In an era of constantly changing technological developments, Chief Financial Officers (CFOs) are becoming increasingly aware of the changing demands of their roles.
Payhawk, a global spend management solutions company, concluded a survey of 1,000 international CFOs this week, finding that 93% believe that the role has expanded in the past three years.
Keeping pace with technological developments in finance and payments is now an important part of the CFOs role – this is something that has become increasingly evident for years, reinforced by data from the likes of Payhawk.
Open Banking, AI, unified payments, embedded finance, blockchain and cryptocurrency are just some of the biggest talking points in paytech and fintech that have dominated discussions over the past year.
CFOs need to keep all this in mind, but Payhawk’s data suggests that many feel that their company’s existing tech stacks need an update. Only 35% told their respective firms that current technology meets their companies needs, while 99% have experienced a problem in the past year.
“The CFO role is no longer one of financial gatekeeper, but to fully embrace this role, CFOs need to invest in the right technology, driving growth with the help of a refreshed tech stack,” said Hristo Borisov, CEO of Payhawk.
“The CFO no longer wants to be an ‘operational bottleneck’, and investment in better technology will mean they don’t have to be.”
The past 12 months have seen extensive investment across the payments and finance sectors, with AI in particular catching a lot of attention from some of the biggest banks and fintechs like J.P. Morgan, Santander, Revolut and Klarna, to name a few.
Payments, meanwhile, has proven a resilient investment magnet despite the lure of other technological opportunities, like the abovementioned AI. The sector can expect investment to continue, according to Payhawk’s latest study.
The firm found that the average increase in investment in CFO tools alone will be 18% over the next five years, at an average value of £147,400. The new tech stack is also expected to drive a 14% increase in revenue, a 16% increase in CAGE and a 20% increase in operating cash flow.
Payments and fintech players should keep a close eye on the investment landscape over the coming years, as CFOs and other c-level executives look for new and innovative ways to enhance technological foundations.
This may dispel some concerns expressed by some stakeholders, like those in the UK, about the current state of the investment landscape. According to a report from Fintech Connect, 72% of UK fintechs are looking for investment but a quarter have been unable to secure any.
Competition could be fierce, however, and providers will have their work cut out to stand out from rivals and secure lucrative contracts to supply paytech and fintech solutions to some of the world’s leading companies.
“Today’s CFOs are embracing new challenges, keen to capitalise on the insights their unique position in a business offers,” Payhawk’s Borisov continued.
“However, the finance department has been neglected when it comes to investment in digital innovation, and as a result can be bogged down in operational matters rather than leveraging data to provide strategic insight.
“Emblematic of this desire for continued change is the focus on increasing revenue over cutting costs, not traditionally the remit of a CFO — and with it a willingness to invest in the right tools.”
