As well as making tough financial decisions, CFOs also have to weigh up the impact of their actions.
In his recent interview with Financial Director, RBS CFO Ewen Stevenson said the decision to close hundreds of branches across the UK reflected a “10% decline year on year in anything that’s physical with anything mobile or digital growing at 10-20% compound”. He added: “You’re going to see this continual shift towards a mobile and digital bank”.
When asked about the social responsibility of the part taxpayer-owned bank he added: “We put community officers into regions we are leaving behind, to enable people to interact as we are acutely conscious of the role that banks play in their local communities.”
But a stinging report from MPs says RBS has failed to appreciate the impact of its decision to close dozens of branches in Scotland.
The Scottish Affairs Committee described the move as a “devastating blow” for communities affected and has called on the bank to halt plans to axe up to 62 branches in Scotland.
This set of actions and their repercussions reveal the need for finance leaders to recognise how their organisations exist in an ecosystem where their decisions can have dramatic results.
Failure to do so can have ongoing consequences.