Carissa Kell, chief financial officer at software provider Finastra, said CFOs must have a strong voice on a wide range of topics affecting their organizations, including cyber resilience, generative AI, open banking, open finance and more.
Kell shares her perspective on today's CFO priorities, investing in AI, and why storytelling is an important skill.
HDoes the CFO have a role in cyber resilience?
CFOs play a key role in cyber resilience, working closely with CISOs and other technology leaders to ensure sufficient financial resources are allocated to cybersecurity efforts. In addition to addressing technical debt, CFOs play a key role in helping organizations effectively address cybersecurity needs by overseeing budgets for security technology, staff training, and incident response plans.
Additionally, by emphasizing the importance of cybersecurity in an organization's overall risk management and strategic planning, CFOs also help build a culture of cyber resilience, which is essential in today's environment.
More broadly, CFOs should not be siloed. To do their job well, CFOs need a seat at the table for all important decisions. By advocating for and investing in robust cybersecurity measures, CFOs not only protect their organizations, but also strengthen their strategic importance and influence across all areas of the organization.
Why should CFOs consider investing in internal AI education now?
CFOs should consider investing in internal AI education to prepare their organizations for a rapidly changing landscape. Implementing generative AI in particular comes with challenges such as ensuring data quality, addressing ethical and legal concerns, managing computational resources, and maintaining security. By educating employees now, CFOs can better equip their teams to effectively deal with these complexities.
CFOs would be wise to recognize that AI has the potential to transform not just technical or IT-related functions, but also areas such as finance, operations, human resources, and compliance. Educating all employees, not just those in technical roles, helps everyone understand how AI can be leveraged to improve processes, reduce costs, and enhance decision-making. This can lead to more innovative thinking and identify new use cases that align with strategic financial goals.
Additionally, supporting a culture of continuous learning and curiosity is critical in a competitive environment. By investing in AI education, CFOs can ensure their organizations remain agile, open to implementing new innovations, and ultimately position themselves for success in a world where AI adoption is rapidly increasing.
How are open banking and open finance different? And what do these differences mean for financial institutions, startups, and corporate finance leaders?
Although open banking and open finance are built on similar principles of data sharing and customer empowerment, there are important differences between them. Open banking is limited to data and focuses on payment accounts and transaction information. At my company, we believe open finance means embracing new ways to facilitate payments and leveraging global intelligence and innovation to deliver world-class capabilities. While open banking was the opening up of the banking sector driven by regulation in many parts of the world, open finance includes all market participants.
This is an exciting change for the broader ecosystem, including fintechs and start-ups, who can benefit from this innovation. Importantly, businesses will also play a key role in this new landscape, as their participation can drive greater innovation and efficiency in financial services. At the same time, open finance, if adopted, can also help traditional financial institutions maintain market share in an increasingly competitive market.
It is important that all market participants understand how open finance is evolving and the opportunities it presents, and it will be essential for businesses to adapt to these changes to stay ahead in the evolving financial landscape.
What do you think is the most important leadership quality for a CFO, and how do you foster it in the next generation?
I believe that CFOs need to be present, approachable, and communicate effectively. Because a strong finance leader is one who is visibly and actively engaged with the entire organization.
This means attending regular all-hands meetings and explaining financial details in a way that everyone can understand. In doing so, the CFO not only educates employees about the company's financial health, but also fosters a sense of connection and transparency, allowing everyone to feel more aligned with the organization's overall performance and goals.
To cultivate these qualities as future CFOs, leaders must foster open communication and accessibility among their teams, especially among junior colleagues. Encouraging emerging leaders to become visible throughout the organization and collaborate with other departments is also an important step to help build these skills early.
Additionally, CFOs must provide training in storytelling (how to break down complex data into simple insights) so that future financial leaders can communicate effectively with both financial and non-financial stakeholders.
