Effects of Digital Finance on society and Financial Institutions

Nowadays, digital finance plays a significant role in everyone’s life. Mobile banking, cryptocurrencies, peer-to-peer lending and online investing became well known definitions. This significance made it increasingly important to know what the effects of digital finance for society and financial institutions are. Thus, it is this paper’s objective to examine this. The paper is structured by answering four sub questions that relate to the main question, these sub questions answer the most important aspects of digital finance. It was found that digital finance leads to financial inclusion as well as greater accessibility and convenience. On the other hand the privacy and security concerns are crucial and bigger than ever. Financial institutions have to alter their regulatory framework to keep up with the privacy and security needs of society. The examined effects are significant and need to be studied during the further development of digital finance.