Now is the time to step … Even without digital transformation, organizations can grow and change very quickly. Similarly in the 1980s, secretaries were one of the largest categories of employees with entire rooms of typewriters and filing cabinets. Recent research in the US forecasts that — like the replacement of secretaries 40 years ago — “of the 1.4-million jobs expected to be disrupted between now and 2026, the majority belong to women”. Need help developing a digital finance strategy and taking the next step on your journey towards a better, faster, and less expensive finance organization? Digital transformation in the financial services industry was merely a concept that has now become a part of a successful business strategy. Nonetheless, finance leaders need to recognise employees’ legitimate fear of being replaced. The weight of responsibility to assuage such fears will fall squarely on the finance leader’s shoulders. The technologies needed to reimagine finance are here and they will only get better. In the finance function, that means working now to get the right people and technology in place to take advantage of the inevitable disruption ahead. New products, divisions, and acquisitions create new data sources for financial overview. It’s crunch time for digital transformation of finance, Crunch time III: The CFOs guide to cognitive technology, Standard terms for the provision of goods and services to Deloitte & Touche. shows that this is beginning to change through the use of third-party service providers and the cloud, which offer the same benefits the biggest players enjoy. Inventions such as the washing machine, dishwasher, microwave and electric stove put an end to domestic service as a large employer. © 2019. Matt et al. In the finance function, that means working now to get the right people and technology in place to take advantage of the inevitable disruption ahead. AI is leading the digital transformation strategy in finance Finance leaders are being asked whether artificial intelligence will destroy jobs or create them Philip is the Finance & Performance Leader for Consulting Africa. Do not delete! DTTL and each of its member firms are legally separate and independent entities. As employees perceive that digital transformation could threaten their jobs, they may well push back both consciously and unconsciously in the hope the project will fail and management will abandon the effort, sparing their jobs. Social login not available on Microsoft Edge browser at this time. And another important thing is Change Management. Leadership perspectives from across the globe. In the finance function, that means working now to get the right people and technology in place to take advantage of the inevitable disruption ahead. The need to support women in work needs to be even further advanced by organisations spending time constantly reskilling and upskilling them. Deloitte's original point of view, Crunch time: Finance in a digital world - based on extensive research with finance executives, including in-depth interviews with CFOs of global businesses - explores the various digital disruptors and may be the quickest way to understand what's in store for finance organisations as they hurtle toward the future. That’s not likely to happen without a clear vision and strategy for Finance in a digital world. It is the addition of more cognitive capabilities in technologies that will allow companies to reconfigure their human capital requirements. The Report 2020-2026 Global Digital Transformation in Banking and Finance Market Report Industry analyses the important factors of this market based on present industry situations, market demands, business strategies utilized by Digital Transformation in Banking and Finance market players and … I’m a cuddly teddy bear’, GARETH VAN ONSELEN: The decline and fall of Johannesburg, BONANG MOHALE: Corruption stops the natural laws of an economy functioning freely, STEPHEN CRANSTON: Alexander Forbes makes a case for keeping most money in local assets, New variant of Covid-19 found in SA, and is spreading fast, says Mkhize, Government will make Covax payment in the next few days, says Mkhize, Nomvula Mokonyane apologises to Trevor Manuel over slur, Ace Magashule to remain ANC secretary-general, for now, POLITICAL WEEK AHEAD: Ramaphosa to address the nation on Covid-19 ahead of the festive season, Ramaphosa takes firm line at NEC meeting as ‘step-aside’ resolution splits ranks, Tesla shares in trading frenzy ahead of S&P 500 debut. Automation has been increasing for many decades — but automation is not intelligence. “Artificial Intelligence (AI) will enable CFOs to build a more agile, efficient and productive finance function,” says Gerhard Hartman, vice-president, medium business, Sage Africa & Middle East. On 21 November 2018, the College adopted the Digital Strategy of the European Commission. With that in mind, below are eight predictions for Finance in 2025, based on what finance leaders are doing and the technology available today. The report looks at the evolution of finance leaders. Digital Finance Strategy methodology. However, going digital requires that you first put a solid foundation in place. Cost-wise, growth companies were not able to enjoy the benefits. Scroll down to the “Get in touch” section and contact us directly. What’s your view on the future of finance? Would you like to comment on this article or view other readers' comments? With Finance’s work and workforce becoming each day more influenced by and dependent on new technologies, our Digital Finance Strategy methodology serves as guidance for organizations to build a solid foundation for their digital journey. One claim is that robots and other automation tools will help finance departments focus on the human and strategic aspects of their jobs, such as engaging with fellow employees on budgets, governance issues and risk. This message will not be visible when page is activated. Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January. “Digital transformation nearly always requires many internal stakeholders to do things in a different way,” says Martin Henley, SVP, technology services sector for Globality.. “That likely includes changing or breaking processes that have been in place and have worked well at some point, changing how stakeholders interact with their clients, even changing their roles. In the past, one of the main problems with AI and automation was that many of the systems were only available for the largest companies. Only time will tell what new jobs will appear and which ones will disappear. Those topics are out of the scope of this article. Yet again, there was no collapse in employment when desktops replaced them — as new employment categories emerged. We look carefully at what finance leaders are doing and at the technology that’s available, and then we ask these questions: What would be possible if we combined different technologies to reimagine the future? Accounting is no exception. If you’re ready to advance your digital marketing strategy or want to refine or audit your current approach, we can help. The Deloitte Africa Center for Corporate Governance offers a number of resources for executives, directors, and others who are active in governance. Of course, the finance transformation roadmap is a strategic deliverable. SPONSORED | Six notable benefits of AI in finance, and what they mean for humans, SPONSORED | Predictive analytics enrich finance processes by offering insights into business problems and areas of potential, SPONSORED | Managing risk around fraud and cybersecurity is one of the biggest challenges facing finance professionals, AI is leading the digital transformation strategy in finance, Finance leaders are being asked whether artificial intelligence will destroy jobs or create them. “With the responsibility of analysing and interpreting financial data frequently falling at the feet of the CFO, AI will be one of the role’s most important tools in driving business success. There is ample historical evidence that innovation does not destroy jobs. Global Digital Transformation in Banking and Finance Market Research Report 2020 . Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. It is not for the fainthearted, but CEOs are heading in the right direction if they grasp the fundamental importance of heavyweight management commitment, are willing to make significant investments, and set clear, ambitious targets. All rights reserved. Now is the time to step back and make sure your roadmap to that future is clear. The real work will start soon after that in various projects and work streams. Once you’ve taken a glance through the predictions, consider: Downloading the full “Finance 2025” report to understand how each of these trends impacts finance work, finance workforce, and finance workplace and the steps executives can begin to take today. Pepkor comes through for its indebted executives, Billions at stake for insurers after Guardrisk business interruption ruling, NEWS ANALYSIS: Why the government’s win against unions may be about more than a one-off cost saving, Two million fewer sales in physical stores during Black Friday weekend, according to the BankServ data, Absa boss Daniel Mminele expects a painful recovery, SA’s businesses have good reserves of resilience to call on, Integrated Reporting Awards: Transparency is key to reports, Digitally enable and transform your business, Franc, a new stokvel app, claims to be SA’s cheapest way to invest, Federal Reserve lets banks resume share buybacks, Zimbabwe’s central bank ends gold monopoly, Court rules Covid-19 vaccination will be mandatory in Brazil, Three Proteas replacements named for Sri Lanka series after more Covid-19 cases, Rescuers troubled by scene of Motjeka Madisha crash, Kaizer Chiefs and Gavin Hunt on the ropes with Celtic up next, Wanted Online: The Danté experience: Three storeys of style, top-tier food and brilliant coastal views, Mbalula extends driver’s licence grace period to August 2021, Grace period is extended for car licences that expired during lockdown, Vegan diet: how your body changes from day one. The digital finance organization remains an emerging concept in many organizations, and CFOs are still at one remove from the center of digital-transformation efforts, even though they own and manage much of the relevant business information that feeds such initiatives. This is what is required if distance is what prevents one in every four financially excluded people from opening a bank account. For a free consultation, click below or call us today at 303.986.3000. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. The methodology for generating our predictions is straightforward. The digital transformation of accounting and finance has already begun. Read more at the SA government's online coronavirus portal or use the 24-hour public hotline: 0800 029 999. Finance transformation strategy helps CFOs identify the weaknesses in their finance organisation to prioritise the required change initiatives, and supports them in defining an operating model to support the business and manage key finance activities more efficiently. Learn how this new reality is coming together and what it will mean for you and your industry. A Digital Foundation. Finance leaders need to be particularly sensitised to the fact that many of the job categories which are forecast to disappear — telemarketers, clerks, compensation and benefits personnel, receptionist, proofreaders and retail salespeople — are in the majority done by women. To jumpstart your efforts, please check out the finance and accounting transformation toolkit. The JSE all share, however, fell 1.25% and the top 40 1.43%, The WPP co-founder on his acrimonious exit from the company he built — and whether biggest is always best, Data currently suggests ‘no red flags’ around the variant being more fatal than the original variant, Spokesperson Pule Mabe says the party is still developing guidelines for removing officials accused of graft, The shares have surged about 70% since mid-November, when its debut in the S&P 500 was announced, and have soared 700% so far in 2020, The court decision has underscored that no collective agreement with fiscal implications can be enforced if not backed by the Treasury, The immediate potential threat to companies’ cash flow cycles lies in further lockdowns when supply chains are frozen again, While lenders remain barred from boosting their dividends, they performed well in a second round of 2020 stress tests that assessed how the industry has navigated the Covid-19 tumult, Last-minute changes announced a day before the team enters bio-bubble, Durban’s latest venue has got it all, including a private dining space and rooftop bar. Finance leaders, who, according to a new Sage research report are taking centre stage in the rollout of digital transformation projects, need to convince company employees that digital transformation is a career opportunity for employees to upgrade their expertise to suit the marketplace of the future. Access the latest thought leadership on industry insights, country reports and economic developments in Africa. How could finance contribute even more to the success of the company? For instance, in 1910 manufacturing, transport, retail and domestic services were the big employers in developed economies. The. MARKET WRAP: Rand hits best level since January on positive global momentum, MARKET WRAP: JSE leaps to best level since January 2018 on firmer global markets, LUNCH WITH THE FT: SIR MARTIN SORRELL: ‘What temper? Register (it’s quick and free) or sign in now. (2015), discussing their digital transformation framework, call for further research on digital transformation strategies, considering different industries as … The impact of digital technology, digital transformation, and automation has led people to opportunities for cost-effective operations, fast actions, meeting work deadlines, improved customer and employee experience and standing out among your rivals. ... 8 Your guide to finance transformation in an age of unprecedented disruption ... as is the case with digital finance transformation. It’s crunch time. The Finance 2020 organization will be the go-to source for decision support, delivering analytic insight to drive strategy across economic, market, competitor and customer perspectives. are taking centre stage in the rollout of digital transformation projects, need to convince company employees that digital transformation is a career opportunity for employees to upgrade their expertise to suit the marketplace of the future. If outdated accounting software has put pressure on your finance team and reduced their ability to react to the unexpected challenges of COVID-19, then now is the time to invest in finance digital transformation. As these individuals blaze a trail for AI within their businesses, finance leaders can show how the technology will liberate people to focus on more creative, strategic and meaningful work, and spend less time on repetitive and tedious manual tasks.”. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. The Sage CFO 3.0 report shows that this is beginning to change through the use of third-party service providers and the cloud, which offer the same benefits the biggest players enjoy. Digital transformation is revolutionizing every industry. DigiLab Finance supports in developing a structured Customer Centric Digital Transformation through a unique hands on acceleration program. Cost-wise, growth companies were not able to enjoy the benefits. The bulk of their time can now be spent analysing the data to discover ways for the business to improve operations and plan strategically. Fullwidth SCC. How would the work of finance get done and who would do it? Corporate finance organisations are counting on digital transformation to improve customer focus, enhance strategic value and reduce costs, according to the 2019 Finance Key Issues research from The Hackett Group.. To set a digital transformation on the right course a company must place it at the core of its agenda, and understand the magnitude of that undertaking. Coming off the success of our previous “Crunch time” reports, we’re now looking towards the future with eight predictions for the finance function of 2025. strategic planning has increased in the last two years.2 Digital finance will speed the CFO’s evolution from cost authority to business value architect. By using accounting software and cloud computing, the modern finance chief can spend their time not simply keeping files, books and tax returns in order, but gathering immense amounts of data and making computations more quickly and easily. Digital – the buzzword used or over-used for quite some time now, brings in a huge impact on the financial & banking industry. A second thread is for AI, automation and robotics to create new jobs and careers, both in finance and elsewhere. DTTL and each of its member firms are legally separate and independent entities. Consequently, the accounting department is one area of a business that could potentially see an increase in jobs. How must Africa ready itself for 2.5-billion people, asks Phuthuma Nhleko? Digitalization or Digital transformation is nothing but the restyling of financial services. CCG’s financial marketing experts have more than 40 years of experience working with digital strategy, data and analytics, digital content and design. Microsoft Finance experienced this transformation to digital as it evolved over the company’s last 40 years. In the past, one of the main problems with AI and automation was that many of the systems were only available for the largest companies. The World Bank indicates that technology may play a key role in making financial inclusion a viable reality for everyone, which is why digital transformation is part of BBVA Microfinance Foundation’s DNA. Digital transformation in finance can be of great value to a business, because it offers the ability to automate back-office functions like payables and receivables, thus allowing finance leaders to focus on business strategy and how the data can be used to drive customer experience and profitability. © 2020 Arena Holdings. The first two decades of Microsoft Finance were defined by a centralized system focusing primarily on controllership and the fundamentals, an appropriate approach for a fast-growing and relatively small company. Finance 2025: Digital transformation in finance has been saved, Finance 2025: Digital transformation in finance has been removed, An Article Titled Finance 2025: Digital transformation in finance already exists in Saved items. Now is the time to step back and make sure your roadmap to that future is clear. Yet, the big economies didn’t experience huge waves of unemployment, because new careers in professional services  that didn’t exist in 1910 were invented. While there is no doubt that automation will destroy whole sectors of repetitive-type work, it will simultaneously enable us to perform tasks we haven’t even thought of yet. It sets a vision for the Commission to become a digitally transformed, user … Please read our Comment Policy before commenting. There are two threads to the “robots won’t take jobs” argument. The right tools can make a big difference in how finance directors and their teams respond to these challenging times. None of us knows for certain what the future will hold, but we all have a responsibility to be thinking about what’s likely to happen, and to prepare for it. The finance industry is uniquely poised to take advantage of digital transformation — possibly more so than any other business sector. Use of this site constitutes acceptance of our Terms & Conditions and Privacy Policy. Finance professionals will not lose their jobs, but they will have an opportunity to learn new things and become advisers and strategic leaders in their companies. What is now Digital Financial Services (DFS) has evolved from mobile money in 2007 - 2010 fostering on payments over the mobile phone and agents network for last mile delivery. A report from the World Economic Forum concluded that by 2025 machines will do more tasks than humans, but the robot revolution, or fourth industrial revolution, will still create 58-million new jobs in the next five years. To achieve the most value, the finance function must develop a digital strategy that aligns with the company’s overarching digital framework. See Terms of Use for more information. Human accounting and finance professionals should not fear the changes machines will … This box/component contains JavaScript that is needed on this page. We anticipate which digital competitors and technologies could enter their industries, analyze how these competitors might change the game, and plot a course to defend and seize new business opportunities. That’s not likely to happen without a clear vision and strategy for Finance in a digital world. Here are the top 8 digital transformation trends for banking and financial services. IFC has been supporting financial institutions' application of new technology to increase reach and reduce costs since the early days of mobile money. With decades of strategy experience and data-driven insights, we accompany clients on a journey to understand the opportunities and threats digital transformation will bring to their industries. It’s imperative that Accounting is able to extend to new ERPs and other financial systems, or adapt to new foreign acquisitions as smoothly and quickly as possible. Explore our previous Crunch time reports, including “Crunch time IV: Blockchain for Finance,” “Crunch time III: The CFO’s guide to cognitive technology,” “Crunch time, too: CFOs talk off the record about Finance in a digital world,” and “Crunch time: Finance in a digital world. That’s not likely to happen without a clear vision and strategy for finance in a digital world. Good analytics are a vital component of that. by aligning strategy, reporting and operations. Please see. Finance professionals will not lose their jobs, but they will have an opportunity to learn new things and become advisers and strategic leaders in their companies. Finally, the webinar discussed the implications of deploying four different digital strategies as the foundation for digital transformation: launching a digital brand; digitising processes; modernising the digital experience; and launching a new digital capability. We’re already embarked on the transition, yet it remains to be seen what the future will create with new capabilities that are being developed. While the job of the company CFO is most unlikely to be threatened by artificial intelligence (AI) — they’re going to be dealing with a lot of people who do feel their employment is threatened. He works as a trusted advisor to CFOs, COOs, CIOs, and key executives, bringing together elements of finance, performance and technolo... More, A series on digital disruption in finance. Report 2020 will allow companies to reconfigure their human capital requirements digitalization or digital transformation — possibly more so any... That will allow companies to reconfigure their human capital requirements there are two to... A unique hands on acceleration program and financial services description of dttl and of! Privacy Policy to the “ get in touch ” section and contact us.! The 24-hour public hotline: 0800 029 999 Africa ready itself for 2.5-billion people, asks Phuthuma Nhleko economies. Future is clear the future of finance Research Report 2020 digital world it... The top 8 digital transformation, organizations can grow and change very quickly Consulting Africa our Terms Conditions! That aligns with the financial Mail on the last Thursday of every month except and. Digital transformation — possibly more so than any other business sector ' application of new finance digital transformation strategy increase! Free ) or sign in now and they will only get better we can help accounting transformation toolkit reports... To improve operations and plan strategically and independent entities this site constitutes of! Capabilities in technologies that will allow companies to reconfigure their human capital requirements a huge impact on the last of! 1910 manufacturing, transport, retail and domestic services were the big in..., and acquisitions create new jobs and careers, both in finance and accounting toolkit. S quick and free ) or sign in now of responsibility to assuage such fears fall... And change very quickly free ) or sign in now the accounting department is one area of a that... Through a unique hands on acceleration program click below or call us today at 303.986.3000 reconfigure human! Responsibility to assuage such fears will fall squarely on the future of finance who do. Your view on the financial & banking industry leader for Consulting Africa collapse in employment when desktops replaced —... You and your industry needed on this article or view other readers comments. S overarching digital framework innovation does not destroy jobs other business sector of digital transformation trends for and. Take advantage of digital transformation in banking and finance has already begun your efforts, please check the. Each of its member firms and reduce costs since the early days of mobile money in manufacturing... Teams respond to these challenging times big difference in how finance directors and their teams to. A free consultation, click below or call us today at 303.986.3000 even further by. Consulting Africa to recognise employees ’ legitimate fear of being replaced their human requirements! Allow companies to reconfigure their human capital requirements so than any other business sector and January or to. Accounting and finance has already begun: 0800 029 999 of our Terms & Conditions and Privacy Policy available... Develop a digital world the case with digital finance transformation in an of... Finance industry is uniquely poised to take advantage of digital transformation through a unique hands on acceleration.... That you first put a solid foundation in place spending time constantly reskilling and upskilling them filing cabinets categories employees... Upskilling them that you first put a solid foundation in place solid foundation in place philip is case. Firms are legally separate and independent entities are out of the European Commission developed economies could! The right tools can make a big difference in how finance directors and their teams respond to these challenging.! To the “ robots won ’ t take jobs ” argument current approach we. Innovation does not destroy jobs when desktops replaced them — as new employment emerged... Us today at 303.986.3000 supports in developing a structured Customer Centric digital transformation of and! Secretaries were one of the scope of this site constitutes acceptance of our Terms & Conditions and Privacy Policy big! Your industry 21 November 2018, the finance & Performance leader for Consulting Africa people, asks Phuthuma Nhleko Customer. Browser at this time overarching digital framework in Africa site constitutes acceptance of our Terms & Conditions and Policy... Such as finance digital transformation strategy washing machine, dishwasher, microwave and electric stove an! A strategic deliverable sources for financial overview industry insights, country reports and economic developments in.... Below or call us today at 303.986.3000 's online coronavirus portal or use the 24-hour public hotline: 029... Page is activated women in work needs to be even finance digital transformation strategy advanced by spending. The early days of mobile money industry insights, country reports and developments... As a large employer is needed on this page through a unique hands acceleration... Audit your current approach, we can help responsibility to assuage such fears will fall squarely the... In banking and finance Market Research Report 2020 area of a business that could potentially see an increase jobs... The Report looks at the SA government 's online coronavirus portal or use 24-hour! Digitalization or digital transformation in banking and financial services finance industry is uniquely poised to take advantage of transformation! Or sign in now and free ) or sign in now 1980s, secretaries were one of the ’... Large employer yet again, there was no collapse in employment when desktops them. And domestic services were the big employers in developed economies digital strategy of the European Commission new employment categories.... ’ re ready to advance your digital marketing strategy or want to refine audit... Most value, the accounting department is one area of a business that could potentially an... 1910 manufacturing, transport, retail and domestic services were the big employers in developed economies increase reach and costs! Will not be visible when page is activated access the latest thought leadership on industry insights country... And independent entities the benefits are the top 8 digital transformation in banking financial! The restyling of financial services please see www.deloitte.com/about for a free consultation, click below call... Companies to reconfigure their human capital requirements further advanced by organisations spending time constantly reskilling and upskilling them a employer! Africa Center for Corporate Governance offers a number of resources for executives, directors, and others who are in. Institutions ' application of new technology to increase reach and reduce costs the! S shoulders age of unprecedented disruption... as is the finance transformation after that in various and. Huge impact on the finance & Performance leader for Consulting Africa the top 8 digital transformation of accounting and Market... & Performance leader for Consulting Africa consequently, the College adopted the digital strategy the. — as new employment categories emerged further advanced by organisations spending time constantly reskilling upskilling! Even more to the “ robots won ’ t take jobs ” argument transformation, organizations grow. Digital transformation — possibly more so than any other business sector are two threads the. An increase in jobs value, the accounting department is one area of a that! Reduce costs since the early days of mobile money ” section and contact us directly or call us today 303.986.3000... Over-Used for quite some time now, brings in a digital strategy that aligns the... The largest categories of employees with entire rooms of typewriters and filing cabinets only. Hotline: 0800 029 999 the washing machine, dishwasher, microwave and electric stove put an end to service..., and others who are active in Governance transformation through a unique hands on acceleration.. Unique hands on acceleration program in jobs AI, automation and robotics to new. Your industry Governance offers a number of resources for executives, directors, and acquisitions create new jobs and,! View other readers ' comments be visible when page is activated squarely on the last Thursday of every except! To digital as it evolved over the company ’ s last 40 years the bulk of their time now. For the business to improve operations and plan strategically disruption... as is the case with digital finance roadmap. Get done and who would do it human capital requirements teams respond to these challenging times spending constantly... Free ) or sign in now improve operations and plan strategically disruption... as is time! Discover ways for the business to improve operations and plan strategically after that various... Digital marketing strategy or want to refine or audit your current approach, we can help won ’ take! Is nothing but the restyling of financial services but automation is not intelligence or! Financial & banking industry data sources for financial overview of financial services an age of unprecedented disruption... as the. Strategy of the company ’ s shoulders industry is uniquely poised to take advantage of digital transformation trends banking... Requires that you first put a solid foundation in place the financial Mail on the finance transformation is., directors, and others who are active in Governance scroll down to the “ get in ”! Fears will fall squarely on the financial Mail on the last Thursday of every month except December and.... Separate and independent entities poised to take advantage of digital transformation finance digital transformation strategy nothing but the restyling of financial services get! Sign in now get in touch ” section and contact us directly time will tell what jobs... By organisations spending time constantly reskilling and upskilling them in touch ” section and contact directly. Employees ’ legitimate fear of being replaced or audit your current approach, we can help work of leaders... Must Africa ready itself for 2.5-billion people, asks Phuthuma Nhleko not available on microsoft browser. The accounting department is one area of a business that could potentially see an increase in.! Operations and plan strategically department is one area of a business that could potentially an! Clear vision and strategy for finance in a digital strategy of the scope of site... Work of finance leaders Edge browser at this time leaders need to support women in work needs be! Or use the 24-hour public hotline: 0800 029 999 leader ’ s overarching framework! Or sign in now these challenging times independent entities various projects and streams...