Transforming Finance: From Cost Center to Value Driver
For decades, finance teams have been unfairly pigeonholed as the "cost center" of enterprises. Traditionally viewed as merely responsible for controlling budgets, approving expenses, and generating reports, they were often relegated to the back office. However, as industries evolve, so does the perception of finance departments, and this shift is not merely a trend—it’s a fundamental transformation.
The Evolution of Finance Departments
“Go to the finance team to get your expenses approved, right? Or to check on your budget, they just say yes or no,” reflects Emanuel Pleitez, head of finance at Finix, during the PYMNTS B2B Payments 2025 event. This outdated narrative is now being challenged.
In an age characterized by real-time data and heightened global volatility, Chief Financial Officers (CFOs) are redefining their roles from mere budget controllers to crucial drivers of enterprise value. The financial landscape is changing, and so is the mindset.
A Shift in Mindset: From Gatekeeper to Innovator
The transformation doesn’t start with new technology; it begins with a change in mindset. Pleitez emphasizes the need for finance professionals to evolve from being viewed as gatekeepers to becoming proactive agents of change.
“Every single day, we are spending money and we need to get an ROI on it,” he states. This shift is not just about numbers; it invites finance teams to play a pivotal role in strategy and decision-making.
Embracing AI: From Experimentation to Value Creation
With the rise of artificial intelligence (AI), the finance function is under pressure to adapt. Companies are moving away from questioning whether to implement AI and are now focused on understanding, “How will this improve cash flow, forecasting accuracy, or decision speed?”
The emphasis is clear: finance should not experiment with AI for AI’s sake, but aim for concrete value creation.
Understanding AI’s Limits
As the market floods with various AI solutions, finance teams must sift through the noise to discern between utility and vaporware. Many AI tools still struggle with the intricacies of complex financial models, leading CFOs to voice their concerns about the gap between promise and reality.
Pleitez has explored these limitations firsthand. “I tried every single AI for Excel, and it just wigs out—it can’t really comprehend the whole thing,” he reveals. This candid admission underscores the importance of human oversight in a world increasingly reliant on technology.
Small Wins Matter: Micro-Level Progress
Despite the challenges, the breakthroughs in finance are emerging from what Pleitez terms micro wins. Finance teams are leveraging AI for tasks like accelerating reconciliation, refining SQL queries, and validating invoicing patterns.
With better AI tools, companies have reportedly saved days in monthly closings, representing newfound agility in decision-making. In high-volume environments, this increased efficiency translates into improved liquidity and cash flow visibility.
The Necessity of Data Intelligence
When it comes to data intelligence, the quality and structure of data are paramount. Pleitez draws a stark distinction between enterprise-scale AI and micro-level applications.
“You need to ensure your data is structured for the most precise outcomes… because if the AI gets confused, then you’re screwed,” he warns. Properly structured data ensures effective AI applications, minimizing risks and maximizing rewards.
A Pragmatic Approach to AI Integration
Acknowledging the potential pitfalls of large-scale AI investments, Finix has adopted a strategy focused on incremental wins.
“If you start using AI today without needing to make a big investment, you can extract 5% to 20% more productivity gains,” states Pleitez. This practical, low-risk strategy allows finance teams to learn and grow alongside technology, rather than relying on untested platforms.
The Trust Factor: Balancing AI and Human Judgment
A critical question for CFOs today is the balance between trust in AI’s capabilities and reliance on human judgment. Presently, many teams prefer to keep AI as a supportive assistant rather than a decision-making agent.
“We live and die by those dollars and cents, and we cannot afford mistakes,” Pleitez stresses, highlighting that human oversight remains essential in the financial realm.
The Future of Finance: Revolutionizing Operational Dynamics
Despite cautious short-term strategies, Pleitez harbors a bullish long-term vision. He envisions a future where month-end closes run autonomously.
“If I can create a system where the month-end close process is seamless and efficient, that would be phenomenal,” he says. Such advancements promise to relieve finance departments of burdensome manual tasks, enabling deeper strategic focus.
AI Fluency: The Next Frontier
Further down the line, an AI capable of understanding Finix’s financial models will be transformative, specifically in strategic decision-making—such as whether to pursue acquisitions or enter new markets.
“It’s not rocket science. It should be possible. It will be possible—just not yet,” adds Pleitez, signaling optimism amidst current limitations.
CFOs: A New Mandate Emerges
Today’s CFOs are tasked with multiple roles: safeguarding capital while also strategically deploying resources to enhance enterprise value. The challenge is clear, as AI transitions from a fringe experiment to a core strategic initiative.
Conclusion: The Path Forward
As finance teams evolve, embracing new technologies and methodologies, they stand to redefine their roles significantly. With an emphasis on real-time data, a focus on incremental AI adoption, and a commitment to improving efficiency, finance can shed its outdated image and emerge as a powerhouse driving organizational success.
This journey requires a blend of analytical prowess, strategic insight, and unwavering commitment. In this new landscape, finance is not just a cost center; it is the heartbeat of enterprise value.
