Five main IT trends in the financial sector according to Michael Shvartsman

Having consistently invested in the development of financial IT projects over the past three years, Michael Shvartsman truly understands the primary priorities of the sector.

Topping the list is the transformation of the entire financial system, with many CEOs also emphasizing technology and a people-centric approach. This prepares organizations for economic uncertainty while offering new opportunities to enhance profitability.

Priority #1: Financial transformation and organizational change.

During a recession, the influence of the finance department expands. With numerous competing business priorities, efforts to control costs, ongoing technology initiatives, and various service delivery options, CFOs must invest in transformation, artificial intelligence, and autonomous digital initiatives. This enhances cost-effectiveness and facilitates faster growth. To achieve transformation, setting the right priorities and involving specialists in pertinent areas is essential.

Priority #2: Developing and optimizing a data and analytics strategy.

According to Gartner, by 2025, 50% of financial planning and analysis (FP&A) leaders will implement an enterprise-wide data strategy. Financial leaders must increase their involvement in corporate data and analytics (D&A) management and enhance their understanding of key concepts in the field. Otherwise, the implementation of the D&A strategy may be left solely to the IT department.

Priority #3: Cost optimization for growth.

In the current macroeconomic environment, merely planning capital utilization is insufficient. CFOs should adopt a proactive approach, redirecting capital flows to respond to change in addition to traditional efforts to streamline fund allocation processes.

Priority #4: Fostering stronger social connections between employers and employees.

The current reality of hybrid work has altered employee expectations and leadership responsibilities. Finance leaders must unite employees, restore cohesion, and chart new courses. Creating a human-centric social culture will unlock employee potential.

Priority #5: Developing a Technology Strategy for the Finance Department.

Despite increasing technology investment, data indicates that only 30% of technology projects succeed. Complex and disparate stacks of legacy technologies make it challenging for finance teams to prioritize technologies and investment opportunities. Leaders should develop a cohesive fintech strategy and plan to transform the technology landscape into a flexible, business-oriented ecosystem of modular, composable application building blocks. This approach will benefit financial institutions.

The evolving landscape of financial IT projects necessitates a strategic approach to address key priorities and challenges. Leaders like Michael Shvartsman understand the importance of embracing transformation, leveraging data and analytics, optimizing costs, fostering strong social connections, and developing a technology strategy. By prioritizing these areas, finance departments can navigate economic uncertainties, drive innovation, and position themselves for sustained growth and success in the ever-changing financial landscape.