Five changes facing the finance industry over the next two years
Day by day, technology is becoming an essential part of our lives, as the way we manage our financial life, payments and banking adapts to apps and automation programs.
In a recent article in Forbes, five Forbes Finance Council members highlighted changes that will impact the finance industry over the next two years such as:
Banking technology:
One big transformation is in banking and the change is going to be huge, anticipates Jessica Mah, CEO, co-founder and product architect of inDinero. Mah says we will see changes in the way banks behave, in the way they are becoming virtual, and in the way they are specialising and coming up with niche products.
Artificial intelligence:
People now want instant results. This is the idea behind Botkeeper, a company that offers automative bookkeeping and 24/7 support to its clients. Louie Balasny, its Managing Director, says ‘as the AI continues to advance, the ability to provide more and more accounting in real-time with reporting and charts at your fingertips is going to change the bookkeeping industry and the traditional monthly accounting process.’
Shops will close:
Changes in the finance industry will have a huge impact on some businesses, according to Michael Hsu, founder and CEO of DeepSky. Five or six years ago, ‘the industry pushed the idea of having every certified public accountant (CPA), enrolled agent (EA) or bookkeeper start their own outsourced accounting practice.’ In his opinion, this is not the right way. He predicts that in the next two years ‘we’ll see a ton of consolidation and shops closing.’
App Developers:
The number of app developers in the accounting industry may increase, according to Marjorie Adams, founder and CEO of the consulting firm Fourlane. She points out that “everyone wants their own application” and “it is becoming more affordable to build proprietary systems” for SMEs.
More automation:
According to David Ehrenberg, CEO of Early Growth Financial Services, consumers will take advantage of a change in technology as long as they’re prepared. Ehrenberg believes education is important in ensuring people adapt to automation. He says “we are starting to see more automation in the lower-level accounting functions already, and that’s going to really change how everyone in the accounting services industry does business in the next few years.’
These five examples of digital disruption identified in this article are already well and truly with us, and the impact they will have on the profession will continually increase. Firms need to be careful and meet their clients’ real future needs, moving away from compliance and processing and focusing on valued added advisory services. New players can provide the processing, but the value to SME clients comes from the experience mid-tier accountants are able to add with advisory services – supporting profit development, tax minimisation, and sound strategies for wealth growth.
You may also be interested in
Artificial Intelligence (AI) has been garnering a lot of media attention of late. And for good reason – its potential
Earlier this month, the Senate voted in Donald Trump’s controversial $1.4 trillion tax reform bill by the narrow margin of
To say that there’s been a backlash against globalisation in recent years would be an understatement. From demonstrations in France
“May you live in interesting times” goes the Chinese expression. In fact, it’s actually more of a subtle barb to
Earlier this month, the Slovenian Prime Minister, Miro Cerar, stated that he “want[s] to position Slovenia as the most recognised
In the UK, they’re known as Generation Y, in Germany Generation Maybe, and China has labelled them as the generation
Rodney Sutton, head of manufacturing at Kreston Reeves, recently shared his thoughts on the UK manufacturing industry following the referendum
The adoption of international accounting standards has brought many benefits to the private and public sectors. This being said, there
Remote working is becoming a way of life for many professionals and the ability to work in a variety of
A common global language for business affairs, IFRS Standards are required by more than 120 jurisdictions in the world. Recently,
Automated technologies and artificial intelligence in our society will challenge many professions in the future. Some of them may be
Crowdfunding is still relatively new but should still be considered as a viable source of equity. Nowadays, it is providing
A legal amendment to the Finance Bill recently accepted by the UK government may pave the way for big changes
In the business world, there are bumps on the road and financial setbacks. In this situation, it is easy to
Day by day, technology is becoming an essential part of our lives, as the way we manage our financial life,
A new generation is coming to challenge the market. The Millennials make up a quarter of the US population and
Managing change is one of the biggest challenges for businesses as it requires a huge effort from managers and organisations
Sustainability reports are released by companies and organisations of all types, sizes, and sectors, from all over the world. A
Accounting is an indispensable tool for entrepreneurs to manage their business. The data provided by competent
Thinking about the risks involved in business has become an essential part of an enterprise’s strategy. Risk management enables organisations
When a business does not achieve its expected results, it may be time to think about implementing change. In these
The Financial Times recently reported the dispute in the courts between the UK supermarket chain Sainsbury’s and MasterCard. The Competition
For many, the accounting profession may not seem the most attractive in the world. But with technology and innovation at our hands, this is about to change.
By following these five steps, communication has everything it needs to flow better, regardless of where your business is located and where the people you
The need to go global is something that has emerged over the past decade and promises to challenge business for the next coming years.
Recently a considerable change in the SME market was announced through business news on the internet. The Big Four have
There are five topics that we must remember when dealing with working personal relationships in international business…
Slowly, one of the last socialist countries in the world is preparing to make changes to its economy, but how will this be done?
Developing countries attract the attention of investors by offering good opportunities and new markets, making them attractive for anyone thinking of expanding their
Through a mobile app, a small business can promote its brand, products, and services, expand its sales channels, interact with the target audience and get
Last month, experts at the Milken Institute Global Conference in Los Angeles looked at certain megatrends and predicted several economic scenarios for 2040 to
When a business does not achieve its expected results, it may be time to think about implementing change. In these