Future of Finance with Salil Ep01 - In conversation with Vimal Venu, Founding Partner, Vimal Venu&Co

Summary

In this insightful interview, Wimmel Wenu, a seasoned finance professional with over 28 years of experience, shares his journey and valuable advice for aspiring finance leaders. He highlights the importance of continuous learning, overcoming negativity in professional courses, and staying focused on career goals. Discussing the future of finance, Wimmel explores the impact of AI, blockchain, digital payments, and cybersecurity on the industry. He also emphasizes the growing significance of ESG factors and sustainability in financial decision-making. Overall, his insights offer a roadmap for navigating the evolving finance landscape and embracing innovation for long-term success.

Takeaways

• 😀 The importance of continuous learning in finance: Professionals should never stop learning after obtaining their qualifications, as the finance field constantly evolves.
• 😀 Finance professionals should focus on achieving specific goals, particularly when pursuing difficult professional qualifications like Chartered Accountancy, without being discouraged by negativity.
• 😀 AI is transforming finance by automating tasks, which can increase productivity, but also poses challenges and risks that require professional guidance to navigate effectively.
• 😀 Blockchain technology is revolutionizing finance, creating more integrated systems between businesses and government departments while improving tax compliance, but it requires entrepreneurs to stay informed.
• 😀 Digital payments are booming, and while they offer advantages like better tracking, cryptocurrencies pose significant risks such as untracked transactions used for illegal activities.
• 😀 Cybersecurity presents both a threat and an opportunity, with finance professionals specializing in this area being in high demand to protect against cybercrime, particularly in cryptocurrency transactions.
• 😀 Businesses can use AI tools to reduce manpower and increase efficiency, but they must carefully select and customize AI solutions to ensure they are suitable for their specific needs.
• 😀 While AI may lead to some job displacement, it will also create new opportunities, especially for professionals developing and deploying AI solutions.
• 😀 Data security is crucial in finance, and using authentic software, collaborating with cybersecurity experts, and adopting secure cloud-based systems can help mitigate risks.
• 😀 ESG (Environmental, Social, Governance) factors will increasingly influence financial decisions, and firms should aim to align with these standards to boost efficiency and brand value.

Q & A

What inspired Wimmel Wenu to pursue a career in finance?

Wimmel was inspired to pursue finance after a career guidance session during his 12th grade in Kottayam. Initially aspiring to become an engineer, this session shifted his focus to Chartered Accountancy, which he decided to pursue and eventually became a Chartered Accountant at the age of 21.

What key decisions does Wimmel believe shaped his career trajectory?

Wimmel emphasizes the importance of choosing a professional course like Chartered Accountancy early on, despite the negativity often associated with its difficulty. He advises aspiring finance professionals to maintain a focused goal and a structured plan to achieve it.

What is Wimmel’s view on the future of finance with advancements in AI, blockchain, and digital payments?

Wimmel sees AI as a game changer that will streamline many finance processes, reducing the workload for finance professionals. Blockchain technology is expected to integrate business systems with government departments, while digital payments have already significantly disrupted traditional financial transactions.

What are the risks and opportunities associated with the increasing use of digital payments?

The major opportunity with digital payments lies in the enhanced tracking of transactions by governments and financial institutions. However, Wimmel points out the risks of untracked cryptocurrency transactions being used for illicit activities, suggesting a need for stronger cybersecurity and monitoring tools.

How does Wimmel see AI impacting finance professionals and businesses in the coming years?

Wimmel predicts that AI will reduce the effort of finance professionals by automating tasks. It will also reduce manpower requirements for businesses, improving overall efficiency and profitability, though customization of AI tools for specific needs is crucial.

Will AI lead to job losses, and how does Wimmel respond to this concern?

While Wimmel acknowledges that AI might lead to some job losses, he believes it will also create new employment opportunities in areas like AI tool development and deployment, cybersecurity, and new professional services.

What are some strategies for managing data security and cybersecurity challenges in the digital finance world?

Wimmel recommends using authentic software with built-in cybersecurity features, working with cybersecurity professionals, and implementing backup systems. He also suggests using cloud services with strong security systems to mitigate the risks of cyber threats.

How does Wimmel view the cost of cybersecurity for businesses?

While investing in original software and cybersecurity tools involves costs, Wimmel argues that these expenses are justified when considering the risks of cyber threats. He believes that such investments lead to long-term benefits, including enhanced productivity and data protection.

How important are sustainability and ESG factors in future financial decision-making?

Wimmel believes that sustainability and ESG (Environmental, Social, and Governance) factors will become increasingly important for businesses. Compliance with ESG standards will enhance a business's brand value, and the rise of ESG audits will make these factors crucial in decision-making.

What advice does Wimmel offer to young professionals looking to build a successful career in finance?

Wimmel advises young finance professionals to adopt a mindset of continuous learning, explore untapped areas like forensic investigations, ESG audits, and insolvency, and understand the dynamics of business operations. He stresses the importance of innovation and internal control to improve existing systems and processes.