CFOs to increase tech investment, boost £20M revenue

Research commissioned by Payhawk highlights changes in the roles of Chief Financial Officers (CFOs) and the impact on their technology requirements.

The study, conducted by Coleman Parkes Research, surveyed 1,000 finance leaders from large organisations across the UK, France, Germany, the Netherlands, Bulgaria, and Spain. Only 35% of surveyed CFOs indicated their current technology stack meets their evolving needs and is equipped to support future expansion.

The report, titled "The New CFO Technology Gap," explores how the responsibilities of CFOs have expanded significantly over recent years, encompassing areas such as regulation, sustainability, and global growth. A substantial 93% of CFOs acknowledged a shift in their role during the past three years.

Most survey participants noted a connection between their ability to fulfil CFO duties effectively and the technology they utilise; only 9% disagreed with the sentiment that "a CFO is only as good as their tech stack." However, the present technology setups are reportedly insufficient, with only 23% aiding in managing and interpreting extensive data.

Finance leaders highlighted several technological complications, including limited data visibility (51%), inadequate insights (44%), delays (42%), and inaccurate data (37%). 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."

Payhawk's research indicates that CFOs are planning technological investments to bridge the gap. Over the next year, a quarter of CFOs intend to implement major changes while about half anticipate making significant alterations to their technology stacks. The projected average increase in investment in CFO tools is set at 18% over five years, equating to approximately £147,400, largely expected within the first year.

Such investments are anticipated to generate substantial returns, with predicted gains including a 14% revenue increase, a 16% rise in compound annual growth rate (CAGR), and a 20% boost in operating cash flow, contributing to a potential £20 million revenue uplift for large enterprises.

There is no expectation for technology to replace human roles entirely, as about half of the CFOs surveyed foresee their finance teams growing alongside AI's integration into many technological investments. Borisov added, "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."

The survey reveals a broader intention among CFOs to prioritise revenue generation over cost-saving, historically not within their primary remit. The focus on acquiring the right tools signifies a willingness to adapt to a role increasingly shaped by technological capabilities.