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FinTech for CFOs (keynote Duco Sickinghe)

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Fintech is more than disruptions of banks, it is also about the complete change in how CFOs will add value.

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FinTech for CFOs (keynote Duco Sickinghe)

  1. 1. 1 How can technology help the CFO? Keynote Duco Sickinghe June 2017
  2. 2. 2 AGENDA A B Perspective on FinTech landscape & relevance for CFO Fortino Capital at a glance
  3. 3. 3 Fortino Capital focuses on technology and digital Software- as-a- service Applied Technologies Digital Transformation • Standardized software • Lower cost of ownership • Centralized, secure cloud hosting • Often matter of survival • Business & operational transformation • Network wins effect (e.g. e-commerce) • = Horizontal innovation (Peter Thiel) • IoT, robotics, data analytics, AI and blockchain (AI) • Rather software and applications than hardware
  4. 4. 4 AGENDA A B Perspective on FinTech landscape & relevance for CFO Fortino Capital at a glance
  5. 5. 5 Fintech is not so new as one might think The (19)80’s 1990 - 2000 2010 - now Source: “Fintech: Digital Innovation in the Financial Industry (07/01/2016)”
  6. 6. 6 But term “FinTech” has only become hot in last few years Source: Google Trends
  7. 7. 7 Biggest FinTech activity mainly concentrated on banking services 40% of all FinTech start-ups were active in payments space in 2015 Source: Mckinsey, 2015
  8. 8. 8 With ambition to “unbundle the bank” Source: “Fintech: Digital Innovation in the Financial Industry (07/01/2016)”, Jean-Michel Pailhon
  9. 9. 9 Many FinTech verticals are relevant for CFOs, i.e. CFO-Tech Source: Finovateeurope-2016
  10. 10. 10 Also in Belgium, full spectrum of FinTech players emerged… Today’s Belgian Fintech landscape IOTAccounting & Expense Management Banking Business (financial) tools Crowdfunding/ Alternative Investments DataAnalytics& ComparisonPortals Insurance Payments Wealth Management Infrastructure Security & Identity Management Source: B-HIVE
  11. 11. 11 …where many can be categorized as CFO-Tech Today’s Belgian Fintech landscape IOTAccounting & Expense Management Banking Business (financial) tools Crowdfunding/ Alternative Investments DataAnalytics& ComparisonPortals Insurance Payments Wealth Management Infrastructure Security & Identity Management Source: B-HIVE Relevant for CFOs
  12. 12. 12 Role of CFO is changing, to be successful in future, need to adopt innovation & technology More strategic responsibilities, while maintaining standard role requirements Vastly increasing reporting needs, both financial and non-financial Push for real time data availability, authenticity and integrity of data More stringent risk and compliance requirements (of people and machines) Innovative / network organizations lead to many more reporting entities Many more counterparties (customers, suppliers, employees, consultants) Need to reduce costs
  13. 13. 13 To be successful in future, CFO needs to adopt innovation & technology Work more efficiently and free up resources by (robotic) process automation1
  14. 14. 14 Process automation: digitalization impacts all dimensions of doing business, also finance Source: Getapp.com; PwC Private Equity & Digital Transformation – A European survey among 100 mid-to-large cap PE houses on their views on the potential of digitization, November 2016 LogisticsOperations Marketing Sales Servicing Bamboo HR Halogen Talentspace iCIMSApplicant Tracking Personalized HR software for SMBs Performance and talent management Applicant tracking and recruiting software Datadog ManageEngineDesktop Pulseway Monitoring service for IT Desktop, mobile device & patch management IT management system eMaint CMMS Liquidplanner Statii Computerized maintenance management software Dynamic project management software Cloud bases enterprise resource planning software Shippingeasy Shipstation Fleet manager Shipping software Shipping platform GPS tracking and fleet management SAP Digital CRM ZohoCRM Insightly CRM management Multichannel CRM for all businesses Online CRM & project management for SMBs ZohoDesk ManageEngine SupportCenter TeamSupport.com Context-aware helpdesk software Web bases customer support B2B customer support software 1 Supply chain & procurement Accounting Treasury Payments Lending Reporting & business intelligence Travel & expense IT Procurement Finance HR Seismic Showpad Datahug Enterprise-grade sales enablement Sales enablement platform Sales preedictive analytics tool for sales reps Shortlist Procurify Netsuite Freelancer + vendor management system Purchasing application Inventory management Capix Canopus Treasury M2M Cloud-based treasury software Automation software for treasuries Portfolio valuation software for treasuries XpenditureExpenses Expensify Concur Business expense solution Cloud-based receipt & expense management Business travel & expense management software Paypal Intuit Gopayment Ingenico ePayments Payment management Payment management and mobile payment gateway Online payment solutions LendingCLub My Microinvest Invoicesharing P2P lending platform Crowdfunding platform Document digitalization & WC pre-financing Tableau Netsuite Domo Business intelligence & analytics software Cloud business management software Business intelligence software Zoho Books Online accounting software VersAccounts Cloud accounting & ERP for SMEs FreshBooks Cloud accounting software for SMEs
  15. 15. 15 Process automation: example an end-to-end automated billing platform, replacing previously tedious process Traditional process Simplified process with Key Benefits ✓ ✓ ✓ ✓ 1 Replace excel & manual data entry into accounting system Go paperless Improved compliance / audit trail Improved reporting functionality AvidSuite simplifies ingestion, automates approval, and integrates with 100+ ERP/Accounting systems, allowing clients to complete a 30-45 day process in only 2-3 days Source: Bain Capital Ventures
  16. 16. 16 To be successful in future, CFO needs to adopt innovation & technology Work more efficiently and free up resources by (robotic) process automation Add more strategic value through enhanced use of data & artificial intelligence2 1
  17. 17. 17 2Advanced data analytics allow CFOs to add more strategic value More data… Better analytics… Internal + External Structures + Unstructured Historical + Real-Time Social Media Text / Video Market data 3rd Party Data Statistics Machine Learning Predictive Models Prescriptive …enables… …more value creation Business Insights Ability to Challenge Forward Looking Agility Optimize the business Grow the business • Decision support (reporting & monitoring) • Forecasting • Risk & Compliance management • Resource allocation • Pricing • Cost management • Capital allocation • Investment decision Artificial Intelligence IoT Source: MIT CFO Summit, State Street, McKinsey
  18. 18. 18 Internet of Things will further boost proliferation of data2 Source: The Connectivist based on Cisco data, i-scoop.eu
  19. 19. 19 Non-Financial KPI tracking is on the rise Nearly twice as many CFOs expect to track 30% or more non-financial KPIs by 2018 2 Source: “CFO indicator report Q3 2016”, Adaptive Insights 2018 41%2016 24%
  20. 20. 20 To be successful in future, CFO needs to adopt innovation & technology Work more efficiently and free up resources by (robotic) process automation Move to cloud, which will be cheaper more secure IT environment (paradox) Add more strategic value through enhanced use of data & artificial intelligence 2 1 3
  21. 21. 21 3 of finance software is customized& inflexible 75% of CFOs have allocated budget for cloud-related IT spend 73% Oracle’s cloud ERP suite bookingsdoubled each quarter in ‘15 x2 Projected market size of cloud-based ERP by 2020; growing at 10% CAGR $18B 1. “The TCO of Cloud Computing in the SMB and Mid-Market Enterprises”, Hurwitz & Associates Source: Accenture, Piper Jaffray, Allied Market Research, Forbes, CFO.com, Gartner, PWC Cloud: You will all move to the cloud - cheaper and more secure (paradox) lower total cost of ownershipfor SaaS ERP packages1 Up to 50%
  22. 22. 22 Cybersecurity has landed on CFO’s desk – are you ready to handle it?3 Source: Glasbergen.com
  23. 23. 23 To be successful in future, need to adopt innovation & technology Work more efficiently and free up resources by (robotic) process automation Move to cloud, which will be cheaper more secure IT environment (paradox) Embrace blockchain to deal with changing world of more complex relationships Add more strategic value through enhanced use of data & artificial intelligence 2 1 4 3
  24. 24. 24 Embrace blockchain to deal with changing world of more complex relationships Blockchain technologies have multiple use cases moving beyond payments and even banking 4 Source: Peter Hinssen, IBM World is getting more complex and interconnected Blockchain further enables and reinforces network logic • Whenever the outside world transforms itself into a network, then organizations must become a network • Agility is the only true competitive edge Transactions are complex • Each party has own, separate ledger • Reliance on intermediaries for validation • Paper-laden process As-is To-be Blockchain makes it better • Single shared ledger • All parties must give consensus before transaction is launched • Eliminates & reduces paper processes
  25. 25. 25 Example: Blockchain in Trade Finance, how smart contracting will streamline processes Source: IBM • Manual, paper-based process • People to carry documents to authorities for stamps • Air Courier expense and delays • Digital Documents • Trusted Data Exchanges • Trusted Workflows • Instant Secure Access TomorrowToday 4
  26. 26. 26 To be successful in future, CFO needs to adopt innovation & technology Work more efficiently and free up resources by (robotic) process automation Move to cloud, which will be cheaper more secure IT environment (paradox) Embrace blockchain to deal with changing world of more complex relationships Add more strategic value through enhanced use of data & artificial intelligence 2 1 4 3 Shift to lighter finance department with more analytical & forward looking skill set5
  27. 27. 27 Finance department will become a smaller team of highly qualified professionals ✓ Reconciliation work ✓ Accounting ✓ Controlling cash flows ✓ Reporting ✓ Analysing data ✓ Generating business insights ✓ Formulating actionable advice From… To… Need for finance professionals with strong soft skills and a broad knowledge base 5 Source: “Artificial Intelligence opens the door to the creative CFO”, KPMG
  28. 28. 28 Shift skill set mix in team will require ability to interpret large sets of data and to translate insights into strategic advice 5 Source: ‘CFO EvolutionTM’: Elevating the strategic leadership of the CFO organization, Armanino (consulting firm)
  29. 29. 29 Final thought: CFO will have bigger scope, but supported by plenty of tools
  30. 30. 30 Thank you

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