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FINTECH IN THE SYSTYM OF SOCIAL TRANSFORMATIONS

Автор: Sveta on .

UDC 336.743
 
Anatolii MAZARAKI,
Doctor of Economics, Professor, Rector of Kyiv National University of Trade and Economics

SvitlanaVOLOSOVYCH,
Doctor of Economics,  Professor of the Finance Department of Kyiv National University of Trade and Economics
 
FINTECH IN THE SYSTYM OF SOCIAL TRANSFORMATIONS
 
Background.The integration of finance and technology has become the basis for the activation of the emergence of new financial instruments and financial service offerers. On the one hand, the innovations that have emerged in the FinTech sector have enormous transformational power for financial systems and public administration, on the other hand, they create the emergence and implementation of new risks that require their timely identification and the creation of an adequate management system for them.
Analysis of recent research and publications.Researches of both academics and practitioners in the areas of business, finance and innovation are dedicated to FinTech’s implementation and development challenges. However, despite the high level of existing theoretical developments, further solutions to the problem of institutional transformations of financial systems in the context of the intensification of financial technologies in the face of increasing globalization processes are necessary.
The aim of the article is to determine the consequences of the impact of the development of technological innovations on financial systems in an intensification of globalization processes.
Materials and methods. The works of domestic and foreign scientists on FinTech have become the theoretical and methodological basis for writing the article. The research was conducted using the methods of theoretical generalization, comparative analysis, analysis and synthesis, which made it possible to specify the definition of FinTech, define the functions of FinTech and substantiate the prospects of FinTech’s development.
Results.FinTech is an innovative technology used by financial institutions, public authorities, trade organizations to meet the needs of consumers of financial, administrative services and consumer goods in the context of the development of the consumption economy. At the same time, FinTech should also be seen as a system. The FinTech ecosystem includes: large technology companies, whose activities focus exclusively on financial services and beyond; companies that provide infrastructure or technology that facilitates financial service transactions; large, well-organized financial institutions; fast growing companies that focus on specific innovative technology or process. FinTech per­forms innovation, integration, transformation and social functions. Achievements of FinTech have shown their advantages in the financial services market in providing payment, investment, credit, insurance, risk management services and financial advisory services. The FinTech tools are machine learning, predictive analytics, block chain, smart contracts, biometrics, and application programming interfaces. The threats of FinTech’s development include share reduction of traditional financial intermediaries in the market, breaking financial stability, inadequate consumer risk taking, job cuts, and growing finan­cial volatility. The opportunities for FinTech’s development include enhancing financial inclusiveness and transparency of financial transactions, promoting the development of a competitive environment in the financial services market, and applying new methods of protection against fraud among employees and clients.
Conclusion.As a result of the development of Fintech, traditional financial institutions will adapt to new conditions, while new entrants will join the financial ecosystem. As a consequence, the legal regulation of the financial sector should be transformed in order to prevent uncontrolled situations in the financial system. The development of Fintech requires balancing between security and decentralization, ensuring confidentiality and scalability.
 
Keywords:financial technologies, consumption economics, financial services, machine learning, predictive analytics, block chain, smart contracts, application programming interfaces.
 
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