The Influence of Digitalization on Financial Management: Opportunities and Challenges for Modern Companies

Abstract

Digitalization has changed the paradigm of modern financial management, creating opportunities to improve efficiency, transparency, and data-driven decision-making. This transformation enables the automation of financial processes through technologies such as Artificial Intelligence (AI), blockchain, and big data analytics, which improve accuracy and speed in cash flow management and risk mitigation. However, on the other hand, digitalization also brings significant challenges, including cybersecurity risks, digital financial regulatory compliance, and a digital skills gap among the workforce. This study aims to analyze the impact of digitalization on the financial management of modern companies, focusing on the opportunities and challenges that arise in its implementation. The method used in this study is a literature study that reviews various previous studies on the application of digitalization in the company's financial system. Data sources come from indexed academic journals, reports from international financial institutions, as well as relevant official documents. The results show that digitalization contributes to improving operational efficiency, reducing transaction costs, and optimizing financial risk management. However, the main challenges found are the need for stricter data security policies, compliance with global regulations related to digital finance, and the readiness of human resources to adopt new technologies. Therefore, risk mitigation strategies and strengthening digital literacy are key in ensuring the success of digital transformation in financial management.