CURRENT TRENDS OF FINANCIAL TECHNOLOGY DEVELOPMENT

Abstract

The paper considers the theoretical principles and applied principles concerning financial technologies. Currently, the rapid development of the digital economy has become an important global trend of dynamic socio-economic development, which has led to the spread of financial technology impacts on the entire system and structure of socio-economic relations. It is stated that as FinTech develops, the younger generation is now gaining more access to a wider variety of sophisticated financial products and services, some of which carry higher risks that are not yet known in the market. However, the financial knowledge of the younger generation is generally lower than their parents, as the Organization for Economic Co-operation and Development (OECD) notes. Studies have shown that the trend in the financial sector towards increasing automation, mobility and digitalization of financial services is changing. Blockchain, machine learning, AI and robotics are all creating huge waves in fintech, bringing both synergies and disruption to industry. However, as a result of the implementation of the PSD2 directive, the data that banks need to share is essentially sensitive financial data, and this naturally raises many privacy and security issues along with consumer uncertainty. Considering the international trends in the development of fintech companies, Ukrainian banks are interested in creating joint projects with domestic and foreign fintech representatives. As fintech companies become more mature and technology-oriented, they are faced with the need to invest more in sophisticated software, supported by advanced analytics and personalized marketing campaigns. This brings fintech to a more consumer-oriented state where service providers are driven by the ongoing challenges of society and the need to meet their customers' needs. The major client for most fintech companies is business, both large corporate and SMB (37% for each). 21% of companies operate in the mass retail market, and only 6% target the premium retail segment. Keywords: financial technologies, digitization, blockchain, artificial intelligence, neo-bank, crowdfunding, insurtech, open banking.