SMEs enthusiastic about crypto, Metaverse

Small and midsized entities show rising enthusiasm for advances in the digital economy like cryptocurrency and the nascent Metaverse, part of an overall perceived need for a new type of tech-savvy finance leader, according to a recent report from Sage.

Though only 17% of finance leaders report their organization currently accepts cryptocurrency transactions, this proportion is expected to grow, as 33% said they plan to accept such transactions within the next 12 months. Many see long-term potential for these digital assets, as 52% said they will prove "extremely" valuable as a payment solution over the long term. The confidence displayed could be the product of people's personal experiences, as 44% of finance leaders report having used cryptocurrency for personal transactions, 48% are currently invested in cryptocurrencies, and 49% have plans to do so in the future.

The biggest reported challenges to wider crypto adoption were internal environmental, social and governance policies (22%), tied with finding the right talent to implement the change (22%). Previous research from crypto platform Gemini (see full story) found that more general hurdles to getting more into cryptocurrency include the fact that many don't really understand how it works in the first place, or how it will affect their tax situations.

The Sage Intacct report also found that finance leaders are interested in the Metaverse, which generally refers to the ecosystem of digital environments commonly accessed through virtual and augmented reality. The study found that 36% of finance leaders report already having a presence in the Metaverse, while 52% plan to build one over the next year. The scope of their participation extends further than simply existing in this space: 54% said they are planning learning programs in the Metaverse and 42% said they are purchasing virtual real estate via non-fungible tokens.

The findings are part and parcel of the larger perception that today's CFO needs to be more digitally attuned, with 85% saying that changes in the global economy demand a new breed of finance leader.

“I’m passionate about elevating the work of humans," said Sage chief technology officer Aaron Harris in a statement. "By this, I mean letting the machines take the admin burden, spot anomalies, and automate repetitive tasks — freeing up humans to focus on what they do best. The Metaverse is a great example of the convergence of our digital and physical lives — integrating human touchpoints through digital means to knock down barriers. And while it’s still early days for most, the Metaverse is normalizing some emerging technologies like cryptocurrencies for SMBs which, in turn, removes friction and delivers insights. Yet despite the appetite for new technologies and business models, the availability of skills remains an industry-wide issue that, as a community, we need to solve. Offering more than the traditional finance roles, I hope this will help our profession appeal to an increasingly wider demographic."

The findings were based on 1,900 responses from finance leaders in the health care, nonprofit, financial services, professional services, hospitality, technology and retail industries at organizations with fewer than 1,000 people and less than $50 million in revenue. The survey was international, encompassing professionals in the U.S., the U.K., Australia, South Africa and Canada.