Globalization trends for financial innovations development

In this paper we focus on the development of FinTech, how is it evaluated and managed in selected areas, in the European Union, in China and in Hungary. Some of the pertinent questions in this field are the following: How can regulators keep up with the rapid pace of development? Can regulation be based on a precise definition and can a level playing field be ensured between traditional banks and FinTech start-ups? What are the risks? How can they be handled by supervision and regulation? We can conclude that FinTech is in the initial phase of a “revolutionary” process, and the definition of this phenomenon is broad and changing. Regulators and supervisors must influence the conditions in a way that a level playing field and risk assessment should be the same for traditional banks and FinTech companies. All of the actors have responsibility, including central banks, regulators, supervisors, incumbent banks, consumers and FinTech companies. Information is power, and several economists claim that digital is the new normal. In our paper we partly justify the first part of the sentence and we put a question mark at the end of the second part.

The aim of the article is to study the problems of developing fintech and banking in Ukraine and develop promising areas for their interaction. It is established that in the context of the introduction of financial and technological innovations, traditional approaches to the provision of banking services no longer meet the modern needs of consumers and the requirements for improving the efficiency of banking. The main advantages and disadvantages in activities of commercial banks and fintech companies are identified. The advancement of financial technologies has a positive effect on activities of domestic commercial banks, which enhance the quality of customer service, improve automated means, and increase the protection against cyberattacks and fraud.At the same time, traditional commercial banks can provide significant assistance to fintech companies in terms of expanding infrastructure, increasing capital, and enabling access to a well-developed client database. It is proved that the most effective strategy of relationships between commercial banks and fintech companies is not competing but using various mutually beneficial cooperation options. With the introduction of the latest technologies in Ukraine, a significant breakthrough was the launch of the first mobile bank – Monobank, which operates without physical branches and is able to carry out all basic banking operations.The analysis showed that the online service of Monobank in the second half of 2019 grew by an average of 100 thousand customers every month and also had a positive trend in all key performance indicators. The feasibility of the participation of commercial banks in promoting P2P and P2B electronic platforms is substantiated. It provides mutual benefits for both parties: for banks – avoiding liquidity and defaultrisks, and for electronic credit platforms – getting access to a significant amount of banking resources. A promising area of interaction between fintech and banking is the introduction of Open Banking, which will enable access of fintech providers to banking data and give possibility for creating new products and services.Another potential impetus for the implementation of innovative solutions may be applying BankID remote digital identification, which will make the domestic financial market more accessible and open for its participants, simplify the procedure for rendering services and provide conditions for creating innovative services and improving the existing ones. The important role of the National Bank in the development of financial technologies and mutual cooperation of commercial banks and fintech companies is highlighted. Further research will be aimed at an in-depth study of individual areas of cooperation between fintech and banking.

The article is devoted to a comprehensive study of the financial technology (FinTech) market in Ukraine. The key stages of the formation of the Ukrainian financial technology market are identified and their characteristics are carried out. The key segments and components of the financial technology market in Ukraine at the current stage are identified. The peculiarities of the impact of full-scale invasion on the functioning of the market and the adaptation mechanisms that allowed the sector not only to survive, but also to demonstrate resilience and innovative potential are studied. The current state of the FinTech market in Ukraine, the influence of the NBU on the formation of the regulatory environment, the investment climate, the main trends and challenges in war conditions are analyzed. The main elements of FinTech, such as digital payments, peer-to-peer lending, blockchain technologies and regulatory initiatives, are considered. Based on the research conducted, the prospects for the further development of the fintech industry in Ukraine are substantiated. In particular, the prospects for the development of Ukrainian FinTech are outlined, taking into account national specifics and in the context of European integration aspirations and global trends.

The study of financial technology applications in banking is highly relevant, as financial technologies serve as a primary driver of change in the banking sector, facilitating the development of new products, optimising operations, and expanding access to financial services. This article aimed to examine the role of financial technologies in the development of banking activities and to identify directions for their advancement through the application of modern financial technologies. The research employed methods of analysis, synthesis, systematisation, and comparison to explore the theoretical foundations of financial technology utilisation. Grouping, tabular, and graphical methods were used to assess the current state of financial technology adoption in the banking sector, alongside abstraction and generalisation techniques. In the digital era, banks must implement innovations to maintain competitiveness. The analysis of financial technology applications has made it possible to identify current trends and potential areas of implementation in the Ukrainian banking sector, as well as to adapt decision-making processes regarding their use to the realities of the Ukrainian market, ensuring more flexible financial services for clients. It has been identified that the growing popularity of digital platforms has been accompanied by an increase in cyber risks. Therefore, the study of fintech has also contributed to ensuring cybersecurity and customer trust, with the development of effective data protection strategies emerging as a key factor in the stability of the banking system. The study also reviewed academic research confirming the relevance of financial technologies in banking, analysed the nature of fintech, its types and role in the banking sector, and assessed the state of Ukraine’s fintech market. Recommendations for the development of the fintech market were proposed. The practical implementation of the recommendations provided in the study, particularly concerning the adoption of modern financial technologies such as blockchain, artificial intelligence, Big Data, and open interfaces, will enhance transparency, cybersecurity, and the adaptability of both the banking sector and the financial market of Ukraine as a whole to contemporary challenges

FinTech field began to develop rapidly since 2008, after the Global Financial Crisis. This was due to the fact that financial institutions could not quickly respond to consumer needs because of a number of regulatory and legislative restrictions that were implemented to overcome the consequences of the crisis. At the same time the main factors of FinTech development were technological evolution, emerging customer expectations, availability of funding and capital, and support from governments and regulatory authorities. FinTech makes traditional financial services more affordable, flexible and secure, and therefore FinTech is one of the main drivers of digital transformation of the whole financial sector and the development of financial accessibility in the world. The development of the FinTech industry has a huge influence on the financial sector. FinTech strives to make financial services more accessible for both consumers and businesses. FinTech companies are fast growing and attract a large amount of investment each year in their development. At the same time, traditional financial institutions feel threatened on their part, because with the increasing number of FinTech companies, competition in the financial services market is growing too. In order to stay on the market, traditional banks are forced to adapt to modern realities and develop cooperation with FinTech companies. FinTech companies can help banks provide financial products and services more effectively and strengthen their competitive advantages. For example, they can improve financial inclusion, enhance customer experience, increase transparency, improve security, and provide support and guidance. Thus, financial institutions in cooperation with FinTech companies are able to provide new financial products and services to groups of customers who previously did not have access to traditional financial services. In addition, thanks to new technologies, financial institutions can offer personalized services and communicate online with customers, which significantly increases their engagement and experience. Furthermore, FinTech companies can help financial institutions detect fraud and deal with cyber-attacks and other online risks. Keywords: FinTech, financial technologies, financial services, financial innovations, FinTech adoption.

In today's world, financial technology (FinTech) has become an integral part of everyday life, significantly changing the way people interact with financial services. One of the most dynamically developing industries is mobile payment services. They provide a fast, convenient and secure way to carry out financial transactions through mobile devices. However, despite the rapid spread of mobile payment services, there are a number of problems and challenges associated with their development and promotion on the market. The purpose of the study is to analyze the development of mobile payment services in the context of FinTech, as well as to develop effective marketing strategies for promoting these products on the market. The object of the study is mobile payment services as an innovative segment of FinTech and their marketing in the modern market, namely aspects related to the development, implementation, promotion and use of mobile payment services. Scientific publications and monographic editions, magazine articles and materials of scientific and practical conferences became the methodological basis of the research. Content analysis of scientific periodicals was used during the research; comparative critical analysis of existing approaches and methods of analysis of financial stability and tax burden; statistical methods of analysis. The main hypothesis of the research is that effective marketing strategies focused on technological innovation, personalization of user experience and taking into account the cultural characteristics of markets significantly increase the adoption and use of mobile payment services among consumers. Summary of the main material. Innovative technologies and platforms based on the concept of embedded finance and their potential to change and transform the financial sphere are highlighted. The technological, economic and regulatory aspects of the use of embedded finance are analyzed, and the key challenges and opportunities associated with their application are identified. As a result of the study, it is established that integrated finance can become a significant factor in accelerating the innovative development of the financial sector, improving the quality of financial services, and ensuring greater accessibility and efficiency in the provision of financial products and services. Originality and practical significance. The originality of the scientific article lies in the comprehensive approach to the study of mobile payment services through the prism of marketing strategies in the FinTech sector. Despite the considerable interest in the technological aspects of mobile payments, the issues of effective marketing of these products remain less studied. The practical significance of the article is that the research results can be used by both FinTech companies and marketing specialists to improve their strategies and increase the efficiency of mobile payment services. Conclusions and prospects for further research. The analysis showed that the introduction of the latest technologies, such as blockchain, artificial intelligence and biometric authentication methods, significantly increases the security and convenience of mobile payment services, which contributes to their popularization among consumers. The combination of technological innovation, personalization and cultural adaptation in marketing strategies is the key to successful promotion of mobile payment services. Further research is needed to assess the long-term consequences of introducing new technologies into mobile payment services. Particular attention should be paid to data security and confidentiality.

In the conditions of globalization of the financial services and financial systems market, an urgent issue for a fintech company is the problem of forming and implementing an international development strategy, considering the most critical aspects and challenges. Specific aspects include regulatory constraints, cross-country competition, technological innovation, adaptation to local financial systems, strengthening cyber security, and building strategic partnerships. Developing an effective action plan is a crucial factor for the successful global development of a fintech company. The article examines the main aspects of the international development strategy of fintech companies and highlights the main challenges they face. It was determined that one of the most critical aspects in this context is considering the differences in regulatory acts in different countries and their impact on the strategic planning of fintech companies. Another vital aspect is technological innovation: fintech companies must not only have technological solutions but also be ready to implement new technologies, such as artificial intelligence, blockchain, etc. All this allows you to create competitive advantages and satisfy the ever-increasing demand for fast, convenient, secure financial services. It is justified that, first, companies should study the political, economic, and socio-cultural aspects of each country in which they plan to work since the presence of different regulations and cultural features can significantly affect the strategy's success. Challenges also include the need to manage cyber security. Based on a comprehensive approach, considering the peculiarities of the global financial market, the main elements of the strategy of international development of a fintech company are proposed. The main directions of this strategy are innovative technologies, flexibility in interaction with regulators, and consideration of the peculiarities of national markets. Keywords: financial technologies, fintech companies, financial services market, digital technologies, fintech services.

The advancement of financial technology in modern society has been a beneficial factor that has led to growth in various sectors. Financial Technology (FinTech), is a phenomenon that spans the fields of information technology and innovation in financial organizations. The growth of FinTech is currently on the rise and is gaining more interest from financial market investors as well as academics. To improve the performance of FinTech companies, practicing innovation in terms of product, process, and marketing is essential for achieving a high degree of performance in the digital financial market. The purpose of this study is to examined the relationship between innovation practices (product innovation, process innovation, marketing innovation, and organizational innovation) and the performance of FinTech companies in the UAE. In addition, evaluate the current trends of FinTech in the UAE. A quantitative methodology was used to examine these relationships. The self-administrated questionnaire is data collection instrument. The survey includes FinTech companies that are conducting business in all cities of the UAE. The study sample in the survey includes 277 respondents who represent the staff working in IT departments, as well as the managers and supervisors in FinTech companies. Data analysis has been done using simple and multiple linear regression. The result of this study showed significant relationships between innovation practice in the FinTech domain and the performance of FinTech companies. The outcome of this study will help policymakers in Securities and Commodities Authority to set the proper regulations and guidelines for FinTech companies in a way to improve the overall performance of their financial services.

The rapid progress of information and communication technology in the era of globalization makes information more than just a source of knowledge and resources. Technological developments also influence the economic sector, one of which is financial technology (FinTech). The development of fintech in Indonesia has given rise to various application innovations, especially in financial services, such as payment transaction tools, money storage tools and also money lending tools. Research Aims: This study explores the role of fintech in influencing the increase in financial inclusion in SMEs in Aceh. Design/methodology/approach: Using literature review and field study methods, with a quantitative type of research Research Findings: In the hypothesis test that has been carried out in this study, it is proven that fintech has no effect on financial inclusion. Where the t-value is calculated 1.705 < t-table is 3.94 and the significance value is 0.091 > 0.05 so that H1 is rejected and H0 is accepted, meaning that fintech variables have no effect on financial inclusion. Financial technology has no effect on financial inclusion in society because people have not actively used fintech to access accounts at banking institutions to save and borrow, including debit cards, credit cards, m-banking, and internet banking, but use fintech to access other products and services that do not encourage financial inclusion. Theoretical Contribution/Originality: These findings advocate expanding the scope of the study by adding new variables such as ecommerce, social media, financial literacy, financial attitudes, so that more complete information can be obtained about the factors that predict the formation of financial inclusion. Keywords : Fintech, Financial Inclusion, MSMEs

FinTech Alternatives to Short-Term Small-Dollar Credit: Helping Low-Income Working Families Escape the High-Cost Lending Trap

FinTech Alternatives to Short-Term Small-Dollar Credit-Helping Low-Income Working Families Escape the High-Cost Lending Trap

This paper examines the effect of financial technology (FinTech), renewable energy consumption as well as human capital on environmental sustainability within the ASEAN economies between 2010 and 2022. As opposed to past studies that evaluate these variables independently, the study presents a new PCA‐driven composite FinTech index that represents various trends of digital financial development in the region, with the use of the most consistently accessible indicators. To overcome the endogeneity, unobserved heterogeneity, and dynamic persistence issues in CO 2 emissions, a two‐step System GMM estimator is used, and not manageable by the conventional estimators. These findings reveal that the development of FinTech, the use of renewable energy, and human capital would bring down CO 2 emissions, but economic growth would escalate pressure on the environment. Despite the inability to integrate some FinTech indicators and more ecological items due to the lack of data, the results represent strong evidence that digital finance, transition to clean energy, as well as human capital formation collectively promote environmental sustainability. Combining these factors into a single empirical model, this research makes original methodologies and theoretical contributions to the existing literature on FinTech‐sustainability, especially in rapidly digitalizing emerging economies.

The purpose of this study is to determine the strategy of Islamic banking to deal with the development of Financial Technology (Fintech). This study uses a literature study technique in search of relevant theories to answer research problems related to the strategy of Islamic banks in dealing with financial technology. The results of this study reveal that a strategy that can be applied by banks to deal with the development of financial technology is the Collaborating Strategy of collaborating with businesses offered by fintech companies so that they can jointly build a platform that facilitates both businesses. Sharia Banking Channeling Strategy with Fintech by promoting a lending-based fund distribution model where the risk is borne by the banking itself, while fintech companies only have limited authority over the contents of the contract. Confotative Strategy by building a new company model with the current startup format. Sharia Banking Digitalization Strategy by utilizing technological advances to improve the quality of banking services. Improving the quality of human resources as actors in sharia banking and innovating sharia banking products.

Lutsyshyn O.O., Kravchuk N.Ya. FINTECH AS AN INDICATOR OF TRANSFORMATIONS OF THE GLOBAL FINANCIAL LANDSCAPE: TRENDS, CHALLENGES AND POTENTIAL OF UKRAINE Purpose. The aim of the article is to identify key trends in financial technology and assess their impact on the stability and adaptability of financial systems, particularly in Ukraine, in the context of global transformations. Methodology of research. The study uses an interdisciplinary approach that combines the tools of economic theory, financial analytics, innovation theory, and cybersecurity. The methodological basis consists of methods of scientific generalization and abstraction, content analysis of scientific and analytical sources, as well as the case method for analysing key FinTech trends. A systematic approach and elements of system modelling were used to identify the relationships between FinTech innovations, regulatory changes, and economic stability. The Ukrainian context was studied using comparative, analytical and descriptive methods, which made it possible to assess the specifics of FinTech development in wartime and determine its potential for post-war recovery and integration into the global financial space. Findings. Financial technologies (FinTech) were studied as a key indicator of transformations in the global financial landscape in the context of the digitalization of the world economy. It is substantiated that the dynamic development of FinTech innovations is changing traditional models of financial intermediation, the architecture of financial markets, and approaches to regulation, while creating new opportunities and risks for the economic development of states. The main global trends in the transformation of the global financial landscape are analysed, in particular the development of the Open Banking concept, the spread of central bank digital currencies (CBDCs), the introduction of artificial intelligence technologies in financial services, the growing role of ESG finance, and the strengthening of cybersecurity requirements. It is shown that FinTech is a systemic factor in increasing financial inclusion, payment infrastructure efficiency, and financial transaction transparency, while at the same time highlighting the problems of regulatory fragmentation, data protection and technological dependence. Particular attention is paid to analysing the Ukrainian context of FinTech development in the conditions of full-scale war and the prospects for post-war recovery. It is determined that Ukraine has formed a unique model of digital financial stability based on a high level of digitalization of public and financial services, the development of cashless payments, the adaptability of financial institutions, and innovative solutions in the field of cyber security. The potential of FinTech as a tool for economic recovery, attracting investment, expanding access to financial services for the population and businesses, and harmonizing financial regulation with European standards is substantiated. Originality. It has been proven that FinTech goes beyond a purely technological phenomenon and is becoming a strategic element of Ukraine's economic stability, competitiveness, and integration into global financial processes. It has been concluded that the effective realization of FinTech potential requires coordinated action by the state, the financial sector, and international partners in the areas of regulatory development, cybersecurity, innovation support, and human capital development. Practical value. The research has significant practical value, as its results can be used to shape and improve state policy in the field of financial technology development, modernization of the regulatory environment, and enhancement of the financial system's stability. The results can be used by government authorities and regulators in developing strategies for the digitalization of the financial sector, by financial market participants in implementing innovative FinTech solutions and managing risks, and in the scientific and educational process in training specialists in finance, economics, and digital technologies. Key words: financial technologies, FinTech, global financial landscape, Open Banking, central bank digital currencies (CBDC), artificial intelligence, cybersecurity, ESG finance, digital transformation, financial inclusion, economic stability.

Using the empirical research method, this paper uses information of 17 listed commercial banks in China from 2015 to 2021 as research samples to investigate the impact of fintech on the profitability of commercial banks. The study discovered that the fintech index has a significant negative impact on the profitability of commercial banks, which indicates that fintech will inhibit the development of industrial banks to a certain extent. The heterogeneity test and robustness test are carried out, and the conclusion is still reliable. Considering this, this paper believes that commercial banks should increase the investment in financial technology; Actively working with fintech companies; Introducing and cultivating scientific and technological talents; Through strengthening financial innovation and supervision, to establish a sound regulatory system, these suggestions have important reference value for commercial banks to develop financial technology and use financial technology to improve profitability.