Nedbank CFO Mike Davis explains the new playbook for CFOs

After more than three decades with the organisation, Mike Davis has seen the CFO role evolve alongside the banking sector, rapid technological shifts, and the growing strategic importance of data. Today, he describes the position as one that reaches deeply into technology, client engagement, risk management, operational efficiency and, increasingly, value creation.

Mike joined Nedbank in 1994 and has held several key positions, including leading balance sheet management, before stepping into the role of group CFO in 2020. His long tenure has provided him with a front-row view of how Nedbank has transformed, integrating legacy institutions like NBS and BoE into the modern banking group it is today.

That history has also shaped his understanding of what a modern finance function must deliver.

According to Mike, the CFO role was once narrowly focused on measuring financial performance against a budget or plan and maintaining discipline around an organisation’s expense base. While those core responsibilities remain essential, the scope of the role has expanded considerably.

“If you look at how the role has evolved, there is for example now a very strong and direct involvement between the finance director and the CIO,” he says.

The changing nature of the CFO

Mike served as co-chair and executive sponsor of Nedbank’s Managed Evolution: Core Banking Modernisation programme, an ambitious multi-year initiative focused on replacing or refactoring core elements of the bank’s technology stack.

The experience gave him hands-on exposure to technology infrastructure and complex architecture, areas that traditionally sat well outside a finance chief’s portfolio.

“The finance director has definitely migrated into the tech space through initiatives like core banking modernisation, process automation, and artificial intelligence,” he notes.

Technology, he explains, now has direct implications across the entire enterprise, from client-facing applications to back-office processes that ultimately carry a financial consequence. The modern CFO must look beyond historical reporting to understand how technology drives operational efficiency, revenue growth, and smarter decision-making.

This evolution has paved the way for the concept of the CFO as a ‘Chief Value Officer’.

“It’s about leveraging our planning, budgeting, and forecasting processes to drive financial excellence and actively extract value,” Mike says.

In practice, that means scrutinising whether every rand spent generates an appropriate return, holding business units accountable for impairments and expenses, and proactively uncovering new revenue opportunities.

“It’s a major focus on utilising our role, our processes, and the insights we have access to in order to extract maximum value,” he adds.

However, value creation must also be communicated clearly to external stakeholders. For Mike, an effective CFO must bring these operational and technological elements together with strategic execution into a compelling narrative for the market.

“It’s about being able to go on the road and present a coherent equity story to investors,” he says.

AI needs discipline, not hype

Artificial intelligence is another frontier reshaping the finance function, though Mike remains pragmatic about the industry buzz surrounding the technology.

“We have to be very careful when people refer to AI, as there is quite a bit of buzz at the moment,” he cautions.

He points out that many initiatives currently labelled as “AI” are simply foundational process automation, workflow redesign, or basic system upgrades.

That is not to say AI does not have an extremely important role to play at Nedbank. Mike highlights  though that organisations need to maintain strict discipline regarding where and how it is deployed.

To achieve this, Nedbank is scaling its AI initiatives with oversight from the CIO, grouping implementation into high-impact business domains: focused broadly on revenue growth, operational efficiency, fraud prevention and risk management.

In credit risk, for instance, AI can streamline onboarding by pre-populating client data and identifying potential credit risks early. In fraud detection, it offers powerful real-time pattern recognition. On the client side, intelligent algorithms integrated into banking platforms can surface tailored opportunities, such as offering homeowners' cover following a home loan approval or suggesting complementary insurance for a vehicle finance application.

For Mike, however, the primary question is not whether AI ‘can’ be deployed, but whether it generates measurable return on investment.

“When it comes to AI, there’s got to be a tight rein on spending. The CFO plays a crucial role in guiding AI investment toward clear opportunities that deliver efficiency gains, revenue growth, or enhanced risk management,” he says.

Finance is becoming data-driven

Technological integration is also altering the skills profile required within the finance department.

While Mike remains a strong advocate for a solid accounting foundation, particularly the chartered accountant (CA) qualification, he notes that traditional financial skills are no longer sufficient on their own. Professionals still need to understand core accounting standards and rules, construct budgets and plans, and hold business units accountable, but the surrounding skill set has become much broader.

“We have brought a lot of quantitative skill sets into the CFO domain,” he says. “Statisticians, quantitative analysts, and data scientists are increasingly part of the wider finance ecosystem as we look to unlock deeper insights from our data.”

Reflecting on how the function should be structured today, Mike notes: “If I were to build the finance function from scratch, it would look very much like where we’ve landed: a foundation in finance and auditing, complemented by quantitative specialists and data scientists.”

To support this shift, Nedbank continues to upgrade its system infrastructure, currently migrating to the latest version SAP, while exploring finance-focused AI applications with a disciplined approach.

At the same time, Mike emphasises the importance of fostering collaboration across the group. Nedbank operates a federal model, where individual business clusters maintain their own dedicated finance teams with dotted-line reporting to group finance. He believes the strength of this model lies in strong peer relationships and cross-functional alignment.

“When new developments or shared costs arise, there is a strong collaborative relationship across business units to ensure we take joint responsibility and deliver solutions that serve Nedbank as a whole.”

People still matter in a digital bank

Despite the rapid adoption of automation and AI, Mike does not necessarily view technology as a direct replacement for human talent. Instead, he expects it to elevate how teams work, enabling finance professionals who embrace digital tools to become significantly more efficient.

“For individuals who embed AI into their daily workflows, it results in better outcomes for both the employee and the organisation,” he says.

His message to finance teams is clear: continuous adaptation is essential.

“If someone chooses not to embrace AI, they risk becoming obsolete compared to peers who actively embed these tools into their roles.”

Simultaneously, Mike acknowledges that digital expansion introduces heightened operational risks, most notably in cybersecurity. As banking platforms become increasingly mobile and client interactions move online, protecting digital architecture remains a top strategic priority.

“With digital convenience comes the need for heightened levels of cybersecurity. We must continuously evolve and strengthen our controls to ensure we have the appropriate belts and braces in place,” he concludes.