The sole purpose of enterprises going through a digital transformation is to enhance customer experiences and meet their redefined expectations. Although you can do this throughout different departments in your organisation, for this blog we are specifically focusing on your finance team.
There are a number of ways you can transform your finance department, for instance you could change the way you invoice your customers, or how customers consumer your products in a way that leaves them satisfied to return to the product or service and be re-consumed.
Businesses can gain a better understanding of their customers and their own profitability by simply harnessing technology to allow finance to get their hands on better data.
Can you picture having a point-of-sale(POS) system linked to your finance system that would drive invoicing while proving your finance team with a better understanding of pricing, timings and product details of purchased products?
Digital transformation in finance could therefore allow you to move from being backstage of the business to becoming a partner and drive revenues and customer experiences.
Impact of Digital Transformation on Finance
This is more than businesses just adopting technologies such as the cloud, social media or big data, but has a greater emphasis aimed towards creating new business models that create an ecosystem where all the markets and consumers could participate. If businesses focused more on capitalising new or emerging technologies it could help them transform their teams into high performers.
By implementing a digital transformation, you can witness an enhancement in productivity, efficiency and documentation through digital tools. Your sales teams can feel more empowered through smart phones or other portable devices where information can be easily displayed.
The positive impact of this can be shown through economic growth and the development of innovations which results can be positively portrayed through the success of mobile banking apps, mobile money and e-wallets.
It can also help with assisting in automated monotonous tasks, management of accounting, compliance and operating functions while reducing the possibility of cyber risks and minimising errors that occur due to execution of robust strategies.
Enlisted here is the importance of digital transformation on the financial sector:
- High standardisation – finance functions are always considered as high performing and when integrated with technology, leads to standardised processes and data and from that high standardisation.
- Highly automated functions – adopting new technology leads to higher process automation for services such as invoice generation, Know Your Customer (KYC) vertification, money remittance and procurement orders.
- Faster performance – when you are dealing with big-data and other machine learning tools in finance, it makes it easier to predict and forecast budgets allowing teams to finish month-end cycles before time.
- Insight driven functions: modifying financial models so that your resources concentrate more on deriving insights rather than focusing only on transactions.
- Improved customer and employee experience – both customers and employees will have the same level of information, therefore less chaos in transactions which will in turn lead to a more positive experience.
- Better service delivery – legacy systems integrated with new technologies have changed the finance’s operating model as structured processes have improved service delivery.
Why does digital transformation matter in finance?
To some digital transformation may only appear as a buzzword, however, as they say there’s more to an iceberg than what’s on the surface – the same principle stands with digital transformation. Digitalization assists financial service executives in altering historically set out rules. As the number of people relying on mobile and online applications continues to grow, financial and banking services are racing towards digital transformation.
The primary aim of digital transformation in the financial sector is to be more customer-centric.
It is only a mater of time before we see an advancement in digital transformation within finance. If you are considering changing your finance system, wanting support on your existing installation, or are simply looking for advice, give us a call on 01698 844 600, or contact us online for no obligation discussion.