Chief financial officers (CFOs) at banks and insurance companies are playing a growing role in digital transformation by leveraging new data and analytic technologies and by assuming greater influence in decisions about technology investments, according to new research from Accenture (NYSE: ACN).
The research based on a global cross-industry survey of CFOs and qualitative interviews with more than 700 finance executives is published in two reports, one for the banking industry and one for the insurance industry.
A key finding from both reports: Three-quarters of the financial services CFOs surveyed believe that driving business-wide operational transformation is within their purview (77 percent in banking and 74 percent in insurance) and more than three-quarters see identifying and targeting areas of new value across the business as one of their main responsibilities (82 percent in banking and 81 percent in insurance).
Banking and insurance CFOs are at the center of the organization, working alongside the CEO, acting as the economic guardian to ensure that the digital transformation strategy is effective across the entire enterprise, said Steve Culp, a senior managing director at Accenture and global head of the companys Finance & Risk practice. By leveraging predictive analytics and artificial intelligence to better interpret data for key business decisions, CFOs can drive value, improve efficiency and enable strategy beyond the borders of the finance function.
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.
Both reports highlight the following key findings:
- CFOs Are Playing a Crucial Role in Digital Investments. Three-quarters of the financial services CFOs surveyed are leading efforts to improve efficiency through the adoption of digital technologies and exploring how disruptive new technologies could benefit their organization, indicating that CFOs are emerging as drivers of the enterprise-wide digital agenda.
- Finance is Taking a Lead Role in Data and Analytics. According to the research, CFOs biggest potential strength is the ability to harness data to increase the efficiency and effectiveness of not just the finance function, but the entire organization. CFOs are striving to become more proactive and forward looking in their reporting, using new technologies along with data from inside and outside their organization to prepare for future changes more easily and accurately. Banking finance executives are more likely than those in other industries to provide proactive analysis of future business scenarios throughout the organization (cited by 40 percent of banking CFOs, compared with 34 percent across the other industries, on average). Insurance CFOs are significantly more likely than those in other sectors to say that finance should take a leading role in identifying and managing control of the most critical data (cited by 57 percent of insurance CFOs, compared with 38 percent across the other industries, on average).
- Challenges Finding Finance Talent with Data and Analytics Skills. The need for sophisticated data analysis among banking and insurance finance professionals is creating a new challenge: recruiting and retraining talent to execute on the analytics enabled by additional data and advanced tools. Banking CFOs said that the ability to analyze data is a core requirement of their role, and they consider data science one of the most important skills that junior finance executives can have (cited by 41 percent). Meanwhile, insurance CFOs believe that their companies are more likely than those in other sectors to have financial talent shortages that prevent them from achieving their business-wide strategic ambitions.
Financial services CFOs are increasingly performing a difficult balancing act between managing risk and unlocking value, Culp said. The use of data and the broader adoption of digital technologies offer an extraordinary opportunity, but only if the finance team and the broader organization have the talent, skills and resources to capitalize on them.
To view the banking report visit: www.accenture.com/BankingCFOReimagined
To view the insurance report visit: www.accenture.com/InsuranceCFOReimagined
About the research
As part of the research, Accenture surveyed more than 700 CFOs and senior finance executives, including 97 in insurance and 146 in banking, and conducted qualitative interviews with dozens of CFOs, senior finance executives, CEOs and chief data officers. All interviewees worked for global, billion-dollar enterprises representing a mix of sectors and geographies. The online survey was conducted between December 2017 and April 2018.
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions underpinned by the worlds largest delivery network Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 459,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com
+1 917 452 9458