THEORETICAL PRINCIPLES AND MAIN TRENDS OF DIGITALIZATION OF THE FINANCIAL SECTOR

Authors

DOI:

https://doi.org/10.32782/2617-5940.1.2024.4

Keywords:

digital economy, digitalization, financial instruments, sharing economy, fintech companies, mobile banking, crowdfunding, blockchain, digitalization of insurance, scoring models, digital bank

Abstract

The article is aimed at studying the transformation of value relations in the digital platform economy, which serve as the basis for the development of trends in modern digitalization. The objectives of the article are to analyze the theoretical foundations of the transformation of value relations in the process of digitalization, the process of creating value in the digital platform economy. Methodology. In the process of research, such scientific methods as analysis, comparison, generalization, grouping, classification methods were used. Results. The following features of the digital transformation of the financial sector are determined: high standardization, automation, transparency, efficiency, readiness for innovation, the emergence of fintech companies and security, the use of blockchain technologies. Three main directions of digitalization of functioning of financial institutions are considered: digitalization of work with clients, digitalization of management and digitalization of business models. The directions of digitalization of the financial sector are investigated – development of mobile financial services, mobile banking, crowdfunding, algorithmic trading. The consequences of the influence of digitization processes on banking in terms of the development of new technologies – cryptography, biometrics, blockchain – have been determined. It is noted that in the context of digitalization, a significant competitive advantage of the bank becomes a "digital core" – a typical model of a digital bank, which is based on analytics and scoring models. Three main areas and three main trends of digitalization of insurance are outlined: telematics, smart clothing, the Internet of Things, and personalization; expansion of the client base; simplification of ageing procedures. Promising directions of digital transformation of the financial sector in such segments as payments, savings and investments, project financing and funds, deposits and loans, investment and corporate banking, risk management are generalized. The advantages of fintech companies in these segments are determined. Originality/value of research. The results of the study emphasize that the digital transformation of the financial sector has radically changed the way financial services are provided, creating a more efficient, transparent and secure environment. With the help of innovative technologies, financial institutions have expanded their ability to solve complex problems, improve the quality of services, reduce costs, and open up new opportunities for further development.

References

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Alaimo C., Kallinikos J., Valderrama E. (2020). Platforms as service ecosystems: Lessons from social media. Journal of Information Technology. Vol. 35(1), p. 25–48.

Alt, Rainer & Puschmann, Thomas. (2016). Digitalisierung der Finanzindustrie. DOI: https://doi.org/10.1007/978-3-662-50542-7

Auer D., Petit N. (2020). Two-Sided Markets and the Challenge of Turning Economic Theory into Antitrust Policy. The Antitrust Bulletin, pp. 426–461.

Barrosoa M., Laborda J. (2022). Digital transformation and the emergence of the Fintech sector: Systematic literature reviewl Digital Business. Volume 2. Issue 2. 100028. Available at: https://www.sciencedirect.com/science/article/pii/S2666954422000084

Bernier M., Plouffe M. (2019). Financial innovation, economic growth, and the consequences of macro prudential policies. Research in Economics. Vol.73. Р. 33–173. DOI: https://doi.org/10.1016/j.rie.2019.04.003

Casanova L., Cornelius P., Dutta S. (2018). Banks, Credit Constraints, and the Financial Technology’s Evolving Role. Financing Entrepreneurship and Innovation in Emerging Markets. Р. 161–184. DOI: https://doi.org/10.1016/B978-0-12-804025-6.00007-1

Chishti S., Barberis J. The FINTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries // John Wiley and Sons, Ltd, 2016.

Cusumano M. A., Gawer A., & Yoffie, D. B. (2019). The business of platforms: Strategy in the age of digital competition, innovation, and power, New York: HarperBusiness.

Disrupting Finance. FinTech and Strategy in the 21st Century. Edited by Theo Lynn, John G. Mooney, Pierangelo Rosati, Mark Cummins. (2018) Palgrave Studies in Digital Business & Enabling Technologies. 175 p.

Jaeger P., Lin J., Grimes J., Simmons S. (2009) Where is the cloud? Geography, economics, environment, and jurisdiction in cloud computing. First Monday, 14 (5). Available at: https://firstmonday.org/ojs/index.php/fm/article/view/2456/2171

Klapkiv Y. Klapkiv L., Zarudna N. (2018). Online distribution of insurance of civil liability of owners of vehicles, the experience of Poland, opportunities of Ukraine. Baltic Journal of Economic Studies. Vol. 4. No. 1. Pp. 195–201. DOI: https://doi.org/10.30525/2256-0742/2018-4-1-195-201

Laamanen, T., Pfeffer, J., Rong, K., Van de Ven, A. (2016). Business models, ecosystems, and society in the sharing economy. Academy of Management Discoveries. 2(2). 218–222. DOI: https://doi.org/10.5465/amd.2016.0037

Łyskawa K.; Kędra, A.; Klapkiv L.; Klapkiv, J. (2019). Digitalization in insurance companies. International Scientific Conference: Contemporary Issues In Business, Management And Economics Engineering’2019; 9–10 May 2019, Published by Vilnius Gediminas Technical University Press, Vilnius, Lithuania. eISSN 2538-8711, ISBN 978-609-476-161-4/eISBN 978-609-476-162-1. DOI: https://doi.org/10.3846/cibmee.2019.086 pp.842-852

Mazareanu, E. (2019). Value of the global sharing economy. 2014–2025. Statista, August 9. Available at: https://www.statista.com/statistics/830986/value-of-the-global-sharing-economy/

Poznańska, K., & Marczak, A. (2018). Wykorzystanie technologii chmury obliczeniowej w przedsiębiorstwach w krajach Unii Europejskiej. Studia i Prace WNEiZ US. (52 T. 2. Zarządzanie), 481–493.

Salami I. (2019). Alternative Financing Aproaches and Regulation in Africa. Extending Financial Inclusionin Africa. Elsevier Inc., P. 279–296. DOI: https://doi.org/10.1016/B978-0-12-814164-9.00013-X

Scardovi C. (2014) Digital Transformation in Financial Services. Springer International Publishing AG. 236 p

Shved V. V., Yablochnikov S. L. (2018). Features of the sharing economy in Ukraine. Business. Education. Right. Herald business institute. No. 2 (43), p. 76.

Wonglimpiyarat J. (2018) Challenges and dynamics of FinTech crowd funding: An innovation system aproach. Journal of High Technology Management Research..11 p. DOI: https://doi.org/10.1016/j.hitech.2018.04.009

Yan T., Schulte P., Lee D., Chuen K. (2018). InsurTech and FinTech: Banking and Insurance Enablement. Handbook of Blockchain, Digital Finance, and Inclusion. Elsevier Inc., Vol. 1. P. 249–281. DOI: https://doi:10.1016/B978-0-12-810441-5.00011-7

Vismara S. (2018). Signaling to overcome inefficiencies in crowdfunding markets. In: Cumming, D., Hornuf, (Eds.). Handbook of Crowdfunding. Palgrave, London. P. 29–56.

Zuboff S. (2015). Big other: Surveillance capitalism and the prospects of an information civilization. Journal of Information Technology, 30(1), 75–89. DOI: https://doi.org/10.1057/jit.2015.5

Published

2024-05-30

How to Cite

Dyuk, R. (2024). THEORETICAL PRINCIPLES AND MAIN TRENDS OF DIGITALIZATION OF THE FINANCIAL SECTOR. Збірник наукових праць Державного податкового університету, (1), 24–33. https://doi.org/10.32782/2617-5940.1.2024.4