Oversight of Financial Transactions in the Digital Age

Abstract

The rapid advancement of digital technologies has fundamentally reshaped the landscape of financial transactions, altering their very structure, functionality, and the mechanisms we use to control them. This study explores this transformation, tracing the evolution of financial technologies (FinTech) from their historical roots to their current state. We examine the development of digital financial systems, the pivotal role of cloud computing infrastructures, and the overarching process of digitalization that is redefining the financial sector. The analysis further assesses the shift from traditional banking to digital banking, considering the emergence of open banking and Banking-as-a-Service (BaaS) models, and weighs the significant opportunities against the novel risks this digital shift introduces. The findings suggest that the digital transformation driven by FinTech undeniably enhances the speed, accessibility, and cost-efficiency of financial operations. Yet, this progress comes with a imperative: it demands equally robust advancements in cybersecurity, sophisticated regulatory frameworks, and resilient internal control systems. By synthesizing the key technological, structural, and managerial components that define oversight in the digital age, this study aims to contribute a cohesive perspective to the ongoing scholarly conversation on the future of financial control.