Financial Sector Analysis [Infographic]

We're exploring the top six financial sector topics, trends, and the critical analysis of transformations finance leaders and their teams should anticipate as the year unfolds.

1. CFOs Must Manage Uncertain Economic Political Factors

   CFOs are used to steering the ship through turbulent conditions - a skill they'll need in 2024. Stubbornly unmet capital needs, turbulence abroad, an election year at home, and the pressure to adopt Al technologies that are still quite nascent, make for potentially choppy waters in 2024.

2. Expect Higher Demand for Data-Driven Decision Making

   Technology, tools, and expertise that can improve data analysis already in high demand will only become more sought after. More open roles for FP&A experts and a greater emphasis on the value of their work spell competition for qualified talent: The Association for Finance Professionals (AFP) clocked a 5.5% salary increase for FP&A professionals on average.

3. Prepare for an Uptick in Mergers & Acquisitions in the Financial Sector

   Get ready for an increase in M&A activity as economic challenges accelerate the consolidation of smaller companies into larger ones that are better equipped to weather any coming storms. 83% of finance leaders have already told Deloitte they expected deal making volume to grow in 2024.

4. Maximize Your Strategic Impact With Automation Outsourcing

   The talent shortage will only worsen as pipeline supply trickles down to new lows and hiring costs hit unprecedented highs. With resource management front-of-mind, CFOs will continue to turn to a combination of outsourcing and automation to contain costs and cover talent gaps - and interrupt the feedback loop between these two challenges.

5. Be Ready for More Sophisticated Cybersecurity Threats

   A 55% increase in ransomware attacks broke records in 2023. Going into 2024, finance leaders will have to brace themselves for an inevitable increase in fraud and scams made possible by Al's democratization of everything from voice-cloning software and convincing deepfakes to scripts that automate the entire process of phishing attacks.

6. AI Will Inform the Financial Sector in 2024 but Not Define It

   Al has the potential to pick up where automation leaves off, freeing up highly skilled human labor for work on strategic tasks. A Vision Fund survey of CFOs sums it up: 95% of CFOs said they thought generative Al had the potential to make workers more productive, but only 5% said it would have an impact on finance in the immediate future.

Finance leaders are taking 2024 on - one week at a time. Stay on top of thought leadership and trending strategies by subscribing to the CFO Weekly podcast to be a part of the conversation.

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