While an overwhelming majority of finance leaders at large firms in Singapore are driving digital transformation initiatives, almost one-in-five say their teams are unprepared to do so, a report released by Workday reveals.

New technologies such as cloud platforms, artificial intelligence, and machine learning have been widespread in the finance function, with more than half (53percent) of respondents believing that these technologies will significantly affect them. Despite 94 percent of finance leaders pushing ahead with digital transformations, one-fifth of them feel that their teams are not ready, according to a report by Workday, a provider of enterprise cloud applications for finance and human resources.

«It is concerning that one in five finance teams leading digital transformation initiatives at some of the world’s largest companies feel unprepared. As a result, it is unsurprising that we see mixed outcomes emerging. Failed initiatives can see companies lose out on opportunities to gain new customers and build market share,» said Lee Thong Tan, Regional Financials Lead, ASEAN & North Asia at Workday.

Emerging Talent Gap in Finance

The report further finds that an overwhelming majority (87 percent) of finance leaders believe that rising digital transformation and automation will increase rather than decrease the number of jobs available for finance professionals locally.

Over three-quarters (75 percent) of Singapore finance leaders expect to see an uplift in finance jobs by up to 20percent over the next three to five years, while about one-fifth (12 percent) believe that this will increase by more than 20 percent. 

Soft Skills Needed

Soft skills will be the most sought after, with Analytical skills (26 percent), Risk Management (17 percent) and Leadership (16 percent), nominated as the top skills for finance professionals to have in the future.

«We are seeing a realization that fears of technology and automation displacing people’s jobs in the future have been unwarranted. It is exciting to see finance leaders in Singapore embracing new technologies and recognizing the growth opportunities these can offer for both their teams and businesses,» said Tan.

Customers Are Benefiting

The area in which digital transformation has had the most positive impact is in customer satisfaction, according to four-in-five (82 percent) respondents. Enhanced availability of data and insights (79 percent) is a close second, followed by market competitiveness (72.6 percent) which again reinforces the belief that companies use these cutting-edge, digital tools to improve user experiences and increase speed and agility in insights.

«Digital transformation is not so much driven by companies but rather, by expectations or experiences. Today, customers and employees alike expect a whole new experience for how they engage with corporations and it is their journey that dictates the transformation strategy. Finance professionals of the future would do well to take heed of increasing digitalization demands and how they can take advantage of the available technology to win hearts and minds,» said Tan.

Surveyed Pool

Finance Disrupted: The Impact of New Technologies on the Future of Finance is the second installment of Workday’s survey of finance professionals across the Asia Pacific region. A total of 337 interviews were conducted either online or face-to-face in February and March 2019 in Australia, New Zealand, Singapore, and Hong Kong. 

Only Vice-Presidents in Audit and/or Compliance, C-Suite Executives in Accounting, and Directors in Financial Planning & Analysis and/or Finance were selected for this survey. All respondents are from companies that comprise of 1,500 or more employees.