What Is Impeding FinTech Transformation?

During a recent survey with Chief Executive Group, CFOs reported 7 primary challenges that impede their org’s finance automation journey:

Cpr surveilled report challenges in Legacy FinTech.

>> Related: 2023 Is the Year of Replacing Legacy FinTech <<

1. Integrating and communicating with other organizational systems

At almost 52%, the number one impediment is integrating and communicating with other organizational systems.  For example, connecting your HRIS system to your ERP, or connecting your ERP to your travel and expense management software.

2. Pushing through antiquated systems

At 47%, the runner up challenge is pushing through legacy systems, like working with antiquated or outdated processes or softwares, or creating and updating reporting.

3. Hiring skilled talent to support and conduct implementation

The third largest challenge is hiring skilled workers who can do implementations and integrations.  This is a twofold challenge: 

Press potential vendors about their implementation process and resources.  Are there workbooks, step-by-step guides, etc. to help you translate your manual or previous processes to the new system?

4. Maintaining ongoing IT support

Beyond implementation, maintaining ongoing IT support plagues FinTech transformation projects, especially when it comes to output files or API integrations.

5/6. Training staff and getting their buy-in

End users have to apply new processes/systems for FinTech projects to achieve ROI.  Press potential vendors about their help centers and online resources.  Do they have trainers available for customized workshops and Q&A?  How do they recommend training staff early-and-often?  How can the finance team be equipped to answer broader employee questions?

Then communicate early with your teams.  Set clear expectations about how (and when) the manual process will transition to a new/automated process.  And communicate the benefits of time or money saved.

7. Manage cyber exposure and data security

You can never be too safe. Liaise immediately with IT or SecOps to understand the overall data security of partner platforms and/or consultants.