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Research Findings
In September 2024, Renaix, the international recruitment consultancy for finance and accounting, released groundbreaking research shedding light on the impact of technology in the finance industry. The latest periodic report on the Future of Finance surveyed over two hundred finance and accounting professionals globally and revealed compelling insights into the evolving landscape of the finance sector.
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Technology’s Impact
According to the research, an overwhelming 71% of finance professionals believe that technology enables them to perform their duties more effectively, underscoring the transformative power of digital tools in enhancing efficiency within the finance sector.
The Rise of Artificial Intelligence
One of the most significant findings is that 84.2% of finance and accounting professionals believe that artificial intelligence (AI) will have the most critical technological impact on the finance role over the next five years. This highlights AI’s growing influence in reshaping the finance industry and emphasises the need for professionals to adapt to this technological shift.
Evolution of Finance Roles
The study predicts a significant evolution in the role of finance professionals, with 52% foreseeing an increased focus on data analysis and 43.9% anticipating a shift towards financial planning and analysis. This underscores the growing importance of strategic financial management and the need for professionals to develop new skill sets to meet these evolving demands.
Readiness for Change
However, despite the recognition of technology’s transformative power, only 11.8% of professionals feel that their organisations are very much prepared for upcoming changes in the financial industry. This reveals a gap in readiness and emphasises the urgency of strategic planning and skill development to navigate future financial trends effectively.
Importance of Upskilling
The research also highlights the growing importance of upskilling in the finance sector, with 41.1% of companies actively investing in upskilling their finance teams to work with emerging technologies. Additionally, 72.8% of finance professionals plan to update their skills through practical experience, reflecting a hands-on approach to adapting to new technologies.
Addressing Skill Gaps
One of the most pressing needs identified in the study is the skill gap in STEM skills and data analysis, with 37.1% of respondents pointing to these as the most significant skill gaps in the finance sector. This underscores the need for employers to invest in upskilling the finance function and for professionals to enhance their technical competencies to navigate the future financial landscape effectively.
Insights from the Renaix team
Paul Jarrett, Managing Director at Renaix, emphasised the importance of strategic planning and skills development, stating, “Emerging technologies are set to transform the finance and accounting sectors. Many professionals are excited about the impact of automation, believing it will enhance and broaden their roles. To lead digital transformation effectively, employers should ensure the workforce has the right skills and recruit diverse talent, including those with STEM qualifications. This strategic planning is crucial for businesses to stay competitive.”
Impact of Remote Work
The research also highlighted the impact of remote work on finance professionals, creating a more flexible and geographically dispersed workforce in the industry. Organisations are adapting to the rapidly changing financial landscape, facing regulatory changes, talent acquisition and retention challenges, and increasing cybersecurity threats, further highlighting the complex environment in which finance teams operate.
Image source: Renaix
Conclusion
In conclusion, Renaix’s research underscores the transformative power of technology in the finance sector. It emphasises the need for professionals to adapt to the evolving landscape by acquiring new skills and competencies. In the digital age, strategic planning and upskilling are essential for the finance industry to remain competitive amidst technological transformation.
For deeper insights into this research and to download the Renaix Future of Finance Report please see our infographic and press release.
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