Global survey reveals half of respondents believe the traditional role of the CFO will no longer exist in the future.
Insights on what will shape the future of the finance function are laid out this week in a new report from ACCA (the Association of Chartered Certified Accountants) and PwC called Finance: a journey to the future?
The report summarises the responses of over 1,100 members and PwC contacts worldwide plus the views of the attendees of a series of roundtable events on six hypotheses about the future of finance which were developed jointly by the ACCA and PwC. The findings reveal:
1. 77% accepted that trusted data will be open and accessible across the organisation between the present day and the longer-term horizon
2. 65% agree that a change in structures will make the finance function virtual
3. Just 22% agreed that soon new roles, skills and career paths will be needed as traditional finance roles will disappear.
4. 87% believe that accessible, trusted data will drive real time, customer centric decision making in their organsiation
5. 72% agreed that finance teams will spend a lot of their time on generating insights and will spend all their time on forward insights and not rearward review
6. 50% believe the traditional CFO role will no longer exist – to be replaced by roles at the chief operating officer and chief strategy officer
Commenting on the report, Jamie Lyon, director of professional insights at ACCA said: ‘Our results show that finance is changing at a rapid pace, and this is both a challenge and an opportunity. Interestingly, the biggest barrier to this change is leadership mindset – alongside getting to grips with the technology that now pervades our working lives. It’s knowledge of this technology that’s key for the future – leaders need to keep up to speed on trends.’
Brian Furness, global head of finance consulting, PwC added: ‘The need for trusted and accessible data that meets customers’ needs came out top in these six scenarios, and I believe this is good news – alongside the other opportunities ahead, this is a real chance for finance to develop a more proactive, advisory function, where technology has been applied to minimise the operational finance workload and enable finance to focus on helping drive business performance.’
In the Middle East, finance continues to develop as a result of increased investment in technology and changing working models. The region has seen a number of legislative and fiscal reforms which continue to challenge the traditional models of doing business in the region. As a result, there is a greater need to develop the finance function of the future which continues to evolve with the economic development.
Fazeela Gopalani, Head of ACCA Middle East states ‘Amidst all the change in the region, there is a temptation to stall – but this cannot be an option. The speed of change for finance, the recognition of the need to redefine the culture and to be adaptable and flexible is essential for success. As leaders, we need to enable rather than control projects, and embrace change as a natural course of events. With innovation and tech development being a key government focus, it continues to shape policy and the economy – therefore finance must adapt which should be at the forefront of the leadership agenda.’
Brian Furness ended: ‘This report, and the survey and workshops which underpin it, show the fast pace of change in the finance world and the opportunity this brings for organisations and the people within them. A people centred approach is required to capitalise on this, alongside a clear vision, collaboration and strong leadership.’