The Transformation of the CFO

Traditionally, the role of the chief financial officer (CFO) has focused on custodial duties around assets, financial and regulatory reporting, analytics and other strategic considerations based on the balance sheet. But with digital transformation (DX) now a major priority for businesses seeking to grow and modernize, the CFO’s role has expanded to encompass critical technology initiatives that have a direct impact on the bottom line. According to the global intelligence firm IDC, DX spending will reach $2.8 trillion by 2025, more than double 2020 levels. Much of that growth will be fueled by investments in digital tools and services by financial services enterprises. Securities and investment services (19.2% compound annual growth rate) and banking (19% CAGR) are expected to deliver DX spending that outpaces cross-industry averages (16.4% CAGR). IDC predicts financial services organizations will lead spending growth in more specific applications of technology, as well. The financial services sector will deliver the fastest DX spending growth over the 2022-2026 forecast period, with the securities and investment services, insurance and banking industries all forecast to have five-year CAGRs of 19% or more. Experts agree that turning investments like these into a successful transformation requires a culture embracing the strategic goals driving DX adoption, along with a clear vision articulating their purpose. While that vision starts with the CEO, the catalysts for execution of sound DX strategies inside the C-suite are changing. The “Transformational CFO,” as IDC calls it, combines those traditional roles of finance and reporting with new areas of influence, whether “driving and funding business change” or “enabling new business models.” Andy Halford, CFO of Standard Chartered Bank Andy Halford is CFO of Standard Chartered Bank, a leading global financial services organization present in 59 of the world’s most dynamic markets and serving clients in a further 83 markets with the help of over 85,000 employee