# Easing the burden of data overwhelm in finance functions
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-05-23
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How Finance Professionals Can Tackle Data Overwhelm
Meta Description: Learn how finance professionals can battle data overwhelm and utilise data effectively to match business objectives and drive growth.
URL: https://financedigest.com/easing-the-burden-of-data-overwhelm-in-finance-functionshtml

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_By **Adriaan Kom,** CCO, Visma \| Onguard_

Data has grown to become the fuel that powers businesses, both in their daily operations and digital transformation strategies. More organisations are looking to utilise the right technologies and applications to harness the opportunities it provides, but recent research has found that that [27% of finance professionals](https://www.onguard.com/media/whitepaper/whitepaper-intelligent-automation-in-the-order-to-cash-process/) don’t maximise its potential. Reasons for this are numerous, but a key driving force behind this is the fact that data is entering organisations from numerous sources and is growing rapidly in volume. The amount of data created and consumed in the world each year is expected to continue through 2024 at a CAGR rate of 26%, so it’s of no surprise that data overwhelm is taking hold of businesses. To battle this issue, what key [steps do finance](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance") professionals need to take?

**[Keeping pace](https://www.financedigest.com/winning-the-security-race-how-financial-services-can-keep-pace-with-cybercriminals.html "Winning the security race: how financial services can keep pace with cybercriminals") with competitors**

Additional barriers [await businesses in the data](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data") space, alongside the exponential growth of data and its use cases. According to the latest Visma \| Onguard FinTech Barometer, 41% of [finance professionals face the challenge of combining data](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") from various internal and external sources. This is also compounded by decisions on how that [data should be utilised to benefit](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") the business, whether it’s to drive insight, help to steer the organisation, or to confirm an idea or strategy. This broad scope that comes with what data can provide is causing [finance](https://www.financedigest.com/theres-nothing-artificial-about-the-role-of-ai-and-data-in-the-finance-industry.html "There’s nothing artificial about the role of AI and data in the finance industry ") departments to feel increasingly concerned about what their competitors may be doing with data and is perpetuating a fear that they’re not offering a service to match those businesses.

![Adriaan Kom](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/adriaan-kom-450x300-1736838315431-compressed.jpg)

Adriaan Kom

This fear also extends to emerging technologies such as [artificial intelligence and machine learning](https://www.financedigest.com/machine-learning-in-artificial-intelligence.html "Machine learning in artificial intelligence"), where organisations are taking note of market innovations going on around them, but don’t know how to integrate the same services. This is perhaps reflected in the fact that 37% of [finance professionals feel that they lack the right technology](https://www.financedigest.com/all-shapes-and-sizes-how-to-match-your-technology-to-your-finances.html "All shapes and sizes: How to match your technology to your finances") to make data optimally available. Without doubt, the [digital wave has certainly taken over finance](https://www.financedigest.com/how-digital-is-transforming-finance-in-2023.html "How Digital Is Transforming Finance in 2023") departments in the last few decades. This is creating further overwhelm among teams as other departments in the [business become more reliant on them to provide valuable insights based on the plethora of data](https://www.financedigest.com/big-data-lowers-insurance-premiums-and-optimises-business-performance.html "Big Data Lowers Insurance Premiums and Optimises Business Performance") available to them.

**Picking [data to match business](https://www.financedigest.com/from-sec-edgar-to-business-applications-exploring-an-alternative-to-manual-data-extraction.html "From SEC EDGAR to Business Applications: Exploring an Alternative to Manual Data Extraction") objectives**

A key [step to battling data](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") overwhelm is ensuring that data works for the objectives of the business. Not only will this allow focus among finance professionals in terms of how to utilise it, but will also help them to pick and [harness data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") that matches those objectives, rather than trying to find insights from a broad set of information. While this will help to [ease data](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") overwhelm, it is also particularly pertinent for organisations that may be running legacy systems and are unsure of which way to turn when undergoing digital transformation.

Rushing into implementing new innovations can be a cause of data overwhelm, so it’s important to keep to small, gradual steps and [test out new technologies to ensure](https://www.financedigest.com/ensuring-traders-pass-the-test-of-mifid-ii-and-mar.html "Ensuring traders pass the test of MiFID II and MAR") they fit the business and its objectives before committing to big system overhauls where possible. When it comes to [digital transformation](https://www.financedigest.com/redefining-the-human-touch-with-data-driven-digital-transformation.html "Redefining the human touch with data-driven digital transformation"), it doesn’t always have to be an ‘all in’ strategy and ripping out every old system out to make way for new ones. Agility is the key to ensure that fears around [data are eased and financial](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") departments can approach digital transformation with confidence. Testing via an initial pilot will help here.

**Leaning on external expertise**

Organisations should also remember that [data overwhelm isn’t a battle they need](https://www.financedigest.com/leaders-recognise-the-importance-of-green-transport-at-cop27-but-we-need-data.html "Leaders recognise the importance of green transport at COP27, but we need data") to face alone, particularly those at the first stage of a long journey ahead. 26% of [finance professionals cited lack of internal expertise in data](https://www.financedigest.com/data-analytics-scenario-planning-and-the-finance-department.html "Data analytics, scenario planning, and the finance department") processes and analysis as a main barrier to becoming data driven. Specialists will possess the expertise to help ensure that businesses can harness [data opportunities correctly and connect information](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") in the right way. Having this focus can also ensure that data scientists are utilised correctly to [benefit finance](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") departments, ultimately spending less time on collecting and curating data and being able to devote those saved hours to applying it to business use cases.

[Finance departments also need](https://www.financedigest.com/what-needs-to-happen-to-improve-the-landscape-for-smes-trying-to-access-finance-options-in-the-uk.html "What needs to happen to improve the landscape for SMEs trying to access finance options in the UK") to be aware of the limitations that come with risk data, which cannot be used in market purposes in most cases, and external expertise can advise on this. [Ensuring legislation and laws are met will only become more prominent as data](https://www.financedigest.com/finance-firms-must-ensure-they-fix-data-fundamentals.html "Finance firms must ensure they fix data fundamentals") use cases continue to grow. Security and IT departments are also increasingly becoming involved in the handling of data and the process for doing so, and should therefore work closely with the [finance department when it comes to strategy to ensure alignment across the business](https://www.financedigest.com/6-ways-to-spring-clean-your-business-finances.html "6 ways to Spring clean your business finances").

**The organisational engine**

The [finance department in the modern](https://www.financedigest.com/why-do-modern-finance-functions-strive-for-automation.html "WHY DO MODERN FINANCE FUNCTIONS STRIVE FOR AUTOMATION?") world is now a key driving force in an organisation, partly driven by the fact that more and more Chief Financial Officers are arriving from technology and digital transformation backgrounds. But for the [financial function](https://www.financedigest.com/make-time-to-reshape-the-finance-function-with-automation-and-machine-learning.html "Make time to reshape the finance function with automation and machine learning") to fulfil its potential, overcoming data overwhelm is one of the first ports of call. To take the next step, [finance departments need to ensure that data matches business](https://www.financedigest.com/5-ways-to-improve-your-business-finances.html "5 Ways to Improve Your Business Finances") objectives, while also taking cautious and incremental steps towards digital transformation and relying on expertise where necessary.


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