The transformative power of financial literacy is reshaping the way non-finance professionals contribute to organizational success.  Characterised by a deep understanding of financial statements, key ratios, and performance metrics, financial literacy represents the next stage in the evolution of leadership and decision-making. 

Many non-finance professionals are keen to develop these skills to enhance their value and impact. Yet, despite the excitement and opportunities, there are still some barriers on the path to achieving financial literacy. RSM's experts discuss the driving forces behind this shift and the challenges that lie ahead.


The driving factors for achieving financial literacy


According to Rakesh Pardasani, Partner at RSM, "Approximately 68% of non-finance professionals are actively working on developing their financial skills, while the rest are using intuition or are still in the planning stage." 

As with any professional, the minimum requirement to stay relevant is keeping pace with expectations, and advancement comes from exceeding those requirements. Many non-finance professionals are feeling the pressure to make the shift in order to improve their decision-making capabilities.


The benefits do not stop there; Pardasani continues, "Financial literacy will also help non-finance professionals meet evolving organizational demands for collaboration and also combat information overload. Moreover, it helps non-finance professionals stay competitive by fostering data-driven decision-making and strategic thinking, essential amid economic uncertainties and market shifts." 

In addition to this, financial literacy brings with it a slew of other benefits. As Pardasani says, "It provides great opportunities in strengthening leadership, identifying new opportunities; the development of responsive strategies; the need for further increases in efficiency; overcoming the challenges of complexity; and, of course, the ability to contribute to organizational success. 

In addition to market pulls, new resources such as training programs and online courses are creating the appropriate foundations for non-finance professionals to act more proactively, efficiently, and responsively in their roles."

 

The learning journey proves challenging


With financial literacy being instrumental in ushering in the next era for leadership, how are non-finance professionals addressing the need to enhance their financial skills to support this shift? In short, not so easily.


"The journey to financial literacy", according to Baasab B. Deyb, FCA, Partner at RSM, "takes place in several stages: The acquisition of foundational knowledge, the development of analytical skills, the integration of financial insights into decision-making, the establishment of a finance mindset, and finally the creation of a culture of financial literacy throughout the organization." 

The nebulous process for a full-scale leadership transformation is a massive undertaking with a sizable commitment of time and resources that many non-finance professionals may not feel the need to make. "The challenge of overcoming intimidation remains a challenge", says Deyb, "With many non-finance professionals needing to shift from avoidance to engagement with financial information. This requires a substantial amount of time and resources for seamless implementation."

In addition to the challenges, Deyb continues, "Concerns around jargon and the complexity of financial concepts remain of utmost importance too as financial literacy is pursued. Even once this has taken place, the work is not done, as non-finance professionals also need to effectively apply their new skills to real-world scenarios, which has also proven a significant hurdle."

 

The Takeaway


Financial literacy promises a more informed, engaged era for non-finance professionals, an era that could redefine leadership and provide significant growth opportunities. However, in order to foster an effective journey to financial literacy, the need for accessible learning, supportive resources, and a commitment to application are universal.


By embracing financial education and learning from each other's experiences, non-finance professionals can collectively navigate the path to financial literacy and usher in a new era of financially-informed leadership.


For more information on financial literacy or how RSM can help your career, please visit our Webpage https://www.rsm.global/uae