Middle-Market CFOs Optimistic on Tax Reform While Sharpening Focus on Self-Funding Strategies to Promote Growth
December 14 2017 - 8:00AM
Business Wire
Survey underscores changing role of the
middle-market CFO
While progress on tax reform in Washington, D.C. is generating
optimism across many segments of the nation’s business community,
chief financial officers at many middle-market companies are taking
a wait-and-see stance, focusing closely on self-funding programs to
promote growth, according to a new Citizens Commercial Banking
survey.
The bank’s inaugural national survey of 300 CFOs at companies
with annual revenue from $25 million to $2 billion – key creators
of jobs and drivers of U.S. economic activity – found that a
majority of respondents expect continued economic improvement, with
60 percent anticipating tax policy changes that will amplify
company growth. In addition, most survey participants are relying
on self-funding strategies to help implement their companies’
growth strategies. Among the key findings:
- More than 80 percent of those surveyed
said a key objective for 2018 is to continue improving operational
efficiencies;
- 47 percent anticipate their companies’
expansion into new markets;
- 46 percent expect a healthy pipeline of
new company product launches over the next 12 months.
“By and large, the CFOs we surveyed are watching the prospects
for tax reform closely,” said Steve Woods, head of Corporate
Banking for Citizens Commercial Banking. “However, confidence in
the new administration’s ability to enact its pro-business agenda
appears to be mixed, and companies are continuing to focus on
self-funding of growth initiatives.”
Survey respondents said their roles have been changing rapidly –
a trend that is expected to accelerate. In addition to managing
company financials, many middle-market CFOs are now expected to
shape organizational strategies, identify new business
opportunities and expand the use of technology – creating a role
more akin to a “chief growth officer.” In fact, 29 percent said
they spend as much time on strategy as they do on financial and
operational tasks.
Additionally, survey respondents said keeping pace with
technological advances, including electronic payments, real-time
payments and the use of big data, will be their most critical need
over the next three years.
“As the role of the middle-market CFO expands and the
anticipated changes in the business landscape take hold, there will
be growing demand for trusted financial advisors to help these
‘chief growth officers’ in middle-market companies to take
advantage of new opportunities,” said Woods.
Citizens is a trusted strategic and financial advisor,
consistently delivering clear and objective advice. The Citizens
Commercial Banking approach puts clients first by offering great
ideas combined with thorough market knowledge and excellent
execution to help our clients enhance their business and reach
their potential.
For more information, please go to the Citizens Commercial
Banking website. For a copy of this year’s survey, please go to
www.citizenscommercial.com/cfo.
About Citizens Financial Group,
Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and
largest financial institutions, with $151.4 billion in assets as of
September 30, 2017. Headquartered in Providence, Rhode Island,
Citizens offers a broad range of retail and commercial banking
products and services to individuals, small businesses,
middle-market companies, large corporations and institutions.
Citizens helps its customers reach their potential by listening to
them and by understanding their needs in order to offer tailored
advice, ideas and solutions. In Consumer Banking, Citizens provides
an integrated experience that includes mobile and online banking, a
24/7 customer contact center and the convenience of approximately
3,200 ATMs and approximately 1,200 branches in 11 states in the New
England, Mid-Atlantic and Midwest regions. Consumer Banking
products and services include a full range of banking, lending,
savings, wealth management and small business offerings. In
Commercial Banking, Citizens offers corporate, institutional and
not-for-profit clients a full range of wholesale banking products
and services, including lending and deposits, capital markets,
treasury services, foreign exchange and interest rate products and
asset finance. More information is available at
www.citizensbank.com or visit us on Twitter, LinkedIn or
Facebook.
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version on businesswire.com: http://www.businesswire.com/news/home/20171214005114/en/
Citizens Financial Group, Inc.Frank Quaratiello,
617-725-5851frank.quaratiello@citizensbank.com
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