By Dr. Palanivel Rathinasabapathi Velmurugan is a Lecturer at Berlin School of Business and Innovation (BSBI) in Human Resource Management & Finance Stream
Information technology is becoming an integral part of our daily routines because of digital transformation. All businesses must embrace digital transformation, no matter how large or small. If you fail to incorporate digital transformation into your business, you will fail. As you use digital transformation in your business, you will benefit from improved efficiency, better business agility, and a better understanding of how to deliver value to customers, employees, and stakeholders.
In recent years, the financial sector has experienced a variety of digital transformation trends, which have several advantages for businesses and society at large. Digital transformation in finance is the method of using digital technologies to improve financial services with the objective of making them more efficient, effective, and easy to access anywhere in the world. In the context of finance transformation, it is possible to restructure and implement the finance working model, bookkeeping and finance activities, financial capabilities, and re-platforming of finance and accounting system software. With the advent of digital transformation in finance, various FinTech companies now offer a wide range of digital services to their customers.
Over the last few years, a vast number of banking customers have shifted from traditional banking to mobile banking (Digital Transformation). As a result, customers save time when accessing the bank in person since it is generally less busy, and it is more convenient because they can access online banking anytime, anywhere. Paperless transactions are one of the most significant trends in mobile banking.
Blockchain technology (Digital Transformation) plays a crucial role in this transformation. By introducing blockchain, people will be able to recognize, record, and store assets digitally and will be able to invest their resources and trade in markets better. Through better integration and governance, blockchain can support financial operations more efficiently and effectively. This has resulted in blockchain playing an increasingly significant role in the digital transformation of finance and investments.
Businesses that implement robotic process automation (Digital Transformation) can significantly improve their ability to digitize finance functions. Automating repetitive tasks reduces an employee’s workload and frees them up to emphasize value-added activities. Additionally, RPA can reduce the likelihood of human error, improving accuracy and compliance. It is expected that RPA will play a more vital role in achieving efficiency and measuring success as organizations continue to digitize their finance functions.
In the world of financial data, artificial intelligence (Digital Transformation) can be useful in identifying gaps and inconsistencies that would otherwise go unnoticed. By using AI, expense reports can be produced accurately and up to date, which is crucial for making informed decisions. The forecasts provided by finance companies are based on past data and current trends, so they can help enterprises foresee future demands and plan appropriately. Using AI-enabled analytics, the digital finance transformation can be supported through improved data quality, truthfulness, and efficiency.
After AI, quantum computing made use of the quantum mechanical phenomenon to tackle a wide variety of computational and algorithmic issues. A financial instrument, such as European call options in the derivatives market, is priced over time using the Black-Scholes-Merton model that uses Brownian motion. A wide range of applications is possible with this technology, including fraud detection, high-frequency trading, payments, and cybersecurity. The use of quantum AI (Digital Transformation) automates the entire crypto trading process to make it easy and profitable for you to invest in crypto. An advanced AI and quantum computing algorithm are integrated into a web-based computer programme. In trading, AI Quantum computing is the first system that combines AI with Quantum Computing.
Increasing accuracy, providing more reliable output, reducing manual intervention, and increasing automation are considered the top business case drivers of the digitalization of finance functions by customers. As mentioned in this article’s introduction, ICT is an integral part of our daily life. In this world, customers and investors will never be able to return to traditional forms of financial trade or services once they have participated in the digital transformation of finance.
