Can tech-driven CFOs lead the next wave of innovation in financial services?

By Puja Sharma

The Chief Financial Officer (CFO) role has undergone a seismic transformation over the past three years, evolving far beyond traditional financial oversight. In today’s dynamic financial services landscape, CFOs are pivotal players in strategy, sustainability, and global expansion. However, the tools at their disposal often fall short of supporting these expanded responsibilities. Research by Payhawk, a global spend management solution provider, sheds light on this pressing issue and outlines how technology investments could bridge the gap, unlocking significant revenue growth for enterprises.

A Broader Mandate for CFOs

The modern CFO operates in a multifaceted role, no longer confined to financial gatekeeping. Instead, they navigate regulatory compliance, sustainability initiatives, and global market dynamics. According to Payhawk’s survey of 1,000 finance leaders across the UK, Europe, and the US, 93% of CFOs reported that their role has expanded significantly. Despite these advancements, 65% of respondents believe their responsibilities must continue to grow, becoming more outward-looking and focused on strategic leadership.

This transformation aligns with broader trends in financial services, where the integration of technology, analytics, and data-driven decision-making has become critical. The ability to extract actionable insights from growing data volumes is a core expectation, yet most CFOs are constrained by outdated systems.

The Technology Gap

A striking finding from the research is that only 35% of CFOs believe their current technology stack meets their needs. This disconnect hinders their ability to perform their expanded roles effectively. Furthermore, 42% of CFOs cited their tech stack as a barrier to international expansion, underscoring the inadequacy of existing tools in supporting growth ambitions.

Common technology challenges include limited data visibility (51%), poor insights (44%), delays (42%), and inaccurate data (37%). These issues not only impede daily operations but also restrict CFOs from leveraging data for strategic planning. In a role increasingly tied to data-driven decision-making, these shortcomings have far-reaching implications.

Investment Priorities: Closing the Gap

To address these challenges, CFOs are turning to technology investments. Over the next five years, large enterprises plan to increase spending on CFO tools by an average of 18%, amounting to £147,400 annually. This investment reflects the strategic importance of upgrading financial technologies to enhance efficiency, scalability, and insights.

Key priorities include:

• Artificial Intelligence (AI) and Automation: With 87% of CFOs trusting AI to handle some responsibilities, these tools are expected to streamline operations and reduce manual workloads.
• Data Integration and Analytics: Enhanced tools will improve visibility, provide deeper insights, and enable CFOs to make informed decisions.
• Global Scalability: Platforms capable of managing international operations will support enterprises in expanding their footprint seamlessly.

Projected Returns on Investment

Expectations for these investments are high, with surveyed CFOs anticipating:

• A 14% increase in revenue, equating to an average £20 million uplift for large enterprises.
• A 16% rise in compound annual growth rate (CAGR).
• A 20% boost in operating cash flow.

These figures highlight the tangible benefits of closing the technology gap. Beyond financial metrics, advanced tools can also reduce operational bottlenecks, enhance compliance, and position CFOs as strategic leaders.

Embracing Technology Without Replacing Teams

While AI and automation are central to these upgrades, there is no expectation that technology will replace human expertise. Instead, CFOs envision a collaborative future where technology augments their teams’ capabilities. Approximately half of respondents expect their finance teams to grow, leveraging AI and analytics for more strategic contributions.

A Strategic Imperative for Financial Services

The findings underscore a broader imperative for financial services organizations. Neglecting technology investment can leave CFOs mired in operational inefficiencies, unable to harness data for competitive advantage. Conversely, forward-thinking enterprises that prioritize their tech stacks will empower CFOs to drive innovation, improve customer experiences, and achieve sustainable growth.

“Today’s CFOs are embracing new challenges, keen to capitalise on the insights their unique position in a business offers,” said Hristo Borisov, CEO of Payhawk. “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.”

The Path Forward

The role of CFOs in financial services is at a critical juncture. As they transition from operational gatekeepers to strategic leaders, the need for robust, adaptable technology becomes ever more pressing. With the right investments in AI, data integration, and scalable platforms, CFOs can unlock new growth opportunities and solidify their position as pivotal drivers of enterprise success. The journey to modernize the CFO tech stack is not just a technological upgrade but a strategic transformation that will shape the future of financial services.