Fearing or ignoring technology could mean a step backwards - even for experienced CFOs

BY TREVOR PRICE, CFO

As a seasoned CFO with decades of experience in the finance industry, I still remember the early days of my career when accounts payable meant manual processes, countless hours spent reconciling accounts, and chasing payments. It was a time-consuming and labour-intensive task that required teams of highly qualified and clever individuals to keep the financial wheels turning. However, with the rapid advancement of technology in the consumer world, I have come to realise that embracing technology is no longer a choice but a necessity for the continued success of any finance professional.

Is technology still "new"?

In today's fast-paced business landscape, technology has become a game-changer, and ignoring its potential impact on finance operations can result in a major setback for even the most experienced CFOs. It's no longer enough to rely solely on traditional methods and manual processes. The world of finance is evolving, and CFOs need to adapt to stay relevant and drive their organisations forward.

One area where I have witnessed the transformative power of technology is in the realm of fintech. As someone who currently holds a privileged seat in a fintech company, I have had the opportunity to observe firsthand the gains that new businesses are making by bypassing the traditional model and leveraging technology to streamline their financial operations. One notable example is the use of Application Programming Interfaces (APIs) for plug-and-play solutions, which have revolutionised how businesses handle payments, reconciliations, and other finance-related tasks. These API-based solutions have drastically reduced manual errors, accelerated processes, and improved overall efficiency, leading to significant cost savings and better customer experiences.

I have also been impressed by established businesses that have embraced technology to enhance their finance functions and improve customer experiences. As an example, a Medical Group we have partnered with are using the Caxton API to completely remove their own involvement in patient payments, thereby further cementing patient confidentiality. This is a prime example of how embracing technology can not only benefit new businesses but also help established companies stay competitive in today's dynamic business environment.

Or, as in another case, Wagemate is a BACS-certified payroll bureau who have partnered with Caxton to increase customer satisfaction and automate the payments process, thereby ensuring that the risk of manual errors is minimised if not removed entirely. And by embracing technology, the scalability of the business has increased exponentially. Sowing the seeds of automation now means that the business will in the future be able to take advantage of Open Banking and Faster Payments to further implement automation where appropriate.

Can you afford to be left behind?

However, despite the clear advantages of incorporating technology into finance operations, I have observed that some experienced CFOs are still hesitant to embrace these changes. There is often a fear of the unknown, concerns about job security, or a belief that traditional methods are still effective. But the reality is that ignoring technology can result in missed opportunities and hinder career growth. As CFOs, we have an obligation to lead our organisations into the future and properly investigate the potential of technology and automation in our finance functions.

Furthermore, there is a new generation of staff entering finance teams across the nation who have grown up with technology and have different expectations when it comes to running a business. They are accustomed to the convenience and efficiency of digital solutions and expect the same level of automation and innovation in their work environment. As experienced CFOs, it is our responsibility to mentor and guide these young professionals, showing them how to leverage technology to drive business success and create value for customers.

In conclusion, as finance professionals, we cannot afford to fear or ignore technology. It is no longer a luxury, but a necessity in today's business landscape. Embracing technology can lead to significant gains in efficiency, cost savings, and improved customer experiences. We have seen the impact of technology in the consumer world, and it's time to apply the same level of innovation to our finance functions. It's time to shed the old mindset of chasing a paper trail and instead lead the way in harnessing the power of technology to drive business success. Let's invest in the future of finance by embracing technology and empowering the next generation of finance professionals to thrive in the digital era.