Analysis of modern digital technologies’ implementation in the financial sphere

Digital economy: theory and practice

Among the main areas of development, in which the vast majority of modern fintech startups operate, allocate loans, attract investments, increase capital, insurance, Internet banking, mobile payments and mobile transfers. It is indicated that there is as yet no clarity in the model of interaction between these start-ups and banks. In 2016, 84 % of investments in fintech startups fall to innovative projects, which are going to be consolidated with banks in the future. On the other hand, in 2017 90 % of investments (about 1 billion US dollars) in the UK were directed to finance projects competing with traditional banks. As for main directions of innovative digital technologies’ implementation, authors include payment systems, credits (including mictrocredits) peer-to-peer crowdlending, crowdinvesting and crowdfunding platforms, Internet banking, blockchain, Big Data and machine learning. Specific feature of implementation of digital technologies for customers’ needs satisfaction are described. The paper demonstrates that an interrelation exists between the growth of financial technologies and the development of other branches of electronic economy, for example, between electronic payments and electronic commerce. Authors demonstrated that traditional financial institutions most probably will not be supplanted by fintech companies because of the difference of tasks that banks and fintech companies solve as well as because of the difference in financial competencies. The most probable scenario of development of the financial industry consists in coexistence of traditional financial institutions and fintech companies. Each model of financial services providing will have its specific niche. Banks will increase the use of financial technologies in their business.