Digital Economy Technologies and Financial Security

Abstract

Problem setting. The transformation of the Ukrainian economic system and the financial sector is connected with the new needs of the state, the globalization of the world financial space, and therefore with new challenges and threats. Analysis of recent research and publications. In their works, I. Andrushkiv, L. Nadievets, L. Haryaga, O. Stoyko, and others dealt with issues of increasing the volume of digitalization, digitalization of financial products, and the specifics of the influence of fintech companies on the financial sector. The issue of security of financial institutions was studied by such domestic scientists as: O. Baranovskyi, Z. Varnaliy, S. Yegorycheva and others. Purpose of the research is to analyze the connection of digital financial technologies to the financial security of the state, to study the positive and negative impact of FinTech on the state economic policy and financial security, and to emphasize the need to adapt regulatory approaches to support a safe financial system. Article’s main body. The article is devoted to the issue of the relationship between digital economy technologies used in the financial sector and the financial security of the state. Positive and negative factors of influence of FinTech on banking, budgetary and monetary security, as components of financial security of the state, are determined. The author concludes that the development of financial technologies has the potential to increase financial security by improving the security of transactions, effective compliance with regulatory requirements, expanding access to financial services, and reducing the potential for money laundering and terrorist financing. Digital technologies are a powerful driver of the principles of transparency of financial relations, which is especially noticeable at the level of public finances. A key role in the formation of the financial security of the state is played by the provision of indicators of budget security, therefore the author paid attention to the consideration of the peculiarities of the openness of the budget. RegTech and SupTech, which in turn are technologies for managing regulatory processes and supervisors in the financial industry. Conclusions and prospects for the development. The author concludes that the regulatory framework should be based on risk assessment, contributing to cyber security, data privacy and protection of consumers of financial services, while contributing to the financial security of the state.