How this technology
could impact the CFO
Blockchain is an emerging foundational technology that has the potential to impact existing business processes and functions. This technology structures data without the need for a central authority, allowing data to be stored in a distributed ledger that offers increased trust and transparency through an immutable record of all transactions.
This technology is already being implemented in the financial services industry and corporate finance use cases are being tested in controlled environments. Advanced financial applications are in development now, and global systems that could revolutionize traditional finance operations will be implemented in the coming year.
Blockchain has the potential to impact each of these segments, redefine the traditional CFO role and revolutionize the finance function. According to the study, the future finance function will use blockchains to increase IT security, manage extended value chains and streamline contract enforcement. It is therefore critical that the CFOs understand the implications and potentials of this technology to remain at the forefront of this new paradigm.
“Finance is expensive. In particular, though it often doesn’t show up in a line item, we invest heavily in trust. What happens to the role of the CFO if trust is much cheaper? What kinds of deals aren’t done today because the cost of due diligence is just too high?”
— Paul Brody
Principal, Global Innovation Leader, Blockchain
This article is an introduction to the overall impact of this technology on the finance function. We will follow up with detailed analysis of how this will impact each of the finance functions along with some of the immediate next steps that the finance leadership can take to get ready for the blockchain revolution.