According to recent findings by PYMNTS Intelligence, which surveyed CFOs from middle-market companies with annual revenues between $100 million and $1 billion, there is a growing array of uncertainties for finance leaders. The primary concerns for these CFOs revolve around achieving growth and maintaining profitability.
Even with this tempered optimism, uncertainty remains a factor, necessitating strategic planning and innovative approaches for resilience as companies navigate 2025. This environment has spurred a shift toward more proactive measures and a greater reliance on third-party partnerships.
The report highlights that traditional methods are yielding diminishing returns. As a result, CFOs are embracing advanced technology and external collaborations to drive innovation. This includes leveraging specialized expertise and technologies offered by third-party providers or organizations.
These collaborations are not only increasing in adoption but also demonstrating improved success rates in alleviating uncertainty compared to some internal strategies.
Dean M. Leavitt, founder and CEO of Boost Payment Solutions, emphasizes the need for proactive, multifaceted planning and highlights automation and process improvement as vital strategies for managing uncertainty. By adopting end-to-end digitization, such as in B2B payments, organizations can enhance efficiency, reduce manual efforts and strengthen security, which can help reduce uncertainty and position businesses for sustainable growth.
Key data points from the report underscore this strategic shift:
- In August 2024, 51% of CFOs anticipated improvements in uncertainty over the next year, a decrease from 65% in May. Notably, those in highly uncertain environments were more optimistic (63% anticipating better conditions) than those under low uncertainty (46% expecting conditions to improve).
- CFOs reported a significant increase in strategic actions taken, averaging five actions in the 30 days prior to the August survey, compared to just three actions reported in May.
- External solutions gained prominence, with 55% of CFOs reporting buying or upgrading software or platforms from third-party providers and 53% citing partnerships with third-party organizations. These shares represent more than double the figures reported in May.
While the reliance on third-party partnerships stands out for its improved effectiveness, the report also touches on other strategies being employed by CFOs. These include introducing new processes and workflows, which showed a high reported effectiveness rate at 92%.
Hiring personnel with specific skill sets and training existing staff were also widely adopted but saw diminishing returns in delivering certainty.
The report also briefly mentions other areas of exploration for CFOs, such as the use of virtual cards, the envisioned role of generative artificial intelligence in finance, and fighting uncertainty using instant payments. Ultimately, the ability to adapt quickly and execute decisively remains critical for navigating uncertainty and seizing opportunities.
