EY: 86% of Financial Controllers Anticipate Significant Changes in Their Roles Over the Next Five Years

The report aims to define the DNA of the future financial controller and explains how the responsibilities of financial controllers may evolve. While 86% of the financial controllers participating in the research expect their roles to change significantly in the next five years, 26% believe their roles will require a very different and unknown skill set compared to today.

EY (Ernst & Young) has published the Global Financial Controller DNA Report 2024. Based on a survey of over 1,000 financial controllers and 280 senior financial leaders from 28 countries, the research reveals that financial controllers are preparing for a radical change in their roles over the next five years, presenting significant opportunities for those who embrace data and technology. However, many participants are unsure about the nature of this change and express that they are not receiving the support they need to manage it effectively.

Additionally, the report indicates that nearly 9 out of 10 financial controllers (86%) expect significant changes in their roles by 2030, and 39% predict a greater focus on value creation. More than one-quarter (26%) of the financial controllers surveyed believe that by the end of the decade, their roles will require completely different, and possibly “unknown,” skills. Only 14% state that their future roles will resemble their current ones.

The research shows that many financial controllers feel well-prepared for the changes expected in the near future. Leaders who have taken steps prepare themselves are ahead of most finance leaders regarding the development of Artificial Intelligence (AI), with 67% using this technology in their daily operations. Furthermore, 88% of financial controllers leverage AI to provide strategic insights.

However, many are not receiving the support they need for value creation. One in ten (10%) reports lacking the necessary personnel, and one in five (20%) indicates they are without the requisite budget.

Despite the clear acknowledgment of the evolving role of the financial controller and the adoption of data insights and AI, the research also suggests that there might be a greater need for support to fully leverage the power of emerging technologies. Only 21% of respondents rank exploring opportunities for technology utilization as one of the top three ways to create value, while 73% indicate they are using technology for company growth.

Although many financial controllers envision value creation as a future focal point of their roles, a significant portion continues to focus on value optimization, such as cost-saving strategies (46%), instead of exploring growth opportunities.

Nonetheless, the research identifies a group of financial controllers known as “confident controllers” (representing 25% of the overall sample) who are already creating value through technology. About two-thirds (37%) of this group lead the way in innovation compared to 25% of the other participating controllers.

Only one-third of confident controllers aspire to be CFOs. The report also highlights a potential talent shortage at the top of the profession in the coming years, reflecting the overall skills gap in the industry.

Those targeting the CFO role seem less convinced about the importance of certain business areas compared to controllers who aim to remain in their current roles. For example, only 51% of those aspiring to become CFOs consider innovation important, while 73% of controllers wishing to stay in their roles share this view.

Ozan Özarıkça, Partner at EY Turkey Financial Accounting and Advisory Services, commented on the report: “The role of the financial controller is on the brink of significant change, and while the outcomes are not yet clear, it is evident that they must now fulfill multiple responsibilities simultaneously. They need to strike a balance between short-term performance and long-term value provision, and their responsibilities now extend far beyond the balance sheet. Moreover, the first step in a successful transformation is the acknowledgment of the need for change. While it is clear that this exists in many finance functions, financial controllers must actively lead in the development of the necessary technological skills and knowledge to unlock their value creation potential and advance the industry alongside their leaders. The difference between ‘confident controllers’ and their peers is particularly evident regarding innovation, especially in the utilization of technology and data. These leaders offer an ideal model for less experienced controllers to work on in terms of skills and focus, and with the right support and approach, they can demonstrate how the financial controller role can be a true force for value creation and innovation.”