Empowering Banking and Insurance CFOs in the Age of Modern Finance
Five Keys to Success for Banking and Insurance CFOs
To meet expectations for organizational leadership and decision enablement, CFOs and their teams must depend upon reliable, consistent, and consolidated data that offers the right level of granularity. Learn about five areas of functionality that are key to accessing, processing, and sharing information.
Role of CFOs in the age of modern finance
The journey from a supporting to a strategic role
Not long ago, the most important task of CFOs was to ensure reliable, rules-compliant management of companies’ business administration and financials. In the course of doing so, they also provided reporting and decision support on-demand to the CEO and other executives. That sounds almost quaint today.
Ensuring success with integrity and resourcefulness
Across industries, today’s CFOs play a leading role as the prime strategic partners for executive stakeholders. More than any other executive, CFOs have gained influence and authority. They can muster the resources and information to help company leaders understand and respond to the opportunities of growth and the pressures of compliance. Many CFOs are as much the public face of the company as the CEOs. Their words and actions can have substantial consequences.
Technology must step up
Modern CFOs are no longer confined to the execution of organizational goals. They are expected to use their fact-based insight as they participate in key decisions and contribute to their company’s strategic direction. The finance teams that report to them are still expected to provide business performance and financial information to business leaders. CFOs and their finance business groups cannot meet these expectations without the sophisticated use of data assets and digital business infrastructure.
What is holding CFOs back?
CFOs in banking and insurance companies are often seen as authoritative because they are closest to the pulse of the business and not swayed by irrational notions. That puts them in a unique position to help their organizations operate more efficiently and increase market and revenue share.
Considering finance teams holistically
Insurance and banking CFOs need to deliver optimal outcomes in managing finance organizations and processes. They are also responsible for risk management in a way you don’t see in other industries. Competition from nontraditional providers of banking and insurance services, some of which are leading technology innovators, adds to the urgency of empowering CFOs.
Banking and insurance CFOs encounter common challenges. These involve CFOs themselves and their finance teams, including chief controllers, compliance officers, finance planning and accounting managers, and line-of-business managers and financial analysts. Like the CFO, these individuals need to be able to support and drive strategic decisions and initiatives.
Traditional business cultures have siloed these roles, making it hard to collaborate and share information. They typically rely on a variety of disparate data sources and reporting tools. Innovation and agility are usually not in their job description.
A powerful digital platform for five key areas of banking and insurance
Today’s business environment demands more from banking and insurance CFOs than an act of will. To meet expectations for organizational leadership and decision enablement, CFOs and their teams need to be able to depend upon reliable, consistent, and consolidated data that offers the right level of granularity.
Empowering CFOs
Delivering reliable, consistent, and consolidated data to CFOs and their teams requires a highly responsive, scalable infrastructure. The Oracle approach to empowering banking and insurance CFOs targets five areas of functionality that are key to accessing, processing, and sharing information.
When all five are optimized and synced, CFOs have a fighting chance to empower their fellow executives and teams throughout the organization.
“We expect to see a number of improvements across our business by taking this [Oracle] approach. The first is really an enabler, and that’s allowing our finance and risk teams to consolidate their business processes around a single operating model and remove their old siloed legacy applications and spreadsheets in favor of a modern tool set, underpinned by a modern data foundation layer and data model.”
Modern financials provide a robust, scalable business foundation
Oracle Financial Services Enterprise Performance Management enables you to perform timely, reliable, enterprise-wide reporting in the formats that make sense for decision-makers. Fast month-end closings and a scalable, global chart of accounts are essential in making this possible. Accurate reports and streamlined communications originating with the CFO increase executive control, ensure strategic alignment of the company’s offerings and programs, and help keep the business on track.
Performance management connects the current and desired states of the business
With more than 250 customers worldwide, Oracle Financial Services Enterprise Performance Management is the industry standard for managing performance and risk. For more than 15 years, industry-leading financial institutions have used these applications to not only measure performance, but also to improve it.
Oracle Financial Services Profitability Management enables financial institutions to calculate profitability information by products, channels, segments, and individual customer relationships on a risk-adjusted basis.
Automated regulatory reporting ensures flawless, efficient compliance
Your Oracle financial platform enables you to perform the regulatory and audit reporting that demonstrates compliance beyond doubt and minimizes any compliance-associated risk. On Oracle Cloud, your financial solutions stay current with changing regulatory mandates and in sync with current financial and performance measures.
Portfolio and customer analytics deliver insight ahead of time
Reliable, current data from all relevant sources make it possible to understand customers’ behaviors and preferences, so your organization can become more customer-centric. Oracle Financial Services Enterprise Performance Management solutions focus on profitability and institutional and retail analytics. For example, you can use them to project the impact of your portfolio and customer trends on the company’s financials and adjust your planning long before performance flags or the time for a business opportunity is past.
Risk and finance management enables sustainable growth
Oracle solutions for risk and finance are built on a common data and analytics platform, delivering inherent reconciliation and eliminating manual processes. Consistent, risk-adjusted performance metrics are delivered to risk, finance, and line of business teams, enabling consistency in market, regulatory, and management analytics.