CFOs have a greater role than ever before - both within their companies and in society
The last few years have seen a rapid acceleration of digital transformation in enterprises – as well as the enhanced focus of CFOs and the finance function on technology. According to a PYMNTS article at the end of 2022, “[n]early half (48%) of CFOs say their investments in fraud and risk management systems were primarily designed to help maintain business operations amid the [Covid-19] pandemic.” And beyond issues relating to security, digital transformation is increasingly driving improved customer experience and relationships. In the banking sector this is especially important, considering that according to Forrester, 71% of American customers use online banking services every month.
The need for CFO involvement in digital transformation was a takeaway from a recent conversation with Maria Elena Riera, CFO of Terrabank, a regional and community-oriented financial institution in South Florida.
Maria talked about how banks need to balance ease of access and use for customers with basic security. “We want to be able to deliver the highest level of client experience, but deliver it seamlessly so that the security component and cybersecurity do not inhibit the client’s experience with the bank,” Riera said. Considering the importance of the finance function in guardian information, this is very much the CFO’s business these days, rather than just an IT issue.
Maria sees her role as traditional finance, encompassing the well-known areas where CFOs are increasingly expected to play a part – like on digital transformation and cybersecurity, and in helping the wider community and serving as a role model. More and more, having this sense of purpose is essential to those seeking careers in finance – and it will be crucial for finance leaders to demonstrate value in driving transformation and social improvement in promoting the profession to a new generation.
Jeff Thomson: You began your career as a finance officer for Chase and then left to pursue a role with Terrabank, a regional bank servicing the South Florida area. Within one year at Terrabank you were promoted to SVP and then quickly rose through the ranks to become CFO. What motivated you to leave a large, global banking institution like Chase for a role with a regional bank? What challenges did you face? Why was working at Terrabank so advantageous to your career?
Maria Elena Riera: At the time I moved to Terrabank, it was still a very small bank with $65 million in assets, and going through some interesting issues: trying to raise capital, recovering from the housing crash of ’89 and subsequent recession, and trying to implement a vast array of compliance regulations. I thought it was a great learning opportunity. Terrabank, like other small banks, provides managers an opportunity to wear many hats and learn all aspects of banking. I became proficient in operations, IT and compliance and consequently a much more well-rounded banker.
Maria Elena Riera, CFO of Terrabank
Thomson: Digital transformation has been a driving force in banking, with customers demanding convenience and speed in transactions yet also expecting their transactions to be safe and secure and their private information to be protected. As a CFO who has led digital transformation initiatives, how do you balance these two consumer needs? What risk management strategies do you spearhead in regards to cybersecurity and data privacy and protection? How has the CFO role morphed in terms of IT and risk management competencies?
Riera: This is a very important issue for our clients. At Terrabank, our digital transformation team is excellent and is constantly working on finding better ways to deliver our products and services. In smaller banks like ours, the role of the CFO many times includes being the champion for cybersecurity. I think it’s the auditor mentality that gives us that competency because we are good at assessing risk at our institutions. With digital transformation happening at the speed at which it is, cybersecurity must also continue to evolve, not just to keep up with the transformation, but to surpass expectations.
Thomson: You are involved in a number of volunteer activities to help extend educational and financial opportunities to underserved populations in your community. Why is it important for CFOs to commit to social responsibility and giving back to the community? How has your experience as a female Hispanic senior executive influenced your volunteerism and your work with organizations like the AAA Scholarship Fund?
Riera: We are not just bankers or CFOs, we are first human beings, neighbors, parents and friends who interact daily with those in our communities. Therefore, we see the things that are needed in our underserved communities, such as better housing, schools and services. So as bankers, it is important to help improve the lives of those we serve, and the AAA Scholarship Fund is a great example of how banks can do this. It provides K-12 educational scholarships to low-income families seeking economic assistance to send their children to schools that best suit their learning needs. As leaders in our banks, we set the example and that is what I try to do every day; be a role model, especially for young Hispanic women who may be thinking of starting a career in banking.
