FINANCIAL INNOVATIONS IN THE SMART CITY ECOSYSTEM

Abstract

The widespread adoption of digital technologies in finance has led to the development of new financial instruments. Digital technologies offer benefits such as faster transactions, increased consumer satisfaction, and greater competitiveness of financial institutions. The article examines the latest forms of Fintech and their distribution in smart cities, as well as the implementation of smart projects. It is important to note that any subjective evaluations have been excluded from this analysis. The article systematises the main directions and forms of application of modern financial technologies. These include payments, lending, investing, cryptocurrencies, blockchain, assessment, and analytics. Payment systems and applications that allow online payments, money transfers, and cashless transactions fall under the payments category. Crowdfunding, peer-to-peer lending, and microfinance are forms of lending. Investment robots and smart portfolios are automated platforms that fall under investing. Cryptocurrencies and blockchain are technologies that allow transactions with cryptocurrencies. Innovative methods of assessing the creditworthiness of clients and providing loans fall under the assessment and analytics category. Implementing projects in smart cities requires significant resources. To expand the financial capacity of local authorities, the following tools are used: public financing, partnerships with the private sector, crowdfunding, international programs and initiatives, investment funds, loans, and partnerships with academic and research institutions. Fintech has advantages, but it also poses threats and challenges such as cyber threats, personal data protection, risks of illegal operations, and psychological aspects. Appropriate actions are necessary to prevent and address these issues, and further research is needed.