GLOBAL FINANCE AND FINTECH: CHALLENGES, TRENDS AND SYSTEM DETERMINANTS OF DEVELOPMENT

Abstract

Introduction. Recent years have become, without exaggeration, turning points in the de­velopment of the global financial environment and the financial technology sector. Among the main triggers of change are global digitization; quarantine restrictions caused by COVID-19; military aggression and full-scale Russian invasion of Ukraine. The answers to these challenges were: virtualization of FinTech and the emergence of new tools in the financial services sector; development of new habits in the use of non-banking services; partial transfer of savings into cryptocurrencies; improvement of mobile financial applications and introduction of innovative IT technologies in the financial sphere. The purpose of the article is to scientifically substantiate the modern challenges faced by the global financial environment and the market of financial technologies (including in wartime condi­tions); identify main trends in the development and implement financial technologies in the world market of financial services; outline the system determinants and prospects for the use of innova­ tive solutions by financial intermediaries with the aim to create a safe space and protect personal data; justify the need to introduce artificial intelligence in the field of financial technologies. Results. It was found that financial technologies significantly affect the landscape of the mod­ern global financial environment, its spheres, functionality, set of tools, internal and external struc­ture, expand the range of opportunities, modify rules and establish new traditions. It is argued that the global challenges caused by the global financial crisis of 2008, the COVID-19 pandemic and the war in Ukraine created the prerequisites for the development of innovations in the field of financial technologies. The research has shown that new trends in the development of financial technologies are outlined in the global financial environment, and in particular: automation of var­ious processes in all industries; improving access to financial services in all segments and areas of the global financial environment; inclusiveness and accessibility of financial services through remote customer service channels and virtual communication channels. It has been proven that during the Russian aggression, FinTech companies developed flexibility and loyalty in product development, developed a network of new partnerships, and changed the focus of their activity from the marketing sector to business efficiency and profitability. It is substantiated that important determinants of the development of the field of financial technologies are: deep understanding of the essence of market problems; reformatting of the legislative field and prudential supervision; implementation of innovative ideas into a real final product; favorable conditions of taxation in the field of entrepreneurial activity; high quality and availability of the Internet. Conclusions. Based on the results of the research, it was concluded that new trends re­garding the development of FinTech are being outlined in the global financial environment, which have significant consequences for the growth of financial markets and optimization of the global financial ecosystem. Changes in the global FinTech landscape are predicted due to the operation of the "FinTech sandbox"; expansion of customer service markets and accounts’ management; the opening of opportunities for the emission of electronic money by non-banking financial institutions and the use of ARI technologies, which will eventually allow FinTech market companies to offer new products and implement new business models.