Informe de Ingles Finanzas Jessica

FACULTY OF BUSINESS SCIENCES
PROFESSIONAL SCHOOL OF ACCOUNTING

The waiver of the exemption from IGV
AUTHOR
Ruiz Lopez Jessica Natali
TEACHER
Rodriguez Linares Walter Junior
TRUJILLO – PERÚ
2024
ÍNDEX
INTRODUCTION……………………………………………………………..3
DEVELOPMENT……………………………………………………………..4
CONCLUSIONS………………………………………………………………7
BIBLIOGRAPHIC REFERENCES………………………………………….8
INTRODUCTION
Finance in the digital world refers to the transformation of financial services

through technology, a process often called fintech (financial technology). This
broad area covers innovations that streamline financial processes, increase
accessibility, and improve efficiency for individuals, businesses, and institutions.
Below are key components of how finance is evolving in the digital landscape.
The world of finance is undergoing a revolutionary transformation, driven by the

rapid advancement of technology. Traditionally, financial systems have been
rooted in physical institutions, such as banks, stock exchanges, and insurance
companies, and were often slow, costly, and limited in accessibility. However,
with the rise of digital technologies, these traditional financial structures are
being redefined, giving birth to a new era of digital finance.
In today's digital world, financial services are increasingly moving online and are
powered by innovations such as mobile payments, blockchain technology,
artificial intelligence (AI), and cryptocurrency. Digital finance is not just about
convenience; it's about democratizing access to financial services, improving
transparency, reducing costs, and enabling new business models. From digital
banking and online investing to peer-to-peer lending and decentralized finance
(DeFi), the digital world is making finance faster, more inclusive, and more
efficient.
1. Digital Payments
Mobile Wallets & Payment Systems: Services like Apple Pay, Google Pay, and
PayPal enable users to make purchases or transfer money using smartphones,
bypassing the need for cash or traditional credit/debit cards.
Cryptocurrency and Blockchain: Bitcoin, Ethereum, and other cryptocurrencies

use blockchain technology to allow decentralized and secure transactions.
Blockchain also has potential in financial services such as cross-border
payments and smart contracts.
2. Digital Banking
Neobanks: Fully digital banks, like Chime, N26, or Revolut, operate without
physical branches. They offer all standard banking services through mobile
apps or websites, often at lower fees or with more flexible features compared to
traditional banks.
Online Lending: Peer-to-peer (P2P) lending platforms (such as LendingClub)

and digital lenders (like SoFi or OnDeck) provide loans without needing physical
offices or intermediaries. These platforms often use algorithms and data
analytics to determine creditworthiness.
3. Investing & Trading
Robo-Advisors: Digital platforms like Betterment and Wealthfront use algorithms

to provide automated financial advice and portfolio management, offering a low-
cost alternative to traditional wealth management services.
Stock Trading Apps: Platforms such as Robinhood and Webull have

democratized stock trading, enabling retail investors to trade directly from their
phones without high commission fees.
4. Personal Finance Management
Budgeting Apps: Apps like Mint, YNAB (You Need a Budget), and PocketGuard
allow individuals to track their spending, create budgets, and monitor financial
goals in real-time.
Credit Scoring and Monitoring: Digital tools like Credit Karma and Experian
enable users to access and track their credit score, and sometimes even offer
personalized financial advice based on their credit profile.
5. Blockchain & Decentralized Finance (DeFi)

Smart Contracts: Blockchain enables decentralized finance (DeFi) applications
that automate transactions and enforce contract terms without intermediaries.
Ethereum, for example, allows developers to create decentralized applications
(dApps) that facilitate lending, borrowing, and trading in a peer-to-peer
environment.
Tokenization: This process involves converting real-world assets (like real

estate or art) into digital tokens on a blockchain, allowing them to be bought,
sold, or traded in fractional ownership.
6. Insurtech
Digital Insurance Platforms: Traditional insurance companies have embraced

digital tools to offer more flexible and personalized insurance products.
Platforms like Lemonade, Root, and Metromile provide quick quotes, easy sign-
ups, and instant claims processing through apps or websites.
AI in Underwriting: Insurtech companies are increasingly using artificial

intelligence and machine learning to assess risk and determine pricing more
accurately, moving away from traditional methods of underwriting.
7. Artificial Intelligence and Data Analytics
Fraud Detection: AI and machine learning algorithms are used to detect

suspicious activity, prevent fraud, and flag unusual patterns in transactions
across digital platforms.
Credit Scoring & Risk Assessment: Advanced analytics enable more accurate
credit scoring models that take into account a wider range of data beyond just
traditional credit reports. This helps to provide loans and credit to underserved
populations.
8. Regulation & Compliance
Digital Identity Verification: With the rise of digital finance, verifying the identity
of users has become crucial. Technologies like biometric authentication,
blockchain-based identity verification, and facial recognition are being used for
secure access to financial services.
9. Cybersecurity in Finance
Digital Security: As financial transactions move online, cybersecurity has
become a critical focus. Encryption, multi-factor authentication (MFA), and
biometric verification are used to protect users' financial data and prevent
breaches.
Decentralized Finance Security: DeFi protocols often face unique security

challenges because they lack central authority overseeing transactions. As
such, there are increasing efforts to secure smart contracts and prevent hacks
or exploits in these decentralized systems.
10. Financial Inclusion
Access to Services: The digitalization of finance has helped increase financial

inclusion, especially in emerging markets where traditional banking
infrastructure is lacking. Mobile banking platforms, like M-Pesa in Kenya, allow
people to transfer money, pay bills, and access loans via smartphones.
Microloans & Crowdfunding: Platforms such as Kiva and GoFundMe have

enabled individuals and businesses to access microloans or raise funds directly
from a community of small-scale investors or supporters.
11. The Role of Central Banks and Digital Currencies
Central Bank Digital Currencies (CBDCS): Governments around the world are
exploring or developing their own digital currencies (like China's digital yuan or
the European Central Bank's digital euro). These digital currencies can allow for
faster and cheaper payments and potentially reshape the future of monetary
policy.
Digital Asset Regulation: As cryptocurrencies and blockchain technologies

grow, governments and regulatory bodies are grappling with how to regulate
digital assets. This includes clarifying tax laws, combating money laundering,
and ensuring consumer protection.
Conclusions:
Finance in the digital world is a rapidly evolving ecosystem that is reshaping the
way we interact with money. The rise of mobile payment systems,
cryptocurrencies, robo-advisors, and blockchain technologies is creating new
opportunities and challenges. As digital finance continues to grow, we can
expect further innovation that enhances convenience, reduces costs, and
provides more inclusive access to financial services globally. However, it will
also require navigating complex regulatory, security, and ethical considerations
to ensure the benefits are widespread and sustainable.
BIBLIOGRAPHIC REFERENCES
Libros:
1. Narayan, P., & Dahiya, R. (2021). FinTech: The Impact and Influence
of Technology on Finance. Springer.
2. Pereira, J., & Santos, P. (2020). Fintech: The New Digital Revolution.
Springer.
3. Arner, D. W., Barberis, J., & Buckley, R. P. (2017). The Evolution of

Fintech: A New Post-Crisis Paradigm? Georgetown Law Journal.

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FACULTY OF BUSINESS SCIENCES

PROFESSIONAL SCHOOL OF ACCOUNTING

Ruiz Lopez Jessica Natali

Rodriguez Linares Walter Junior

Finance in the digital world refers to the transformation of financial services

The world of finance is undergoing a revolutionary transformation, driven by the

Cryptocurrency and Blockchain: Bitcoin, Ethereum, and other cryptocurrencies

Online Lending: Peer-to-peer (P2P) lending platforms (such as LendingClub)

3. Investing & Trading

Robo-Advisors: Digital platforms like Betterment and Wealthfront use algorithms

Stock Trading Apps: Platforms such as Robinhood and Webull have

4. Personal Finance Management

5. Blockchain & Decentralized Finance (DeFi)

Tokenization: This process involves converting real-world assets (like real

Digital Insurance Platforms: Traditional insurance companies have embraced

AI in Underwriting: Insurtech companies are increasingly using artificial

7. Artificial Intelligence and Data Analytics

Fraud Detection: AI and machine learning algorithms are used to detect

8. Regulation & Compliance

Decentralized Finance Security: DeFi protocols often face unique security

10. Financial Inclusion

Access to Services: The digitalization of finance has helped increase financial

Microloans & Crowdfunding: Platforms such as Kiva and GoFundMe have

11. The Role of Central Banks and Digital Currencies

Digital Asset Regulation: As cryptocurrencies and blockchain technologies

3. Arner, D. W., Barberis, J., & Buckley, R. P. (2017). The Evolution of

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