Data-driven Financial Decision Making

Making financial decisions without data-driven insights is costing companies more than they realize. As a finance consultant, a mistake I still see a lot is outdated practices causing financial inefficiencies and lost revenue. Why companies make critical financial decisions without data? 1. Time Pressure: In fast-paced environments, there may be a rush to make decisions, leading to reliance on gut feelings rather than thorough analysis. 2. Overconfidence: Decision-makers might overestimate their intuition or experience, believing they can predict outcomes without data. 3. Lack of Resources: Businesses haven't invested in the necessary tools or expertise to gather and analyze data effectively. Some negative results of making financial decisions without data: 1. Lack of Accurate Forecasting: This can lead to overproduction or underproduction, resulting in excess inventory costs or lost sales opportunities. 2. Inadequate Budgeting: Companies might allocate resources inefficiently, resulting in overspending in some areas and underfunding in other areas. 3. Ignoring Customer Insights: Companies may invest in products that do not meet customer needs, leading to wasted expenses. 4. Inaccurate Cost Allocation: This can obscure the true profitability of products or services, resulting in misguided pricing strategies. 5. Ineffective Risk Management: Poor risk assessment can lead to financial losses from unforeseen events or downturns that could have been mitigated with better data insights. Improving access to data and prioritizing analytical thinking addresses this. To put this into action, here’s a step-by-step approach for businesses: 1. Centralize Financial Data: - Action: Invest in a user-friendly financial management system (e.g., ERP, BI tools) that integrates all financial data in real-time and provides role-based access. All relevant stakeholders—from leadership to department heads—should easily access the data they need. - Why: This ensures timely, accurate data is available for decision-making and eliminates information silos. 2. Train for Analytical Thinking: - Action: Conduct regular training sessions on financial literacy and data analysis. Equip teams with the skills to interpret trends, identify key metrics, and make data-backed decisions. - Why: Building analytical capabilities across the company helps employees move beyond basic number-crunching and fosters a deeper understanding of financial drivers. 3. Encourage Cross-Functional Collaboration: - Action: Set up regular cross-departmental meetings to discuss financial performance and insights. Encourage collaboration to align goals and initiatives. - Why: Bringing different perspectives into the financial conversation leads to more creative, effective strategies and stronger alignment across teams. In 2025, I'll be encouraging, and helping clients who haven't fully implemented financial data decision-making to do so. #Finance #Data #DataDecisions #Strategy

Data is the lifeblood of any successful organization. But it's not just about collecting data. It's about turning it into actionable insights. As CFOs, we have a unique opportunity to champion a data-driven culture across the entire organization. Here's how I approach it: 1. Develop meaningful KPIs: We work with each department to identify key performance indicators (KPIs) that truly measure their success and align with overall business objectives. → It's about finding the metrics that matter, not just tracking numbers for the sake of it. 2. Empower with data analytics: We implement user-friendly data analytics tools that allow teams to access, analyze, and interpret data relevant to their roles. → It's about democratizing data and empowering everyone to make informed decisions. 3. Create insightful dashboards: We develop clear and concise dashboards that provide executives with a comprehensive view of business performance. → It's about telling a story with data, highlighting key trends, and enabling strategic decision-making. When everyone understands the impact of their work, the organization thrives. And understanding impact starts with the numbers.

As CFOs, you understand the challenges of managing complex financial data across multiple systems. The struggle to consolidate and harness the full potential of our data is real. That's why I want to share some valuable advice on how you can unlock the power of data integration and elevate your financial operations. Here are key steps to consider: 1️⃣ Assess Your Data Landscape: Begin by conducting a comprehensive evaluation of your existing data sources and systems. Identify the gaps and inconsistencies that hinder efficient data management and decision-making. 2️⃣ Define Your Data Strategy: Develop a robust data strategy that aligns with your organizational goals and financial objectives. Determine the key data elements, metrics, and KPIs that drive your business, ensuring their integration and accuracy across platforms. 3️⃣ Choose the Right Integration Tools: Select data integration tools that best fit your unique requirements. Look for solutions that offer seamless connectivity, scalability, and the ability to unify data from disparate sources, such as ERP systems, financial platforms, and third-party applications. 4️⃣ Establish Data Governance: Implement strong data governance practices to ensure data consistency, integrity, and compliance. Define roles and responsibilities, establish data quality standards, and create processes for data validation and maintenance. 5️⃣ Leverage Automation and Analytics: Embrace automation and advanced analytics to streamline data workflows and gain actionable insights. Automated data integration workflows enable real-time data updates, while analytics tools empower you to make data-driven financial decisions. Remember, data integration is not a one-time effort; it's an ongoing process. Continuously evaluate and optimize your data integration strategy to keep up with evolving business needs. As CFOs, the best thing you can do is embrace the power of data integration to unlock the full potential of your financial operations and drive strategic growth. ________________________ 👋 Hi, I'm Brian. Thanks for checking out my Post. Here is what you can do next ⬇️   ➕ Follow me to see me in your feed   🔔 Hit the bell on my profile for Post notifications.   💬 Share your ideas or insights in the comments. ________________________ #dataintegration #financialmanagement #cfoadvice

Why do even the most data-driven 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 struggle to stay competitive? I’ve worked with over 30 financial institutions and seen four major successes. 👇 Here's what I think. Sure, data is everywhere. The trick is in knowing what to do with it: 🔽 Alternative data from social media, payment gateways, and events where people hang out gives banks a deeper look into customer habits, making hyper-personalized services possible. 🔽 Using data from non-traditional sources like telecom usage and social networks, banks can get a clearer picture of who they’re dealing with, especially when it comes to new customers. 🔽 Imagine using IoT devices and satellite data to tailor agricultural loans. Sound convenient? It also slashes the risk of defaults. 🔽 AI-powered credit scoring that taps into alternative data is opening doors for more people, especially in markets that are usually off the radar. Sound great? But turning alternative data isn't without its headaches: 🔽 Bad data is worse than no data. Keeping it clean and unbiased is hard work. 🔽 Using alternative data means staying compliant. Privacy laws can be a minefield. 🔽 Merging alternative data with existing traditional data sources often requires significant technical expertise and infrastructure upgrades. 🔽 Too often, valuable data gets stuck in department silos, leaving banks without the full picture they need to make the best decisions. So, how do you make it work? Turning these challenges into wins takes a few smart moves: 🔽 Use AI and machine learning to dig deeper into your data. It’s where the real insights are. 🔽 Work with tech experts. They’ll help you integrate data smoothly and stay compliant. 🔽 Get teams to share data. It makes decision-making more effective. 🔽 Always explore new data sources. Stay ahead by staying curious. 𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲 𝗱𝗮𝘁𝗮 has transitioned from being a supplementary resource to a critical driver of decision-making in the financial sector. 𝗦𝗼, 𝘄𝗵𝗮𝘁'𝘀 𝗻𝗲𝘅𝘁? Banks like Axis Bank, the Bank of Italy and Union Bank of the Philippines are showing us what's possible: reducing bad loans, enhancing customer segmentation, and even driving financial inclusion through AI-powered solutions. Interested in leveraging alternative data? Nimble 's AI-powered data platform streamlines web data-gathering pipelines, for any business need, at any scale. Comment "𝗡𝗜𝗠𝗕𝗟𝗘" below, and I'll set you up with a free data consultation to optimize your data strategy. #FinancialServices #AlternativeData #DataDriven #FinTech

CASE STUDY: A Finance Analytics Transformation by Paulo Jorge Ribeiro Summary: GlobalTech, a multinational electronics manufacturer, faced a financial management crisis due to slow reporting, data silos, and lack of predictive insight. The finance team was buried in spreadsheets, leading to errors and delays that hindered strategic decision-making. The company struggled with poor financial visibility, unexpected cost overruns, and missed revenue targets, forcing leadership to react rather than anticipate challenges. A turning point came when consecutive missed earnings triggered urgency for change. With a new CEO advocating for data-driven finance, GlobalTech embarked on a finance analytics transformation to modernize its approach, improve forecasting, and enhance decision-making capabilities. The company implemented a phased analytics strategy, integrating data systems, upgrading financial tools, and training staff. A pilot project in forecasting demonstrated immediate benefits, encouraging full-scale adoption of analytics across finance operations. The transformation led to faster reporting cycles, improved forecast accuracy, significant cost savings, and better cash flow management. By embedding analytics into decision-making and fostering a culture of data-driven insights, GlobalTech not only strengthened its financial position but also positioned itself for long-term competitiveness. Key Takeaways 📣 Leadership Buy-In is Critical: Senior executives must actively champion analytics initiatives to ensure alignment with strategic goals. 📣 Start with a Clear Problem and Quick Wins: Focus on specific financial pain points first to demonstrate early success and build momentum. 📣 Invest in Data, Tools, and People: Strong data infrastructure and skilled talent are essential for effective analytics implementation. 📣 Embed Analytics into Processes and Culture: Ensure analytics-driven decision-making becomes an integral part of business operations. 📣 Prepare for Challenges: Expect resistance to change, data integration hurdles, and technical glitches—proactive management is key. 📣 Measure and Communicate Success: Track improvements in efficiency, accuracy, and cost savings to validate the value of analytics. 📣 View Transformation as Ongoing: Continuously refine models, adopt new technologies, and adapt to evolving business needs. To read the entire article (lots more detail) click here: https://lnkd.in/d85F5XnD . Note, you must be a member to read it - AND - membership is free. Leave a comment and hit like/repost to share with your followers. --------------- ▪ Follow me 🚶♀️🚶🚶♀️🚶 for more insights ▪ Join 🤝 the PACE forum for discussion - (click the link in my profile) ▪ Click the 🔔 to get notified of new posts (top right of my profile) ▪ Subscribe 🖊 to my monthly newsletter #accountingandaccountants #article Awais Idris Lukas Sundahl, CMA, CSCA, MBA  Massimiliano Mauriello 

What’s the key to smarter credit decisions?  Real time data.  Harnessing real time data empowers lenders to make faster, more accurate, and personalized credit decisions. By continuously analyzing borrowers' financial behaviors, including transaction histories, payment patterns, and external factors like market trends, lenders can assess creditworthiness instantly.  This reduces reliance on outdated information and minimizes risks, including defaults and fraud. Real time data also enables dynamic adjustments to credit limits, tailored loan offers, and customized interest rates, meeting individual borrower needs which has an enormous effect on customer satisfaction.  As lending demand evolves, adopting real time data-driven systems ensures operational efficiency, regulatory compliance, and a competitive edge in delivering smarter, fairer credit solutions. Using real-time data, lenders don’t just keep up, they lead, deliver smarter credit decisions that drive growth, reduce risk, and transform customer relationships.

Financial Planning and Analysis (FP&A) has long been the cornerstone of financial management in professional service firms, ensuring stability and reporting accuracy. But the landscape is evolving rapidly due to technology, shifting client demands, and global economic changes. In this transformative era, understanding FP&A's evolution is key. It's no longer just about budgeting and compliance; FP&A now includes strategic partnering, data-driven decision-making, and a client-centric approach. Technology adoption with AI and ML is reshaping financial analysis, emphasizing efficiency and profitability. Regulatory compliance is more critical than ever, and FP&A teams must excel in scenario planning and risk management. Skill development is essential, and cost transparency and control are paramount. Real-time performance monitoring, strategic pricing models, and enhanced forecasting are crucial elements. FP&A now influences client acquisition and retention, adapts to remote work, and contributes to sustainability reporting. In summary, FP&A in professional services has transformed into a strategic partner leveraging data, tech, and analytics. To thrive, organizations must empower FP&A teams with the right tools and skills while staying agile, data-focused, and client-centric. #FPandA #ProfessionalServices #FinancialTransformation #BusinessEvolution #FinancialPlanning #FPA #DataDriven #ClientCentric #Technology #Sustainability

For the CFO, data analysis is the secret weapon in managing risks and thriving amidst volatility ❗ When unpredictability is the norm, savvy CFOs use data analysis as their guiding light for risk mitigation and management. Let's take a look at how data analysis can be a game-changer in risk management and decision-making. 📌 Spotting Risks Early Risk mitigation begins with detection. Data analysis acts as a radar, scanning through a mix of internal and external data to pinpoint potential risks. From market trends to customer behaviors, data analysis helps you see the red flags before they become full-blown crises. 📌 Measuring the Impact of Risks Understanding a risk is only half the battle; assessing its potential impact is crucial. Data analysis helps in quantifying risks, letting you prioritize which ones to tackle first. Scenario planning and simulations come in handy here, allowing you to play out various what-if scenarios and their implications on your business. 📌 Forecasting Future Risks Predictive analytics is like having a crystal ball. It uses historical data to foresee potential risks, giving you a head start in preparing for them. This foresight is invaluable in crafting preventive strategies and contingency plans. 📌 Keeping a Watchful Eye Integrating various data sources gives you a live feed of potential threats, enabling quick actions to nip risks in the bud with real-time monitoring. 📌 Making Smarter Decisions When it comes to risk mitigation, gut feelings are out, and data-driven decisions are in. Analyzing relevant data leads to informed strategies that are more likely to succeed in minimizing risks. 📌 Building Robust Risk Models Data analysis helps create comprehensive risk models that sort risks by their likelihood and potential impact, guiding you in resource allocation and planning risk responses. 📌 Strengthening Organizational Resilience Data analysis is a vital tool in fortifying your business against future shocks. It aids in scenario planning and testing your business’s ability to withstand various risk scenarios, ensuring you're prepared for whatever comes your way. 📌 Promoting Collaborative Risk Management Data should be shared (not siloed) across departments to cultivate a risk-aware culture, ensuring everyone is on the same page and contributing to risk mitigation efforts. Looking to leverage data analysis for navigating business uncertainties and risks? Connect with me and the eCapital Advisors team, and let's explore how data can be your ally in charting a course toward resilience and growth. 🔽 🔽 🔽 👋 Hi, I'm Lisa. Thanks for checking out my Post!   Here is what you can do next ⬇️   ➕ Follow me for more FP&A insights    🔔 Hit the bell on my profile to be notified when I post   💬 Share your ideas or insights in the comments ♻ Inform others in your network via a Share or Repost #digitaltransformation #finance #business #technology #cfo

As we approach 2025, finance leaders are preparing to make smarter and more calculated decisions. As inflation cools and interest rates stabilize, there’s a considerable opportunity to reignite business growth, but much uncertainty remains. To succeed in this environment, leveraging data to guide thoughtful and balanced strategic decision-making will be critical.   Here are the key trends to watch:   1️⃣ Investing With Confidence: With modest growth projections for the coming year anticipated, finance leaders are expected to have more confidence that investments in the business will pay off. 2️⃣ Real-Time Visibility: Effectively managing operational costs while maintaining or improving customer satisfaction will be crucial for mitigating risks to revenue forecasts. Getting real-time spend visibility across your headquarters and global subsidiaries will be key to staying on track. 3️⃣ Data-Driven Resource Planning: Navigating resource allocation in a volatile market will be challenging, but successful businesses will focus on key investment areas guided by performance trends and product-market fit while leveraging both internal and external data for a strategic advantage.  4️⃣ Accelerated Performance Monitoring: Agility will be key as constant change is the new normal. Accelerating the monthly close cycle time will be key to monitoring performance more rapidly. Regular monitoring and reporting of spend by division and performance from key business investments will be required, to pivot as needed throughout the year. 5️⃣ Process Automation: The increasing adoption of automation will be emphasized as processes will need to be streamlined to increase inefficiencies and accelerate decision-making.   The winners in 2025 won't simply be those with the best products—they'll be the ones who master the art of data-driven agility.   I shared my full thoughts on the outlook for 2025 with The Fintech Times. 🔗 https://bit.ly/4gwJPoJ

𝗧𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗜𝘀 𝗗𝗮𝘁𝗮-𝗗𝗿𝗶𝘃𝗲𝗻—𝗗𝗼𝗻’𝘁 𝗚𝗲𝘁 𝗟𝗲𝗳𝘁 𝗕𝗲𝗵𝗶𝗻𝗱 💪🏼 Too many lending decisions still rely on outdated practices, leaving borrowers frustrated and lenders missing opportunities. Without the right data, loans often come with mismatched terms or miss the mark entirely. I get it—balancing speed, fairness, and accuracy in lending is no easy task. But ignoring data isn’t just inefficient; it’s holding businesses and lenders back. Here’s what needs to happen: 🎯 Use Data to Personalize Loan Options: Advanced analytics can match financing solutions to a borrower’s unique profile, reducing risk and increasing satisfaction. 🎯 Make Smarter Decisions, Faster: Data-driven insights improve loan accuracy and fairness while speeding up approvals. 🎯 Uncover Growth Opportunities: Predictive analytics identify trends, helping lenders support businesses that might otherwise be overlooked. When lending becomes smarter, borrowers get what they need to grow, and lenders build stronger, more profitable relationships. Everyone wins when data works in their favor. Is data truly driving lending decisions, or are outdated methods still holding the industry back? Let’s discuss. ⬇️ #technology #analytics #fintech #innovation #smallbusiness #strategy