“Consumer focus, digital transformation and M&As are three areas where finance has reinvented itself” – Jeetender Singh, CFO- Napino Auto & Electronics Ltd
How is the finance function reinventing itself in most enterprises?
Reinventing finance, has happened in most organizations in three buckets.
The first is how the finance function is transforming itself from being shareholder value focused to becoming consumer centric. Increasingly, more and more organizations are becoming aware of the fact that long term value is created for an organization if you are consumer centric. Subsequently shareholder value gets automatically delivered.
Second is digital transformation. How AI, ML robotics automation are impacting the finance function? This does require a lot of retooling, re-skilling the orientation of the core finance and accounting folks.
Thirdly, mergers and acquisitions and how finance function works around that area. Finance function has actually transformed itself from being a score keeper, ready to be very proactive in almost setting up the rules of the game within organizations.
Traditionally finance function was kind of walking in the background. Now, finance team is part of the core strategy of the company. They focus on how/ what the company should be doing, what should be the resource allocation and how the future strategy of the company should be derived given the markets have become more and more dynamic?
- 2. What are the operational benefits you have observed with the fintech solutions in your organization?
We are more of a traditional company, but we did work with at least one fintech startup. They basically work with providing a solution for the smaller vendors. The large vendors we have may have issues in an immediate financing. We have certain payment terms. So this is where these guys come in and they are able to offer immediate credit, immediate payment to the suppliers.
They come in where there is a credit crunch for the SMBs or MSMEs. They provide immediate credit to them and based on the invoice they do invoice discounting. Banks at times are not willing to work that way, and take that risk on their books. So, they come in and they play that role. It is quite an innovative solution. Let us see how that works.