Finance and Digital Transformation: Tips & Predictions

When you hear of finance and digital transformation, you probably think about the technologies you’ll need to implement and the changes you may need to make. But, when you realize that digital transformation in finance is a business strategy positioned for your business’ survival and ability to thrive, it becomes like second nature to implement. 

We’ll look at how a finance transformation strategy can support your business’ growth, along with your customers and employees.

Coming Up

What is Digital Transformation in Finance?

What are the Key Components of Digital Transformation in Finance?

What are the Benefits of Digital Transformation in Finance?

What are Digital Transformation Challenges?

What are Predictions for Digital Transformation in Finance?

What are Digital Transformation Best Practices?

How is Finance Using New Technologies?

What Technologies Drive Digital Transformation in Finance?

How to Plan for Digital Transformation in Finance?

Wrap Up

What is Digital Transformation in Finance?

Digital transformation in finance refers to the repositioning of your finance and accounting teams to boost their function, with the help of technologies. 

Finance and digital transformation doesn’t just rely on the use of key technologies, but it also requires the mindshift of your team to recognize the benefits of automation technology and apply it in their day-to-day activities. 

Luckily, digital transformation in finance doesn’t require a complete rehaul of existing systems because the best automation software integrates with your tech stack. For example, a finance tool like SolveXia can connect your legacy systems so you don’t have to worry about losing data. 

What are the Key Components of Digital Transformation in Finance?

Digital transformation isn’t solely about technologies, although it is of course powered by these advanced tools.

Along with the right technology partner and software in place, finance transformation requires: 

1. Finance Strategy 

It’s up to CFOs to define their finance strategy to incorporate automation technology to handle the meticulous work so that their teams can focus on value-add activities that require human thought. 

2. Key Finance Leadership 

Finance leadership must be willing to embrace change. At the same time, they should share this willingness and communicate the upsides of technological advancement with their team and stakeholders so that everyone is on board during implementation. 

3. Finance Teams 

A key piece of digital transformation is how people approach it and view technology. Your finance team should be open to embrace change and recognize the benefits of finance automation software. 

Top talent needs to understand the broader outlook for finance teams such that automation will be used for repetitive tasks and critical finance functions, and their role will serve to drive forward strategy and impact decision-making through analysis. 

4. The Right Technology 

It goes without saying that choosing the right technologies to drive finance transformation forward is critical. Top-tier tools like SolveXia offer a low-code platform to connect data and remove spreadsheet dependence from your organization. 

By connecting data and enabling process automation of important finance functions (think reconciliation, expense analytics, rebate management, etc.), your finance team has more time to spend on high-value tasks and access to advanced analytics to make better business decisions.

What are the Benefits of Digital Transformation in Finance?

With the majority of financial services providers (93%) at least beginning their journey to introduce digital tools into their finance functions, the proof is in the pudding as the benefits speak for themselves. 

When accomplishing finance and digital transformation, you can expect to experience: 

1. Increased Productivity

By streamlining processes and leveraging automation, you can get more done accurately, in less time. This boosted productivity improves revenue generation, customer satisfaction, and employee satisfaction. 

2. Data Accessibility 

Digital transformation and finance automation software connects data systems, collects and transforms data for usage, and makes it accessible for those who need it, when they need it, to derive insights and value. 

3. Enhanced Customer Experiences 

At the end of the day, your business is always focused on making customers happy and delivering value to them. With technologies at play, you can better service customers, resolve issues more quickly, and even predict future trends, issues, and needs before they arise to stay one step ahead. 

4. Better Decision-Making Capabilities 

When it comes to finance teams, decision-making is inevitable as all departments rely on the finance team’s blessing to move forward. 

Finance automation software like SolveXia brings your data and information together (with complete accuracy) so that you have the reports, dashboards, and insights you need to make the most informed decisions. 

What are Digital Transformation Challenges?

Shifting strategy or adding in a new technology requires foresight and the perseverance to overcome hurdles that are likely to arise. 

Take a look at some digital transformation challenges you may face, so you can plan ahead:

1. Talent Resistance 

We talked about the importance of people (as equally or even more so than the technology itself), and this cannot be understated. 

Ensuring that your team is on the same page and going to use the technology in place is key. Change management and transparent communication are the keys to unlock this desirable outcome. 

2. Security and Compliance 

By digitizing finance functions, security and compliance are must-haves given then sensitive data at play. When selecting your technologies, seek tools that have bank-grade, enterprise security and constantly update to adhere to changing regulations (like SolveXia). 

What are Predictions for Digital Transformation in Finance?

Digital transformation in finance is rampant and impactful. Digital transformation can be used for a variety of purposes. Here is what’s expected for finance in terms of technological innovation and use: 

1. Real-time Reporting 

Finance technology provides access to real-time data and analysis. Since companies pull data from various sources and have ever growing volumes of data, it’s often a challenge to be able to organize, structure, and use the data for insights. 

Finance automation software, like SolveXia, automates the data preparation process and enables seamless data management. 

In turn, users gain access to real time customizable reports and dashboards that are purposefully designed to give them the exact information they need. This allows them to provide greater insights to the business, for improved decision making. 

2. Blockchain Technology 

Blockchain technology made headlines when it came to cryptocurrency, but its use is more widespread than that. 

Put simply, blockchain technology is an immutable and distributed ledger that can share data across a distributed network of users. So, it can be leveraged in finance across use cases, including for smart contracts in the use of fintech markets. 

3. Open Banking 

Open banking grants third-party API providers access to financial data, given the consent of end users. With this secure transfer of private information, financial institutions and banks are able to offer more personalized products and support to customers. 

4. Cloud Computing 

Cloud computing has completely shifted how businesses are able to work. Rather than having to rely on the use of on-premise servers, cloud computing makes data accessible from anywhere. And, when it comes to finance, the ability to process data is a must, which cloud computing makes possible. 

5. Hyperautomation 

An emerging and growing trend is hyperautomation, which refers to the combination of several advanced technologies, including: machine learning (ML), artificial intelligence (AI), and robotic process automation (RPA). Banks and finance teams can use hyperautomation to decrease operational costs and boost productivity. 

6. Finance Professionals Skills

Along with the various use cases and predictions of digital transformation in finance, it’s expected that the requirements and skills for finance professionals will shift, too. To specify, finance professionals will be expected to understand technology and possess skills that converge with its use. 

But, even if team members aren’t the most technically savvy, there are low-code platforms that are designed for anyone to use. SolveXia’s low-code platform features drag-and-drop functionality, as well as a pre-built library of templates for workflows, so anyone can understand how to use it intuitively. Deployment is quick and easy, and its ROI is just as fast! 

What are Digital Transformation Best Practices?

For finance transformation to take place successfully, it requires planning, alignment, and goal-setting. Keep in mind these best practices as you move through your own journey: 

• Align processes with business goals and seek technologies that fit accordingly 
• Implement strategies that are intended to drive value for business partners
• Set a schedule for implementation and keep a close eye on how it’s working by utilizing metrics and analytics 
• Create case studies to support your business’ case for buy-in from leadership and stakeholders 

For every company, digital transformation will look different, and a different combination of technologies will be in use. Ultimately, your strategy, plan, and solutions will depend on what you’re trying to accomplish, and the technologies that you currently have in use. 

Remember, you don’t have to make sweeping changes all at once. You can start small and with solutions that will move the needle, and then, continue to build as you recognize wins. 

How is Finance Using New Technologies?

The finance sector is well-positioned for technological advancement as mostly all finance processes rely on multiple people, defined timelines, a great volume of data, compliance adherence, and utmost accuracy.

Across the industry, new technologies are being applied for:

• Fintech advancement like expense tracking and the use of chatbots for customer service 
• Machine learning technology to detect fraud 
• Low-code platforms to develop applications and automate workflows without having to code anything or rely on an IT team 
• Blockchain technology to securely record and store information 
• Biometrics to authorize and confirm a user’s identity 
• Automation of existing and new processes 

What Technologies Drive Digital Transformation in Finance?

To make all of the above come to fruition, several different types of technologies are supporting digital transformation in finance, including:

• Robotic process automation 
• Cloud computing 
• Data analytics 
• Enterprise resource planning (ERP) systems 
• Artificial intelligence 
• Machine learning
• Compliance software
• Accounting tools
• Process automation tools 

Finance automation software like SolveXia leverages many of the above tools in its solution and works with others through integration. 

Using SolveXia allows you to complete processes 85x faster with 90% fewer mistakes, while freeing up your team’s time to focus on value-added responsibilities. 

How to Plan for Digital Transformation in Finance?

Getting started with finance transformation begins with the idea and desire to massively and positively shift your business. 

To plan for long-term success, remember to:

• Define your goal for digital transformation 
• Communicate the goal with your team and stakeholders
• Outline the role of finance leaders and team members 
• Take stock of current systems in place 
• Map out the scope of the changes 
• Detail a plan to enact the updates 
• Be ready to overcome challenges 
• Monitor constantly and make adjustments, as needed 
• Rinse and repeat to expand success! 

Wrap Up

As you know, finance and digital transformation doesn’t just happen overnight together. It’s not about the deployment of a singular tool or adjusting one process – it’s a complete mental shift, as well as a technological update to your business. 

With the support and buy-in of stakeholders, team members, and finance leaders, digital transformation has the power to protect your company’s competitive edge and add value to customers and employees alike. 

To get an idea of how a finance transformation tool like SolveXia can be a major key to success, request a demo today.