In adoption, Agile breaks down functional organisational structures, increases transparency and accountability; and empowers workforce system.
Though agile methodology began in the IT department, it soon spread throughout the entire organization. Agile finance principles have major implications for FP&A. Instead of static plans and budgets, the agile process calls for continuous planning – adjusting daily, if need be, to keep the plan relevant at any one given time. Agile calls for continuous information flow between the accounting, finance departments and all their stakeholders.
To deliver customers satisfactory services, financial institutions are actively making effective changes in financial tech-applications, transiting from one financial technology platform to another in order to nurture premium services in payments processing, financial structures and asset/risk management. Consequently, the financial tech-platform used by financial institutions for mobile-payments/money, mobile-transaction for trading/stock brokerage, e-payment, online banking, accounts processing and tracking; and outlining balances, interest rates and categorizing financial trends, as against financial risk, keeps evolving; even as the financial sector faces the challenge of down-slides in financial flow channels, rising financial vagueness, reduce business financing and transactional disruption as a result of the ‘new-normal’.
With the financial sector pulsating across the world, most financial firms are faced with the rapid development of new technology platforms, which typifies the effects of services derived from the sector. To mitigate the effect of this evolution, captains of financial service deployments are embracing the Agile transformation process, which makes their work-teams most productive, because the Agile practices suggest better control, visibility and decision-making support. As against using legacy platforms that are difficult to adapt and grow, which makes work-process laborious, frustrating and tedious. Agile methods also presents exciting opportunities for companies willing to innovate, digitalize and transform processes, while gaining the benefits derived from access to more data and better insights.
Agile is a new operating model that is responsive, change-ready and has been embraced by many finance leaders, in order to provide the strategic guidance and analytical capability for financial insight. The Agile finance leaders are adopting digital technologies while investing in new skill sets that embrace new digital business models and their ways of working. Agile finance is a new operating model for modern finance, it is a new breed of collaborative finance, investing in a range of new skills and competencies, enabled by technologies. Agile development methods meet many requirements. Agile adoption by diverse sectors, is premised on the need to deliver high value, create right project management software to deliver fast-growing customers satisfaction and to reduce risk when business applications are developed.
Scrum teams which are a small, cross-functional group of people, working together and checking in regularly for problem-solving and progress reports are at the heart of Agile techniques. Finance can also apply this technique and make small teams that meet regularly having the functional authority for decision making to move the project forward. This increases decision velocity focusing on the highest priority objectives and developing well-defined control of decision making and governance criteria.