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Subjects: Survey, Economic News/Analysis

U.S. Bank CFO Survey: Corporate Finance Leaders Tighten Belts Amid Uncertainty

U.S. corporate finance leaders have increased focus on cutting costs to prepare their firms for potential economic and geopolitical uncertainty, according to the fourth annual U.S. Bank CFO Insights Report.

The survey of more than 2,000 senior finance leaders nationwide revealed the top two priorities are cutting costs within the finance function and across the entire business. In contrast, driving revenue growth is just the fifth most prevalent priority. Cutting costs within the finance function has nearly doubled as a priority since the U.S. Bank CFO Insights Report began in 2021. Improving risk identification and mitigation also continues to climb in importance, now the third most common top priority.

For specific top risks, finance leaders continue to identify areas like talent shortages and pace of technology changes, but geopolitical tension has jumped six spots from the 10th most cited risk last year. Meanwhile, high inflation was cited less often this year as a top risk (25%) compared to last year (38%), although it remains an elevated risk for some industries, like Telecom and Media (42%).

"The CFO's job has always been a challenge. But today they face higher inflation and interest rates, political uncertainty in the U.S. and abroad, a difficult-to-forecast short-term economy and incredible pressure to make the right technology investments their firms will need to compete," said Stephen Philipson, head of Global Markets and Specialized Finance at U.S. Bank. "This year's survey showcased how finance leaders are working through this set of circumstances by focusing on cost cuts and risk management without neglecting their investment priorities."

Key survey findings:

Economic outlook vs. business prospects

Top risks

Artificial Intelligence (AI) and areas for efficiencies

View the full 2024 U.S. Bank CFO Insights Report.

About the research

The results of this research are based on a survey conducted in January and February 2024 of 2,030 senior finance leaders who work in U.S. businesses across multiple sectors. Half of the survey participants are company, regional or divisional CFOs. The remainder are senior managers within the finance function. Every surveyed finance leader works for a business that generates at least $100 million in annual revenue, and 30% work for a business that generates at least $2 billion.

About U.S. Bancorp

U.S. Bancorp, with more than 70,000 employees and $684 billion in assets as of March 31, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World's Most Ethical Companies and Fortune's most admired superregional bank. Learn more at usbank.com/about.

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