By W.B. King
In August 2024, AvidXchange surveyed 500 fintech executives to ascertain respective tech wants, needs and concerns as they approach 2025. Sixty-one percent responded that creating operational efficiencies is their top priority.
“While artificial intelligence (AI) adoption remains a priority for finance leaders, 71% are concerned about measuring a return on investment (ROI) from this technology,” the AvidXchange 2025 Trends Survey offered. “The popularity of e-payment is growing rapidly, with 86% of finance departments adopting these methods, including digital wallets and mobile payment platforms.”
AvidXchange, a Charlotte, N.C.-based software company, bills itself as transforming the way mid-market companies pay their bills through its accounts payable automation software and payment solutions.
“The finance function is evolving, with an overwhelming 87% of survey respondents reporting they were tasked with new responsibilities like overseeing data analytics and tech integrations in 2024,” the report noted. “Security, including fraud and phishing attempts, is the biggest concern for 52% of finance departments as they prepare for 2025.”
The Future is Unpredictable
Noting that 2025 will be an uncertain period, the survey offered seven trends that financial executives are studying:
1. Understanding the ROI of AI.
2. Remaining vigilant against financial fraudsters.
3. Developing new skills as the finance function evolves.
4. Evaluating finance and accounting tech stacks.
5. Adopting new electronic payment methods.
6. Finding efficiencies through automation.
7. Nurturing strategic partnerships and suppliers.
“Finance leaders are reevaluating their investments in tech tools, bolstering security, and finding new ways to operate as their roles and responsibilities evolve,” the report stated. “While the future is unpredictable, keeping on top of industry shifts will help finance pros adapt no matter what 2025 holds.”
AI, Fraud and Security
Regarding AI, 82% of finance departments are currently using AI or have plans to in 2025. “While the vast majority (76%) see value in using AI within their finance department, 71% noted they are concerned about measuring the ROI of their AI tools,” the report continued.
“Research suggests organizations should consider supporting AI adoption with employee training programs to help boost ROI. According to our survey respondents, most businesses are heeding this advice, with 65% providing staff training on AI and 50% offering upskilling and reskilling opportunities.”
Topping concerns for financial departments are security, with fraud (63%), deep fakes (62%) and phishing attempts (61%) driving their anxieties. “More than three-quarters of the finance leaders we surveyed said their finance departments have fallen victim to or been the target of attempted attacks,” the survey found. “So, it’s no surprise that 65% of finance leaders said their organization has strengthened security measures in 2024.”
Additionally, 46% of finance leaders noted that cybersecurity and fraud prevention is a new responsibility they’ve been tasked with this year, and 30% said risk management/mitigation is now part of their job description.
Talent Shortages
Due to ongoing talent shortages and higher demand for workers with digital skills, traditional finance and accounting roles are changing. Forty-nine percent of those polled said over the last two years, new tasks include data analytics and reporting, financial technology integration (47%), business process optimization (35%), strategic financial planning and forecasting (27%), strategic initiatives (26%) and business storytelling (23%).
“The finance and accounting space continues to experience a talent shortage, with the largest single-year drop in accounting graduates in 20-plus years. Sixty-six percent of survey respondents said staffing shortages affected their finance department in 2024,” the report said.
Tech Stacks and Real-Time Payments
With four percent of survey respondents noting that their finance work is currently conducted in cloud-based technologies, the report stated that businesses are moving away from software focused only on data capture and storage towards enterprise resource planning (ERP) and spend management tools that track key metrics, including profitability.
“Our survey found that although 73% of finance leaders are satisfied or very satisfied with their current ERP and/or accounting systems, 64% are extremely likely or likely to switch systems within the next six months,” the report continued. “They cited various reasons for this, including security concerns and a desire for more advanced analytics and reporting.”
The percentage of businesses using mobile payment platforms most often to pay suppliers nearly doubled to 15% in 2024 compared to 8% in 2023.
“Consumers are increasingly adopting digital wallets to make payments and transfer funds, so it’s natural that businesses expect the same convenience. We learned that the majority of businesses (61%) either exclusively or mostly use e-payments like virtual credit cards or bank transfers for financial transactions,” the report stated. “Only six percent do not use e-payment technology at all, preferring traditional transaction methods like paper checks. Businesses will likely continue to embrace the speed and security advantages of electronic payments into 2025.”
Additionally, 73% of finance teams have seen an increase in requests from suppliers for real time payments in 2024, the report noted, with 44% of organizations noting that they have fully adopted this emerging payment method.
Workflow Automation
Noting that 64% of organizations currently use finance automation technology, with an additional 17% planning to implement automation tools in 2025, the report found that these tools are designed to offer advantages from increased efficiency to cost-savings.
When asked how they would use automation in finance departments, 60% said to increase efficiency and productivity, improve compliance and accuracy (52%), enhance data analysis and reporting (47%), minimize human errors (47%), improve customer service and satisfaction (46%) and accelerate decision-making processes (43%). Seventy-five percent of those polled also said that they believe automation would have an immediate positive impact on their organization.
“Looking ahead to 2025, finance leaders must decide which technologies offer the most significant business benefits. Innovations like AI, cloud-based computing, e-payments, and automation open new avenues for enhanced efficiency and enriched business information as finance organizations take on a more strategic role within the company,” the report noted.
“As technology’s role in the finance department grows, responsibilities and job duties will continue to evolve,” the survey concluded. “Finance and accounting professionals will likely experience a shift from manual tasks like data entry and check runs towards knowledge-based activities like data analysis, business storytelling, and strategic decision-making.”