Scale with Value - Digital Transformation from a Finance Perspective

Jerome Adams, Head of Finance Insights & Data Analytics, Shawbrook Bank

Jerome Adams, Head of Finance Insights & Data Analytics, Shawbrook Bank

It is inevitable that with large volumes of data, transactional processing activities of a Finance function will need to be automated in some shape or form. Finance functions are increasingly challenged by the complex external environment and hyper automations that are changing and evolving the traditional role of Finance. To this extent, digitalisation of core processes, speed of delivery, deep analytics and predictive/prescriptive capabilities are now common traits for the Finance function to create real value for an organisation. Blended with carefully selected technology and efficient processors, skilled finance professionals can scale the value this generates.

With the embedding of Strategic Business Partnering in Finance, the scorekeeper role that Finance traditionally used to perform is losing its touch and organisations now expect Finance to perform a far greater and a more strategic role in driving an organisation’s success. The organisations who can do this better and have embraced the concept are already at a competitive advantage compared to their peers. Therefore, the skills of the Finance strategic partner are crucial, and organisations are investing heavily to empower their workforce with strategic partnering skills in areas across Finance. In addition to analytical skills, strategic partners need to be creative, innovative and possess leadership skills to influence and drive the strategic direction. Finance business partners must know how to effectively use IT systems and technology to work for themselves rather than use it as an obstacle. We find Finance organisations are equipped with the technology, IT infrastructure, ERP / EPM solutions, analytical and interrogation tools, however these are not effectively used due to implementation challenges or underinvestment in training to familiarise with the technology. With lack of understanding in using these tools, staff often resort to old ways of working. This approach makes the shift from being a scorekeeper to value integrator a daunting process. It is paramount that Finance organisations recruit, train and retain a workforce that possess hybrid skills, embraces change with tech-savviness to take forward the digitalisation agenda to deal with the constantly evolving environment.

“With the embedding of strategic business partnering in finance, the scorekeeper role that finance traditionally used to perform is losing its touch and organisations now expect finance to perform a far greater and a more strategic role in driving an organisation’s success”

The digital transformation agenda ensures that Finance not only enhances delivery against its core responsibility of providing management information and reporting, but truly helps galvanise and propel its Business partnering activities. This will enable Finance teams to truly analyse commercial activities of the business, providing actionable insights in a meaningful way whilst ensuring compliance and controls are adhered to grow the business in a safe and sound manner

With advancements and momentum in cloud architecture, the size of data and use of large datasets, data science capabilities are now commonly used with Artificial Intelligence/Machine Learning helping finance business partners analyse different data sets for their decision-making process. Robotic Process Automation is taking over the transactional processing activities, enterprise performance tools provide instantaneous MI and with the technological advancements, finance and forecasting models are now scaling to a transactional level to give deeper understanding of future behaviours. All these advancements require a future-fit Finance workforce, change agents to carefully manage the disruptions along the way and more importantly CFOs who are strategic thinkers to provide the leadership and sponsorship at the top-level.

The challenge for Finance therefore is not how we can add value with digital transformation, but at what scale can we add value? The trajectory of the scale of value-add will depend on the strategic alignment of people, processes, and technology ensuring the investment is justified to the value generation.