According to the Future of Finance released by KPMG for Fall 2020, several organizations are eyeing technology as their foundation to maximize output. Ever since the COVID-19 pandemic hit enterprises, structural loopholes and functional shortcomings have surfaced with a demand for serious reforms. Irrespective of the sectors, business revenues faced a new low due to lack of adaptability.
As a result, the report highlights the following four major changes lined up for the finance world:
1. Data and Analytics
The dominance of CEO intuition for financial decisions is going to be balanced by data repositories and market analytics reports. Research shows that nearly 90% of finance companies identify data and insights in the moderate-high investment category. The use of analytics is expected to improve tailored consumption, study market trends, understand customer demands, accelerate growth, and promote the use of AI-enabled projections.
2. Resource Automation
Right from the database to services, the finance world is aiming at extreme automation that can immune the future of finance companies from unplanned, dangerous events such as the pandemic. Cloud platforms, artificial intelligence, and digital process management can easily lay down a framework to achieve automation to an extent that guarantees faster decision making, virtual delivery of services, and open new possibilities of global collaboration between financial giants.
3. Flexible Organizations
In terms of internal restructuring, finance organizations are chiefly looking at flexibility. The idea is to sync the company’s adaptability with market changes. Arguably, this is the most difficult change to implement as it requires a fluid delivery model that can surpass geographical boundaries without compromising on product and service quality.
4. Modernizing Talent Acquisition
The future of finance is significantly dependent on the availability of a modern and technologically capable workforce as the operations digitize. Owing to this, it is imperative that talent acquisition departments for finance giants evaluate new parameters for employee skills, enable customized learning courses, promote inter-department knowledge and consider candidates that can be trained for research, finances, or management.
That said, even the largest financial giants will have a hard time adapting to a technology-driven style of functioning. It will be interesting to see these companies accelerate towards the future of finance.