The combination of digital technology with the rising demand for talent are two trends reshaping the finance industry. Businesses are facing challenges of transitioning to digital and the importance of the finance function in this transformation.

The challenges faced during 2020 created the impetus for many to adapt and integrate new digital services that appeal to their customers. The function of the CFO has been critical in driving this digital transition. IT, strategy and business leaders are vital in assessing business opportunities and ensuring the most efficient allocation of revenue and capital. The finance team consistently adapts processes to ensure the business remains focused on transforming rather than repetitive traditional tasks that hinder overall performance.

The function of the CFO has also had to embrace its digital transformation. By reshaping particular areas of the role with a digital-focused approach, businesses can leverage the potential growth of an organisation.

The pandemic also showed the importance of real-time data and the speed and agility of analytics. During Covid, many businesses responded quickly to technology investments, allowing employees the right tools to perform vital functions. Companies had to show resilience and have a mindset that focuses on innovation and technology. CFOs are encouraged to leverage creative and innovative digital communications to enhance connectivity and engagement, generating new opportunities and increasing dialogue within the business.

Data and technology progression will remain important in delivering continued progress in finance, enabling businesses to attract and retain the best talent, support decision-making and provide greater financial transparency. Businesses need to maintain a check on changes through their culture, talent leadership and innovation in technology. By creating clear expectations, strong talent leadership, and continuously evolving through technology, the function of the CFO will become even more critical, and a business will experience accelerated growth.

The UK financial services industry is experiencing a significant shortage of talent, intensified by the rising demand as a result of the pandemic. 

According to a study by the Association of Professional Staffing Companies (APSCo), job vacancies within the industry increased by nearly 38% between Q1 and Q2 of this year. The findings follow on from the report from the Professional & Business Services Council and the Financial Services Skills Commission discovered that on average, 32% of UK businesses were facing shortages within financial, professional and business services.

According to the APSCo findings delivered by BI specialists Vacancysoft, hiring levels within the financial services industry had already exceeded last year’s by the end of July by nearly 7%. Ann Swain, the CEO of APSCo, explains that the data indicates that despite the many challenges, the recovery from the pandemic is well underway, reflected within the financial services industry, where reports suggest a considerable demand for these skilled services.

Swain highlights that this trend is likely to continue throughout this year but, employers will continue to face talent shortages, which have been intensified further by the rise in hiring levels. As a result, recruitment agencies will play a significant role in supporting employers to find the talent needed to ensure an efficient recovery from the pandemic.

Research suggests that IT professionals continue to be the most in-demand skillset, with over 15,000 new jobs advertised this year, a figure that already exceeds the job count for last year. APSCo discovered that leading business JP Morgan has over 2,200 vacancies this year, equating to an 18.3% increase on the previous year. Global investment and financial services business Citi announced over 1,550 vacancies, recording a 39% increase last year.

The skills shortages and changes in employee demands would collectively create a record change in talent strategies within the finance industry. We are experiencing massive volatility and changes in the industry. Businesses have had to adapt and change much quicker to respond to changes and demands for new talent. Despite these shortages, many are not focusing on prioritising their recruitment strategies. The finance industry must recognise the changing landscape and ensure their plans and offerings to employees match market shifts and industry competitiveness. 

August 25, 2021 by Mike Jones

The combination of digital technology with the rising demand for talent are two trends reshaping the finance industry. Businesses are facing challenges of transitioning to digital and the importance of the finance function in this transformation.

The challenges faced during 2020 created the impetus for many to adapt and integrate new digital services that appeal to their customers. The function of the CFO has been critical in driving this digital transition. IT, strategy and business leaders are vital in assessing business opportunities and ensuring the most efficient allocation of revenue and capital. The finance team consistently adapts processes to ensure the business remains focused on transforming rather than repetitive traditional tasks that hinder overall performance.

The function of the CFO has also had to embrace its digital transformation. By reshaping particular areas of the role with a digital-focused approach, businesses can leverage the potential growth of an organisation.

The pandemic also showed the importance of real-time data and the speed and agility of analytics. During Covid, many businesses responded quickly to technology investments, allowing employees the right tools to perform vital functions. Companies had to show resilience and have a mindset that focuses on innovation and technology. CFOs are encouraged to leverage creative and innovative digital communications to enhance connectivity and engagement, generating new opportunities and increasing dialogue within the business.

Data and technology progression will remain important in delivering continued progress in finance, enabling businesses to attract and retain the best talent, support decision-making and provide greater financial transparency. Businesses need to maintain a check on changes through their culture, talent leadership and innovation in technology. By creating clear expectations, strong talent leadership, and continuously evolving through technology, the function of the CFO will become even more critical, and a business will experience accelerated growth.

August 25, 2021 by Mike Jones

The UK financial services industry is experiencing a significant shortage of talent, intensified by the rising demand as a result of the pandemic. 

According to a study by the Association of Professional Staffing Companies (APSCo), job vacancies within the industry increased by nearly 38% between Q1 and Q2 of this year. The findings follow on from the report from the Professional & Business Services Council and the Financial Services Skills Commission discovered that on average, 32% of UK businesses were facing shortages within financial, professional and business services.

According to the APSCo findings delivered by BI specialists Vacancysoft, hiring levels within the financial services industry had already exceeded last year’s by the end of July by nearly 7%. Ann Swain, the CEO of APSCo, explains that the data indicates that despite the many challenges, the recovery from the pandemic is well underway, reflected within the financial services industry, where reports suggest a considerable demand for these skilled services.

Swain highlights that this trend is likely to continue throughout this year but, employers will continue to face talent shortages, which have been intensified further by the rise in hiring levels. As a result, recruitment agencies will play a significant role in supporting employers to find the talent needed to ensure an efficient recovery from the pandemic.

Research suggests that IT professionals continue to be the most in-demand skillset, with over 15,000 new jobs advertised this year, a figure that already exceeds the job count for last year. APSCo discovered that leading business JP Morgan has over 2,200 vacancies this year, equating to an 18.3% increase on the previous year. Global investment and financial services business Citi announced over 1,550 vacancies, recording a 39% increase last year.

The skills shortages and changes in employee demands would collectively create a record change in talent strategies within the finance industry. We are experiencing massive volatility and changes in the industry. Businesses have had to adapt and change much quicker to respond to changes and demands for new talent. Despite these shortages, many are not focusing on prioritising their recruitment strategies. The finance industry must recognise the changing landscape and ensure their plans and offerings to employees match market shifts and industry competitiveness. 

Businesses are either overwhelmed by too much data, limited access to their data or being held back by the technology they use to measure their information. The influence of digital technology in finance has been ongoing for years. The capacity to automate manual tasks by applying innovative technologies has enabled the finance industry to transition from applying conventional measures to a more insightful analysis of a business. 

While more businesses are applying analytics in some shape or form, recent reports suggest that only 14% of finance-related businesses display success in assessing large amounts of data created by systems to generate valuable insights. Finance teams that have utilised tools to enhance their forecasting, improving model scenarios can explore new insights that enhance decision-making. 

Improving Analytics 

Based on responses from senior finance executives worldwide, over 80% of analytics is missing the mark. One of the main reasons for this is that many businesses are not extracting the value and insights from their data. 

The survey discovered that its data is holding many businesses back. Findings suggest that only a little over 10% of organisations consider themselves as ‘data proficient’, capable of actively managing their data and equipped with the necessary tools and resources required to deliver the insights and competitive advantage they need. 

Ignoring the value of operational data

While many businesses have focused on enhancing their analytics, most are missing the real value of insights. To have a complete overview of the business, data from other systems and processes need integration and alignment with financial data to deliver insights and support decisions that enable a competitive advantage. 

Ignoring the Information Systems Strategy 

The development of new technologies has enabled many struggling finance-related businesses to maintain pace. While these new technologies may be useful, successful organisations need a more holistic approach towards their strategy, yet many are not focusing on this. Studies indicate that over half of finance-related businesses are not capable of consistently adding new data sources to improve their understanding of their business, and under half can utilise their non-financial data. However, when businesses discuss their most important tools for analytics, most points towards AI and ML and at the bottom of the list are usually the necessary building blocks required for delivering an efficient analytics system. 

Focusing on the bigger picture The results of the latest studies are consistent with other experiences across the market. Many medium to large businesses are struggling to reach the efficiency and agility required in their processes. This is usually down to dependence on traditional spreadsheets or fragmented systems that are not adequate for the business. 

Innovative businesses continue to improve their analytical insights by unifying their processes to deliver a single version of the truth for their financial results, budgets and forecasts. 

Converting trends in data into actionable insights 

Business leaders are taking the next step by combining transactional data, processes and systems consistently into their analytics. Accessing this type of confirmation from operational systems and combining it with financial data provides these businesses with real-time views into vital trends that support decision-making that impacts future results. Efficient and unified reporting and planning systems require the necessary analytical infrastructure and the right talent. In today’s rapidly changing global economy, having information systems that generate insightful and actionable analytics is no longer a ‘nice to have’ option but a critical element for the future.

August 18, 2021 by Mike Jones

Businesses are either overwhelmed by too much data, limited access to their data or being held back by the technology they use to measure their information. The influence of digital technology in finance has been ongoing for years. The capacity to automate manual tasks by applying innovative technologies has enabled the finance industry to transition from applying conventional measures to a more insightful analysis of a business.

While more businesses are applying analytics in some shape or form, recent reports suggest that only 14% of finance-related businesses display success in assessing large amounts of data created by systems to generate valuable insights. Finance teams that have utilised tools to enhance their forecasting, improving model scenarios can explore new insights that enhance decision-making.

Improving Analytics

Based on responses from senior finance executives worldwide, over 80% of analytics is missing the mark. One of the main reasons for this is that many businesses are not extracting the value and insights from their data.

The survey discovered that its data is holding many businesses back. Findings suggest that only a little over 10% of organisations consider themselves as ‘data proficient’, capable of actively managing their data and equipped with the necessary tools and resources required to deliver the insights and competitive advantage they need.

Ignoring the value of operational data

While many businesses have focused on enhancing their analytics, most are missing the real value of insights. To have a complete overview of the business, data from other systems and processes need integration and alignment with financial data to deliver insights and support decisions that enable a competitive advantage.

Ignoring the Information Systems Strategy

The development of new technologies has enabled many struggling finance-related businesses to maintain pace. While these new technologies may be useful, successful organisations need a more holistic approach towards their strategy, yet many are not focusing on this. Studies indicate that over half of finance-related businesses are not capable of consistently adding new data sources to improve their understanding of their business, and under half can utilise their non-financial data. However, when businesses discuss their most important tools for analytics, most points towards AI and ML and at the bottom of the list are usually the necessary building blocks required for delivering an efficient analytics system.

Focusing on the bigger picture The results of the latest studies are consistent with other experiences across the market. Many medium to large businesses are struggling to reach the efficiency and agility required in their processes. This is usually down to dependence on traditional spreadsheets or fragmented systems that are not adequate for the business.

Innovative businesses continue to improve their analytical insights by unifying their processes to deliver a single version of the truth for their financial results, budgets and forecasts.

Converting trends in data into actionable insights

Business leaders are taking the next step by combining transactional data, processes and systems consistently into their analytics. Accessing this type of confirmation from operational systems and combining it with financial data provides these businesses with real-time views into vital trends that support decision-making that impacts future results. Efficient and unified reporting and planning systems require the necessary analytical infrastructure and the right talent. In today’s rapidly changing global economy, having information systems that generate insightful and actionable analytics is no longer a ‘nice to have’ option but a critical element for the future.

As the industry transforms, there will be winners and losers associated with the fundamental changes in the finance industry as a consequence of big data. Rising competition, combined with the breaking down of traditional measures replaced with alternative systems, will impact the businesses we see today.

Customers will likely benefit from enhanced products and services, and businesses will be more capable of managing risks and overall efficiency. However, there is the potential that some customers may be excluded from selected markets and will inevitably experience exposure to new risks.

In a recent study, the Institute of Chartered Accountants in England and Wales (ICAEW), explored how the finance industry has changed because of the increased availability of new data. Unlike other businesses, employees in the financial services industry will experience the value of big data. While customers can decide which companies to purchase from, financial services are a critical part of our daily lives. The collection and use of data are valuable to the industry, meaning there needs to be careful consideration of the ethics involved.

The growing reliance on data enables customer behaviour to be shaped by digital technology, which feeds into the supply of data. Plans and decisions regarding big data have a direct social impact across the entire finance industry. As customers become more sensitive and aware of data in business, financial service providers will have to ensure they maintain their responsibilities. 

Several principles can support financial businesses with managing and resolving any ethical tensions.

Accountable for Big Data

Big data and new technologies are increasingly important to businesses today, but industry experts have pointed out that many organisations lack the skills and experience in this field. The complexity of these technologies must factor in as this understanding is vital in determining strategy, company values and culture. A chief data officer should be recognised as an asset within the senior leadership team to ensure accountability within an organisation and with regulators.

Business Management in the era of Big Data

Finance businesses are often complicated, running from a range of systems. Operating normally in this new world of big data will present new challenges that will require time, investment and new resources to help businesses prosper. Despite its significant rise, big data isn’t something for the finance industry. An element of the transition to big data will be focusing on existing data and using this information in new and innovative ways.

As the industry progresses, businesses must show that they have analytical capabilities, appropriate measures and suitable data storage facilities to use big data properly. Without these core elements, they will potentially be at a competitive disadvantage and at possible regulatory risk from generating inaccurate findings that could result in unfair treatment to customers. Having higher volumes of data also poses potential issues of cyberattacks.

Treating all customers fairly

All financial companies must be capable of consistently showing that they implement equal treatment with their customers. As companies evolve with the growth of big data, organisations will have to determine how they interpret fairness and how they intend to keep customers at the core of their business.

If a business relies on historical data, it may generate bias created by how information is collected. This trend can continue and be reinforced in areas where there are gaps in data. This can lead to ethical issues of using data for customer decision making and product design. Customers need to have a clear understanding of the impact of making a selected big data decision against them. Businesses should then notify customers why decisions were made and include the relevant criteria. The customer can then determine whether the information is correct or not and provide corrective support. This type of feedback mechanism offers more transparency to the customer and enhances data accuracy for the business.

August 12, 2021 by Mike Jones

As the industry transforms, there will be winners and losers associated with the fundamental changes in the finance industry as a consequence of big data. Rising competition, combined with the breaking down of traditional measures replaced with alternative systems, will impact the businesses we see today.

Customers will likely benefit from enhanced products and services, and businesses will be more capable of managing risks and overall efficiency. However, there is the potential that some customers may be excluded from selected markets and will inevitably experience exposure to new risks.

In a recent study, the Institute of Chartered Accountants in England and Wales (ICAEW), explored how the finance industry has changed because of the increased availability of new data. Unlike other businesses, employees in the financial services industry will experience the value of big data. While customers can decide which companies to purchase from, financial services are a critical part of our daily lives. The collection and use of data are valuable to the industry, meaning there needs to be careful consideration of the ethics involved.

The growing reliance on data enables customer behaviour to be shaped by digital technology, which feeds into the supply of data. Plans and decisions regarding big data have a direct social impact across the entire finance industry. As customers become more sensitive and aware of data in business, financial service providers will have to ensure they maintain their responsibilities.

Several principles can support financial businesses with managing and resolving any ethical tensions.

Accountable for Big Data

Big data and new technologies are increasingly important to businesses today, but industry experts have pointed out that many organisations lack the skills and experience in this field. The complexity of these technologies must factor in as this understanding is vital in determining strategy, company values and culture. A chief data officer should be recognised as an asset within the senior leadership team to ensure accountability within an organisation and with regulators.

Business Management in the era of Big Data

Finance businesses are often complicated, running from a range of systems. Operating normally in this new world of big data will present new challenges that will require time, investment and new resources to help businesses prosper. Despite its significant rise, big data isn’t something for the finance industry. An element of the transition to big data will be focusing on existing data and using this information in new and innovative ways.

As the industry progresses, businesses must show that they have analytical capabilities, appropriate measures and suitable data storage facilities to use big data properly. Without these core elements, they will potentially be at a competitive disadvantage and at possible regulatory risk from generating inaccurate findings that could result in unfair treatment to customers. Having higher volumes of data also poses potential issues of cyberattacks.

Treating all customers fairly

All financial companies must be capable of consistently showing that they implement equal treatment with their customers. As companies evolve with the growth of big data, organisations will have to determine how they interpret fairness and how they intend to keep customers at the core of their business.

If a business relies on historical data, it may generate bias created by how information is collected. This trend can continue and be reinforced in areas where there are gaps in data. This can lead to ethical issues of using data for customer decision making and product design. Customers need to have a clear understanding of the impact of making a selected big data decision against them. Businesses should then notify customers why decisions were made and include the relevant criteria. The customer can then determine whether the information is correct or not and provide corrective support. This type of feedback mechanism offers more transparency to the customer and enhances data accuracy for the business.

The Fintech industry has generated significant changes, disrupting many industries, particularly the financial sector. Fintech has created several benefits in finance, improving payments processing, insurance and money lending. The rise of fintech has provided a unique customer experience and enabled people to embrace the transition to fintech.

The majority of fintech customers tend to be choosing traditional financial institutions as there are several challenges that fintech needs to tackle to continue this technological revolution. Some of the main areas to focus on relating to trust, transparency, security and customer trends. 

Security and User Privacy

Across Europe, the use of financial technology increased by over 70% during 2020, supported by considerable investments into fintech. A rise like this comes with new challenges, one of which is developing new security concerns. Cybersecurity cases are rising, and unfortunately, fintech businesses are a prime target for cyberattacks. The fintech industry holds significant valuable information that needs to be protected.

Maintaining a grasp of new technology

According to a recent survey by Gartner, over 50% of financial services CIOs believe that most businesses will work with digital technology and that these channels will yield higher revenue and value. This statement emphasises the importance of fintech on the future of business performance.

Businesses that rely on traditional management systems will not keep the competitive edge needed to maintain momentum with the shift towards digital technologies. Many companies consider the transition to digital as a necessity rather than just being a good idea.

Emerging technologies such as cloud computing, AI, ML and big data offer several benefits for businesses looking to reduce overheads. They also provide the potential to improve the overall user experience. The move to these technologies, however, does come with initial costs and some risks.

AI provides a considerable competitive advantage by creating deeper insights into customer behaviours, enabling financial businesses to assign the right product to the right customer at the right time.

The Quality of Software

Finance businesses that apply the latest business technology create an advantage in the journey towards digital. The ability of new cloud technologies depends on flexibility and scalability. Having flexibility means cloud technology can enable systems to evolve alongside a business. Successful fintech businesses are dependent on reliable IT technology resources.

Industry Regulations

Regulatory compliance has become a challenge within the finance sector due mainly to the rise in regulatory fees attached to earnings and credit losses. There is a growing number of regulations that financial businesses must comply with, and compliance can present added pressures on resources.

The future of the fintech industry is relatively clear. Financial technology is going to have a significant influence on the finance industry. Developing a functional financial solution will require considering all of the challenges mentioned.

August 4, 2021 by Mike Jones

The Fintech industry has generated significant changes, disrupting many industries, particularly the financial sector. Fintech has created several benefits in finance, improving payments processing, insurance and money lending. The rise of fintech has provided a unique customer experience and enabled people to embrace the transition to fintech.

The majority of fintech customers tend to be choosing traditional financial institutions as there are several challenges that fintech needs to tackle to continue this technological revolution. Some of the main areas to focus on relating to trust, transparency, security and customer trends. 

Security and User Privacy

Across Europe, the use of financial technology increased by over 70% during 2020, supported by considerable investments into fintech. A rise like this comes with new challenges, one of which is developing new security concerns. Cybersecurity cases are rising, and unfortunately, fintech businesses are a prime target for cyberattacks. The fintech industry holds significant valuable information that needs to be protected.

Maintaining a grasp of new technology

According to a recent survey by Gartner, over 50% of financial services CIOs believe that most businesses will work with digital technology and that these channels will yield higher revenue and value. This statement emphasises the importance of fintech on the future of business performance.

Businesses that rely on traditional management systems will not keep the competitive edge needed to maintain momentum with the shift towards digital technologies. Many companies consider the transition to digital as a necessity rather than just being a good idea.

Emerging technologies such as cloud computing, AI, ML and big data offer several benefits for businesses looking to reduce overheads. They also provide the potential to improve the overall user experience. The move to these technologies, however, does come with initial costs and some risks.

AI provides a considerable competitive advantage by creating deeper insights into customer behaviours, enabling financial businesses to assign the right product to the right customer at the right time.

The Quality of Software

Finance businesses that apply the latest business technology create an advantage in the journey towards digital. The ability of new cloud technologies depends on flexibility and scalability. Having flexibility means cloud technology can enable systems to evolve alongside a business. Successful fintech businesses are dependent on reliable IT technology resources.

Industry Regulations

Regulatory compliance has become a challenge within the finance sector due mainly to the rise in regulatory fees attached to earnings and credit losses. There is a growing number of regulations that financial businesses must comply with, and compliance can present added pressures on resources.

The future of the fintech industry is relatively clear. Financial technology is going to have a significant influence on the finance industry. Developing a functional financial solution will require considering all of the challenges mentioned.