The AFC (Administration, Finance, and Control) function is one of the areas that can benefit most from the innovative skills of the Data Engineer, a specialist who collects and analyses data to make strategic decisions. Nimbus Intelligence provides crucial support by deploying highly trained professionals.
In the growing demand for skills that ensure sustainability and growth in an increasingly complex environment, Data Engineering is emerging as a decisive role in the future of business. All business departments can benefit from the data engineer’s innovative skills. Still, the AFC function, in particular, stands out as one that can most benefit from its added value.
The reason is simple: accurate and timely financial data management is essential for making informed strategic decisions and reducing risks. The Data Engineer steps right in as a data collection, management and transformation specialist, performing a crucial role in this process.
Data is central to the AFC function at every level. This is demonstrated, for example, by the Augmented CFO concept, which is revolutionising the role of the CFO by extending responsibilities beyond traditional tasks. By harnessing the power of big data, the modern CFO can unlock unprecedented value, ensuring that every decision is evidence-based and contributes to the company’s strategic direction.
Becoming a Data-Driven Company: The CFO’s Priority
A recent Gartner study confirms this direction, stating that digital transformation in the finance function is the primary area of interest for CFOs in 2024. Over 70% of CFOs consider improving financial metrics, insights and storytelling capabilities critical to success.
This evidence is supported by a Horvath study, “The CFO’s path to a data-driven company—2024,” which further confirms the relevance of data. According to the report, one in four financial executives anticipates a deterioration in business, making the transition to a data-driven company urgent.
However, there is still a long way to go. The survey indicates that while basic digitalisation technologies such as smart dashboards and RPA are increasingly popular, more advanced tools such as PredictiveFC, Machine Learning and Generative AI are not yet fully implemented in most finance departments. Four of five CFOs consider advancing toward a data-driven organisation a top priority and are prepared to allocate nearly a quarter of their transformation budgets to this strategic objective.
Who is the Data Engineer?
But let’s take a step back. Who is the Data Engineer, and why is their role so important? The Data Engineer is a professional specialising in building, managing and optimising data infrastructures essential for transforming raw data into useful information. This role is crucial in an era where companies collect and analyse vast amounts of data to make strategic decisions.
The Data Engineer collaborates closely with data scientists and analysts to ensure data is accessible, reliable and ready for analysis. They draw on a mix of technical skills, including programming, database management and the construction of data pipelines, to build systems capable of efficiently handling large volumes of data.
The data engineer is particularly valuable in the context of the AFC function. Companies must navigate complex and critical data, from financial transactions to market insights and customer information. Turning this data into valuable insights is essential for improving compliance, managing risks and streamlining operations.
4 Use Cases That Highlight the Value of the Data Engineer in Finance
Let’s dive into the heart of the business and explore how the Data Engineer’s skills can be crucial for the AFC function, highlighting the key use cases.
1. Compliance
Compliance is one of the most regulated areas within companies. Numerous regulations require organisations to ensure compliance in a timely and accurate manner. Data Engineers build data pipelines that aggregate information from various sources, streamlining compliance checks. These pipelines capture all relevant data and metadata, ensuring compliance teams can easily access the information required to demonstrate regulatory compliance. Furthermore, the pipelines must be secure, reliable and auditable, maintaining the trust of regulators and stakeholders.
2. Risk Management
Risk management is another crucial area in AFC where Data Engineering plays a vital role. Companies employ risk models to make investment decisions, assess opportunities and manage portfolio risk. These models necessitate large volumes of historical data and complex analyses. Data Engineers develop and manage the data infrastructure required to support these models, including pipelines, data warehouses and data lakes. They ensure that the data is accurate, reliable, up-to-date and that it can be accessed and processed efficiently by risk analysts.
3. Fraud Detection
Data engineering is essential in fraud detection. Companies use complex machine learning models to detect and flag suspicious transactions or behaviours. Data Engineers develop and implement fraud detection systems capable of handling large volumes of data in real-time. These systems must be highly scalable, fault-tolerant and secure, ensuring the trust of both customers and authorities.
4 Customer Analytics
Customer analysis is another significant area in which data engineering is applied. Companies gather vast amounts of customer data, including demographic information, transaction histories and social media activity. Data Engineers build infrastructures that enable the analysis of this data to gain in-depth insights into customer behaviour, enhance the user experience and boost customer retention.
Support for Businesses from Nimbus Intelligence
Nimbus Intelligence, a spin-off of The Information Lab, was established to support European clients in Data Engineering and Data Management.
As the demand grows, Data Engineers are becoming increasingly hard to find on the market and their training has become a crucial asset.
To meet this need, in January 2023, Nimbus Intelligence launched an internal Academy to train specialised Data Analytics Engineers in its Milan, Amsterdam and Madrid offices. The Academy provides comprehensive training that includes technical skills, hands-on experience and an understanding of the business context, preparing talents to enter the workforce with practical, applicable insights.
However, the market remains highly challenging, with requirements only qualified support can meet. Always up to date and ready to apply the best solutions to every project, Data Engineers are the ace up the sleeve for today’s and tomorrow’s AFC.
Competitive Advantage Thanks to Nimbus’s Data Engineers
Particularly in corporate finance, Nimbus understands that the Data Engineer is paramount. Making informed decisions is essential, and the tools must allow the analysis of as much data and results as possible to choose the best path for the business.
Thanks to the advanced skills of Nimbus Intelligence’s Data Engineers, companies can rely on cutting-edge solutions to optimise processes, enhance compliance, and boost their decision-making capabilities, securing a lasting competitive advantage.
