Topic 1: Dexter R.

Moya, CMA, CrFA

UNVEILING GLOBAL TRENDS AND CHALLENGES IN FINANCIAL
MANAGEMENT
Navigating the Financial Landscape

Learning Objectives
At the end of this presentation, the audience will attain the following:

 In-depth understanding of the significance of financial management.

 Be informed on the trends in financial management
 Address the key challenges in financial management globally

Financial management - Organization's financial resources to achieve its financial goals

and objectives effectively and efficiently.

KEY COMPONENTS
1.Financial Planning
2.Budgeting
3.Financial Analysis
4.Risk Management
5.Capital Budgeting
6.Working Capital
Management
7.Financing
8.Financial Reporting
9.Compliance

IMPORTANCE
1.Resource Allocation
2.Planning and Budgeting
3.Risk Management
4.Cash Flow Management
5.Investment Decisions
6.Debt Management
7.Profitability and Growth
8.Compliance and Reporting
9.Stakeholder Confidence
10. Adaptation and Decision Making
11. Long-term Sustainability
12. Personal Financial Security

Current Trends in Financial Management

A. Data-Driven Decision Making
B. Sustainable Finance
C. Digital Transformation

DATA-DRIVEN DECISION MAKING

CURRENT BUSINESS ENVIRONMENT
1.Fierce competition
2.Growing economic concerns
3.Emergence of new business model
4.Rapid Introduction of new Technologies
CURRENT FOCUS AND AMBITIONS OF FINANCE ORGANIZATION
1.Cost reduction
2.Leverage new technologies
3.Improve analytics capability
4.Redeploy resources to high value activities
5.Align talent with business needs

Importance of Data in Financial Decisions

1.Informed decision-making
2.Risk assessment
3.Performance evaluation
4.Strategic planning
5.Investment analysis
6.Budgeting and forecasting
7.Resource allocation
8.Compliance and reporting
9.Cost control
10. Identifying opportunities
11. Debt management
12. Performance metrics
13. Financial transparency
14. Continuous improvement
15. Long-term planning

Data Analytics
Data analytics is the process of examining, cleaning, transforming, and interpreting data
to discover valuable insights, patterns, trends, and information. It involves using
various techniques, tools, and methodologies to extract meaningful knowledge from
raw data, which can then be used to support decision-making, solve problems, optimize
processes, and drive business or organizational strategies.
SUSTAINABLE FINANCE
Sustainable finance, also known as responsible or green finance, is a financial system
and approach that takes into account environmental, social, and governance (ESG)
factors when making investment and lending decisions. The concept of sustainable
finance is driven by the recognition that economic activities should not only focus on
financial returns but also consider their impact on the environment, society, and long-
term sustainability.

Key Concepts of Sustainable Finance

1.Environmental sustainability
2.Social responsibility
3.Governance
4.Integration of ESG factors
5.Impact investing
6.Sustainability reporting
7.Green bonds
8.Sustainable indexes
9.Regulatory initiatives
10. Risk management

DIGITAL TRANSFORMATION
Finance digital transformation refers to the process of leveraging digital technologies,
data analytics, and automation to modernize and optimize financial operations,
services, and processes within an organization. It involves the integration of technology
into various aspects of financial management to enhance efficiency, accuracy, decision-
making, and customer experience.

Key Concepts and Objectives of Finance Digital Transformation

1.Automation of financial process
2.Digital payments
3.Data analytics and business intelligence
4.Cloud-based financial systems
5.Blockchain technology
6.Enhanced security measures
7.Regulatory technology
8.Customer centric approach
9.Cost reduction
10. Real time financial reporting
11. Enhanced forecasting and predictive analytics
12. Strategic financial planning
13. Supply chain finance

Digital Finance Foundation

•Digital Vision
•Finance Strategy

Digital Finance Operating Model

•Digital culture and enablement
•Structures of the system

Digital Finance Roadmap

•Digitalization steps
•Resource oriented
•Timeliness

Digital Finance Transformation

•Digital Innovation
•Controlling
•Change management
OPPORTUNITIES AND CHALLENGES
ENHANCED RISK MANAGEMENT
Improved data analysis enhances risk management by providing better visibility into
potential risks, enabling proactive risk mitigation, and supporting more informed
decision-making. It empowers organizations to navigate uncertainties and challenges
effectively, ultimately contributing to greater resilience and sustainable growth.

ACCESS TO GLOBAL MARKETS

Globalization has a profound impact on financial opportunities, influencing the ways in
which individuals, businesses, and investors can access and benefit from the global
financial system. While globalization offers numerous financial opportunities, it also
presents challenges and risks, such as increased competition, market volatility, and
economic interdependencies. Effective financial management in a globalized world
requires a keen understanding of these opportunities and risks to make informed and
strategic decisions.

CYBERSECURITY RISK
The growing threat of cyberattacks poses significant risks to individuals, businesses,
governments, and critical infrastructure worldwide. Cyberattacks are becoming
increasingly sophisticated, frequent, and damaging. Keep in mind that the cost of a
cybersecurity attack can vary widely, and organizations should take proactive measures
to minimize their risk and prepare for effective incident response in case of an attack.

REGULATORY COMPLIANCE
The complexity of financial regulations in financial management isa multifaceted
challenge that affects organizations, financial institutions, and individuals. These
regulations are designed to maintain financial stability, protect consumers, and ensure
the integrity of financial markets. However, their complexity can present several
difficulties and complexities. To navigate the complexity of financial regulations
effectively, organizations must establish robust compliance programs, invest in
regulatory technology (RegTech), conduct regular risk assessments, and ensure that
employees are well-trained on compliance requirements. Additionally, engaging with
legal and compliance experts and staying informed about regulatory developments is
essential for financial management in today's intricate regulatory environment.
Initiatives in Financial Management
A proactive approach in financial management involves taking deliberate, forward-
thinking actions to anticipate and address financial challenges and opportunities before
they become critical issues. It's a strategic mindset that prioritizes planning, risk
management, and seizing opportunities for financial growth and stability. A proactive
approach in financial management is essential for building financial resilience,
achieving long-term financial goals, and navigating economic uncertainties effectively.
It involves a commitment to ongoing monitoring, analysis, and strategic decision-
making to optimize financial outcomes and minimize risks. Innovation in financial
management is essential for organizations to remain competitive, adapt to changing
market conditions, and capitalize on emerging opportunities. It drives efficiency,
enhances decision-making, and supports strategic goals while addressing evolving
customer expectations and regulatory requirements. Financial managers and leaders
should embrace innovation as a key driver of success in the ever-evolving financial
landscape.

Key Aspects of a Pro Active Approach

1.Strategic planning
2.Risk management and mitigation
3.Financial analysis
4.Cash flow management
5.Cost management
6.Investment and asset management
7.Debt management
8.Tax planning
9.Emergency fund and contingency planning
10. Insurance coverage
11. Employee training
12. Compliance and regulatory adherence
13. Scenario planning
14. Continuous learning and adaptation

Initiatives in Financial Management

AI
Automation
Blockchain Technology

Conclusion
Financial management and the finance function has already evolved from the back of
the house function and now as a frontliner to support the organization’s business goals.
With the VUCA environment in place and the growing stakeholder demand in the
business, it is important for us professionals to innovate, upskill and reskill in order to
be relevant in this fast-paced environment. Being proactive with the aid of data
analytics and being digitally transformed is crucial on today’s business environment
because we, together with other stakeholders are making decisions from time to time.
Having the right data in your hands will further enable us to act fast in achieving our
business goals and objectives in an effective and efficient manner.
Topic 2: Maryknoll Bathan-Zamora, CPA, MBA, JD

2nd TOPIC
Global and Philippine Economic Landscape
Based on the graph showed by the speaker, the baseline projection for global economy
anticipates a decrease in growth, starting at 3.4 percent in 2022, then declining to 2.8
percent in 2023, and ultimately stabilizing at 3.0 percent in 2024. Notably, advanced
economies are poised for a more significant growth deceleration, moving from 2.7
percent in 2022 to 1.3 percent in 2023.

In the Philippines, as mentioned by the speaker in the Post-SONA Economic Brief by

the DOF Secretary Diokno, In 2022, the PH economy achieved its highest growth rate in
46 years, registering an impressive 7.6%. This strong performance continued into Q1
2023 with a robust growth rate of 6.4%. Furthermore, economic managers foresee an
acceleration in growth from 2024 to 2028, with rates expected to range between 6.5 to 8
percent during this period.
The pillars that hold up the strength and resilience of the Philippine economy are built
on a solid fiscal framework guided by the medium-term fiscal framework.

Digital Transformation in Finance

Digital transformation in finance is the reorganizing and reshaping of finance and
accounting function using technology to recreate efficient operating systems and
processes without replacing traditional systems
WHY CFOS NEED TO ADOPT DIGITAL FINANCE TRANSFORMATION
Tighter margins stronger competition and increasingly stringent regulatory policies are
some of the major challenges that have culminated in a situation where any forward
thinking CFO would see the need to evolve.

Benefits and challenges

enhance customer experience
improved operational efficiency and revenue generation
easy data accessibility and management
Process agility and operational productivity
Insight driven decisions
Challenges
Legacy systems
Security and compliance
Customer expectation on user experience
WOrkplace culture and reskilling workforce
Completion
Digital finance transformation everything you need to know
1. blockchain
While blockchain works for certain financial processes for those involving regulations
or significant manual intervention this technology might not be a good fit yet however
here are some features that can lead to a positive impact
2 Real time data visualization
this includes cloud based data leak intuitive software architecture an Internet of Things
3. Robotic process automation in finance it is a system in which mundane and repetitive
task with pressed variables are executed by software robots instead of relying on people
AI is supported analytics for decisions
AI can help identify gaps measuring expenses and make forecasts based on numbers to
further optimize entire business processes
Finance transformation use case
This includes banking as a service and payment solutions for fintechs to retail banking
services banking as a service is an example of digital finance transformation with
positive disruption

digital finance solutions as blockchain technology matures its applicability in F&A will
continue to grow however rather than following a rip and replace method, blockchain is
best utilized when integrated with the existing technology landscape service providers
offers digital finance solution that combines 5 levers to deliver a digital strategy for the
F&a industry.
Sustainable Finance
What is sustainable finance and how it is changing the world?
Investors no longer face a choice between profit and saving the planet.
Sustainable finance prioritizes businesses that help the environment.
But it also focuses on inclusion and ethical business standards.

Outperformance explained
Changing customer attitudes towards companies that share their values;
More funds are available to ESG projects than those in carbon-intensive industries
Global companies took in a record $859 billion in sustainable investments in 2021,
including $481.8 billion in green bonds that raised money for specific environmental
project.
UNITED NATION 17 Sustainable Development Goals

What to prepare to tap the Sustainability Financial Markets?

DRAFTING OF SUSTAINABLE FINANCIAL FRAMEWORK
 Evaluate your company values
 Identify projects and operations that gear towards ESG
 Identify service partner that will guide your team to draft Sustainable Financing
Framework.
 Have your SFF evaluated by a SPO (Second Person Opinion)
 Raise funds
Risk Management and Resilience
Companies that effectively managed financial crisis
Ford Motor Company (2008 Financial Crisis) – Ford was the only major AMrican
automaker who didn’t seek a government bailout. Instead they took proactive measures
by securing a large line of credit before the crisis, implementing cost-cutting measures
and focusing on restructuring their operations. This strategic approach allowed them to
weather the crisis and emerge stronger.

IBM (1990s Restructuring): IBM faced a crisis due to declining sales and stiff
competition. Under the leadership of CEO Louis Gerstner, the company underwent a
massive restructuring. They shifted their focus from hardware to services and software,
cut unprofitable divisions and revamped their corporate culture.

Starbucks (2008-2009 Recession): Under the leadership of Howard Schultz, faced

declining sales and store closures. Schultz returned as CEO and initiated various
measures, including closing underperforming stores, focusing on digital innovation and
expanding the product line. These actions helped Starbucks recover and continue its
global expansion.

Apple Inc. (1990s Financial Crisis): Apple was facing financial distress and had a
declining market share. With the return of Steve Jobs, the company refocused on
innovation and product design. The introduction of the iMac, followed by the iPod,
iPhone and iPad, transformed Apple into one of the world’s most valuable companies.

Survivors of Dot-Com Bubble Burst or the Tech Bubble Burst. (2000)

Amazon.com: They focused on expanding their product offerings beyod books,
controlled cost and maintained a customer-centric approach.
eBay: an online marketplace, navigated the crisis by emphasizing its unique business
model of facilitating person-to-person online auctions. This approach remained
attractive to users seeking value in an uncertain economic environment.
Google: Google was founded just before the dot-com bubble burst managed to succeed
by focusing its core business of providing a superior search engine. Its revenue model
was less dependent on advertising at the time, which helped them to weather the storm.
Cisco Systems: the company remained committed to their long-term vision of providing
networking solutions.
Oracle, they diversified its product offerings and focusing on enterprise-level software
solutions. Their focus on serving businesses’ critical needs helped them remain stable.

Survivors of Asian Financial Crises (1997-1998)

Samsung Group (South Korea): the company’s leadership took decisive actions
including restructuring and focusing on core businesses such as electronics and
semiconductors. This strategic shift helped Samsung recover and eventually become a
global tech giant.

Toyota (Japan): The company’s focus on quality and efficient manufacturing processes
allowed it to maintain a strong position in the global automotive market.

SingTel: It acquired several telecommunications companies in Asia and beyond,

effectively diversifying its revenue streams.
Charoen Pokphand Group (Thailand): This Thai conglomerate successfully navigated
the crisis by diversifying its operations. It expanded into new markets and industries,
reducing its dependence on any single sector.

Cathay Pacific (HongKong): implemented cost-cutting measures and adjusted its route
network to cope with reduced demand.
HSBC (Hong Kong and Shanghai Banking Corporation): its global footprint allowed it
to offset losses with profits from other regions.

Villar Group of Companies Case Study: Some strategies to survive financial and
economic crisis.
Diversification – across different sectors or industries can help companies mitigate risks
during a financial crisis. VG had interests in real estate, retail, banking and other sectors
which provided stability during economic turmoil.
Prudent Financial Management: companies often focus on managing their finances
carefully. This includes reducing unnecessary expenses, optimizing cash flow, and
minimizing debt exposure. Sound financial management practices can help weather
economic downturns.
Adaptation: VG companies have adjusted their strategies, such as scaling down
expansion plans or focusing on core businesses that were more resilient.
Customer-centric Approach: Maintaining strong customer relationships and meeting
their needs is essential in challenging times. VG emphasized customer satisfaction to
retain loyal customers and generate revenue.

Opportunities amidst crisis: Adapting to challenging economic conditions and

identifying new opportunities were key factors in their successful navigation of the
crisis.

Financial Regulations and Compliance

The role of financial regulations in maintaining market integrity and stability
1. Preventing Fraud and Misconduct: regulations set clear guidelines for ethical
and legal behavior within financial markets.
2. Ensuring Transparency: Regulations often require companies to disclose accurate
and timely financial information.
3. Risk management: regulatory frameworks mandate risk management practices
for financial institutions.
4. Market Surveillance: Regulatory bodies monitor financial markets to detect
irregularities, market abuse and excessive volatility.
5. Liquidity and capital requirements: regulations often establish liquidity and and
capital adequacy requirements for financial institutions.
6. Resolution mechanisms: regulations provide frameworks for resolving financial
institutions that are in distress.
7. Consumer protection: regulations include measures to protect consumers from
unfair or abusive practices by financial institutions.
8. Systematic risk oversight: regulatory bodies are tasked with monitoring and
mitigating systemic risks in the financial system.
9. International coordination: given the global nature of financial markets,
international cooperation is essential.
 10. Market confidence: overall financial regulations provide a sense of security and
confidence to investors, lenders, and the public.

Several global crises have arisen due to poor financial compliance and regulation.

Global Investment Strategies

Emerging Markets and Opportunities
Changing Consumer Behavior
Financial Leadership and Governance

Summary
Remember that uncertainty and challenges are part of the journey for financial leaders.
Embracing them with resilience and a positive mindset can lead to growth and success.

“Challenges are what make life interesting and overcoming them is what makes life
meaningful” -Joshua J. Marine
Digital Transformation and Customer Experience
Topic 3: Sam Waterhouse-Woods

Agenda
●Introduction
●Our contact methods
●Client Demand
●Business Demand
●Transformation and the COVID-19 pandemic
●Challenges
●Solutions

MyBudget
Is Australia’s most trusted budgeting, debt solution and money management service
company.

●Established in 1999
●Over 250 staff employed
Australia
Philippines
Sri Lanka
●Helped over 130,000 Australians
●Manage over $1Billion in salaries and $5Million in transactions yearly

How it works
● Clients income is received into our bespoke money management system
● Client payments are managed on their behalf
● Assist with and facilitate:
○Debt reduction strategies
○Financial goal mapping & achievement
○Expense projection
○Scenario testing
○Problem solving

Our Clients
● Individuals or couples wanting to get the most out of their money;
● Living paycheck to paycheck
● Struggling to pay bills on time
● Want to begin saving for significant purchases / events
● Don’t have time to manage their money.

Our Team
● General operations in Adelaide HQ
● Online contact support plus additional business unit support in the Philippines
● Technology team in Sri Lanka

What communication platforms do we offer?

Initial Enquiry
● Phone Appointment
● Face to Face Office Appointment
● Virtual Face to Face (Google Meet) Appointment
Ongoing Service
● Phone
● Web Messaging
● Live Chat
What’s changing?

Client Demand
As technology is rapidly evolving so are our clients needs and expectations. More and
more people are wanting to avoid speaking on the phone and would rather rely on
digital platforms to communicate.
● *60% of clients across all generations now prefer to engage through digital channels
● More clients are wanting to action requests through self- service platforms
● More clients are willing to use chatbots for simple customer service

Business Growth
Businesses are forced to keep up with the demand of customers and the constant
evolution of technology in order to stay competitive.

● Omnichannel integration
● Automated Quality Management (AQM)
● Customer verification methods
● Self-service platforms
● AI integration

What we are
changing:
● Building a new bespoke money management platform
○ Backend system
○ Client app / web portal
○ Asynchronous Messaging system
● Investigating solutions for AI integration

Digital transformation and the COVID-19 pandemic

Many businesses faced involuntary change in order to survive and continue servicing
the needs of their customers as a direct response to the restrictions imposed by the
COVID-19 pandemic.
The need for remote service platforms increased exponentially
● Zoom’s annual revenue increased 8x from 2019-2021 ($331,000,000 vs $2,651,000,000)
● UberEats annual revenue increased 4x from 2019-2021 ($1,900,000,000 vs
$8,300,000,000)

How we adapted:
Initial consultations held in office were moved to virtual consultations over Google
Meets
Other communication platforms were already 100% remote with a larger portion of our
client interactions being via a written communication channel

What challenges do we face?

Whilst we saw an overall improvement in our appointment arrival rate we still
experienced challenges to increase our conversion rate of remote appointments
compared with in office appointments. Written communication presents challenges in
both understanding and projecting emotion effectively. Some written communication
channels also present the challenge of not being able to immediately resolve a client's
concern without further clarification.

How do we overcome this?

● Focus on our most successful client types (MSC)
● Improved training around communicating and building rapport online
● Improved questioning
● Offer omnichannel solutions
● Self onboarding opportunities
Summary
In summary digital transformation is happening whether we like it or not whether that
be in business, schooling, media or social connection. It’s important for businesses to
embrace the change and move with the times. Connection with clients is and always
will be important, clients are engaging with companies in several ways with 83% of
clients expecting to interact with someone immediately. 43% of customers still prefer
non-digital channels therefore it is still important to provide great experiences both
online and offline.