Digital Finance: How Technology is Transforming the Financial Role

When I started in the mutual fund industry over 30 years ago, there were 20 funds and a few shareholders. Banks distributed them through their hundreds of branches. In 2016, the number of clients peaked at 500,000. Today, I am thrilled to think that there are more than 23 million accounts and over 1,000 funds as investment options.

These numbers are not just growth statistics: they tell the story of access that didn't exist before. From a social perspective, this democratization is a genuine, exciting achievement — more people with tools to protect their savings and a marked interest in understanding personal finance. But for those of us working in finance, this same process has been accompanied by a profound transformation of our role.

The financial function is shifting from being the area that records and explains what happened to becoming the area that anticipates, manages risks in real-time, and aids decision-making. We used to handle numbers and financial statements. Now, we add data, technology, models, cybersecurity, and governance. That is the real tension we navigate today.

In Argentina, this tension has its own flavor: structural inflation, changing regulatory frameworks, still fragmented data infrastructure... Yet, in digital payments and investment reach — among other things — we have accomplished remarkable feats. The new generations joining companies also bring the expectation that change is the norm, which accelerates transformation from within.

What I experienced firsthand reflects a change of era for the entire financial function. The CFO of the future will not be the one who best explains the past. It will be the one who manages to turn data, technology, and control into better business decisions. That’s why at IAEF, a civil association that brings together Argentine financiers, at our next digital finance event, we will address real cases, discuss the characteristics of that leadership, and the future ahead, with insights from entrepreneurs, regulators, and the academic sector. This combination helps us in this reflection and ensures a rich conversation, with more questions than answers, as is appropriate when change is constant.

FAQs about Digital Finance

1. What is digital finance?

Digital finance integrates technology, data, and new channels to improve access to financial services, investments, loans, insurance, payments, and management tools. Its advancement allows more people and businesses to make financial decisions with greater information and agility.

2. How has access to investments changed in Argentina?

Access to investments in Argentina has shifted from being concentrated in a few funds, brokerage houses, and banking channels to opening up to millions of accounts, more investment options, and new financial habits driven by technology.

3. Why is financial democratization a significant social change?

Financial democratization is significant because it allows more people to access tools to invest, protect their savings, and better understand their personal finances. This broadens the participation of new users in the financial system.

4. How is the role of the financial function changing in companies?

The financial function has moved beyond just recording and explaining what happened. Today, it must also anticipate scenarios, manage risks in real-time, interpret data, and support better business decisions.

5. What new challenges does financial leadership face?

Financial leadership faces the challenge of integrating data, technology, models, cybersecurity, governance, and regulation in increasingly changing contexts. Additionally, it must transform that information into strategic decisions.

6. What will be the role of the CFO of the future?

The CFO of the future will need to turn data, technology, and control into better business decisions. Their role will be less retrospective and more strategic, focusing on anticipation, risk management, and value creation.