Bank CFOs must step up efforts on ESG, automation and crypto support

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The role of the bank CFO is evolving – and managing disruption will be key to their success, according to a recent study from Accenture.

The increase in investment in technology means that CFOs need to take a strategic approach to their business support, rather than trying to shut the books on finance.

Accenture’s study of 1,300 senior financial executives found that bank CFOs will face challenges such as sustainability reporting, technology investments, and cryptocurrency-related disruption.

According to the Breakout Speed ​​report, 49% of bank CFOs say one of their main points of interest over the past two years has been how to identify and unleash value.

However, there is also an increasingly urgent need to digitize finance and recognize new challenges such as remote working and agile working.

According to 77% of CFOs, the finance function will support new ways of working in the company. The pandemic played an important role in making this change a reality, but there is more to come.

Ambrose Shannon, Managing Director of Strategy and Consulting at Accenture, said, “CFOs put in place the necessary control and assurance structures to allow remote work to continue.

“On a more positive note, they see huge potential in being able to access talent from all over the world, as opposed to just the cities where they have physical offices. This will help find new skills, such as the analysis, which are rare in most markets. “

Environmental, social and governance (ESG) and sustainable development reports will also be subject to further scrutiny. This means that finance teams will need to adhere to global standards such as International Financial Reporting Standards (IFRS).

The report states that 72% of finance executives believe finance is ultimately responsible for ESG in their business. Finance also needs to be able to capture, verify, and report large amounts of unstructured data.

“This is a major demand,” says Shannon. “Among all senior executives, the CFO is the logical choice to lead the agenda through the three Rs of risk, regulation and returns.

“This means implementing measurement, analysis and reporting capabilities focused on the impact of ESG topics on the business. The implications for the profitability of many existing business models are enormous. “

The report also analyzes the relationship that bank CFOs have with technology: 38% are likely to use technology to reduce costs, while 26% use it to support growth and 20% use it to deliver. new information.

Cryptocurrency disruption is also on the horizon, however, 72% of CFOs admit their trading systems are not ready to move to cryptocurrency and virtual.

Bank CFOs, however, recognize the benefits of automation. The report states: “To prepare for the future, special attention needs to be paid to advanced analytics and machine learning, as well as how these technologies can improve FP&A and other areas of finance.”

Accenture recommends that organizations take a predictive stance on ESG, automate to improve compliance, and embed new skills in finance to support people and new technologies.

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