The chief financial officer is increasingly relied upon to fully execute an organization’s business strategy – because CEOs and boards recognize that their financial infrastructure is the lifeblood of the organization. With next-generation financial technology solutions, CFOs can more effectively and accurately unlock the value of the organization’s balance sheet, and optimize the value chain from suppliers through to customers, ensuring that shareholder value is maximized.
Every strategic company action is made possible by the CFO – including acquisitions, organic growth targets, expanding to new markets, stock repurchases, and dividend payments. Key examples include:
- Stock repurchase and dividend payments – CFOs determine whether repatriating cash to domestic accounts is better than raising debt to fund shareholder programs.
- Mergers and acquisitions – CFOs are tasked with funding acquisitions by freeing cash, raising debt and / or market actions to buy back stock. CFOs also assess the value of acquired entities as well as determine regulatory impacts.
- Funding business growth – CFOs need to mobilize and deploy cash to business units and geographic regions that would not otherwise meet their objectives without sufficient funding. Cash is King! Despite the cliché, especially for CFOs.
FinTech’s role is to ensure the CFO has full transparency across the organization, delivering both visibility across financial operations, and also controls to safeguard financial assets, and protect against external threats such as fraud and cybercrime. FinTech solutions offer the CFO, and ultimately the organization as a whole, dashboards to aggregate cash, financial assets, exposures, and capital into easily defined views that enable the CFO to confidently drive strategic decisions that align with the board’s strategy.
The MVP of the organization, the CFO, with the help of a treasury team and FinTech solution, delivers cash certainty, mitigates risk and accelerates business growth for the organization.
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