Financial Automation

Definition ∞ Financial automation involves using technology to perform financial tasks and processes with minimal human intervention. This includes automated trading, algorithmic accounting, and programmed payment systems. The goal is to increase efficiency, reduce errors, and accelerate transaction speeds. It allows for complex financial operations to be executed systematically and reliably.
Context ∞ Within the digital asset space, financial automation is central to decentralized finance (DeFi) protocols, where smart contracts automatically execute lending, borrowing, and trading activities. News often covers the advancements in automated market makers (AMMs) and yield farming strategies that rely on these systems. The ongoing discussion surrounds balancing the efficiency gains of automation with the necessity for human oversight and risk management in volatile crypto markets.