Open AccessPRIORITIES AND CHALLENGES OF INTRODUCTION OF DIGITAL INNOVATIONS IN THE FIELD OF FINANCIAL SERVICES
Author(s) -
Liudmyla Volokhova
Publication year - 2021
Publication title -
ìntelekt xxi
Language(s) - English
Resource type - Journals
eISSN - 2707-6164
pISSN - 2415-8801
DOI - 10.32782/2415-8801/2021-1.14
Subject(s) - business , financial market , fintech , financial services , digital economy , industrial organization , economics , telecommunications , computer science , finance , world wide web
The paper emphasizes that the transition to a digital economy is a reality dictated by time. The economy continues to grow at an incredible rate due to its ability to collect, use and analyze vast amounts of digital data. The advantages of digitalization are considered, which provide, first of all, numerous multiplier effects of digitalization, when all financial and production processes are included in a single information space. Over the last year, the vectors of e-commerce and banking, telecommunications, IT security, and other digital online tools have accelerated significantly. The real state of affairs shows that digital technology-based solutions are more efficient than traditional ones. The constant acceleration of digital trends will encourage investment not only in direct fintech projects, but also in technologies such as cybersecurity, fraud prevention and digital identity management. At the same time, in general, among the main risks and threats of digitalization, scientists include: the possibility of concentrating power in the market and strengthening monopolies; capture of new markets by transnational corporations; destabilization of the monetary system; growing dependence on leading companies in the field of information and communication technologies. At the same time, the fear of the dangers of digitalization has recently increased markedly. Most companies fear technological innovation due to the rise of cyber incidents. In the era of systemic interactions, digital technologies have a significant impact on social, ethical, legal and economic factors, so it is necessary to anticipate the possibility of maximizing the positive effects of technology and minimize the negative. New challenges can be used to destroy security and breach privacy. Given the fundamental difference between financial innovations and other types, the issues of nature, types, risks and limitations and challenges of implementing innovations in the field of financial services are considered. The paper considers extremely important issues of promoting the digital transformation of technological development for the insurance industry.