“India is stepping into the future of finance along with the world. And the future is – digital. We need to keep up with it.” – VGNC team
It may seem futuristic but at the threshold of the whole process – alignment is missing in reality and conception. The finance leaders and experts across the world are redefining the traditional structure and are slowly adopting the existing technologies of modern times. Business advisories are experimenting with exponential technologies to keep up with the digital dexterity.
We, at VGNC, have identified key trends to assist our client to transcend into the digital world and to define the future of finance. For easier and smoother adoption of technologies, it is important to contextualize the whole discussion about digital finance from an Indianperspective.Here is an interesting snippet of our research and expert overview of the scenario by VGNC team.
Themes of Digitization in Finance
There are four major themes of digital evolution in finance which are discussed below:
- Dilemma created by data
- Evolving role of leaders and experts
- Technologies that will define the future of digitalized finance sector
- Need to create a bridge between acumen and perceptivity
Dilemma Created by Data
It is an uphill task for financialorganizations to keep pace with the evolving requirements of businesses in the technologically defined world. The root of the problem lies in how data is received and processed.
- Unstructured and high volume data received in digital economy
- Lack of analytical tools to decipher the data received
- Sudden change in business dynamics in India with growing digital finance trend
- Traditional finance talent including skills of compliance and bookkeeping are developing data sensitivity
- Complexity of grappling with dependability on master data (For example, tax credit being deprived due to inability of automated set off in GSTN)
- Transitioning from traditional to digital is a cultural shift and needs to be lead from the top.The decision making shall be made more insight driven.
- Data analysis and science skills must be induced by finance teams.
- A thorough scan of data and data related inconsistencies need to be undertaken to ensure discipline and transparency.
Evolving Role of Experts
Advisory includes a wide range of roles such as inventory, finance, etc. The Government initiatives like Unified Payment Interface, Aadhar, etc. were few steps towards digitalization. With the demonetization, the process only got accelerated. Thus, it is time for experts and leaders to breakout of their archetype role and acquires a significant role as growth partner.
- Digital audit or audit beyond limited sampling is coming into existence. The entire database and extracted information can be scanned using cognitive tools.
- Advisory, at initial-level,can be providedonline which cuts down thetraveling harassment caused to people. This online network or portal needs to be safe to ensure sensitive data is not compromised or breached.
Technologies for the Future of Finance: Trends
Technologies need to collaborate in tandem to bring about the digital revolution in finance. Here eight trends that when followed turn out to benefit.
- Use of technology to get better insights for better decision making
- Providing intellectual insights to the business
- Moving beyond the data in spreadsheets
- Presenting a real-time view to facilitate effective decision-making
- Increase predictability and consistency of analysis process
- Reduce operational cost
- Elimination of redundant processes
- Optimising human efforts
Predictions for the Future of Finance
- The predictive and prescriptive analysis will be expected from finance sourced from data.
- The finance processes of the future will run as utilities. And will be both automated and interconnected.
- Social outcomes of business will feature prominently in the financial reporting requirements.
- The information available will be ubiquitous.
- Finance talent will have to diversify their skills and make changes in their value and working systems.
Cognitive computing and advance level analytics will form the basis of decision making in digital finance. This will help in creating a bridge between acumen and acuity which is an important trait we think of finance in the digital world.