Mapping out the Future of Finance

In times of digitalization, globalization and constant demographic change, the demands on the finance function of banks and insurance companies are increasing. New regulatory requirements, increasing data volumes and the need for real-time information are fundamentally changing the role of the finance function.

The development of the finance function into an integrated and advisory area for the overall organisation of banks, insurance companies and asset managers is accompanied by complex industry-specific and regulatory requirements. In particular, the short-term and detailed requirements of government supervisory authorities have increased significantly and have long since extended beyond purely financial data.

In order to fulfil these requirements efficiently, end-to-end process automation and the complete integration of all relevant data sources are required. The use of digital technologies plays a key role here: repetitive tasks can be automated, financial data can be processed more quickly and well-founded decisions can be made on the basis of up-to-date information. This changes the role of the finance function. It is becoming a strategic business partner with a focus on value-creating activities and sustainable corporate management.

The transformation of the finance function is not solely aimed at fulfilling reporting obligations. The networking of finance, risk and control processes creates a new information basis that raises planning, control and decision-making to a new level. It enables fact-based, forward-looking management of the company and thus strengthens the role of the CFO as the driver of the finance function of the future.

The finance function is becoming an integral part of the organisations of banks, insurance companies and asset managers, driven by changing regulatory requirements such as IFRS 18 and the new standard on risk mitigation accounting. These requirements necessitate integration in all relevant areas, such as accounting, risk management and treasury.

The strategic realignment of the finance function goes beyond a traditional IT transformation. Companies need comprehensive competences to efficiently implement new requirements. This requires suitable organisational structures, the targeted use of digital technologies and the realignment of team competencies. By integrating the requirements of IFRS 18 and Risk Mitigation Accounting (IFRS 9), companies can not only fulfil regulatory requirements, but also increase their efficiency and develop value-creating solutions.

The realignment of the finance function is much more than a classic IT transformation. Taking advantage of the opportunities offered by digitalisation requires: • suitable organisational structures, the targeted use of digital technologies, • the further development of competences and role models, and new forms of interdisciplinary collaboration. Only through the interplay of these elements can a modern financial organisation be created that combines efficiency, transparency and agility.

KPMG has been supporting financial service providers for many years in automating their accounting and reporting systems and optimising end-to-end business processes and data quality. Our experts have extensive financial and technology expertise in the banking sector and many years of project and technology experience in SAP transformations, particularly with regard to CFO responsibility. They also combine module expertise with implementation strength in the area of SAP S/4HANA. Our SAP specialists support you with their extensive expertise to realise your platform and software projects.

Your finance function can also do more – and our experts know how you can achieve this „more“ and use the opportunities of digitalisation for the processes in your company. In doing so, we rely on a close integration of specialist, IT and process expertise. We think things through from start to finish and provide you with future-proof technical solutions. We are happy to advise you on the development of an efficient and integrated financial architecture and support you in its practical implementation. If your finance function needs an update, please contact us.