Importance of tech and data when it comes to financial planning

73% of financial decision-makers listed forecasting and strategic financial planning as important areas for investment.

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When asked about the future of tech 73% of financial decision-makers listed forecasting and strategic financial planning as an important area for investment when it came to emerging technologies.

While most understand that accurate forecasting and planning is integral to both a company’s present and future, very few consider other interjecting aspects that can hinder the overall goal. However, it is in fact the application of this interjecting aspects that are crucial to not only current but long-term growth, even more so in today’s economy.

Everyone is trying to cut costs.

Reducing overheads is the first thing that is worked on whenever a company’s ROI or forecasting is significantly lower than previous years. From scaling back staff to fine-tuning processes to ensure more time efficiency, every company can be guilty of doing this. However, while these savings can help in the short-term, the implications it may have in the long-term could be substantial.

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Therefore, it is important to consider the bigger picture when it comes to strategic planning for the future. If your five-year plan is to grow your ability to process client data in a shorter time frame, could firing that Data Analyst be the best decision? Sure, you would save money in the short-term but later down the line you may decide to re-hire that role. Which means a different Data Analyst, someone who needs to be re-train, asking the question: why didn’t you nurture the individual you already had?

Of course, certain roles may be made redundant, but let’s focus on the importance of data.

The need for data has been on the rise for the last few years. In the current working model, companies use data as a means of predicting potential outcomes. From spending and sales forecasts to risk factors, data has become vital to ensure that any potential outcomes can be planned for. However, data isn’t a single factor when it comes to strategic planning. Now, more than ever, we are seeing the importance of technology, with new innovations the world of data and technology has become even more fast-paced.

Data and technology must work hand in hand to create a model of equilibrium in order to create a resilient and reactive company given the current state of the economy. It is essential for both parts to be accurate and conscious of the other.

As Raconteur suggests ‘Laggard organisations that decline to embrace technology will fail’

“Technology and data will be critical to companies bouncing back from the pandemic. It will also enable businesses to protect themselves and strive for growth in an economy saddled - Mark Halstead, a partner at the Oldham-based firm.