STRATEGIES OF DEVELOPMENT OF THE FINANCIAL SECTOR AND FINANCIAL INDUSTRY IN UKRAINE ON AN INNOVATIVE BASIS

Abstract

The relevance of the article is determined by the need to balance certain segments of the financial and real sectors of the economy, build their infrastructure, increase innovation through the implementation of the achievements of the financial industry. The main scientific result of the article is to define the financial sector and the financial industry, to establish causal links between them and development strategies. The financial sector is a subsystem of the financial market and is represented by its national regulator, financial and infrastructural participants, namely: corporations that accept deposits; money market funds and investment funds, pension funds, insurance corporations, captive and auxiliary financial corporations, other financial intermediaries. In contrast to the existing definitions, the proposed one is based on the classification of institutional sectors of the Ukrainian economy. The connection between the financial and real sectors is formalized as mutually complementary parts, which together make up the national economy, ensure the circulation of material and financial resources, the creation of added value. At the same time, they perform specific functions: the financial sector - distribution and transaction, the real - generating and transforming. The financial industry is a complex category that combines a set of financial institutions with their quality and technical and technological characteristics (intellectual capital, innovation, financial technology) in a creative economy. The financial sector and the financial industry reflect the dualistic nature of the functioning of financial institutions as financial service providers, on the one hand, and business process owners, on the other. Therefore, their strategies have a common premise and goal - financial stability, macroeconomic development should ensure the sustainability of public finances, the formation of long-term financial resources, lending to the economy. The common strategic goals are: financial inclusion, supported by digital and financial literacy, development of financial markets and non-cash economy, innovative development and economic system based on financial technologies.