Financial analytics has become a critical factor for success in modern business. Most companies are starting to invest in big data analytical tools to deliver cost savings and increase revenue and productivity. According to reports, the data analytics market is expected to expand considerably, exceeding $221 billion in 2027.

The rise of technology plays a pivotal role in supporting market growth. At the same time, challenges such as increased competition to changes in customer preferences and compliance rules and financial analytics for companies have become valuable tools for delivering informed decisions and enhanced performance. Financial data analysis provides critical insights into operations and various industry trends, managing risk and resource allocation. Financial data is essential to remain competitive and on top of industry trends.

The Reasons and Benefits of financial analytics for Businesses

Enhanced decision-making: In today’s environment, it’s become even more important for companies to make quick decisions based on transparent and reliable insights. One valuable tool for this process is financial analytics for businesses. By interpreting financial data, companies can determine performance patterns and make critical decisions. Financial analytics enables companies to perform calculated risks. It allows businesses to proceed with data-driven plans that could give them the added boost required to drive further success in the future.

Trend Identification and Analysis
Identifying and measuring trends can be a powerful tool for financial analytics. By measuring data points over a selected period, companies can create valuable insights into their market position, performance and potential growth opportunities. Growth opportunity assessment depends heavily on identifying trends and analysis. Financial service businesses can explore customer behaviours and market conditions to determine new investment products that meet requirements, creating new revenue opportunities.

Managing and mitigating risk
Financial analytics provides tools to measure risk and implement the necessary response. For example, a bank can explore its loan portfolios with financial analytics and introduce actions needed against high-risk loans. The bank can then implement stricter credit plans or increase the rules for collateral to alleviate any potential financial losses. Risk management is an essential part of financial analytics that businesses should consider. Through detailed assessment of financial data, companies can identify potential risks and introduce safeguards to eliminate potential cases of economic loss.

Opportunities to save money: Allocating resources correctly is a vital part of financial analytics for companies that can result in cost savings and higher profits. With the support of financial analytics, a company can measure spending and determine where to invest funds to enhance efficiency and reduce expenses. Cost savings opportunities are a vital part of financial analytics for businesses. By gaining deeper insights into operations and investments, companies can make data-driven decisions that improve success in the long term.

Complete transparency: Financial analytics enables businesses to explore past financial data and use it to predict future scenarios. This predictive element of analytics improves budgeting and forecasts and provides organisations with the necessary details to prepare for market changes or impacts on resource allocations. Overall, investing in financial analytics for budgeting and forecasting enables companies to have more clarity when allocating resources, maximising potential profits and reducing overall expenses.

Creating a competitive advantage – financial analytics gives businesses a competitive advantage. By utilising financial insights, companies can understand trends and patterns that could be missed by competitors. For example, analytics can determine customer purchasing behaviours and which demographic prefers online transactions. With this level of data, companies can be more strategic with resource allocations and develop marketing campaigns to attract new customers.

Detecting and preventing fraud: Businesses can greatly benefit from financial analytics by minimising potential fraud cases. Fraudulent activities can be very damaging, financially and on a reputational basis. Financial analytics can provide insights into suspicious customer behaviour, like large transactions from various locations.
Regulatory compliance – Remaining compliant with current regulations is critical in operating a successful business. Companies must be aware of all relevant legislation and take action to remain compliant. By having access to financial information and detecting any possible compliance issues, businesses can initiate the necessary steps. Financial analytics can support the delivery of more thorough audits, ensuring they are compliant with all regulations.

Allocating resources effectively: Maximising resource efficiency is an advantage of utilising financial analytics. Businesses can assess their data to determine ways to lower costs, enhance operational productivity and create new growth opportunities. By accurately measuring and understanding data, businesses can utilise critical resources and position themselves for long-term success.

Improving communication with stakeholders: Financial analytics has proven critical for stakeholder communication. It enables businesses to deliver transparent and structured reports and digital insights on financial performance that build stakeholder trust and confidence. Furthermore, improved forecasting options help stakeholders understand the business in more detail and its future development plans. Analytical tools enable more informed strategic decisions, increasing transparency and positioning them for long-term success.

Digital technology has transformed the finance industry by enhancing the customer experience, improving operational efficiency and reducing overall costs. AI, big data analytics and automation are top trends reshaping the finance industry. There are challenges, however, including regulatory compliance, outdated tech systems, security, the demand for talent and the potential risk of losing connection with personal banking.

Digital banking today has transformed our personal experience with our finances. From mobile payments to AI-driven technology, the finance industry is rapidly changing. The traditional banking system has carved a new path to a more accessible digital banking model. Customers can access their accounts, transfer money and pay their bills from home or via their smart devices. This movement towards digital banking has enhanced the customer experience and improved overall business operations. Digital technology has allowed banks to improve security measures and prevent potential fraud cases. Digital technology will continue shaping the future of finance.
Enhancing the customer experience and business operations

Industry transformation is supported by several factors, including improved customer experience, increased efficiency and reduced costs. The rise of fintech businesses and changing demands of customers have played a critical role in driving digital transformation in finance. Furthermore, regulatory changes and tech advancements have made it easier for finance businesses to adopt digital solutions. The increased use of mobile tech and the Internet has also supported further growth in digital banking.

The shift toward digital technology has transformed traditional finance practices. It has enabled new businesses to emerge, offering a range of advantages to the finance world. It has improved the overall customer experience by providing accessible services for all. Digital technology has also increased operational efficiency for finance businesses by creating quicker transactions and reduced costs.

By recognising the advancements, you can make informed decisions about which finance businesses to work with and which technologies to adopt to manage finances effectively.

Navigating the digital finance scene

The digital finance industry is rapidly evolving, and finance companies must remain in touch with the latest trends to stay competitive. Many benefits have emerged with digital tech, but there are also challenges finance companies face when adopting digital solutions. One of the main challenges is related to regulatory compliance. Finance businesses must meet a range of regulations and standards when implementing digital technology to ensure complete security and privacy of customer data. This process can take time and requires considerable resources.
A secondary challenge is legacy systems, with many conventional banks relying on outdated IT systems incompatible with today’s digital solutions. Upgrading these systems can be expensive and time-consuming, blocking the potential adoption of digital technologies.

Cybersecurity is a major concern when implementing digital technology in finance. Businesses must ensure their systems remain secure and protected from potential cyber-attacks. Furthermore, there is a need for skilled talent capable of managing and maintaining new digital solutions. This requires additional investment in training and development plans to ensure employees have the skills to work effectively with new technologies.

Finally, there is a risk of losing the personal connection in finance as more activities move online. Financial institutions must find ways to balance the accessibility of digital banking with personalised customer service to keep customer loyalty. While there are challenges in adding new digital services, finance companies must discover ways to alleviate these concerns to remain competitive in a digital future.

As finance companies slowly transition from physical branches, it will become more important to balance the convenience of digital banking and the personalisation that people demand. While online banking has become very popular, many people still want personal interactions. To address this, emerging technologies like AR and VR may provide solutions to connect the gap between digital accessibility and personalisation. Utilising emerging technologies may enable us to strike a balance, improving customer satisfaction and loyalty. As finance moves closer towards a digital transformation, it’s critical to remember the value of personalisation. Augmented and virtual reality provide a solution to connect digital and personal services. Incorporating these types of services will create an experience that provides customers with more insights into financial products and services.

We are embarking on a new transformation journey and should embrace the power of tech to deliver a promising future for finance. By using digital technologies, banks can transform how they support their customers. Innovation and digital disruption are vital to generating new opportunities and exceeding customer expectations. Finance companies must keep close to emerging trends and provide more convenient and accessible services to their customers and deliver an enhanced finance experience.

UK financial services businesses are believed to need more data skills to succeed in a progressive digital landscape. The lack of data-specific skills for business strategies is hindering UK finance companies’ plans to meet customer demands for more personalised services.

Recent studies by data and analytics business Cynozure suggest there is an overall lack of understanding of the real value of data at the senior level within the UK financial industry. A survey of senior finance executives indicated that 27% of respondents lacked the necessary skills to utilise data properly. Over 30% stated that there was a data skills shortage across their entire business.

One of the main challenges facing the finance industry is determining the return on investment with data investments. Over 50% of people surveyed stated that this represented the main barrier to launching more data plans in their organisation. Jason Foster, the CEO of Cynozure, explained that the study suggested an opportunity for finance companies in the UK to adapt their data strategies and harness the benefits of data. Used in the right manner, data offers a range of benefits in the financial services industry, particularly when many people demand more personalised financial support to alleviate the cost-of-living pressures. Over 90% of respondents agreed that data findings would be critical to supporting customers as the cost-of-living crisis intensifies.

According to a study by open banking tech supplier Tink, over 35% of people struggling financially would consider changing banking providers if they could access custom financial support. None of this will be achievable if the necessary skills aren’t in place to create data-focused solutions.

Conventional banks must improve their use of data if the automation of personalised banking is to progress and compete with other, more digitally-focused tech rivals. Challenger banks are implementing new data strategies, creating personalised financial services for customers. For example, Zopa Bank has created a customer experience that rivals a similar service provided by Netflix or retail giant Amazon. Both businesses depend on sophisticated technology, but the customer portal remains simple and accessible. Implementing machine learning processes has enabled Zopa to create a similar interface used in leading businesses and determine the habits of customers and other users.

The lack of data skills isn’t just a finance industry concern. According to a survey by data consultancy Carruthers and Jackson, 64% of data leaders worldwide believe that nearly all employees in their business lack data experience. The study also indicated that only 1 in 5 people were confident with their data literacy skills, and over 70% felt overwhelmed when working with data.

This year’s outlook has radically changed from predictions a year or so ago. At the end of 2021, executives were focused on the recovery phase from the pandemic and overall confidence in the economy was quite positive. While predictions with rising interest rates, accelerated technology integration and struggling labour markets did occur, the economic outlook for the coming year isn’t as positive as previously anticipated.

Despite stricter financial policies to alleviate economic concerns, many executives still focused on growth. As businesses implement more human-focused management plans, the work environment and company culture, the predominant efforts are integrating technology into business systems and processes. Despite concerns about technology use and costs, digital acceleration, particularly in corporate finance, has risen significantly.

The progression of human resources

With the core of HR transformed by technology, the coming year will inevitably bring more automation and leveraging of data. Automating business processes will be vital for employer and employee relationship for 2023. Simplifying activities is a priority for HR employees. Whether enhancing reliability or expanding the benefits of applying banking as a service (BaaS), CFOs using a people-focused approach must consider what technology is out there to make their work more productive and flexible for their employees.

Leveraging New Technology

Studies have suggested that SaaS products are heavily dependent but often underused and typically very costly. Furthermore, using multiple tools or products to tackle the same problem is a big concern. These problems results from ‘SaaS Sprawl’ caused by the simplicity of implementing and managing software within a business. It often results in a company-wide lack of clarity in the technology stack.
While many leaders recognise the importance of selecting and delivering the right technology, it can be challenging. As fintech continues to transform daily activities in corporate finance, senior leaders should look for the right software for them and their business and not necessarily the most recognised or highest rate tool available.

Enhancing Reliability of Data

The increase in remote and hybrid working and dependence on the cloud has resulted in less reliable and secure data. CFOs must focus on data accuracy and ensuring they can predict, forecast and measure large data sets to ensure continued growth and success.
Nearly half of CFOs in a recent study claimed they lack accurate cash flow data, so utilising technology that makes financial data analysis accessible and easy will be critical in a disruptive economy. As our work conditions continue to change, the generation and management of data are essential. Regardless of industry, CFOs regularly forecast their information, as data reliability can vary. If frequent measuring happens with unreliable data, it impacts the productivity of a CFO and means important decisions and capital allocations are made on inaccurate information.

The Importance of Cybersecurity

Significant cybersecurity breaches have become commonplace in digital environments. Over a third of CFOs reported that cybersecurity is a top priority, and protecting their business, customers, and associated data continues to be of prime importance this year.
Ensuring your business has a response plan is paramount for this year, but having a cyber resilience plan in place will enhance the ability to manage a potential attack and ensure systems remain operational. Recognising the need to manage and plan a cybersecurity strategy is required. With new regulations on data breaches appearing, senior leaders must focus on managing risks that impact growth and take a closer look at their time and investment spent on security measures. Cybersecurity is no longer an optional element of business practice. It is an essential part of the business infrastructure.

As we begin a new year, one of the most highly regarded talent pools will be data scientists, as their particular skill sets will become even more valuable for businesses. 

During 2022, hiring in the tech industry exceeded many other sectors impacted by the transformation preceding the pandemic, the great resignation and a range of economic factors. This year, industry leaders expect to see tech hiring accelerate, especially in data science. With rising dependence on data and technology and new fields emerging, the overall value and demand for data-science-focused roles will increase. Data science hiring is anticipated to dominate this year as more individuals with the skills will explore a lucrative, skills-focused market, and these skills are particularly transferable in other markets like finance, pharma and supply chain. This will create more opportunities for potential candidates and reward them with higher salaries and incentives.

Power to the candidates The data science industry is still progressing as fields like AI and Machine Learning are accelerating. As a result, the meaning of a data scientist is constantly evolving, and businesses need to create teams with new skills. It’s challenging to have lots of experience in areas that are only emerging, especially for senior-level positions. Taking into account the changing roles, finding available talent can be challenging. Technology businesses will continue focusing on securing individuals for their data science roles throughout 2023. The niche skills data scientists have and the existing skill-based market have generated high competition for candidates within the tech scene. This means candidates have the power. 

The other factor giving candidates added ability in the market is that the knowledge and skills in typical roles such as AI, computer science and statistics apply across the board. As a consequence, a data scientist from any discipline can work in fintech, insurance or healthcare, and they can use their skills straight away. This means that as other industries beyond tech begin to apply for data science-related positions, this will create further opportunities for these candidates. 

The tight labour market and the possibility to transfer skills means candidates can negotiate their roles and benefits and seek more flexibility. 

Businesses depend a lot on their data systems, which will likely take a significant step forward throughout this year. As companies apply more technologies and implement them into their business, such as investing in the cloud, this will make data positions far more critical and further developments outside traditional tech positions. 

Data scientists are required for more than just monitoring trends and generating insights because as companies store more information and launch new technologies, it creates more areas of exposure to possible breaches and adds more regulatory issues. Cybercrime has been rising for the last few years, and companies that have ignored investing in data science talent to manage security and privacy face potentially losing significant sums of money. Furthermore, those that fail to invest in security risk management systems, tech and governance controls are unlikely to succeed. 

As a result, organisations will be looking to hire for positions where a data scientist can manage their data across multiple industries such as supply chain, fintech, insurance and financial services. This creates a range of new roles for data scientists and increases the price to acquire them. As other markets compete for this talent, they will focus on the same talent pool but with more competitors. This year we will likely see rising competition and better offers made to secure candidates.

New industries

Emerging markets such as crypto will only increase the value of data scientists as these new industries require data specialists in their companies. Businesses will look to hire data scientists to handle roles in risk management, control and governance as the market continues to become more regulated. The risk and regulation side of the business is typically an area in which many lack tech and data staff, as most have traditionally focused on hiring for growth areas rather than risk.

A high-level data scientist with the skills and experience will be in a strong position. The tech market has shown resilience in hiring top talent, but new opportunities are appearing across other industries, and emerging technologies will generate higher hiring and demand levels. Companies will face stronger competition and need to offer more benefits, flexibility options and compensation packages to secure the best talent.

Predictive analytics is becoming a critical tool for businesses looking to determine the results of key decisions before committing to them. The benefits are evident but implementing the tech can be a challenge. With rising inflation impacting costs and fears of recession affecting demand for services, companies across the country are decreasing their spending and exploring new growth opportunities.

Identifying where, when and how much to invest is critical, but it’s vital during a challenging downturn when choices can have a profound impact on the growth prospects of your business once the economy recovers. In an attempt to adapt their investment plans, companies are increasingly applying predictive analytics to support them in assessing opportunities and risks. 

James Petter, VP of data storage business Pure Storage, believes risk management is a major discussion point among CFOs and regulatory teams, especially in the current economic climate. Senior leaders consider risk management a top priority, assessing their economics, financial structures and technologies. Businesses contain lots of data, and most are trying to determine how to use this information. Often, companies are focused on the current market conditions and responding to these but moving forward, there is likely to be more of a push on looking ahead, and predictive analytics will play a significant part in this. The rise of predictive analytics is no surprise to Shankar Balakrishnan, VP for Europe at Anaplan. Balakrishnan refers to businesses using historical data to navigate challenging times as someone driving by only using their rear-view mirror. Balakrishnan believes companies must utilise more data on potential outcomes and react smarter to possible disruption. Anaplan recently partnered with the South Central Ambulance Service Foundation NHS Trust to support its predictive potential. By applying machine learning and predictive insights to their data, Anaplan determined the number of emergency call the ambulance teams would receive at any given time. This process allowed the trust to deliver resources more efficiently. 

The challenge of implementing predictive analytics 

For finance leaders, the challenge is understanding what to focus on. One initial area to work on is automating functions in the back office. Applying technology, such as robotic process automation and AI-focused data analytics, improves the processes, tackles skills gaps and improves efficiency. It can also provide intelligence that can support forecasting and planning. Automation like this allows employees to focus more on value-added tasks.

Bearing in mind the potential risk and uncertainties, few leaders will want to make critical investments and resourcing plans on instinct. Risk management may be a priority in a crisis, but can business leaders avoid this crisis in the first place? Whether it’s a pandemic or cyber attack, making effective plans under pressure requires accurate and data-focused insights. Successful risk management needs data to deliver various scenarios and options. For example, in the travel and tourism industry, predictive analytics may prove critical to enable them to recover from significant disruption experienced after Covid. Aircraft manufacturers are using technology to find the best times to perform maintenance tasks, and airlines are using similar technologies to predict demand for flights and plan their staffing and fuelling requirements. Quality data and predictive analytics are critical to risk mitigation within the finance industry. They are vital for fraud detection, auditing and other types of advanced work.

The overall success of this technology depends on the quality of data fed into the system. Insights created on incomplete inputs could be misleading and potentially cause harm to a business. Implementing predictive analytics isn’t a one-time process. It takes time and effort to examine the findings, understand them and alter the system accordingly. It’s important to have clear goals when implementing analytics, adapt them when necessary and continuously revisit them to ensure the business is getting what it needs. Accuracy and compatibility are critical when measuring performance across various teams.

If leaders work with inaccurate data, they risk making inaccurate decisions. Similarly, if teams spend hours validating data, it makes the entire process impossible for decision-makers to react quickly. Despite the challenges, the benefits of predictive analytics are clear. With the insights it delivers, predictive analytics offers significant value for business leaders, converting data into critical information for a business.

With rising demand for managing the impacts of climate change, finance-related businesses are experiencing new challenges. Deloitte is partnering with Persefoni to launch a new integrated service that measures climate exposure, meets new regulations and delivers more informed data-focused decisions.

Persefoni, a climate management and accounting platform (CMAP) provide businesses, financial companies and government agencies with the software required for managing climate-related data and business performance with the same level of confidence as their financial reporting system. The software solutions will allow users to calculate their carbon footprint, perform climate modelling aligned to temperature rise scenarios and benchmark their impact by location, sector and other groups.

As Deloitte continues to focus on supporting clients on their path to net zero, it has formed a strong partnership with Persefoni. The collaboration will see the companies develop analytical solutions for the finance industry, supporting businesses to find a new path for measuring, disclosing and managing their carbon footprints, from an operational and financial perspective as part of their climate journey.

Ricardo Martinex, the sustainability, climate and equity leader at Deloitte Risk and Finance, explains that by leveraging rich data in the Persefoni platform combined with Deloitte’s analytics and services, they can support businesses through their end-to-end ESG transformation. As finance-related companies focus on carbon accounting requirements, recognising and evolving the financed emissions in their portfolios will enable clients to chart financed emissions, explore critical business risks and find opportunities to improve the structure of their financed portfolio, as well as meet all reporting obligations.

As leaders of sustainability and finance combine to tackle CMAP requirements, Persefoni and Deloitte’s clients can apply Persefoni’s tools and Deloitte’s experience with ESG practices and financial analytics to address sustainability and climate goals. The partnership has seen Deloitte create and integrate accelerators, analytics and other tools to support clients in the finance industry, and understand risks and opportunities based on financed emissions portfolio data.

The financial services industry faces rising pressure from governments, regulators and capital markets and is moving towards disclosing operational and financed emissions footprint. As finance companies work toward their net zero targets and improve their impact on the climate, creating a structured CMAP use will be vital, especially as ESG disclosures become regulated.

Kentaro Kawamori, CEO and Co-Founder of Persefoni, explains that Persefoni is excited to partner with Deloitte, a leader in sustainability, climate and equity strategy and advisor to many leading businesses and financial institutions. Supported by Perseoni’s technology platform and Deloitte’s sustainability, risk and reporting services, their clients in finance will have access to the best support on their climate journeys, from meeting compliance requirements to measuring climate exposure within their portfolios and enhancing their business strategies.

The global impact on food security is one of the major priorities at the COP27 climate summit. Recently the Commonwealth Secretary-General called on other leaders to collaborate and learn from each other to transform their future strategies.

Patricia Scotland, the Commonwealth Secretary-General, emphasised that for countries to deliver a more productive and sustainable agricultural industry and ultimately be more resilient to climate change, we must utilise big data and other digital technology. New digital tools can transform business plans within the agricultural chain and tackle productivity, harvesting, finance and supply chain management issues.

At COP27, Commonwealth Secretary announced a new policy guide focusing specifically on global food security. This guide is one of the first to explore how digital technology impacts the agricultural industry. Scotland believes that this policy guide is a critical step, not only for the Commonwealth but also for small, developing and middle-income nations. The guide supports policy leaders in recognising key areas that can improve and develop this market.

Agriculture is responsible for food security and employment in most Commonwealth member states, with over half of the collective 2.5 billion people residing in rural regions and connected with smallholder farming.
Created by the Commonwealth Connectivity Agenda, the framework discussed in The State of Digital Agriculture in the Commonwealth guide explores various regions based on their current digital technology, infrastructure, and enabling further digital progression and suggesting strategies for progress.

According to the policy guide, while regions like Africa lack some critical data infrastructure, considerable progress has been made through digital innovation, new technologies and services. In Asia, technologies for agriculture have progressed across the region, but overall affordability continues to challenge the most vulnerable communities.

The business development market, financing and investments remain underdeveloped within the Caribbean and Pacific Small Island nations. In Europe, Canada, New Zealand and Australia, smart digital technologies are widely used, and the policy guide encourages other regions to collaborate and learn from these innovations to assist them in making continued progress. While speaking about climate resilience and food security at COP27, Secretary-General Scotland emphasised that further efforts must be made by the public and private sectors to recognise the potential of digital and big data solutions for the agricultural industry.

A recent study by Harvard Business Review suggests companies expect finance teams to be more strategic, collaborative and automated. Increasingly, businesses are requested to provide financial details quickly and support leaders in achieving their goals. Finance professionals are, however, facing the pressures of daily administrative duties, which means fulfilling this strategic role is more challenging than expected. Many industry professionals believe it’s time for finance teams to automate tasks and start focusing on core strategies. 

Finance teams have a tradition of utilising new technologies that make the technical aspects of their jobs faster and simpler. Tech-focused businesses and associated C-suites are adopting automation to accelerate their efficiency and performance. The affordable and improved technology will likely transform the function of a finance team.

Many industries are adopting automation within their accounting teams. Businesses have automated processes delivered by their finance teams, such as financial close, accounts payable, financial planning and analysis. While automation impacts accounting services, there is still much to be done in this industry. According to a Deloitte report from 2020, over 75% of respondents said their business accounting processes are predominantly manual or require significant manual input. Under 4% of respondents suggested that their business has implemented robotic process automation (RPA), while around 2% had integrated machine learning and artificial intelligence (AI). 

Considering the existing economic and financial conditions, geopolitical uncertainties and increased inflation, finance teams are under further pressure to raise their performance levels and focus on their corporate strategy. The Harvard Business study suggested that 89% of finance teams can provide unique and valued input on business challenges. A further 83% believed there is a potential risk to their business if the finance team doesn’t contribute to the overall strategy. However, many believe that finance departments are held back by basic tasks, which prevents them from adopting this more strategic role.

Automation doesn’t necessarily remove humans completely from a process, but it enables machines to focus on repetitive work. While professionals can increase their productivity and drive key business objectives. If finance teams spend a large portion of their time on manual activities, they lose the opportunity to explore data and deliver high-value insights. By automating tasks, finance teams are in a stronger position to add more value. 

In finance, automation enables businesses to identify missing payments and remove potential errors. Automation can improve the analysis of customers and reduce or eliminate findings that can lead to poor decision-making and planning.

Applying automation to financial close

In a Trintech survey, over 50% of financial professionals said that meeting deadlines and timescales were the biggest challenges in the financial close process. Manual processes and reduced use of financial automated solutions can impact the ability to generate insights, particularly when working in a remote or hybrid environment. According to EY, over 60% of CFOs said their closing process is manual. When asked what stopped businesses from implementing the most efficient financial close, lack of automation and manual errors were considered notable factors. There is a growing recognition that manual activities and a lack of automation directly impact the challenges experienced during financial close but many are yet to have a solution to this issue.

Automation presents several benefits, but there are challenges related to the implementation process. Businesses must understand these issues and be prepared to create the necessary solutions. Before launching automation, companies must determine whether to automate their existing workflows or restructure them. Prioritising areas for automation must focus on repetitive tasks that are more likely to incur errors and recurring costs. Financial operations represent the core of many businesses, especially if these changes can be risky. Some solutions require organisations to invest considerably to implement the necessary changes to their systems. 

One of the biggest challenges to overcome is the underlying fear of employees and getting them to invest in the automation process. Some finance members may be concerned about being replaced by automation and other technology. Others may be worried that their team is piloting automation for the rest of the company. It’s critical engaging with employees to eliminate any negative perceptions of the process and highlight the benefits. 

With further technological advancements, businesses may fall behind their competition if they fail to recognise the benefits of automation. Shifting from manual to automated processes can be very beneficial, increasing performance, saving time and reducing the chance of fraud. Finance teams are now a central part of business operations. The CFO today is directly associated with key strategies. As technology becomes more sophisticated, businesses can automate more activities. 

Finance teams are dependent on the continued availability of accurate data. Leveraging data solutions and other technologies are signifcantly beneficial for forward-thinking businesses, creating more insights and widening capabilities. 

Representing data using graphics like charts, animation and infographics are regarded as data visualisation. Visual displays and representing information in this manner help communicate complex data relationships and data-driven insights in a form that makes it simple to understand and determine a structured plan. The primary objective of data visualisation is to assist in recognising patterns and trends from large data sets.

There is a significant volume of data available today, and to generate any benefit from such considerable data, real-time analytics has become critical for all industries, including finance, to gain a competitive edge. The finance industry is experiencing a significant digital transformation and growing pressure to innovate. To achieve this digital transformation is delivered in various ways, and by leveraging data visualisation, the finance industry can utilise benefits like:

A more comprehensive view into customers’ behaviour and needs

Timely financial intelligence to make informed decisions

Enhanced client reports

Innovative fraud detection

Detailed view of risks across the entire business

Some data visualisation tools in the finance industry include:

Risk reporting and analytics – integrating a range of data sources into a singular source can be challenging. This is the case with banks when reporting risks and performance figures. The main challenge is generating reports that highlight the risk areas applicable to the industry, like market credit, operation risk and so on. Data visualisation is the ideal choice in these cases since data can be consolidated in real-time from multiple sources to create reports that can provide visual analysis. Data analytics can also enable quality data checks across sources to generate error-free reports.

-Client reporting and CRM – client relationship management systems and clients’ reports go together for the finance industry. CRMs provide and help improve relationships with customers. Client reports give finance businesses a complete overview of the customer, risk analysis and other things. Integrating big data and data analytics in real-time provides visual reports with clear information required to make informed decisions and support examining client spending patterns and other variables.

Managing liquidity – finance companies must manage liquidity effectively and have real-time access to all liquidity positions such as currency, locations and relevant products. It’s critical to compare financial figures against standard ratios on an ongoing real-time basis. 

Data visualisations make comparisons simpler by providing clear visual reports and risk analysis. Integrating data receipts from other sources provide detailed information to predict and analyse liquidity. 

Customer analysis – determining customer needs and behaviour is a critical part of the finance industry and helps businesses create new products and services to meet customer requirements. By empowering finance businesses to interact with their customers, data visualisation technology can provide them with relevant and modern information to offer financial products created to customer needs.

Integrating with social media – social media is a creative way for finance businesses to market products and improve their relationship with customers. This provides big data which can be integrated with CRM applications. Data visualisation tools can connect all data sources and provide data analytics is very important for these companies. 

Enhanced identification – using data visualisation, the visual results can be produced for any data without managing filters and sorting lots of details. A range of graphs and charts can be generated instantly to highlight specific details. 

Collaborating and sharing data – The reports produced can be shared with multiple teams, simplifying data sharing within a finance business. Teams can collaborate and work together, whether it’s in the exact location or not. 

Detecting trends and anomalies in data – One of the main concerns for a finance company is determining fraud. Reports created with data visuals can help detect patterns that may be overlooked because of the sheer amount of data. These reports can help eliminate the potential for financial fraud. Many financial institutions have separate dashboards for fraud detection and risk management. 

In conclusion, data visualisation is a powerful tool and can significantly support the finance industry. By applying data visualisation services, consultants with experience within the finance industry can create a unique and competitive edge for their customers.