Build, Buy or Partner? CFOs Write Their Own Transformation Playbook

Turning cost centers into growth engines is the name of the game for today’s CFOs.

The financial landscape is changing rapidly. Traditional payment processes, characterized by manual workflows and delayed reconciliations, no longer align with the demands of an increasingly digitized and globalized business ecosystem. Real-time data is becoming a critical driver for decision-making, and businesses are under immense pressure to reduce costs while enhancing cash flow visibility.

For CFOs, these challenges have intensified as the role evolves into that of a strategic advisor. Finance chiefs are no longer just gatekeepers of budgets; they’re increasingly now orchestrators of digital transformation, tasked with delivering systems that align with broader business goals.

As enterprise B2B transactions increasingly demand digitized, real-time data, businesses are under pressure to adapt, and CFOs find themselves at a crossroad: should they build an in-house solution, buy a ready-made one, or find the right partner?

Each approach comes with distinct advantages and challenges, and the choice can often hinge on a company’s size, resources and long-term objectives.

Read more: Silo Busting: Why Businesses Must Fix the Past to Embrace the Future

The Evolving Role of CFOs

PYMNTS Intelligence in the 2024 Certainty Project’s “How the C-Suite Fights Uncertainty With New Workflows and Analytics Tools” found that by balancing the addition of new and more streamlined processes and bringing in external partners, high-uncertainty firms were able to improve their resilience.

One of the most effective ways CFOs are reshaping cost centers is by leveraging technology. Automation, artificial intelligence (AI) and cloud-based platforms are transforming manual, resource-intensive processes. But the path to modernization is not a one-size-fits-all journey, and comes with the threefold choice of building custom solutions in-house, purchasing off-the-shelf platforms or partnering with external providers.

For companies with robust IT resources and specialized needs, building an in-house solution can provide unparalleled customization and control. In-house development enables CFOs to design systems tailored precisely to their unique workflows, ensuring smooth integration with existing financial tools and processes.

However, this approach requires significant upfront investment — not just financially but also in time and talent. At the same time, it demands a long-term commitment to maintenance and upgrades, which can strain IT departments.

Read more: Enterprise AI Emerges as Force in Business Process Automation

Purchase or Partner? 

For CFOs aiming to implement rapid changes without the overhead of development, buying can be an attractive option. Yet, the trade-off is a potential lack of customization. Businesses may need to adjust their workflows to fit the software’s capabilities, which can create friction during implementation.

The partner model, where businesses collaborate with FinTechs or specialized service providers, offers a hybrid solution. By leveraging external expertise, CFOs can access needed technology while retaining some degree of customization. Partnerships also enable businesses to share the burden of innovation, reducing risk and accelerating deployment.

As businesses grapple with the “Buy, build or partner?” dilemma, many are recognizing that partnership is the best path forward to stay competitive, Boost Payment Solutions Chief Revenue Officer Seth Goodman wrote in a new PYMNTS eBook, “The New Value Equation: 11 Financial Services Leaders Share Their Vision for 2025.”

Still, success depends on selecting a partner whose goals and capabilities align with your own firm’s strategic vision.

“Automate, automate, automate,” Lorenzo Soriano de Teresa, senior vice president, merchant services at American Express, told PYMNTS in an interview posted Aug. 27. “The right automation solution, or the right partner, can help businesses move past their current payments concerns to see tangible benefits.”

PYMNTS’ fourth-quarter 2024 eBook, “Moving From ‘No, Because …’ to ‘Yes, And …,’” explores two transformative questions for executives: “How can we move from a ‘no, because …’ mindset to a ‘yes, and …’ mindset?” and “How often are we asking, ‘What if?’” These questions set the stage for industry leaders to share how they are fostering innovation, breaking down silos and reimagining possibilities.

Regardless of the chosen approach, CFOs are uniquely positioned to drive alignment between financial goals and technology strategies. Their deep understanding of cash flow dynamics and operational costs helps to make them invaluable in evaluating the ROI (return on investment) of potential solutions.

By aligning the adoption of new payment methods with broader business objectives, companies can ensure that the change delivers tangible benefits and supports long-term growth. For example, PYMNTS Intelligence has found that nearly three in four firms (73%) say that AP automation improves their cash flow.

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