Imperative Role of Integrating Digitalization in the Firms Finance: A Technological Perspective

Abstract

Financial management is a critical aspect of firms, and entails the strategic planning, direction, and control of financial endeavors. Risk assessment, fraud detection, wealth management, online transactions, customized bond scheme, customer retention, virtual assistant and so on, are a few of the critical areas where Industry 4.0 technologies intervention are highly required for managing firms' finance. It has been identified from the previous studies that they are limited studies that have addressed the significance and application of integrating of Industry 4.0 technologies such as Internet of Things (IoT), cloud computing, big data, robotic process automation (RPA), artificial intelligence (AI), Blockchain, Digital twin, and Metaverse. With the motivation from the above aspects, this study aims to discuss the role of these technologies in the area of financial management of a firm. Based up on the analysis, it has been concluded that these technologies assist to credit risk management based on real-time data; financial data analytics of risk assessment, digital finance, digital auditing, fraud detection, and AI- and IoT- based virtual assistants. This study recommended that digital technologies be deeply integrated into the financial sector to improve service quality and accessibility, as well as the creation of innovative rules that allow for healthy competition among market participants.