NEWS

Following FCA’s recent new listings rules aimed at boosting growth and innovation on UK stock markets, many investors are wondering how exactly these rules will achieve the economic growth the UK’s new government has promised.  

Naureen Zahid, Director of Investor Relations at OpenOcean, said: “This is a much-needed shot of adrenaline for the London Stock Exchange. The FCA’s new listing rules could unblock the UK’s tech ecosystem by making public markets more accessible to early-stage companies. For startups, the streamlined eligibility requirements and reduced procedural hurdles mean faster and less costly access to capital, allowing them to scale more rapidly. This is especially beneficial for tech companies that often need substantial upfront investment to innovate and grow. 

 “For VCs, the simplified regime enhances exit opportunities, as the UK market becomes a more viable option for IPOs. This increased liquidity can lead to a more dynamic investment environment, encouraging further investment in early-stage companies. By aligning with international standards, the UK can better compete with markets like the US, potentially reversing the trend of UK startups listing abroad. These changes not only open doors for more companies but also strengthen the overall investment ecosystem, making the UK a more attractive hub for tech innovation.” 

From January 17^th next year, the EU’s Digital Operational Resilience Act (DORA) will come into force, setting new standards to strengthen the IT security of financial entities and ensure European financial sector resilience in the event of severe operational disruptions. 

With just six months to go, the pressure is on for financial services to meet the regulation requirements, or face harsh financial penalties for non-compliance. Preparing for such a significant regulation can be challenging for financial organisations of all sizes.  

Corlytics CEO, John Byrne, shares insight on how firms can prepare ahead of the fast approaching DORA deadline, “First, financial institutions should assess ICT resilience and risks, review third-party services, identify gaps, and create a DORA-compliant implementation plan. Then they should implement cutting-edge tech, establish strong incident reporting, and train staff to enhance security and manage disruptions.

“Financial institutions should implement a comprehensive risk management framework, assign clear roles, include security requirements in third-party contracts, and identify potential threats. Developing realistic risk scenarios helps mitigate ICT-related risks and vulnerabilities. 

DORA offers a strategic opportunity to enhance IT competency and promote key IT leaders. Unlike previous frameworks, DORA harmonises digital resilience requirements across the EU, potentially reducing compliance costs and complexity for multi-country operations. 

IGEL and Microsoft are releasing the following new developments to enhance support for the Windows-powered enterprise: 

• Windows 365 Frontline Support. IGEL OS has added new multi-user support for Windows 365 Cloud PCs. Now task workers such as healthcare workers, shift workers and other frontline staff, can connect their Cloud PCs directly from IGEL OS to Windows 365 Frontline. This simplifies the adoption of Windows 365 Frontline to give shift and part-time workers the flexibility to work productively from anywhere without the constraints of shared physical devices. 

• Enhanced Intune Support. Now, using a new Intune app for IGEL OS, IT administrators can see and manage IGEL-powered devices from within Intune. Using support for Microsoft Entra ID Conditional Access, enterprises using IGEL OS on endpoints managed by Intune can achieve greater policy control and security for a more compliant endpoint estate. 

• Azure Virtual Desktop for Azure Stack HCI Support. IGEL OS’s clients work directly with Azure Virtual Desktop for Azure Stack HCI. IGEL can deliver cost effective VDI access for customers that want the benefits of Azure Virtual Desktop running on-premises using hyper converged infrastructure hardware. 

“IGEL is continuing its ongoing, strategic Microsoft relationship by prioritising the collaborative innovations our joint customers need to accelerate end user productivity while enhancing enterprise security and efficiency,” said Klaus Oestermann, CEO, IGEL. “By deepening our support across the Microsoft portfolio, we are underscoring the value of IGEL in the Windows-driven enterprise and accentuating the value of our combined solution for the future of end user computing.” 

 “IGEL and Microsoft are mutually committed to delivering a seamless and secure user experience for today’s hybrid digital workforce,” said Scott Manchester, Vice President of Product, Azure Virtual Desktop and Windows 365, Microsoft. “IGEL’s support for Windows 365 Frontline, Azure Virtual Desktop for Azure Stack HCI and Microsoft Intune will help us deliver additional value to a broad range of customers in a wide variety of industries.”   

Next DLP (“Next”), experts in insider risk and data protection revealed that nearly three quarters (73%) of security professionals admitted to using SaaS applications that had not been provided by their company’s IT team in the past year. This is despite the fact that they are acutely aware of the risks, with respondents naming data loss (65%), lack of visibility and control (62%) and data breaches (52%) as the top risks of using unauthorised tools. Adding to this, one in ten admitted they were certain their organisation had suffered a data breach or data loss as a result. 

A survey of more than 250 global security professionals, conducted at RSA Conference 2024 and Infosecurity Europe 2024, also revealed that despite having a laissez-faire attitude towards Shadow SaaS, security professionals have taken a more cautious approach to GenAI usage. Half of the respondents highlighted that AI use had been restricted to certain job functions and roles in their organisation, while 16% had banned the technology completely. Adding to this, 46% of organisations have implemented tools and policies to control employees’ use of GenAI. 

“Security professionals are clearly concerned about the security implications of GenAI and are taking a cautious approach,” explains Next DLP’s Chief Security Officer, Chris Denbigh-White. “However, the data protection risks associated with unsanctioned technology are not new. Awareness alone is insufficient without the necessary processes and tools. Organisations need full visibility into the tools employees use and how they use them. Only by understanding data usage can they implement effective policies and educate employees on the associated risks.” 

The research also provided a snapshot of how security professionals view their organisation’s training and overall understanding of the risks of Shadow SaaS: 

• 40% of security professionals do not think employees properly understand the data security risks associated with Shadow SaaS and AI.  
• Yet, they are doing little to combat this risk. Only 37% of security professionals had developed clear policies and consequences for using these tools, with even less (28%) promoting approved alternatives to combat usage. 
• Only half had received guidance and updated policies on Shadow SaaS and AI in the past six months, with one in five admitting to never receiving this.  
• Additionally, nearly one-fifth of security professionals were unaware of whether their company had updated policies or provided training on these risks, indicating a need for further awareness and education.  

​​​​​​​“Clearly, there is a disparity between employee confidence in using these unauthorised tools and the organisation’s ability to defend against the risks,” adds Denbigh-White. “Security teams should evaluate the extent of Shadow SaaS and AI usage, identify frequently used tools, and provide approved alternatives. This will limit potential risks and ensure confidence is deserved, not misplaced.” 

For more information about Shadow SaaS and AI, and the possible defences, visit the Next DLP website. 

The full report titled ‘‘The State of Automation in Finance 2024: How Finance Leaders Use Technology to Drive Productivity and Value” tracks how finance leaders are progressing with their digital transformation and harnessing Accounts Payable and Enterprise Resource Planning (ERP) systems to enhance the productivity of their departments. 

Commenting on the results CEO of Yooz, Laurent Charpentier, said, “After several years of reactive measures, our 2024 annual research confirms that finance decision-makers are now proactively looking to deliver business value.  

The emphasis on improving productivity and obtaining better information to facilitate informed decision-making demonstrates a clear commitment to elevating the strategic role of the finance department within the business.” 

Key highlights specific to the UK from the 2024 SAIF report include:  

1. The top three priorities for UK finance decision-makers in 2024: increasing the use of technology (36%), cash flow optimisation (35%) and reducing overheads (31%).  
2. Will finance departments ever let go of the Excel spreadsheet? A fifth of UK finance decision-makers (19%) admitted to using spreadsheets as the top method to process their Accounts Payable invoices. 
3.  The use of AI in finance is however on the rise! Since 2021, the use of AI by UK finance decision-makers has risen from 13% to 30%.
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Finance departments in the UK, and globally, are dealing with new economic pressures and an unprecedented shift in work models, and the annual SAIF report shows how the role of finance decision-makers is adapting to these changes.  

In fact, this stands out as one of the most notable observations over the past four years. In 2024, finance leaders are embracing these new imperatives, championing long-term corporate vision and fostering added value throughout their organisations. What’s clear is that their role now extends well beyond classic accounting expertise. 

Remarking on the increase in the use of AI in UK finance departments Charpentier concludes, “Organisations leveraging Yooz AP automation have gained unmatched benefits thanks to our existing AI technologies and will be perfectly placed to explore emerging and fast-developing innovations from our AI labs.  

Embracing this technology in finance departments will see productivity soar with nearly instantaneous invoice processing and validation, alongside access to both real-time and historical data. Finance decision-makers who do not shy away from the evolution of AI in their departments will be in a prime position to make informed decisions quickly and add real corporate value.” 

FloQast’s survey, Embracing Financial Transformation: What It Is, Why Organisations Should Want It, and How to Achieve It explores factors of both awareness and understanding around the concept of financial transformation among accounting and finance teams, as well as the steps teams may take to achieve it. Additionally, FloQast has adapted academic frameworks for the accounting industry to further evaluate financial transformation, resulting in two new models that may be adopted by teams everywhere.

Conducted in partnership with the University of Georgia Consumer Analytics Program, the survey includes the perspectives of 385 accounting and finance professionals, including CFOs, controllers, and their teams. FloQast looked for individuals and organisations that varied in tenure, company size, certification status, and IPO status. 

“CFOs and their teams are under immense pressure to transform financially, but we’ve found there’s often a lack of understanding about what exactly transformation means and how to achieve it,” said Mike Whitmire, CEO and co-founder of FloQast, CPA. “It’s a team effort that requires collaboration, awareness, and cohesiveness from all members of the team. But perhaps the biggest catalyst to this transformation comes from accountants themselves, who have the most intimate understanding of the record-to-report landscape and stand to be immensely valuable to CFO-driven transformation initiatives with the right resources.” 

“Disparate workflows that address narrowly defined needs won’t deliver transformation,” said Razzak Jallow, CFO of FloQast. “The CFO’s role in this process is to collaborate with accounting teams to facilitate and add structure to all transformative efforts across the department. Transformation truly happens when the CFO empowers accountants to optimise cohesive financial transformation - not singular efforts they think will drive change.” 

Key insights include:

Accountant familiarity with the idea of financial transformation lags behind the CFO’s familiarity: 

• 96% of CFOs have heard of financial transformation, and 61% are very familiar with it, showcasing the pressure on CFOs to guide their organisations through organisational change. 
• In fact, CFOs are 2.2 times more likely to be aware of financial transformation than accountants. 

CFOs and accountants are feeling the pressure to incorporate financial transformation initiatives into their future company plans: 

• Both CFOs and accountants recognise the importance of financial transformation, with 39% and 42%, respectively, seeing it as a top priority for their organisation. 
• For both groups, just over two-thirds indicated that such an initiative for financial transformation exists for their organisations. 

​​​​​​​Both accountants and CFOs are optimistic about the role of AI in accounting and its potential to benefit the workplace: 

• Both groups believe in AI’s potential: Both believe AI will increase productivity — 37% and 30%, respectively — and is a critical component of financial transformation for both groups (32% and 28%, respectively). 
• Financial transformation initiatives primarily focus on automated processes for both accountants (54%) and CFOs (63%).