Chief Financial Officer

For today’s CFOs, each day is different — and every challenge represents an opportunity.

Perhaps no opportunity is greater than the rapid pace of innovation to which finance leaders in the 21st century are bearing witness.

“Digital transformation has really enabled us to evolve,” PayByPhone Chief Financial Officer Nick Hamill told PYMNTS for the “Day in the Life of a CFO” series.

He emphasized the importance of embracing new technologies, staying connected with employees, and focusing on profitability and cost management.

“Embracing new technologies has allowed us to enhance our efficiency, the speed of our decision making, and really our overall competitiveness,” Hamill said.

He highlighted the use of technologies such as cloud computing, data analytics and automation in streamlining processes and improving competitiveness, noting that the immediate impact of digital integrations includes relying less on manual processes and scaling key processes without the need to increase headcount.

At a high level, the three major factors that have significantly impacted financial leaders, Hamill explained, are digital transformation; remote and hybrid working arrangements; and global economic uncertainty.

Data security and regulatory compliance have gained particular importance due to the staying power of remote work environments.

“We’ve had to make sure that we are not falling behind and that we’re remaining compliant, particularly in Europe where privacy is taken very seriously for clients and employees alike,” Hamill said.

Crucial to the CFO’s role in an organization are the fundamental responsibilities of laying out a roadmap to profitability, cost management and adapting to changing economic conditions.

“Budgeting and financial reporting, cash management, these remain foundational,” Hamill said. “As technology evolves, you might have better, more efficient ways of doing things. But those are still going to be critical requirements. Doubly so in this inflationary and rising interest rate environment, it’s always been important to ensure we’re being as competitive as we can, as profitable as we can, managing our costs as closely as we can.”

“Technology-driven growth, especially artificial intelligence, especially automation, these are things that as a finance department that we can really leverage,” he added.

Looking ahead, Hamill identified technology-driven growth and demographic shifts as key elements that will shape the future of CFOs’ responsibilities.

“The objective should be to make processes effortless so that you’re spending less time thinking of and working on a process and more time having your attention on the areas where it matters,” said Hamill, emphasizing that while digital solutions and AI tools offer benefits, the human touch and effective implementation remain crucial to success.

“Automated tools are really only as good as their implementation,” he added. “A poorly implemented tool can be worse than doing things manually, while a well-implemented tool creates new efficiencies.”

As the keepers of the enterprise purse strings, CFOs play a crucial role in deciding how, where and on what the investment dollars of an organization are spent.

After all, where a business spends its money tends to inform and frame up its broader strategy.

“Having data at our disposal in real time allows for much faster and more accurate decision-making,” said Hamill.

“But we’ve come along this digital transformation curve to where there’s now so many different software tools out there that can benefit finance departments, but it’s now how do you find the one that’s going to best meet your needs,” he explained.

The CFO needs to be a key decision maker and ensure there’s a sound business case behind any investment that will add value to either the business, the bottom line or to shareholders, Hamill said.

He noted that the CFO role has evolved over time from that of an accountant to a position that is relied upon much more as a strategic partner to the rest of the business and senior leadership team.

“The CFO has traditionally been the stewards of risk in an organization, and as we’ve seen with changes in the macro environment, risk mitigation will also need to evolve,” said Hamill.

He highlighted the potential of generative AI tools to disrupt work processes, enhance productivity and automate repetitive tasks. However, Hamill emphasized the need for a human touch and the augmentation of capabilities rather than a complete replacement.

Are companies offering payments services in Great Britain prepared for disruptions such as cyberattacks?

Sasha Mills , executive director for financial market infrastructure (FMI) at the  Bank of England (BOE) said there is still work to be done. 

In a speech Tuesday (April 30), Mills said these companies — FMIs, as she calls them — need to work harder to meet new “operational resilience” standards by March of next year. These standards deal with disruptions to the country’s “ financial market plumbing ,”  as Mills put it.

“Confidence in FMI services is critical to having a vibrant and prosperous economy,” she said in the speech at the London Institute of Banking and Finance.  “For the calibration of impact tolerances, we expect to see greater engagement than we have seen thus far between FMIs, their participants, and the wider market.”

The central bank is asking financial market infrastructure firms to identify which services — if disrupted — could threaten financial stability.

“Then, we ask firms to say what level of disruption those important business services could experience before risking financial stability, and we call this an ‘impact tolerance,’“ she said. 

She described a scenario in which she gets an early morning phone call from a payments firm CEO, who tells her their critical technology systems are down. 

“They don’t yet know what has caused the issue — it could be a cyber attack, extreme weather damaging a data center, a critical systems failure while implementing an IT change programme, anything,” Mills said.

“What they do know is that all around the country customers are standing at tills unable to pay for their morning coffee, many businesses can’t buy the materials they need to work today, and it’s all over social media. And it is only 7am.”

With an improved resiliency policy, she added, that CEO would be able to tell her which services are affected and that the company has contingency plans in place.

As noted here earlier this month, the BOE is also studying the use of new technologies to enhance both  retail and wholesale payments  functionality.

Although the central bank has been focused on setting up regulatory regimes for the use of  stablecoins for retail payments , “we are increasingly complementing that work with a focus on how we can best support innovation both in wholesale payments and financial markets (including through modernization of the Bank of England’s wholesale payments infrastructure) and in banks’ retail payment offerings,”  Sarah Breeden , deputy governor for financial stability at the Bank of England, said in an April 15 speech.

We’re always on the lookout for opportunities to partner with innovators and disruptors.