A new study by Sage uncovered that 83% of finance leaders believe the industry needs a new breed of CFO. “The Redefined CFO” study investigates how finance leaders today take a more holistic approach with a reliance on data to engage with the wider strategic priorities of organizations.
Stepping out from the shadow of the CEO, the CFO has become a hub of business information—diversifying their expertise, recruiting the right talent, and ensuring they implement emerging technologies and purpose-driven programs to remove friction and deliver insights. The Chief Focus, Facilitative and Fairness Officers represent the new breed of CFO.
“Finance leaders in the U.S. are redefining what it means to be a CFO,” said Judy Romano, VP and CFO, Sage North America. “Through their purpose-driven approach to the role, their adoption of breakthrough technologies, and work across a range of business units, they are taking their place as forward-facing guides for organizations.”
Cryptocurrency and the metaverse embraced by SMBs
The research found that finance officers within SMBs are increasingly embracing cryptocurrencies and the metaverse as digital payments technology forces an evolution.
While only 17% of global finance teams reported currently accepting cryptocurrency transactions, 33% plan to accept decentralized currencies within the next 12 months. In addition, 52% believe these currencies will prove “extremely” viable as a long-term payment solution.
Twenty-two percent believe the biggest hurdles surrounding adoption of cryptocurrencies were internal ESG policies, with 22% citing finding the right talent to manage it.
The research also revealed that 44% of finance leaders have used cryptocurrency as payment for personal transactions, while 48% have personally invested in cryptocurrency. Another 49% plan to invest in it.
When it comes to the metaverse, SMBs may be further ahead in embracing the new technology than many anticipate. The survey shows that 36% of finance teams say their company has already entered the metaverse, while 52% say they plan to increase their presence over the coming year. Another 54% of respondents are planning learning programs in the metaverse, and 42% are purchasing virtual real estate (via NFTs).
Global findings breakdown
SMBs are accessing new capabilities all the time, supported by AI, machine learning, and blockchain, to better manage their finances and run their businesses more effectively.
Finance leaders in the US were the most bullish: (46% of US SMBs have already entered the metaverse, compared with only 30% of UK and 32% of Canadian businesses.
US finance teams were also among the most likely to already be accepting cryptocurrency transactions, with 21% already accepting these payments. The US trails only Australia—where 29% of businesses already accept decentralized payments. These figures were substantially higher than those seen in the UK (13%) and Canada (12%), which are lagging.
Stepping out from the shadow of the CEO, the CFO has become a hub of business information—diversifying their expertise, recruiting the right talent, and ensuring they implement emerging technologies and purpose-driven programs.
In terms of the long-term viability of cryptocurrency as a payment source for SMBs, 60% of US finance teams believe it to be extremely viable. This compares with 44% of UK and 49% of Canadian finance executives.
Aaron Harris, Sage’s Chief Technology Officer, believes in letting the machines take the admin burden, spot anomalies and automate repetitive tasks—freeing up humans to focus on what they do best.
“The metaverse is a great example of the convergence of our digital and physical lives—integrating human touch points through digital means to knock down barriers,” Harris says. “And while it’s still early days for most, the metaverse is normalizing some emerging technologies like cryptocurrencies for SMBs which, in turn, removes friction and delivers insights.
Harris says that despite the appetite for new technologies and business models, the availability of skills remains an industry-wide issue that, as a community, we need to solve. “Offering more than the traditional finance roles, I hope this will help our profession appeal to an increasingly wider demographic."
Purpose and people ahead of profit
Finance teams now are prioritizing technology skills over financial experience in recruitment, and it’s impacting the hunt for new skills. The survey shows that 32% of finance teams say they are now looking for candidates with either coding, developer, or AI algorithmic building experience.
A Snapshot Inside the Numbers
- 32% of finance teams say they are now looking for candidates with either coding, developer, or AI algorithmic building experience.
- While only 17% of global finance teams reported currently accepting cryptocurrency transactions, 33% plan to accept decentralized currencies within the next 12 months.
- 52% of finance leaders believe decentralized currencies will prove “extremely” viable as a long-term payment solution
- 22% believe the biggest hurdles surrounding adoption of cryptocurrencies were internal ESG policies, with 22% citing finding the right talent to manage it
In fact, candidates with a strong AI pedigree were even more appealing than strong finance candidates willing to train and develop AI skills (38% compared to 34%, respectively). But both are more attractive candidates than professionals without any technical skillset at all.
Organizations are also prioritizing people and empathy in business decisions. Three-quarters of financial decision makers are encouraged by their organization to prioritize people (77%), account for empathy and understanding when making business decisions (75%) and put purpose over profits (74%).
Study Methodology: This study is based on 1,900 responses from finance leaders in the healthcare, nonprofit, financial services, professional services, hospitality, SaaS/tech, ecommerce/retail industries at organizations with less than 1,000 employees and annual revenue of at least $50 million for the US, UK, Australia, and South Africa and at least $5M for Canada.
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