CFOs must have a strong voice across a wide range of topics impacting their organization, says Carissa Kell, CFO of software provider Finastra, including cyber resilience, generative AI, open banking and open finance.
Kell shares her take on the priorities for today’s CFOs, investing in AI and why storytelling is a vital skill.
How do CFOs play a role in cyber resilience?
CFOs are key players in cyber resilience because they collaborate closely with CISOs and other technology leaders to ensure sufficient financial resources are allocated to cybersecurity efforts. By overseeing the budget for security technologies, staff training and incident response planning—in addition to addressing any technical debt—CFOs play a vital role in ensuring that their organizations are well-equipped to address cybersecurity needs effectively.
Furthermore, by emphasizing the importance of cybersecurity in their organizations’ overall risk management and strategic planning, CFOs also contribute to building a culture of cyber resilience, which is critical in today’s environment.
More broadly, CFOs should not be siloed: To do their jobs well, they need to have a seat at the table for all major decisions. By advocating for and investing in robust cybersecurity measures, CFOs not only protect their organizations but also reinforce their strategic importance and influence across all areas of their organizations.
Why should CFOs consider investing in internal AI education today?
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 help ensure that teams are equipped to handle these complexities effectively.
CFOs would also be wise to recognize that AI has the potential to transform not just technical or IT-related functions but areas like finance, operations, HR and compliance, too. Educating all employees, not only 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 the identification of new use cases that align with strategic financial goals.
Moreover, supporting a culture of continuous learning and curiosity is pivotal in a competitive landscape. By investing in AI education, CFOs can help ensure that their organizations remain agile and open to implementing new innovations, ultimately positioning them for success in a world that is quickly embracing AI.
How do open banking and open finance differ, and what is the significance of these differences for finance leaders at financial institutions, startups and corporates?
While open banking and open finance are built on similar principles of data sharing and customer empowerment, there are key differences between them. Open banking is limited to data, focusing on payment accounts and transactional information. At my company, we believe that open finance means being open to new ways of facilitating payments and leveraging global intellect and innovation to provide world-class capabilities. Whereas open banking was the opening up of the banking sector, driven in many parts of the world by regulation, open finance includes all market participants.
This is an exciting shift for the broader ecosystem, including fintechs and startups, who will be able to benefit from this innovation. Importantly, corporates will also play a vital role in this new landscape, as their participation can drive further innovation and efficiency in financial services. At the same time, if adopted, open finance can also help traditional financial institutions retain market share in an increasingly competitive market.
It is critical that all market participants understand how open finance is evolving and the opportunities that it creates for them, and for corporates, adapting to these changes will be essential to stay ahead in the evolving financial landscape.
What leadership qualities do you think are most important for a CFO, and how do you cultivate them in the next generation?
I believe that a CFO should be present, approachable and effective at communicating, because a strong financial leader is one who is visible and actively engaged with the entire organization.
This means regularly participating in all-hands meetings to explain financials in a way that is clear and accessible to everyone. By doing so, a CFO not only educates employees about the financial health of the company, but also fosters a sense of connection and transparency, helping everyone feel more aligned with their organization’s overall performance and goals.
To cultivate these qualities in future CFOs, leaders should promote open communication and accessibility among their teams and in particular, junior colleagues. Encouraging emerging leaders to be visible across the organization and engage with other departments is also an important step to helping to build these skills early on.
Additionally, CFOs should provide training around storytelling—how to break down complex data into simple insights—so that future financial leaders are also able to effectively communicate with both financial and non-financial audiences.
