Digital Transformations: The Risks of Customer-Oriented Finance

Abstract

The publication presents modern ideas concerning the world of digital financial services being imperceptibly, conveniently and effectively integrated into the daily existence of consumers on the basis of a customer-oriented approach; the mechanisms of its implementation and prospects for development in the business environment and consumer space are presented. It is concluded that in the context of the dominance of the digital financial industry, the service provider, having exclusive information about the consumer, also having a mobile and flexible system of combining professional analysts and smart dashboards, using a range of innovative financial solutions, becomes an indispensable, built-in part of the operational activity of the client, who will increasingly rely in decision-making on such integrated coordinators of his activities. The processes of loss of financial subjectivity by consumers of financial services due to delegation of financial decision-making to service providers (platforms) are highlighted. The socioinstitutional transformations that made possible a customer-oriented breakthrough in financial activities, namely the perception of transparency of life, confidentiality of information and its protection, which radically changed the idea of information asymmetry, its content and effects of influence, are substantiated. The peculiarities of localization of digital lending are determined, namely: operations in markets where traditional banking is not available owing to the underdevelopment of the country, region, banking infrastructure, remoteness of banking institutions from direct customers; transactions among segments of the population that do not have access to lending in traditional banks owing to the lack of credit history. The risks of activation of digital lending, consisting in an increase in the debt burden and monopolization, are pointed out. The tasks of the State policy in the financial sphere in connection with the implementation of the digital development strategy in Ukraine are characterized.