-
5 Tech Trends in Finance to Watch in 2025
Our world is shaped by technology, now more than ever before. As we head into the new year, how will technology shape the financial departments of modern companies?
I can’t tell you the future, but finance professionals can look at trends in the modern business world and predict what we might see in the new year. In 2025, we can expect to see more and more companies automating and digitizing, especially with cloud-based software. We’re also likely to see an increase in the use of artificial intelligence (AI).
As companies rely even more on software programs, managing digital data becomes a top priority. Cybersecurity will also continue to be a top concern. And with more and more companies instituting return-to-office initiatives, companies need financial processing software that supports employees whether they’re working at home or in the office.
1) Migration to Cloud-Based Processing
Companies that are highly invested in legacy systems might have delayed modernizing their financial processes, but it’s time to start migrating them over to digital systems. Cloud-based business process automation (BPA) software is an option that can make this process much easier than you might think.
The type of BPA software you’ll get from NextProcess is very easy to set up and highly flexible. You can customize it to match your company’s preferences, making it as close as possible to the process you’re already using or updating the processes however you want. A phased approach to switching over to cloud processing often works well (e.g. updating accounts payable, then purchasing, etc. until the whole procure-to-pay process is digitized and automated).
Cloud-based applications reduce the burden on your IT department because the software supplier takes care of all software updates, server maintenance, and other upkeep tasks. These programs also give you much more flexibility in the types of hardware your employees use (desktops, laptops, tablets, etc.) to access the processing platform. Plus, you don’t have to worry about buying extra user licenses. You can give as many employees as you want access to the software, and those with access can log in from any internet-enabled device.
2) Increased Use of AI
Generative AI programs are tools for generating text, images, and videos. ChatGPT and Midjourney are a couple of examples of this type of AI. Surveys show that finance departments are slower than expected to adopt generative AI, with 38% of finance leaders saying they have no plans to ever formally implement GenAI in their finance departments. But that still leaves over 60% of companies planning to use GenAI in some capacity. We’ll likely see AI becoming more and more a part of financial departments within the next few years.
Other types of AI are already a core part of many financial departments. Machine Learning is a type of AI used in BPA software to help the software adapt to the users’ needs. This type of AI is also a key part of predictive AI, which has a wide range of applications including in finance (such as for budget forecasting). As businesses migrate to more cloud-based processing and use technology to improve their financial departments, machine learning and other AI will play a key role.
3) Focus on Data Governance
AI and process automation programs can only work well if they’re using quality data. If you feed poor-quality data into these programs, they’ll give you poor-quality results. For example, if you have incomplete or inaccurate purchasing data, then a predictive AI program can’t give you an accurate projection for future purchases because it’s making predictions based on data that doesn’t reflect your company’s actual purchasing history.
The better the data, the better the software programs will deliver. As companies rely more and more on process automation software and various forms of AI, data governance becomes a major issue for companies. The good news is that BPA software automatically keeps meticulous records, providing the timely, reliable data that companies need. The software can also generate some reports for you, but data analysis still requires a human touch.
4) Emphasis on Cybersecurity
Data security and policy compliance aren’t new concepts for finance departments. It’s always been important to protect company money from fraud and theft, and for businesses to guard their own and their customers’ data. As companies go increasingly digital and fraudsters become increasingly sophisticated, data security needs change.
According to Regula’s Deepfake Trends 2024 report, 92% of businesses have experienced some kind of loss due to a deepfake fraud. This includes fraud related to fabricated documents, deepfake audio, deepfake video, and synthetic identities. With threats like this on the rise, CFOs find themselves taking on cybersecurity roles more and more often.
5) Reevaluating Work-From-Home
As last year closed and this year began, return-to-office (RTO) policies continued for many companies. After years of work-from-home following COVID-19 shutdowns starting in 2020, more and more companies are instituting mandatory in-office days for employees. This might not seem like a “tech trend,” but technology is what enables a seamless hybrid of in-office and at-home work.
In a survey of around 900 business leaders at companies with RTO policies, 28% require employees to be in the office 5 days a week. 56% require employees to come into the office 2-4 days a week. Even with employees in the office more often, most still have the option to work from home part of the time.
A hybrid work-from-home and work-in-office approach is much easier if employees can use the same software programs in the office as they do at home. Cloud-based software-as-a-service (SaaS) BPA systems make this easy. Whether employees are working from home or working in the office, they’ll all be using the same software platform. The software also updates in real-time, keeping everyone on the same page, supporting collaboration, and maintaining data quality.
An End-to-End Financial Processing Solution
NextProcess offers the only suite of cloud-based BPA software with modules to power and simplify everything from budgeting, to project management, to purchasing, to accounts payable, to payments. Our SaaS modules give you control over capital project management, procurement & purchase orders, accounts payable, travel & expense, and payment disbursements.
Contact us today to learn more or schedule a free software demo. We’d love to help you modernize your company’s financial processing in 2025, or start planning for a future update.
