why they are going to do it. On average, executives polled expect finance’s workload to increase by nearly five percent, while budgets and head count decline by 0.7 percent and 0.6 percent, respectively. The good news is that FP&A has come out on top as the main process or activity that has benefited the most from automation and digitalization, with over half (55.6%) of respondents in agreement.

If you want to embark on key components of digital transformation as part of your modernization journey, then the shared infographic will offer practical insights on considerations and essentials for an effective business strategy. They wanted to integrate fraud detection and data analytics capabilities into their core banking solution to monitor, identify, and prevent fraudulent transactions. For example, KAS Bank, wanting to solve the recurring problem of high operational costs, utilized RPA. It implemented five RPA bots and automated 20 financial business processes, including internal invoicing, treasure operations, calculating and booking, and obligation payments. We understand change can be difficult but that doesn’t excuse you from staying where you are. We urge you to keep track of all trends in finance sectors and try staying ahead of the curve.

What Are the Four Main Areas of Digital Transformation?

This informs production to maximize efficiency in the here and now, but also helps the company predict what consumers will want months or even years into the future. Funding digital transformation is a complex process that is best approached one step at a time. In the short term, start with an end-to-end https://globalcloudteam.com/ view of digital opportunities and requirements across the customer journey. From there, choose a challenge that fits your desired investment and payoff opportunity. By doing these things, organizations can self-fund innovation, optimize technology investments and remove roadblocks to change.

• Though it could be a challenging feat, it could augment the digital potential of businesses.
• They aim is to improve financial services with the use of technology, winning customer loyalty.
• Nearly 60 percent of finance organisations have a 2022 initiative designed to improve the interaction model between finance and business stakeholders, making it one of the most prevalent finance initiatives of any type.
• Or it might redesign its supply chain to make better use of machine learning.
• Finance professionals were able to choose multiple answers to this one, as we wanted to see just how collaborative they were able to be by implementing certain technologies to assist them within their roles.

By 2023, advanced analytics, data visualisation and business process management/workflow tools will be in either general use or small-scale pilots by over 86 percent of all respondents, according to the survey. Some other departments, that finance professionals have worked with since introducing new technologies to the finance function, include human resources (55.6%), customer service (44.4%), and research and development (14.8%). According to our survey, 96.3% of finance professionals said that thanks to finance digital transformation, they’ve been able to work with other departments within their organization. Stick around to learn about specific examples of finance digital transformation success stories and find out how finance leaders can ensure a successful transformation for their organization. That’s why organizational culture can be a stumbling block for digital transformation in any industry.

Digital disruption in finance

For example, we transitioned from a quant-only modeling team to a multi-dimensional team of econometric quants, software engineers and data scientists, who are transforming how we design and run complex credit risk modeling. We recently migrated 15 years of data to a cloud-based platform, reducing run time from days to hours. This talent and technology approach has enabled us to better understand business risks, build stronger, more effective processes and reallocate time from manual efforts to higher-value, more real time insight. The end of geographic barriers – Digital technologies have opened up businesses to new markets across the globe. Many of us today already use digital communication tools in our personal lives, and they have allowed us to connect to people seamlessly.

With analytic tools to gain insight into consumer behavior, you gain a deeper understanding of customer expectations. You can use this insight to improve digital marketing, content management, business strategy, and business models. The analytic power derived from data can also be used to make more accurate predictions that will help refine your strategies for business growth. Additionally, technology has digital financial transformation made it easier for finance teams to communicate better with other teams. It has also enabled more efficient and effective collaboration on projects and initiatives, as teams can now easily share documents, track progress, and provide feedback in real time. This leads to more streamlined processes and better alignment between departments, ultimately driving better financial results for the organization.

Key Change #3: Leverage Small Businesses Using Disruptive Technology

A serial entrepreneur and visionary, Mr. Shah has four decades of impeccable experience in setting the strategic direction for Rishabh. It is with a consuming passion for nurturing a strong leadership team that drives the execution. His strong desire to create value & care for customers through ethical and transparent means is imprinted in the DNA of every business verticals he has spearheaded. Towards this, he has been felicitated with awards, like “Gujarat’s IT Torch Bearer by GESIA” and “ITPV Business Leader of the year”. Mr. Shah is actively mentoring some local industry bodies like GESIA & NASSCOM and also serving as the Chairperson of NASSCOM’s Regional Council – West .