The dynamic technological development in recent decades has inevitably influenced the evolution of money, and accordingly - on finance as a whole. Today, the very concept of "digital finance" is also constantly expanding its scope as a result of various innovations in the sector.

Driven by these trends, new financial technology businesses (so-called fintech companies) are emerging, and traditional financial service providers are transforming - for example, the rise of neobanks, which operate without physical branches. New products and investment opportunities are emerging - for example, P2P lending platforms. This process even affects traditionally conservative assets such as investment gold. It is now possible to invest in so-called digital gold. In this case, there is no transfer of physical assets, which, in addition to being safer, also allows for a more favorable spread (difference between the buy and sell rates), closer to stock prices.

Thanks to digitalization, concepts like decentralized finance (DeFi), crypto assets, and central bank digital currencies have become possible You can read more about these topics in the “Money and Currencies” section.

When using digital financial services, it is important for people to protect themselves from fraud and be cautious when providing their personal data. More information on this topic is included in the “Security when using financial products and services” section. Some of the most important aspects of digital finance are presented below.

 

Online and mobile banking

20 years ago, online and mobile banking were rare. To transfer funds or to obtain a bank statement or certificate, it was necessary to take time to visit a bank branch. Today, the branch – with the full package of services that banks provide – deposits, loans, payments and investment brokerage, is now in everyone’s pocket.

According to data from the BNB, by the end of 2024, over ¾ of payments in our country are initiated through digital channels. These payments are easier and faster, the fees for them are significantly lower, you can initiate them anytime and anywhere, which saves you significant time otherwise spent visiting a branch.

An additional benefit is that a person can check their account balance at any time – to see if they have received funds, if there has been any unauthorized activity, or if money is missing. Such notifications are also provided automatically by SMS or through a special application. The full history of transactions allows for effective budget tracking and cost control.

Digital channels for financial services

In addition to payments (which you can read more about in the article "Payments"), digital channels are also used to provide other services from financial institutions. Customer identification can be done entirely online via video link, photos of ID documents, electronic signature, and other methods. This allows you to open a bank account entirely online as well as go through the entire process of applying for and receiving a loan. You can also buy and sell financial instruments. To protect against fraud, you need to follow the safety rules when sharing your personal data ("Security when using financial products and services" section).

 

Role of Artificial Intelligence

Artificial intelligence is rapidly entering all aspects of human life. Finance is not only no exception but is one of the drivers of this transformation. When a service is needed, all users are now greeted by artificial intelligence - both in chats and during calls. This allows for faster customer service.

Artificial intelligence is used at various stages of assessing creditworthiness and credit rating (you can read more in the "Debt and Credit" section). There are even investment funds that are managed by artificial intelligence.

 

Mobile applications for managing personal finances

In addition to mobile banking applications, there are many others that assist people in managing their personal finances. Some are educational platforms, including game-based formats with interactive content to engage the user. Others provide personalized advice based on user behavior. Others are valuable tools - for budget management, cost control, financial situation analysis and decision-making. Most of these platforms can extract data automatically from other sources - for example, digital banking, scanning paper documents, etc.

Thanks to digital finance, many complex high-risk tools are now available to practically every user. At the same time, various innovations appear that are unknown to people and may hide previously unknown risks. For this reason, users should be especially cautious with their personal data and fraud protection. It is important to act wisely and seek reliable, verified information or advice from independent experts. These new challenges also place growing demands on users to constantly be informed about the innovations, so they can take full advantage of them.