Relationship between Digitalization and Finance
Chapter from the book: Yürük, M. F. & Buğan, M. F. (eds.) 2023. Evolution of Financial Markets- III.

Seher Gören Yargı
Yaşar University

Synopsis

The digitalization process, which is an important phase of Industry 4.0, is great importance for Turkey and the whole world. In this process, the priority of societies and businesses is to keep up with technological advances and manage change effectively. The digitalization realized in many areas such as the financial market is also handled with the perspective of Industry 4.0 in Turkey and leads to the emergence of new business models. In addition to gaining an important place in the financial sector, digital transformation also offers various advantages for individual entrepreneurs. According to Accenture's 2016 Digitization Index results, the financial services sector stands out as the sector with the highest digitization performance. In addition, with digitalization, the demands of consumers are gradually changing and this leads to the emergence of new products and business lines. The financial market is also affected by this change by being under the influence of the industrial revolution. In the 21st century, when digital transformation leads to the beginning of a new era in the financial sector, financial institutions and stakeholders in the sector are in the process of adapting to digitalization. These changes brought about by digitalization also affect basic indicators such as economic conditions, export and import balance, and development levels of a country. On the other hand, effective management of financial resources and effective investments by companies in the digital transformation process are important activities that show the level of development of a country. While digital transformation reduces costs and increases efficiency; contributes to the country's economies and enables the development of commercial relations by directing countries to different markets with various products. For countries, the use of digital technologies offers an opportunity to gain financial power. Major developments in the financial market, thanks to digitalization and the increase in production, increase competition worldwide.

How to cite this book

Gören Yargı, S. (2023). Relationship between Digitalization and Finance. In: Yürük, M. F. & Buğan, M. F. (eds.), Evolution of Financial Markets- III. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub147.c1231

License

Published

October 21, 2023

DOI