From Stone Age to Digital Age: Transforming CRE Finance for Success

Macroeconomic pressures and a historical lack of investment in technology¹ have squeezed developer fees and margins and according to Deloitte’s CFO Survey, 55% of UK real estate leaders acknowledge that they are still reliant on legacy technology². The UK has made real strides in recent years, the UK were amongst global leaders identifying that they are making efforts to modernise their digital infrastructures. The UK ranked second globally at 43%, trailing only to respondents from France where 44% said they are prioritising digital transformation. To continue to thrive, real estate organisations must embrace digital transformation, particularly within their finance functions. This article explores the challenges to implementing finance technology as well as key recommendations for tackling these.

Outdated Systems, Outsized Risks

Gone are the days when finance departments were solely responsible for accounts payable, accounts receivable, and invoicing. Today, CFOs see finance as a strategic partner, providing data-driven insights that inform critical business decisions³. However, outdated manual processes – such as rent collection and manual data entry, and legacy systems – like storing data in excel or on paper, hinder finance teams from reaching their full potential by creating a notable drain on time and resource.

Beyond Spreadsheets: Unlocking Value Through Finance Transformation

The pressure is mounting on finance departments to streamline operations and demonstrate their value. Throwing additional manpower at the problem is no longer a sustainable solution. However, prioritising attracting top talent is paramount. Today’s candidates seek technologically advanced and efficient work environments to feel like they can succeed in the workplace⁴. 

Manual processes are costly in terms of time and resource, they impede overall enterprise transformation efforts. Finance departments which lack digital maturity hinders progress in other areas like HR and IT.

Rethinking CRE Finance: Challenges Demand a New Approach

• Data silos: Outdated infrastructure leads to fragmented data, limiting finance's ability to deliver holistic insights such as real-time financial dashboards and local market analysis which combines internal and external data (e.g. demographics and transport data) sources to help inform data-based decision making.
• Evolving operational models: The skills, location, and structure of finance teams are changing, necessitating agile and scalable technology solutions. This matters as technology can support long-term success.
• Inefficient Manual Processes: Relying on manual tasks drains valuable time and resources that could be otherwise spent on strategic initiatives. Embracing automation is essential not only to streamline tedious processes but also to improve accuracy, boost overall efficiency, and strengthen business continuity. In today's interconnected world, technology is critical to ensure that finance functions can operate seamlessly even in the face of disruptions, such as cyberattacks. The ultimate aim is to enable an organisation to take a predictive view of its finances and wider associated trends.

But how do you tackle these challenges, where to begin?

Don't Just Modernize, Transform: A New Vision for Finance in CRE

1. Assess your current state: Conduct a comprehensive review of your finance function's people, processes, and technology. Identify areas ripe for improvement, such as manual processes, technology integration, and team skills.
2. Define your vision: Envision the future of your finance function. Should it be a strategic business partner or remain solely transactional? Such as leveraging AI to provide predictive analytics and utilising cloud-based platforms that automate data collation which can provide real-time insights into portfolio performance. Understanding the possibilities of modern finance technologies is crucial. By embracing these possibilities, finance teams can move beyond tedious manual tasks and become strategic advisors, offering data-driven insights that drive profitability, mitigate risk, and fuel growth across the entire organization.
3. Bridge the gap: Identify the discrepancies between your current state and desired future, you can use this to work backwards to help identify the path you should take. Prioritise areas that require immediate attention to achieve your transformation goals.
4. Develop an actionable plan: Create a roadmap for your finance transformation, including achieving the necessary digital maturity levels for sustained growth. Choosing the right technology partner is crucial to the success of technology initiatives.

Building Your A-Team: Assembling the Right Expertise for Finance Success

Successful technology transformation in CRE finance requires more than just choosing the right solutions—it demands building the right team, both internally and externally. Selecting a technology partner who understands your strategic goals, provides guidance beyond immediate needs, and aligns with your overall business infrastructure is essential. However, equally crucial is cultivating a culture of change within your organisation. This means equipping your team with the skills, resources, and support they need to confidently embrace new technologies and adapt to evolving ways of working.

Envisioning Success: What's Next?

Technology empowers real estate organisations to build a future-ready finance function. Here’s a glimpse of what’s possible:

• Predictive Forecasting: Leverage data analytics and AI to go beyond historical reporting. Forecast future financial performance, identify emerging trends, and gain proactive insights to guide strategic decision-making across your organization.
• Data-Driven Insights: Break down data silos to enable seamless data flow. Imagine having a 360-degree view of your operations, empowering you to make more informed decisions about investments, asset management, and tenant engagement.
• Integrated Platforms: Connect finance seamlessly with other critical business functions like HR, IT, and property management. These integrated platforms streamline workflows, improve collaboration, and provide a unified source of truth for enhanced efficiency and agility.

The message is clear: embracing digital transformation in finance is no longer optional—it's a business imperative. Those who hesitate risk falling behind, while those who invest in the right technologies for them and cultivate a culture of innovation will be best positioned to thrive in the rapidly evolving market. The future of real estate is being shaped by data and technology. The question is, will your firm drive innovation or get left behind?

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References

1. CenterCheck | Why Real Estate Has Been So Slow to Embrace Technology—and What’s Changing

2. 2025 commercial real estate outlook | Deloitte Insights

3. Bridging the Gap: How Emerging Technology Connects Real Estate Investors with End-Users | Deloitte UK

4. 2023 Yooz Survey: Technology in the Workplace