A recent study by Payhawk highlights a significant disconnect between the evolving role of CFOs and the technology they rely on to drive business success.
Modern CFO’s dilemma: Technology gaps
The report, The New CFO Technology Gap, underscores the urgent need for investment in modern financial tools as Chief Financial Officers take on expanded responsibilities spanning regulation, sustainability, and global expansion.
Evolving Roles and Rising Expectations
The survey, conducted by Coleman Parkes, gathered insights from 1,000 finance leaders across the UK, France, Germany, the Netherlands, Bulgaria and Spain.
It reveals that 93% of Chief Financial Officers believe their role has expanded in the past three years.
No longer confined to financial oversight, CFOs are increasingly seen as strategic leaders tasked with leveraging data to inform business decisions.
However, despite this evolution, 65% of CFOs believe their role still needs to become more outward-focused, emphasising business growth and global strategies.
Nearly all respondents (91%) agree that a Chief Financial Officers effectiveness is directly tied to the quality of their technology stack.
Technology Gaps Stalling Growth
Current tech stacks are proving insufficient to support the modern CFO’s expanded responsibilities.
Only 35% of CFOs say their tools meet current needs and can support ongoing growth.
The shortcomings are particularly acute in managing data: just 23% say their technology enables effective data insights, while 51% cite limited visibility as a major challenge.
These gaps extend to global ambitions, with 42% of CFOs reporting that outdated tech stacks hinder international expansion.
Nearly all respondents (99%) faced tech-related problems in the past year, ranging from poor insights (44%) to inaccurate data (37%) and operational delays (42%).
“The CFO is no longer an operational bottleneck but a strategic leader,” said Hristo Borisov, CEO of Payhawk.
“To fully embrace this role, CFOs must invest in advanced technology to unlock growth and innovation.”
Investment in Innovation
CFOs recognise the need for change.
Over the next year, one in four plans major changes to their technology stack, with nearly half committing to significant upgrades.
Across five years, average investment in CFO tools is expected to grow by 18%, with much of this increase occurring in the first year.
Expectations for ROI are high: CFOs anticipate a 14% revenue boost, 16% growth in compound annual growth rate (CAGR) and a 20% increase in operating cash flow.
While AI adoption is part of this transformation, it is viewed as a complement to, not a replacement for, growing finance teams.
Payhawk’s research reveals a stark reality: many CFOs are grappling with outdated tools that fail to meet the demands of a more strategic role.
As companies invest in modern solutions, they pave the way for CFOs to focus on driving growth, providing insights, and positioning their organisations for success in a rapidly changing business landscape.
The post Modern CFO’s dilemma: How technology gaps impacting growth appeared first on Payments Cards & Mobile.