However, not all CFOs are created equal. While there is a wealth of factors that contribute towards a CFO’s ability to make a decision, their personality type can be a crucial aspect, not only in driving innovation but also in contributing towards the business’ bottom line.
To explore these characteristics further, Barclaycard undertook research to delve deeper into the impact of different CFO personality types. The research identified that CFOs fall into four decision-making typologies; Trailblazers, Explorers, Conformists and Resourceful Traditionalists.
But what type of CFO are you? And how might your leadership style be impacting your business?
The Trailblazer – leading from the front to drive business growth
Are you motivated to trial new forms of technology and keen to implement improved processes? If you understand the importance of decisiveness, imagination and ambition when making important business decisions, you’re a Trailblazer CFO.
Trailblazer CFOs pioneer and adopt new technologies to help drive business growth. As part of this, they look to their accounts payable software to help them achieve their business goals. And it pays off, particularly regarding access to ‘early payment discounts’ – pre-agreed discounts for paying suppliers earlier than their standard payment terms. Our research found that businesses with Trailblazer CFOs at the helm are significantly outperforming their peers; on average, they capitalise on almost 98% of the early payment discounts available, equating to savings of £82,818 per business each year.
The Explorer – searching for new and improved technologies to steer the ship forward
Do you constantly find yourself evaluating your business’ next technology or process? If so, you could be an Explorer CFO. Explorer CFOs are those prepared to consider alternative technologies, and willing to test new software and processes with pilot projects and trials.
Explorer CFOs are those prepared to consider alternative technologies, and willing to test new software and processes with pilot projects and trials.
It’s not all full steam ahead, however. The one thing holding these Explorers back is a degree of caution when it comes to converting these ambitions into action. The CFO has an increasing responsibility for advocating and piloting the new technologies that will help their organisation to achieve its goals. Explorers that do take the leap will find new opportunities to maximise efficiency and make cost savings, with our research indicating that they could tap into as much as £36,200 in unrealised early payment discounts for their business, each year.
The Conformist – sitting comfortable but reluctant to change
Conformists rely on tried and tested systems and practices and are reluctant to adopt newer approaches and technologies. However, sitting still may mean that their business misses out on upgrades and innovations that could otherwise impact potential savings and support business growth.
Highlighting this, Barclaycard research found that Conformist CFOs typically take advantage of only 52% of the early payment discounts available, securing an average of £68,478 per business each year – the lowest of all four CFO personality types. Many Conformist CFOs told us that their finance system does not even allow them to take advantage of early payment discounts in the first place.
The Resourceful Traditionalist – optimising familiar processes
Do you prefer refining and perfecting tried and tested processes and systems, rather than trying something new? If so, it’s most likely that you’re a Resourceful Traditionalist. Tending to place the emphasis on insights gained from previous experiences, Resourceful Traditionalists are likely to stick to what they know. They are more risk-averse, too; Resourceful Traditionalists are more likely than the other personality types to factor in potential risks and uncertainties when making key financial decisions.
The role of a modern CFO goes so far beyond reporting and managing day-to-day finances – it’s about actively driving profit by exploring new technologies to secure greater efficiencies, such as early payment discounts.
While this may not all be bad news, it does mean that you could be missing out on the many benefits of investing in accounting software that accurately reflects the needs of your business today. In fact, our research identified that nearly half (48%) of finance leaders are frustrated that their current finance systems are not sufficiently digitised, with four in ten (40%) saying that they are too labour intensive.
The impact that your ‘type’ could have on your business
The role of a modern CFO goes so far beyond reporting and managing day-to-day finances – it’s about actively driving profit by exploring new technologies to secure greater efficiencies, such as early payment discounts.
Those that embrace these new technologies, following in the footsteps of Trailblazer CFOs, can not only achieve tangible savings, they can also reduce paperwork and streamline the way their business operates.
Those that are slower to make the shift to new technologies could risk being left behind – and what CFO wants that?
September marks the 10th anniversary of the contactless card, and in the last decade we’ve seen its use soar, particularly in recent years. Barclaycard believes its use will push a further 300% in the next four years.
Finance Monthly has heard from Ian Bradbury, CTO for Financial Services at Fujitsu UK and Ireland, who shares his insights on how contactless has developed over the past ten years, and where he expects the payments landscape to go next.
It is hard to believe that contactless cards have now been around for a decade, as we have only in recent years seen them receive significant uptake with consumers. What was once seen as ‘scary’ and ‘unsafe’ to use, is now – thanks to its ease and education – resonating and growing in popularity with today’s consumers and now responsible for a third of all card transactions.
We expect this adoption of contactless payments to only grow, and become an increasingly important feature in the British payments landscape. Ultimately, both consumers and retailers are choosing to adopt solutions that are secure, quick and easy to use, as well as ubiquitous.
Not only are contactless payments quicker and easier to use than Chip and Pin, they are in a variety of ways more practical than small change and notes. The notable corresponding growth in debit card transactions also implies that this is not just growth fuelled by debt and easy credit – much of this increase will be a result of contactless payments being made purely due to ease. Moreover, contactless payments have the added value of fuelling other payment solutions such as Apple and Android pay and other wearable technology, which isn’t so easily done with Chip and Pin.
The success of contactless payments highlights consumers today are quick to adopt new payments solutions that focus on improving their experience. That said, because consumer experience can cover many aspects including convenience, security, speed and ubiquity, it’s essential that providers put in place ways to improve the experience over current solutions. If future payment solutions do not address all of these areas – which are fast-becoming an everyday expectation from consumers – then they are unlikely to be successful.
Omnichannel shopping – where consumers can use multiple channels to research, buy and collect products, all while being recognised by the brand regardless of how they choose to interact – has long been a familiar concept to retailers. But as demand for an even more technology-focused shopping experience continues to increase, how can businesses take their offering a step further to better meet ever-changing customer expectations?
Finance Monthly hears from Sharon Manikon, Managing Director of Customer Solutions at Barclaycard, on what’s next for retail technology and the many ways we shop.
Staying up-to-date with the latest technology can be a challenge, but it can also hold the key to standing out from the competition, leading to increased footfall and more satisfied customers. Here, Barclaycard explores three common shopper frustrations and the technologies emerging to help businesses satisfy those needs.
Reduce fitting room frustrations with smart changing rooms
Barclaycard research reveals that three in ten shoppers (29%) become frustrated when they have to queue for a fitting room. One potential solution is to offer ‘virtual’ changing rooms, an interface in which customers upload a photo of themselves or create an avatar with their measurements, then ‘try on’ clothing items. This could prove a big hit, with three in 10 people (30%) saying they would be more likely to shop with a retailer using this technology.
Online shoppers are also interested, with 30% reporting that virtual changing rooms on a retailer’s website would help them when making a purchase. Offering ‘smarter’ fitting room options both in-store and online could therefore alleviate consumer frustrations and may even help retailers cut down on the number of items that are returned.
Keep queues short with the next generation of payments
The Barclaycard results also finds that four in ten shoppers (42%) get annoyed when they have to wait in a queue at the checkout. Payment technology can hold the key to lessening those long lines; indeed, new, faster payment methods are already helping to do this. Retailers should prepare for the increased popularity of checkout options like contactless, wearables and invisible payments.
Firstly, Barclaycard’s Contactless Spending Index reveals that half (50%) of Brits now pay contactlessly at least once a month – and this number is set to increase, with contactless spend jumping by 166% in 2016. Our data also shows that the trend to pay via ‘touch and go’ payments on a mobile or using wearables, clothing or accessories that has become more popular in the past two years is likely to continue to go from strength to strength this year.
In the longer term, invisible payments like those pioneered by Uber will gain traction, as they allow customers to complete a transaction within an app without ever hitting ‘checkout’ or walking to a till in-store. An extension of invisible payments that is currently under development is ‘scan and pay’ apps. These enable consumers to walk into a store, scan an item on their phone and pay ‘invisibly’ through payment details that they have previously input and stored on their device. Although the technology has only just been tested, one in five customers (19%) already say they would welcome apps to scan and automatically pay for items.
Retailers should expect consumers to embrace this technology in the next few years. Contactless, mobile and wearables are already starting to become mainstream, and the growth of invisible payment options will soon start to emerge as ways to pay in the retail space.
Improve the customer service with conversational commerce tools
Today’s demanding shoppers also expect more from customer service, and want quick and easy interactions at any time of day – through whatever channel they choose. According to a recent survey by ubisend, a chatbot development company, 51% of people say businesses should be available 24/7 and half (49%) would rather contact a business through messaging, such as texting, than on the phone. Companies are already using various forms of artificial intelligence (AI), such as computer systems that are able to perform basic tasks and answer simple queries, so to satisfy this demand brands should watch the AI space for applications that they can integrate into their high street stores.
As customers continue to seek out other payment options besides in-person transactions, corporations could see a rise in ‘conversational commerce,’ or the use of AI for making purchases. Already, chatbots, AI customer service tools in apps and online platforms, and digital assistants like Apple’s Siri and Amazon’s Alexa, are becoming popular stand-ins for personal shoppers and check-out counters. As this technology continues to develop, consumer demand for it across all aspects of commerce is also poised to increase.
Consumer expectations are driving exciting innovations in the retail space. Payment solutions providers are already looking forward to make sure payment systems continue to match customer demands – and businesses should ensure they are keeping up too. Not all of these solutions are ready to hit the high street, but retailers can stay abreast of new developments by speaking with their payment providers and exploring advances in technology. The brands that embrace these new tools will be most likely the ones driving repeat – and new – custom.
