technology survey
Underwritten by
2018 AFP®
enhancers or disruptors?
See How You Compare to Your Peers
Have you begun to implement emerging technologies at your organization?
BELLIN A Global leader in innovative technology solutions for corporate banking and treasury
Most finance professionals are upbeat about the impact of emerging technologies on their functions. There is, however, concern that the adoption of these technologies could result in staff becoming obsolete. It's time for you and your team to be prepared to embrace these technologies.
About the Survey
To assess the actual or perceived impact of emerging technologies—as well as their anticipated advantages and disadvantages and the willingness of senior management to adopt them—the Association for Financial Professionals (AFP)® conducted the AFP Technology Survey in May 2018. The survey generated 708 responses, which are the basis of this report. AFP thanks BELLIN for underwriting this survey.
Stay Up to Date with AFP Content
Emerging Technologies
Artificial Intelligence
Robotic Process Automation
Blockchain/Distributed Ledger Technology
Cryptocurrencies
Data Analytics
Internet of Things (IoT)
Go to SURVEY FINDINGS
Click on images below for definitions
Artificial Intelligence (AI) is intelligence demonstrated by machines, especially computer systems that have been programmed to mimic human action and rational thought.
ROBOTIC Process Automation
Robotic Process Automation (RPA) means automation of business processes across the enterprise using software robots which are easy to train and integrate seamlessly into any system.
machine Learning
Machine Learning is a method of data analysis that automates analytical model building. It is a branch of artificial intelligence based on the idea that systems can learn from data, identify patterns and make decisions with minimal human intervention.
Machine Learning
Blockchain/Distributed ledger technology
Blockchain/Distributed ledger technology is a shared transaction database that provides a transparent and efficient way to securely record and transfer information and assets.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.
DATA ANALYTICS
Data Analytics (DA) is the process of examining data sets in order to draw conclusions about the information they contain, increasingly with the aid of specialized systems and software.
internet of things
The Internet of Things (IoT) is the network of physical devices, vehicles, home appliances and other items embedded with electronics, software, sensors, actuators and connectivity which enables these objects to connect and exchange data.
Technologies Referenced in the Report
KEY findings
Implementation of Emerging Technologies is Low Treasury and Finance Function Will Benefit from Emerging Technologies Increased Accuracy and Streamlined Operations are Primary Advantages of Using Emerging Technologies Lack of Skills and Technological Resources are Roadblocks to Implementing Emerging Technologies Senior Management Willing to Invest in Emerging Technologies Treasury and Finance Teams Partly Prepared to Work with Emerging Technologies Treasury and Finance Staff are Mostly Data Literate Varying Levels of Concern Among Staff Regarding Becoming Obsolete
FINDING 1:
FINDING 2:
FINDING 3:
FINDING 4:
FINDING 5:
FINDING 6:
FINDING 7:
FINDING 8:
TECHNOLOGY DEFINITIONS
Click on
to start from the beginning or select any finding that is of the most interest to you.
FINDING 1
Finding 1
Implementation of Emerging Technologies is Low
Implementation of emerging technologies is currently low at a majority of companies, and many organizations do not have plans to implement them either. An exception is Data Analytics; 53 percent of organizations have either implemented it extensively or to some extent.
Implementation of Emerging Technologies within Treasury and Finance Function
Percentage Distribution of Organizations
finding 2
Implemented Extensively Implemented to Some Extent Will Implement in the Next 1-2 Years Not Implemented and No Plans to Do So
16%
37%
17%
30%
1%
2%
6%
92%
5%
13%
69%
3%
18%
62%
12%
68%
78%
10%
20%
KEY FINDINGS
GET MORE AFP CONTENT
Finding 2
Treasury and Finance Function Will Benefit from Emerging Technologies
Survey respondents are upbeat about the impact of emerging technologies on their functions. A larger share of treasury and finance professionals is optimistic about the impact of Data Analytics than about other technologies. This is likely a consequence of the higher rate of implementation of this technology. Although implementation levels are low for other technologies—i.e., Robotic Process Automation (RPA), Machine Learning, Artificial Intelligence (AI) and Blockchain/Distributed Ledger Technology—many respondents believe these technologies will have a positive impact on efficiency, even if only to some extent. Respondents are very unsure about the impact of Cryptocurrencies on the treasury and finance function’s efficiency, probably a result of the extremely low adoption of the technology.
Impact of Emerging Technologies on Efficiency of Treasury and Finance Function
Click technology box below to view findings
finding 1
finding 3
Increased Accuracy and Streamlined Operations are Primary Advantages of Using Emerging Technologies
Finding 3
Treasury and finance professionals either foresee advantages or have experienced increased efficiencies as a result of using emerging technologies in the following areas: • Greater accuracy • Streamlined operations • Faster decisions • Cost reduction • Creating a culture open to using emerging technologies and welcoming change
Advantages/Increased Efficiencies Anticipated Prior to Implementation and Experienced Post Implementation
Percentage Distribution of Respondents
finding 4
Creates a culture open to using new technologies and welcome change
Anticipate Prior to Implementation
Greater accuracy
Drives faster decisions
Cost reduction
45%
32%
Experienced Post Implementation
Advantages/Increased Efficiencies
Streamlined operations
46%
29%
40%
28%
41%
24%
Finding 4
Lack of Skills and Technological Resources are Roadblocks to Implementing Emerging Technologies
Organizations are faced with various roadblocks when implementing emerging technologies. Some survey respondents report having experienced these roadblocks while others are currently dealing with these challenges. Survey respondents cited various obstructions they had to face when adopting these technologies. Those most often experienced or being experienced are: • Staff lacking requisite skills • Lack of technological resources • High cost of implementation • Challenge in determining ROI • Steep learning curve involved
Roadblocks to Implementing Emerging Technologies at Organizations
finding 5
Staff lacks requisite skills
Lack of technological resources
Cost of implementation is extremely high
Challenge to determine ROI
Steep learning curve involved
21%
36%
15%
33%
Experienced Currently experiencing
Finding 5
Senior Management Willing to Invest in Emerging Technologies
Nearly 50 percent of senior management at organizations are either willing or very willing to adopt these emerging technologies. A larger share of decision makers at larger companies (with annual revenue of at least $1 billion) and those from publicly owned organizations are more eager to implement these emerging technologies than are their peers from smaller companies or privately held ones. A smaller but material percentage of treasury and finance professionals do report that senior management at their organizations is reluctant to implement these technologies. The primary reasons are high implementation costs and uncertainty about the return on investment (ROI).
Willingness of Senior Management to Adopt Emerging Technologies
finding 6
19%
Very Willing
Willing
39%
Somewhat Willing
Unwilling
Very Unwilling
Senior Management is Unwilling to Adopt Emerging Technologies
WHY?
– High implementation costs – Unsure of ROI – Resistance to learning the emerging technology/technologies – Want to avoid change – Overwhelmed by staff training required
REASONS WHY:
Preparedness of Treasury and Finance Staff to Work with Emerging Technologies
About one in five treasury and finance staff (21 percent) indicates that their teams are fully prepared to work with emerging technologies, while 37 percent are unprepared. The remaining share believes they are somewhat prepared.
Finding 6
Treasury and Finance Teams Partly Prepared to Work with Emerging Technologies
finding 7
4%
Significantly prepared
Prepared
42%
Somewhat prepared
8%
Significantly unprepared
Unprepared
The reasons staff ARE unprepared Are varied, but those cited most often are:
– Culture of organization does not lend itself to implementing these technologies (57 percent) – Organization has not provided adequate training resources (52 percent) – Technology advancement is rapid and difficult to keep up (52 percent)
Data literacy is the ability to derive meaningful insights from data. Although survey respondents are less optimistic about the preparedness of their colleagues to work with emerging technologies, 37 percent are confident that the data literacy of treasury and finance staff at their companies is above-average-to-excellent; over half report data literacy is average. Few indicate that data literacy skills are lacking among their peers.
Finding 7
Treasury and Finance Staff are Mostly Data Literate
Data Literacy of Treasury and Finance Staff
finding 8
Excellent
Above Average
Average
Below Average
Poor
51%
Only seven percent of respondents report that staff members within their organizations’ treasury and finance teams are very concerned about emerging technologies replacing them in their jobs, although one-third of survey respondents does believe there is some concern among their colleagues. Fully 41 percent of survey respondents believe treasury and finance staff are unconcerned, but only because this issue has not yet appeared on their radar. Just 17 percent believe their peers are unconcerned about being made obsolete, as they are prepared to work alongside these technologies.
Finding 8
Varying Levels of Concern Among Staff Regarding Becoming Obsolete
Treasury and Finance Staffs’ Level of Concern Regarding Emerging Technologies Replacing Their Jobs
7% of Respondents are SIGNIFICANTLY CONCERNED
34% of Respondents are SOMEWHAT CONCERNED
41% of Respondents are CURRENTLY UNCONCERNED as it hasn't appeared on their radar
17% of Respondents are UNCONCERNED as they are knowledgeable and prepared to work with these technologies
1% of Respondents are NOT AWARE
Participant demographics
Hover over images below for more information
participant demographics
Back to demographics
View Ownership
VIEW INDUSTRY
In May 2018, the Association for Financial Professionals® (AFP) conducted a survey on emerging technologies within treasury and finance functions. AFP received 708 responses from its corporate practitioner members and prospects, these responses are the basis of this report. AFP thanks BELLIN for underwriting the AFP Technology Survey. The survey questionnaire and report were produced by the Research Department of the Association for Financial Professionals which is solely responsible for the content of the report. The demographic profile of the survey respondents mirrors that of AFP’s membership. The following tables summarize the characteristics of the survey respondents where organization-level demographics are provided.
ABOUT AFP
AFP Research provides financial professionals with proprietary and timely research that drives business performance. AFP Research draws on the knowledge of the Association’s members and its subject matter experts in areas that include bank relationship management, risk management, payments, and financial accounting and reporting. Studies report on a variety of topics, including AFP’s annual compensation survey, are available online at www.AFPonline.org/research
The Association for Financial Professionals (AFP) is the professional society committed to advancing the success of its members and their organizations. AFP established and administers the Certified Treasury Professional and Certified Corporate FP&A Professional credentials, which set standards of excellence in finance. Each year, AFP hosts the largest networking conference worldwide for over 6,500 corporate finance professionals. 4520 East-West Highway, Suite 800 Bethesda, MD 20814 T: +1 301.907.2862 | F: +1 301.907.2864 www.AFPonline.org
AFP Research
About AFP®
Home Page
Introduction
The accelerated advancement of emerging technologies within treasury and finance functions across organizations is poised to have a significant impact on the effectiveness and efficiencies of processes, operations and productivity. Although the anticipated impacts from these technologies are commonly referred to as “disruptions”— considered negative occurrences—most finance professionals believe outcomes of these emerging technologies will have positive ramifications. There is, however, significant concern that the adoption of these technologies could result in staff within certain functions becoming obsolete. While this might not be an immediate concern, it could result in leaner treasury and finance departments in the future. To assess the actual or perceived impact of emerging technologies—as well as their anticipated advantages and disadvantages and the willingness of senior management to adopt them—the Association for Financial Professionals (AFP)® conducted the AFP Technology Survey in May 2018. The survey generated 708 responses, which are the basis of this report. AFP thanks BELLIN for underwriting this survey.
Go to DEFINITIONS
View REPORT
