23 Jan WHICH NEW FINANCE AND ACCOUNTING TRENDS ARE TRANSFORMING BANKING AND CREDIT UNIONS?
Financial management will transform with end-to-end intelligent process automation throughout 2024 and 2025. By combining technologies like RPA, AI and advanced analytics, hyperautomation systems will radically improve efficiency in key functions like cash flow and financial planning, invoicing and reporting, audits and compliance checks. As the technology matures after initial pilots, broader adoption is expected, freeing up finance teams from mundane tasks.
Mainstreaming ESG Reporting and Assurance
Environmental, social and governance (ESG) reporting will become mainstream as more regulations mandate climate and sustainability disclosures. To provide reliable data, finance teams will implement integrated reporting processes with robust internal controls and audit trails. The demand for independent assurance will also dramatically rise to validate performance claims as stakeholder scrutiny intensifies. That necessitates upskilling finance staff or outsourced services on ESG metrics.
Cloud-Based Consolidation of Financial Systems
Circa 2024 and 2025, most enterprises will transition from fragmented on-premise financial systems to consolidated cloud platforms with unified data access. Built-in analytics and intuitive dashboards will provide real-time insights for decision-making. Migration to cloud-based AI-enabled systems will enhance security, reporting, scalability and mobile access. Small and mid-size organizations especially stand to benefit the most from affordable integrated financial management suites.
Reskilling the Finance Workforce for Digital Capabilities
As new technologies transform finance operations, skills development will be more prioritized in the function. Leaders must identify skill gaps inhibiting adoption of analytics, automation and other digital advances and execute tailored upskilling programs to bridge them. Cross-training employees in emerging vs outdated job functions will enable smoother transition. Younger finance staff can also mentor senior colleagues to reverse mentoring effect.
Growth of Blockchain-Based Business Networks
Enterprise adoption of blockchain to enhance B2B transactions, payments and data exchange will expand dramatically. By allowing participants in a business network to share tamper-proof ledgers visibly in real-time, blockchain builds transparency, trust and efficiency. Pain points like reconciliation errors and outdated records will be tackled more impactfully. Compliance and working capital gains will drive blockchain investments as early successes emerge across supply chains and joint ventures.