It’s increasingly important for organizations to adapt quickly to regulatory requirements. They need to be able to rapidly access the data and respond without spending millions of dollars.
Each of these skill sets is critical to help financial services companies compete. However, 39% of execs say their teams lack the skills they require to meet the needs of the business. Matching people with the right skills to the right jobs faster and more effectively will require an evolution in how organizations operate.
Companies must identify who in their workforce has these skills, and that’s an ongoing journey. First, the system must be able to analyze your workforce and produce actionable, strategic insights. Second, you need to implement the system and put it into action. And third, you need the entire organization to take a more skills-based approach.
Opportunity 3: Invest in Cloud-Based Technologies
Flexibility will be fundamental as digital technology continues to reshape the financial services sector. Yet many banks and insurers are bogged down with multiple operational systems, each with different data formats and structures. When these stand-alone systems transmit data to the general ledger, they do so through varying data files, finance dimensions, and levels of detail—creating complexity that’s at direct odds with the speed and adaptability companies need.
Connected data can help leaders respond to changes faster and make more informed decisions, but investment isn’t keeping pace with the opportunities leaders see on the horizon. Among financial services CFOs, less than one-third (32%) say they’re prioritizing technology to break down data silos and integrate data between disparate systems. And just 14% say they’re prioritizing technology to unify financial, people, and operational data.
Companies that fail to update their IT infrastructure and adopt cloud-based technologies may struggle to compete as the digital market picks up pace. But those that do adopt cloud-based technologies and create a single, unified source of real-time data have an opportunity to transform the way their organization operates. Think: automated finance and accounting processes, real-time consolidation for a faster close, and the power (and time) to run advanced analytics, unlocking rich insights from accounting subledgers, for instance.
Simply “moving to the cloud” is not enough. When modernizing systems and extending further into other cloud applications, the data should flow seamlessly and effortlessly between those systems.
Of course, connecting a company’s data won’t happen overnight. Leaders can start with the data that will do the most to increase efficiency and reduce costs in the short term, while also looking for opportunities to connect data in a way that will drive both process and product innovation.
While many companies have already started their cloud journey with human capital data and payroll, many leaders are now thinking about how they can see similar successes with finance and operations. Companies are looking to apply some of the same logic and benefits that they’ve received from modernizing to other aspects of their business.