Brex’s recently published The CFO Imperative – How Finance Leaders Are Staying Ahead In a Volatile World provides a concise roadmap for finance executives navigating a business environment that has dramatically changed over the past four months. More than 500 finance executives were polled in January and again in April to see how their plans have changed.
Much has changed. Brex president and CFO Ben Gammell said four themes dominate planning. Economic volatility is rewriting the playbook, with two-thirds citing geopolitical instability as their top external concern. The need for speed is universal. Finance stacks are being pressure tested, and artificial intelligence is forcing a reckoning.
Most positive signs are declining. Those positive about growth fell from 93% to 75%, while those significantly bullish about the IPO market dropped from 29% to 18%, and those moderately bullish went from 56% to 48%. Those moderately more bearish about the IPO market tripled from 6% to 18%
Those deemed significantly bullish about M&A activity nearly halved, going from 40% to 22%. Those moderately more bearish doubled from 8% to 16%. Desires to expand into new markets and to hire have dropped.
This isn’t about waiting for the clouds to clear and the sun to return. Gammell said many finance executives are factoring prolonged instability into their plans by prioritizing patience, preparedness, and precision. They position their companies to move quickly while also fostering built-in resilience.
Spending and planning are much more focused. Artificial intelligence is one clear priority, with strong majorities planning for training in artificial intelligence-based systems. While they do, they are concerned about staff adopting these new models and training their systems on accurate data.
Artificial intelligence has already brought some clear wins, beginning with better forecasting and reporting capabilities. The time saved on manual tasks is significant.
Because artificial intelligence is still in its early application days, the early advantages have been mostly low-risk but high-impact. That will likely change as the low-hanging fruit gets picked.
Looking ahead, Brex learned that companies want to maximize global transaction speeds. They are working to embed payments directly into products and services.
Brex concludes with a message to fintechs. Many companies want to simplify their stacks by consolidating vendors. Specialty services are on the wane; tomorrow’s successful companies want vendors with broader service offerings to assist them in their consolidation journeys.
