Posted by Mark Brousseau
While CFOs are becoming bullish on the economy, they are concerned about health care reform, according to a biannual survey of banking and financial services Chief Financial Officers (CFOs) and senior controllers conducted by Grant Thornton LLP.
Nearly half (48 percent) of the banking/financial services CFOs said that they expect the U.S. economy to improve in the next six months and nearly two-thirds (65 percent) are optimistic about their own company; however, 55 percent also report that they plan to increase the prices or fees charged by their company in the next six months.
Regarding health care reform, 49 percent of banking/financial services CFOs said that it will decrease their hiring (compared to 37 percent nationally), 52 percent said that it would decrease their company’s growth (compared to 40 percent nationally) and 58 percent said that it would increase their product pricing (compared to 49 percent nationally).
“Although we are seeing increased optimism in the banking and financial services sectors, firms are also bracing for the increased compliance costs that accompany both financial reform and health care reform legislation,” says Nichole Jordan, Grant Thornton LLP National Banking and Securities Industry Leader. “Unfortunately, this means that increased costs from interchange fees to expanded health care will be passed along to the consumer or will affect how aggressively firms can hire.”
When asked about the business climate in their own state, 61 percent of banking/financial services CFOs said that they are seeing a negative impact on their business due to the financial condition of their state and 66 percent reported that the actions of the political leaders in their state have not created a business-friendly environment. In addition, an overwhelming majority (95 percent) support public-private partnerships that seek to reorganize and improve the function of state and local governments and public services as a means to overcome budget challenges at the state and local level.
“Although much of the industry has focused on the impact of national financial reform, banks also need to understand how the political and fiscal environments in their own states can affect their business,” adds Jordan.
What do you think?
Showing posts with label CFOs. Show all posts
Showing posts with label CFOs. Show all posts
Tuesday, June 7, 2011
Friday, May 13, 2011
What CFOs are thinking and doing
By Mark Brousseau
Although the economic downturn caused CFOs to concentrate primarily on their steward role, the recovery has reemphasized the need to act as a catalyst and strategist, Jeff Bronaugh, senior manager at Deloitte Consulting LLP told attendees of the Masters Session at Fusion 2011 at the Gaylord Palms Resort and Convention Center Florida. Bronaugh and his colleagues Bob Comeau, national service line lead and principle at Deloitte Consulting, and Scott Rottman, principal at Deloitte Consulting, led a highly interactive discussion among attendees of the Masters Session.
During the depths of the credit crisis and recession, CFOs were spending roughly 60 percent of their time in the operator and steward roles, Bronaugh said. The increased time spent in the steward role reduced the amount of time CFOs spent in their preferred role as the strategist in the organization.
But in the wake of considerable capital-market and economic turmoil, CFOs are expected to take on broader and deeper strategic roles, Bronaugh said. CFOs are now routinely in charge of an expansive range of regulatory, governance, and strategy functions, especially investor and public relations, strategic planning, corporate development, and mergers and acquisitions.
As the economy begins to stabilize, focus for North America's top finance executives is shifting back to strategic initiatives, Bronaugh said. He pointed to a survey of CFOs conducted by Deloitte in the first quarter that showed that quality metrics, influencing strategies, and monitoring initiatives were the top three challenges of their finance organizations. CFOs cited strategic ambiguity, major change initiatives and regulatory change as their top three job stresses, Bronaugh said.
Against this backdrop, Bronaugh said there are 10 hot topics for CFOs:
1. Improving business decision support
2. Influencing business strategy and operational strategies
3. Major infrastructure and change initiatives
4. Prioritizing capital investments
5. Regulatory changes
6. Finance operating models
7. Cash is king
8. Managing finance department expectations
9. Finance talent management
10. Taxes
What are the hot topics in your finance department?
Although the economic downturn caused CFOs to concentrate primarily on their steward role, the recovery has reemphasized the need to act as a catalyst and strategist, Jeff Bronaugh, senior manager at Deloitte Consulting LLP told attendees of the Masters Session at Fusion 2011 at the Gaylord Palms Resort and Convention Center Florida. Bronaugh and his colleagues Bob Comeau, national service line lead and principle at Deloitte Consulting, and Scott Rottman, principal at Deloitte Consulting, led a highly interactive discussion among attendees of the Masters Session.
During the depths of the credit crisis and recession, CFOs were spending roughly 60 percent of their time in the operator and steward roles, Bronaugh said. The increased time spent in the steward role reduced the amount of time CFOs spent in their preferred role as the strategist in the organization.
But in the wake of considerable capital-market and economic turmoil, CFOs are expected to take on broader and deeper strategic roles, Bronaugh said. CFOs are now routinely in charge of an expansive range of regulatory, governance, and strategy functions, especially investor and public relations, strategic planning, corporate development, and mergers and acquisitions.
As the economy begins to stabilize, focus for North America's top finance executives is shifting back to strategic initiatives, Bronaugh said. He pointed to a survey of CFOs conducted by Deloitte in the first quarter that showed that quality metrics, influencing strategies, and monitoring initiatives were the top three challenges of their finance organizations. CFOs cited strategic ambiguity, major change initiatives and regulatory change as their top three job stresses, Bronaugh said.
Against this backdrop, Bronaugh said there are 10 hot topics for CFOs:
1. Improving business decision support
2. Influencing business strategy and operational strategies
3. Major infrastructure and change initiatives
4. Prioritizing capital investments
5. Regulatory changes
6. Finance operating models
7. Cash is king
8. Managing finance department expectations
9. Finance talent management
10. Taxes
What are the hot topics in your finance department?
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