Financial Transparency 2025: What Should Finance Teams Expect

Today, the landscape of financial transparency is experiencing significant transformation, driven by advancements in technology and tighter regulatory requirements. Automation, artificial intelligence, and open banking are already reshaping the traditional financial process to allow real-time data sharing in a contactless manner and opening up new opportunities for touchless financial operations. Regulatory bodies are increasingly focusing on transparency in response to increasing risks and are compelling organizations to implement high-end reporting tools and more stringent standards. Simultaneously, the increasing threats related to cybersecurity and data privacy demand stronger protection mechanisms, as data breach costs keep rising. Such changes not only optimize efficiency but also strengthen stakeholder trust, making it critical for payment teams to adapt. Below, we explore key trends shaping the future of financial transparency.

1. Automation and the Move Towards a Touchless Financial Close

The pursuit of efficiency is driving finance functions toward automation, with a key objective being the realization of a touchless financial close—where the entire process is fully automated without the need for human intervention. A survey conducted by Gartner a few years ago predicted that 55% of finance executives aim to achieve a touchless financial close by 2025, while 86% of respondents intend to implement a faster, real-time close within the same timeframe. These trends underscore the industry's dedication to enhancing efficiency and accuracy through automation in financial processes.

2. Evolution of Finance Roles Due to Technological Integration

The integration of advanced technologies is transforming finance roles, requiring the development of new skill sets and giving rise to specialized positions. According to Gartner, over 40% of finance roles are expected to be new or significantly reshaped due to technology advancements by 2025. Furthermore, by 2025, it is anticipated that 80% of new headcount growth in finance will be in emerging subfunctions, rather than in traditional areas such as accounting and financial planning and analysis (FP&A).

3. Emphasis on Metrics, Analytics, and Reporting

CFOs are increasingly prioritizing metrics, analytics, and reporting to drive business performance and strategic decision-making. A survey of 251 CFOs revealed that these areas have been ranked as the top priority for 2025, as organizations seek to gain deeper insights into their financial performance and improve decision-making processes. As part of this transformation, the same survey highlights that AI adoption in finance ranks fourth among CFO priorities, signaling a notable shift toward leveraging advanced analytics and artificial intelligence to optimize financial management. This growing focus on AI and data-driven insights reflects a broader trend where CFOs are embracing innovative technologies to enhance forecasting, improve efficiency, and gain a competitive edge in the evolving financial landscape.

4. Adoption of Open Banking and FinTech Innovations

Open banking is driving greater financial transparency by enabling secure data sharing between financial institutions and third-party providers, which is fostering innovation in payment services. The global open banking market is expected to reach $43.15 billion by 2024, reflecting a 25% increase from 2022. As a result of this growth, consumer adoption is also set to rise, with 56% of consumers projected to use open banking-powered services by 2025, up from 37% in 2023. This shift highlights the increasing reliance on open banking to enhance financial services and improve accessibility for consumers.

5. Enhanced Financial Transparency and Employee Confidence

Increased financial transparency within organizations continues to correlate with higher employee confidence and engagement. A recent survey indicates that 47% of American workers feel financially well, up from 42% in the previous year, suggesting that transparent communication about financial matters may contribute to this improvement. Furthermore, organizations that address employee financial stress have observed significant benefits, including an average 42% increase in employee retirement contributions and savings of $5,600 in attrition costs per employee. These findings underscore the importance of transparent financial communication and support in fostering employee confidence and engagement.

6. Cybersecurity and Data Privacy Concerns

As financial processes become increasingly digitized, safeguarding data privacy and enhancing cybersecurity measures are paramount. In 2024, the average cost of a data breach reached $4.88 million, the highest on record, underscoring the financial risks associated with inadequate cybersecurity. Additionally, human error accounted for 88% of cybersecurity breaches, highlighting the critical need for comprehensive employee training and robust security protocols. The average time to identify a breach was 194 days, with a total breach lifecycle of 292 days, emphasizing the importance of prompt detection and response strategies.

Conclusion

The future of financial transparency is being redefined by advancements in automation, seamless technological integration, and an increased focus on data analytics and cybersecurity. Organizations are leveraging cutting-edge tools such as artificial intelligence, machine learning, and blockchain to streamline processes, enhance accuracy, and provide real-time insights. As regulatory requirements evolve and stakeholders demand greater accountability, payment teams must adapt by embracing innovative technologies that enable efficient financial management. Upskilling employees to handle sophisticated tools and fostering a culture of transparency are crucial for navigating the complex financial landscape of 2025 and beyond. Furthermore, prioritizing robust cybersecurity measures to protect sensitive data and adopting practices that align with global compliance standards will be essential in building trust and ensuring long-term success in the digital age.