Digital Transformation in Finance and its Implications for Economic Development

Borge Langsted

Department of Accounting, University of Copenhagen, Copenhagen, Denmark

*Corresponding Author:

Borge Langsted
Department of Accounting, University of Copenhagen, Copenhagen, Denmark
E-mail: borgelangsted@acc.dk

Received date: 22-02-2023, Manuscript No. JIBC-23-93388; Editor assigned date: 24-02-2023, Pre QC No. JIBC-23-93388 (PQ); Reviewed date: 10-03-2023, QC No. JIBC-23-93388; Revision date: 17-03-2023, Manuscript No: JIBC-23-93388 (R); Published date: 27-03-2023

Visit for more related articles at Journal of Internet Banking and Commerce

Description

Finance is the act of raising funds or capital for any form of spending. It is the act of directing different funds to those economic organisations in the form of credit, loans, or invested capital. Business finance, personal finance, and public finance are three major categories in finance with defined specialised organizations, methods, standards, and goals [1-3]. A complex system of financial markets and institutions exists in developed nations to satisfy the demands of these areas both jointly and independently.

Consumers, businesses, and governments frequently lack the funds needed to make purchases, pay bills, or finish other transactions, and must borrow or sell equity to function. Savers and investors, on the other hand, accumulate funds that, if put to good use, can generate interest or dividends. These savings can be in the shape of savings deposits, savings and loan shares, or pension and insurance claims, and they can be leased out at a profit or invested in equity shares to generate investment capital [4-6]. Finance is the process of channelling these funds in the form of credit, loans, or invested money to those economic organisations that most need or can use them.

Personal finance is mainly concerned with family budgets, personal savings investments, and consumer credit utilisation. Mortgages are frequently obtained from commercial banks and savings and loan organisations in order to purchase a house, whereas banks and finance companies can provide financing for the purchase of consumer durable items [7]. (automobiles and appliances). Banks and businesses use charge accounts and credit cards to provide customers with short-term credit. If individuals need to consolidate their debts or borrow money in an emergency, they can get small cash loans from banks, credit unions, or finance organisations.

Finance is the management, formation, and research of money, banking, credit, investments, assets, and liabilities that comprise financial institutions, as well as the study of those financial instruments. The three types of finance are public finance, corporate finance, and personal money. Finance, like corporate finance, is concerned with the management of a company's assets, obligations, revenues, and debt. Businesses can obtain funds through a number of methods, including equity investments and credit arrangements. A corporation may obtain a bank loan or establish a line of credit. Acquiring and managing debt successfully can assist a company in growing and becoming more profitable [8].

Personal finance encompasses all financial decisions and actions made by an individual or family, such as budgeting, insurance, mortgage planning, savings, and retirement planning. In Western nations, public, or government, financing has increased dramatically. As a consequence, taxation, government spending, and the structure of a country's public debt have a much greater impact on its economy than they did previously. Government expenditures are funded through a variety of mechanisms, the most significant is taxes [9]. Government budgets, on the other hand, rarely balance, and governments must borrow to pay their deficits, resulting in public debt.

The majority of public debt consists of marketable securities released by governments that are obligated to make specific payments to their holders at specified times [10]. Economics is a social science that studies the production, consumption, and distribution of commodities and services in order to gain a better understanding of how economies function and how people interact. While dubbed a "social science" and frequently regarded as one of the liberal arts, modern economics is frequently quite quantitative and highly math oriented in practise. The two main branches of economics are macroeconomics and microeconomics.

References

1. Agrawal JG., Chourasia V., Mittra A., State-of-the-art in stock prediction techniques,” Int. J Adv Res Electr, 2013 2(4): 1360-6

   [Crossref][Google Scholar]

2. Aoki K, Downes EJ., An analysis of young people’s use of and attitudes toward cell phones. Telemat Inform, 2003 20:349-364.

   [Crossref] [Google Scholar]

3. Becker J, Knackstedt R, Poppelbu J., Developing Maturity Models for IT Management. Bus Inf Syst Eng, 2009 1:213-222.

   [Google Scholar]

4. De Bruin T, Freeze R, Kaulkarni U, Rosemann M., Understanding the Main Phases of Developing a Maturity Assessment Model. Proceedings of the 16th Australasian Conference on Information Systems (ACIS), 2005.

   [Google Scholar]

5. Hecht-Nielsen R., Theory of the backpropagation neural network,” Neural Netw, (pp. 65-93). Academic Press. 1992

   [Crossref][Google Scholar][PubMed]

6. Livingstone DJ., Manallack DT., Tetko IV., Data modelling with neural networks: Advantages and limitations, J. Comput Aided Mol Des, 1997 11:135-42

   [Crossref][Google Scholar][PubMed]

7. Lu W., Li J., Wang J., Qin L., A CNN-BiLSTM-AM method for stock price prediction, Neural Comput Appl, 2021 33:4741-53

   [Crossref][Google Scholar]

8. Mohamed EK., Lashine SH., Accounting knowledge and skills and the challenges of a global business environment, Manag Finance, 2003 29(7): 3-16

   [Crossref][Google Scholar]

9. Siau K, Shen Z., Building customer trusts in mobile commerce. Communications of the ACM, 2003 46:91-94.

   [Crossref] [Google Scholar]

10. Venkatesh V, Aloysius JA, Hoehle H, Burton S., Design and evaluation of auto-id enabled shopping assistance artifacts in customers’ mobile phones: two retail store laboratory experiments. MIS Quarterly, 2017 41:83-113.

    [Google Scholar]