The banking industry has been facing tremendous challenges especially following the COVID-19 pandemic situation as extreme volatility remains in the market.
FP&A allows lenders to embrace rolling forecasts, promoting more agility as organisations make use of the availability of more timely data. FP&A also continues to deploy effective long-term planning, considering various factors such as economic data projections for GDP, employment and inflation, and emerging risks like cybersecurity threats and climate change.
The functions for financial planning and analysis are often in partnership with risk and asset liability management practices. These have developed continuous monitoring capabilities that serve as a shield. FP&A functions bring in a lot of value to the banking sector across numerous time horizons simultaneously--even in the highly compliance-focused area of meeting the requirements of important new accounting standards.
It is undeniable now that the finance function and FP&A in banking have naturally become a centerpiece of the business, as opposed to just a peripheral role in the organisation.