Enterprises expect revenue boost from CFO tech upgrades

New research highlights that large enterprises expect a significant revenue uplift from CFO technology investments in the next three years.

Recent findings by Payhawk have illuminated the technological challenges faced by Chief Financial Officers (CFOs) across major businesses. They indicate a need for substantial investment to bridge the gap between current capabilities and the demands of their modern, expanded roles.

According to a survey conducted by research firm Coleman Parkes, only 35% of CFOs believe their existing tech stack adequately supports their evolving responsibilities. This survey involved 1,000 finance leaders from large organisations across several European countries, including the UK, France, and Germany.

The report, titled "The New CFO Technology Gap", explores how CFOs view their evolving roles, evaluates the current technology strengths, and identifies plans for future tech enhancements. The findings reveal that 93% of CFOs have seen an expansion in their responsibilities over the past three years, now encompassing areas such as regulation, sustainability, and global business extension.

Hristo Borisov, CEO of Payhawk, commented, "The CFO role is no longer one of financial gatekeeper, but to fully embrace this role, CFOs need to invest in the right technology, driving growth with the help of a refreshed tech stack. The CFO no longer wants to be an 'operational bottleneck', and investment in better technology will mean they don't have to be."

The research further highlights that while CFOs' roles are expanding, their technological capability is falling short. Just 35% are satisfied that their current technology meets their needs, and even fewer, 23%, indicate satisfaction with their system's ability to handle and provide insight from increasing data volumes.

Nearly all respondents, 99%, reported having faced technical malfunctions in the last year, attributing these challenges primarily to issues such as limited visibility (51%), poor insights (44%), delays (42%), and data inaccuracies (37%).

In the face of these challenges, CFOs plan comprehensive tech upgrades, with a quarter anticipating significant overhauls and around half preparing for substantial modifications within the upcoming year. Investment in CFO tools is projected to increase by an average of 18% over the next five years, amounting to an average investment of approximately EUR €147,400.

This investment is expected to considerably boost business performance. Forecasts suggest a 14% revenue increase, yielding an average EUR €20 million uplift for large enterprises, alongside a 16% rise in compound annual growth rate (CAGR) and a 20% increase in operating cash flow.

AI is predicted to play a significant role in these technological advancements, with 87% of CFOs confident in AI's potential to assume some of their responsibilities. Despite the focus on tech, there is no prevailing expectation that technology will supplant human roles, with roughly half of CFOs anticipating an increase in finance team sizes to support growth.

Borisov remarked, "Today's CFOs are embracing new challenges, keen to capitalise on the insights their unique position in a business offers. However, the finance department has been neglected when it comes to investment in digital innovation, and as a result can be bogged down in operational matters rather than leveraging data to provide strategic insight. Emblematic of this desire for continued change is the focus on increasing revenue over cutting costs, not traditionally the remit of a CFO - and with it a willingness to invest in the right tools."