Key technology trends in the financial process
Although finance professionals see a major influence of big data (36%) and IoT (23%) on the financial process, they argue that AI (45%) is the technology with the greatest influence. This is not surprising when considering the various benefits that AI can bring to a finance department. To put this into context, 43 percent of finance professionals expect that AI can help
predict future financial trends, 39 percent see a role for AI in the field of risk management, and 28 percent expect AI to make a difference in automating routine tasks.
AI in credit management
Experts working in credit management are increasingly looking at the possibilities that AI has to offer. One of these possibilities lies with automating
manual and repetitive tasks, such as manually sending a payment reminder and following up on outstanding invoices.
Expectations of finance professionals for AI:
Finance professionals welcome new technologies
The potential of AI in the finance department
Finance professionals therefore see plenty of benefits from using AI. However, this advancement is only slowly entering the finance department: The survey showed that only fourteen percent of organisations have systems that use AI, while thirty percent of organisations are currently developing ideas for their implementation. However, a quarter of the organisations (26%) are not quite there yet: it is not even on their agenda.
Intelligent automation and RPA
Automation and RPA are also emerging technologies that organisations are currently examining. Namely, sixteen percent of organisations are already using intelligent automation and 44 percent are in the early planning stages of implementing this technology. Meanwhile, 29 percent are currently
developing ideas for RPA integration.
Blockchain: from hype to opportunity
A technology already more established for providing numerous benefits to the finance world is blockchain. Finance professionals mainly see
opportunities for blockchain to reduce errors (26%), shorten processing times (19%) and offer more convenience with international payments (16%). Only six percent of finance professionals see no opportunities for this technology
Rogier van Velden, Head of Credit Solutions Netherlands at Aon: “When I look at how finance departments approach the latest technologies, I notice that many actually pay little attention to this. This is often because they are still busy digitising financial processes, such as replacing countless Excel files with an ERP system. They invest so much time and energy in this that the adoption of AI tools, for example, still seems far away. This is a bit disappointing as AI has actually the potential to reduce work time. For example, consider automating reminder messages, freeing up more time for strategic thinking or personal customer contact.”
New technologies, new challenges?
Strong appetite for new technology
Although several new technologies are available and show potential, their
implementation is not yet at full speed. For example, 45 percent of finance professionals indicate that they would like to use more of these technologies. The interest is higher among the younger generation (18-35 years), with 46 percent being willing to embrace this development, compared to 36 percent of the older generation (55 years and older).
The younger generation (46%) also sees more opportunities in applying new technologies compared to the older generation (24%). It is not surprising that a third (31%) of finance professionals also think that these technologies can only be successfully implemented after colleagues aged 60 and older retire.
“Just like with all changes, it is also evident here that the younger generation is more open to new technologies. For this generation, it is self-evident to use and implement such technologies where possible. Although the younger generation is keen to change financial processes, I often notice that they still lack some determination and perseverance to initiate a proper implementation of new technologies. An important factor here is that they usually only stay with an employer for a short time, which gives them less time to actually take the lead in technology implementation projects.
Challenges on the way to technological progress
The need to implement more new technologies in the finance department is therefore imminent, but such implementations also bring expected challenges. For example, 28 percent of finance professionals surveyed feel that they have insufficient skills and/or knowledge to implement new technologies. The collaboration between IT and finance is another area of
concern. For 35 percent of organisations, this makes it more difficult to apply new trends, including AI. More specific pain points that can hinder successful implementation of AI include the differences in priorities and unrealistic expectations. A challenge that companies also face is the fear of job loss. A small portion of finance professionals (28%) are afraid that their
jobs will eventually become redundant. This is mostly a fear among the younger generation (38%) compared to the older one (15%).
Making a finance department future-proof
New technologies such as AI, intelligent automation, RPA and blockchain are on the rise within the finance department, bringing several benefits to organisations. Using these technologies effectively can automate manual and repetitive tasks, such as invoicing. Furthermore, AI systems can analyse
and process financial data with a high degree of accuracy. This allows finance professionals to focus more on strategic tasks and advise management on crucial decisions that affect the future of the
entire organisation.
However, implementing new technologies does not always go smoothly. Organisations face various obstacles, such as the limited cooperation between the IT and finance departments, as well as the lack of knowledge and skills. It is therefore essential that organisations investigate what challenges arise within their finance department. In this way, future-proofing the finance department becomes increasingly attainable.
However, implementing new technologies does not always go smoothly. Organisations face various obstacles, such as the limited cooperation between the IT and finance departments, as well as the lack of knowledge and skills. It is therefore essential that organisations investigate what challenges arise within their finance department. In this way, future-proofing the finance department becomes increasingly attainable.
