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Deloitte Finance Future

Finance Transformation in a digital world – An Insight report from Deloitte

by Mike Jones in Other Cat 12/11/2018

The latest financial industry report by Deloitte referred to as the ‘Crunch Time V Finance 2025’ report investigates the digital transformation of the finance industry.

Deloitte Finance Future

Deloitte explains that technologies applicable to the finance sector are available and are continuing to progress. There is a range of real-time case studies of new digital technology being applied to business functions and businesses can use and implement these practices into their own company. The needs of businesses are constantly changing and the rate of innovation continues to rapidly progress.

Leaders in the finance industry are exploring the possibilities available with applying different technologies to the future business activities. Finance professionals are asking how finance activities will be performed and who will perform them. Furthermore finance leaders are researching how finance activities can contribute further to the success of a company.

Deloitte explains their predictions for the finance industry.

 

Finance Factory

Deloitte suggests that transactions will be touchless as the process of automation and blockchain extend further into the finance market. Further progression within cloud-based ERP and automation will develop the potential to simplify processes and reduce the need for human intervention. Blockchain will only accelerate this transition and enhance the potential of humans to add potential value to this process.

The Role of Finance

With further automation, Deloitte believes finance will ‘double down’ on overall company insights and services. Deloitte explains the resources that will continue to be controlled within finance will depend on their ability to provide value. This will require detailed insights and a high level of customer services. Deloitte suggests that some finance businesses will transform into specialist business service centres.

 

Finance Cycles

Deloitte explains that finance processes will eventually be performed in real-time. With reports and forecasts being produced automatically on demand, traditional cycles will become of less importance. Finance businesses will still require to produce regular reports, but other external investors will likely request frequent performance reports. Leading businesses will operate in a new manner, shifting away from conventional monthly or quarterly forecasts, to continuous real-time reporting.

 

Self Service

Self-service is predicted to become more commonplace which may cause some concerns within the finance sector. There are, however, many business members who don’t require support when it comes to basic finance procedures. Deloitte believes that simple activities from budget queries to report production will become automated. Over time, smart systems will be capable of understanding the types of business information required by individuals and be capable of delivering that information whenever required. Deloitte suggests that over time, standard data sheets will be converted to visually appealing information that is both informative and accessible to customers.

 

Operating Model

New service models will continue to develop as robots and algorithms create a more diverse financial industry i.e. the growth of freelance workers. Automation offers a new system for controlling costs. Finance companies will have the opportunity to reassess how their business is organised, where work is carried out and what processes no longer need human involvement.

 

Enterprise Resource Planning

Deloitte believes that financial systems and microservices will disrupt traditional ERP. ERP vendors are already integrating digital technologies like automation and blockchain into their products. Deloitte believes there will be a shift within the ERP arena as new specialist applications and microservices emerge and integrate with ERP platforms. As more businesses move towards Cloud-based ERP, businesses will become more standardised, Instead of developing customised systems, businesses will acquire what services they require from an emerging marketplace of new applications and microservices. Finance will be focused on how these emerging services work together to improve processes and create new insights. Technology is getting more intelligent and is becoming more integrated into ERP platforms without human intervention. Finance professionals will focus on utilising applications to generate the information they require to enable smarter and quicker decisions.

 

Data

The development of APIs will create data standardisation, but Deloitte believes this is insufficient, suggesting that many companies will find it difficult to manage their data store. There are few businesses that are putting the effort in to align and integrate their data store now, which means they won’t be capable of capturing the full potential of digital transformation. Automation will make the process of handling data simpler, but Deloitte believes it will continue to be a complex task.

Workforce and Workplace

Finance systems are progressing rapidly leading to changes in the way employees carry out their activities. More focus is now being placed on data scientists and business analysts, which will mean a radical transformation for many financial companies. Deloitte recommends that new hires should represent future activities. Beyond the technical expertise, key qualities will be focused on strong customer service skills, flexibility and collaboration skills.

 

There are still many questions to be answered in regards to the future of for the Finance industry. Industry experts believe there needs to be radical changes and getting the right staff and technology in place to utilise the potential benefits of the upcoming digital transformation is essential. There is no doubt that whatever happens in the future, automation patterns will continue to accelerate and expand due to the recognised cost benefits of this process. The future holds great potential for finance businesses that are seeking to develop more value for the companies they support. If Finance can deliver higher qualities of information, within a more efficient timescale, they are likely to succeed in the near future.