Digitalization in Finance Still Nascent, WHU and PwC Survey Shows
WHU and PwC study finds digitalization in finance advancing but incomplete, with CFOs citing budget limits, skills gaps and poor data governance as barriers.
The digitalization in finance remains a priority for many companies, yet the transition is far from complete, according to a new study by the WHU and PwC. The survey of chief financial officers from 207 firms across Germany, Austria and Switzerland finds broad satisfaction with progress but also reveals that most finance departments are only at the outset of their transformation. The results highlight a gap between strategic intent and practical adoption of advanced digital tools.
Survey scope and headline findings
The WHU and PwC study surveyed 207 CFOs across the DACH region to assess the status of digitalization in finance and related capabilities. Respondents report that digital transformation is a top priority, and many express satisfaction with achievements to date. Nevertheless, a closer reading shows that substantive adoption of advanced technologies and formalized strategies remains limited for the majority.
The study’s headline contrasts perceived progress with concrete measures of readiness and deployment, exposing an early-stage transformation rather than widespread digital maturity. That divergence frames the report’s emphasis on strategy, governance and capability-building as immediate priorities.
Strategy gaps and technology uptake
Many companies lack comprehensive digitalization strategies or roadmaps to guide implementation in finance functions. Without clear plans, investments in technology and process redesign remain fragmented and sporadic. The absence of cohesive roadmaps slows adoption of proven tools such as process mining and predictive analytics that could materially improve forecasting and efficiency.
As a result, routine finance tasks often continue to rely on manual processes or legacy ERP workflows that inhibit scalable automation. The study indicates that translating executive intent into prioritized, sequenced projects is a key barrier to accelerating digitalization in finance.
Limited AI use and governance shortfalls
Fewer than half of the surveyed companies use artificial intelligence to generate automated commentary for reporting or controlling tasks. Moreover, roughly one in four firms reported no formal policies on the use of large language models and similar tools, leaving employees uncertain about permissible applications and data handling. This governance gap increases operational and data security risks as AI tools enter daily workflows without clear guardrails.
The researchers warn that unchecked or inconsistent use of AI could expose sensitive financial data and undermine the potential efficiency gains of automation. Establishing concise rules for model selection, allowed data sources and approval workflows is identified as an urgent step.
Budgets and skills outweigh cultural resistance
Respondents consistently identified limited budgets and shortages of technical know‑how as the most significant obstacles to progress in their finance functions. Employee resistance to change was cited less frequently, suggesting that the cultural dimension is not the primary constraint for many organizations. Likewise, poor IT infrastructure and legal obstacles were reported as secondary challenges in comparison to funding and capability gaps.
This finding shifts the emphasis for leadership toward reprioritizing resources and investing in targeted upskilling rather than focusing primarily on change management messaging. Allocating dedicated funding streams and talent development plans emerges as a practical lever for accelerating digitalization in finance.
Data governance and fragmented systems hamper progress
The study highlights a strong correlation between digitalization success and the maturity of data governance and data quality practices. Companies with clearer data ownership, consistent master data and standardized reporting structures are more likely to advance automation and analytics projects. Conversely, complex processes, unclear responsibilities and heterogeneous databases or ERP implementations create significant friction for digital initiatives.
Addressing these structural issues often requires cross-functional coordination and a willingness to simplify or consolidate systems, which can be politically and technically challenging. The report finds that progress in these foundational areas multiplies the effectiveness of subsequent technology investments.
Large enterprises set more ambitious digital targets
Size matters in the pace of digitalization in finance, according to the survey results: very large companies tend to assign higher priority to digital initiatives and express more ambitious expectations for technology use in coming years. These firms are more likely to commit budget and formalize strategies, positioning them ahead in areas such as automation, predictive planning and AI-supported reporting. Smaller and mid-sized companies, by contrast, frequently report resource constraints and more cautious roadmaps.
The authors underscore the role of executive leadership in sustaining momentum, noting that clear mandates from boards and CFOs can shorten decision cycles and secure the cross-departmental cooperation needed for wider adoption.
The WHU and PwC study paints a picture of cautious optimism: digitalization in finance is recognized as strategically important, yet its full potential remains unrealized in many organizations. Closing the gap will require companies to pair ambition with concrete roadmaps, invest in data governance and skills development, and establish robust policies for emerging AI tools to ensure secure, scalable transformation.
