These knowledge and skills are in high demand in banks, insurance companies, stock broking firms and other industries in the finance sector. In particular, by devolving or decentralizing transactional functions, the finance ministry may lose control over spending unless strong safeguards are put in place, and fiscal risks may be incurred. An efficient and effective finance ministry needs to respond nimbly to such demands by moving the necessary resources and skills into the areas most needed.
The paper observes that in the aftermath of the global financial crisis many countries have recentralized some of their financial controls in order to strengthen fiscal discipline, a partial reversal of the trend observed since the 1980s. Organizational restructuring of finance ministries is most likely to occur during periods of economic or financial crisis (New Zealand in the 1970s, Turkey in 2001), dramatic political change (U.K. in the 1980s under Prime Minster Thatcher, Uganda in the early 1990s), or constitutional change (Chile in the 1980s, South Africa in the mid-1990s).
After the global financial crisis, for example, it was imperative for some countries to build up their capability to manage failing financial institutions or to take them into public ownership. This approach requires that appropriate controls are in place within the ministry of finance to ensure that the agencies and line ministries have the capability to carry out devolved functions efficiently and effectively.
The ministry of finance will need to monitor the line ministries’ operations and performance, and take action where necessary to deal with unforeseen developments. PFM granddaddy Intuit has shelled out more than a half-billion dollars to acquire Check ( $360 million ) and Mint ( $170 million ), and it’s eager to boast about its mobile Turbo Tax app called SnapTax. Deciding additional finance : Sometimes, a company needs additional finance for modernization, expansion, diversification, etc.
And the market has responded with a broad range of mobile-first personal finance apps that feature aggregated accounts, financial alerts, cash-flow management, credit health, debt management, reward oversight, motivational coaching, payment decision-making, scam protection, shopping, taxes, wealth management – and yes, even budgeting. Last week, robo-adviser Betterment scored another $60 million in venture capital, giving it a valuation of up to $500 million In January, Capital One snatched up Level Money’s budget app. That stash could be a down payment for a loan to buy a car or a house, or it could be the start of an investment program.