Lawrence Herman’s path to becoming a CFO unfolded through a series of experiences that changed his understanding of the finance world, beginning with his initial role at Goldman Sachs. Here, in the crucible of intense market dynamics, Herman cut his teeth on complex financial models, where the rigor of long hours refined his capacity to handle pressure and complexity—a foundational skill for any leader.
Read MoreFollowing his stint at Goldman Sachs, Herman transitioned to Prudential Securities, diving into the intricate world of mergers and acquisitions. This move wasn’t just a change of address: It was a strategic step into a role that demanded a deep understanding of corporate strategies and the foresight to see beyond numbers. It was here that Herman began to interact closely with C-suite executives, gaining insights into decision-making at the highest levels and learning the art of negotiation and strategic thinking.
Herman’s career trajectory continued through various financial institutions, including EY and Morgan Stanley, each role offering him new lenses through which to view the business world. His expertise deepened in areas such as consulting and transaction advisory, where he navigated diverse challenges and crafted solutions that drove business growth and efficiency.
As the CFO at Dwolla, Herman leverages his vast experience to guide the company through the evolving landscape of digital payments. His strategic focus on optimizing operations and integrating innovative technologies like AI reflects a commitment not just to manage finances but also to anticipate and shape future financial landscapes.
Each career phase has taught Herman valuable lessons in resilience, adaptability, and foresight—qualities that define his role as a CFO today.
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CFOTL: Tell us about Dwolla … what does this company do, and what are its offerings today?
Herman: As an A2A—account-to-account—payments company, Dwolla provides solutions to our clients to help them to facilitate cheaper and faster payments. While companies might traditionally use banks to transfer funds, Dwolla does the same thing faster than banks. We can do same-day ACH or real-time payments, and we’re also cheaper than credit card companies. So, we a faster and cheaper solution that companies love to use to facilitate payments.
Read MoreOne of our key differentiators is the customization of our product. We’re a low-code, no-code, point-and-click solution that companies can easily adapt for routing payments. Originating in the Midwest, we are also proud to be providing excellent customer service, which is something that you don’t always get when you deal with a larger bank. We’re really an exciting place to work.
Our priority going forward is to focus on cash flow optimization in order to extend our runway by growing revenues, controlling costs, and managing cash flow through A/P and A/R management. Our second focus will be on forecasting accuracy. We’ve been very good at this (within 3%), but as we offer new products, we’ll have to learn more about what the proper assumptions will need to be to get rigorous revenue forecasting. Our third priority will be automation and the optimization of people and processes. This could mean looking at new systems, as well as implementing AI. We just need to think hard about how to not have so many manual processes. jb
“Beyond providing transparency and insight into the numbers, the CFO is the key member of the management team who is often able the provide a compromise solution that balances priorities cross-departmentally while driving forward the long-term sustainability and success of an enterprise. Being a good listener and hearing all parties’ points of view and concerns is the first key to building consensus and driving forward progress. Balancing this with a calm demeanor, you know where everyone stands and can see the path forward as it manifests itself clearly. Also, every problem has a solution. It may not be fun or popular, but perseverance, diligence, and patience are sometimes what are required to see a company to and through an emerging crisis.” –Lawrence Herman, CFO, Dwolla
Dwolla | www.dwolla.com | Des Moines, IA