IMPACT OF DIGITALIZATION ON THE TRANSFORMATION OF THE GLOBAL FINANCIAL MARKET

Abstract

The article considers the impact of the introduction of new digital technologies on the development and transformation of the global financial market. The financial technology industry is gradually becoming an independent intensively developing sector of the modern economy. As the global digital economy is in a position where opportunities and risks are in balance, it is important to identify and assess the impact of technology on the financial market to identify development prospects. To do this, it is necessary to reveal the essence of the concept of "fintech" and explore the history of its development. In the course of the work the works of domestic and foreign scientists on the topic of financial technologies and their impact on the financial market were analyzed. The mechanism of functioning of modern innovations on the example of FinTech, the history of the origin of the term, its interpretation and causes, the problems and prospects of interaction between FinTech and the global financial system are studied. The authors analyze and systematize the factors that influenced the development of financial technologies. The paper provides an overview of key digital technologies used in finance today, such as: mobile technology, big data analysis, artificial intelligence, digital currency, blockchain, virtual reality, contactless technology, biometric technology. Based on the analyzed data, the forecast of fintech segment development is built and the main trends in financial technologies are formed. The impact of the COVID-19 pandemic in 2020 on accelerating the transformation of the financial sector with a change of vector on the development of financial technologies has been assessed. The topical problem of forecasting future market prospects and determining winning opportunities for the countries of the world is revealed and investigated. The analysis of the main sources of financing of fintech projects is carried out. Such as venture capital, mergers and acquisitions, and direct investment are highlighted. The share of venture capital as the most popular source of investment is estimated.