Consumers Of Financial Services Research Articles

Механизмы защиты потребителей цифровых финансовых услуг

Modern trends in digitalization, which are becoming global in nature, radically affect the financial sphere of people’s lives. The use of digital technologies and the capabilities of the Internet helps to speed up and facilitate access to various financial services. Currently, customers can take advantage of a wide range of financial services, ranging from payments (for example, for utilities) to obtaining a consumer loan, without even leaving their place of residence. Such operations can be carried out in various ways: through an ATM, payment terminal, information kiosk, mobile or Internet application, by sending SMS in other ways. Payment for such services can be made either in cash or non-cash, or using special digital means, for example, electronic money or cryptocurrency. However, for financial services clients, the progress and spread of digital technologies not only increases the comfort and speed of financial transactions, but also increases risks that need to be taken into account and analyzed, as well as mitigation measures taken. The object of the study is the economic and legal relations that arise in the process of consuming digital financial services. The purpose of the study is to characterize the current mechanisms for protecting consumers of digital financial services. Research methods - analysis and synthesis, documentary method, abstract-logical method, statistical method, comparative legal, logical-legal methods. The scientific novelty of the research is the systematization of trends in the development of digital financial services, the main risks for users of these services, as well as key areas and mechanisms for protecting consumers of digital financial services.

The Legal Nature of the Institution of the Commissioner for the Rights of Consumers of Financial Services

Relevance. In 2018, the Institute of the Commissioner for Consumer Rights of Financial Services was established in the Russian Federation. The number of financial services provided to consumers is undoubtedly growing, and the number of cases of violation of citizens' rights by financial market organizations is also increasing. The Financial Commissioner is established to protect the rights of consumers, he considers disputes between consumers of financial services and financial organizations. The importance of the institution of the Commissioner for the Rights of Consumers of Financial services is increasing, which can be seen in the increase in the number of incoming appeals. However, studies of the legal nature of the institute have not been adequately reflected in legal science, which determines the relevance of this research topic.The purpose is to determine the legal nature of the institution of the Commissioner for the Rights of Consumers of Financial Services in the Russian Federation.Objectives: based on the analysis of the regulatory legal framework and scientific literature to determine the main activities of the Institute of financial Ombudsman to establish the essence of its legal nature.Methodology. In the course of the work, the methods of theoretical research (analysis and synthesis, induction and deduction, mental modeling), as well as the statistical method were used.Results. In the course of the study, the author proposed an understanding of the legal nature of the institution of the financial commissioner as a complex legal phenomenon, including human rights and quasi-judicial legal components.Conclusions. According to the results of the study, conclusions are drawn that the key areas of activity of the Institute of Financial Commissioner are the protection of the rights of consumers of financial services and dispute resolution. The Commissioner for the Rights of Consumers of Financial Services is a human rights body that embodies the guarantee of the state for the protection and observance of the rights and interests of consumers by financial organizations. The Financial Commissioner acts as a judge in the dispute, upon the outcome of the consideration of the case, makes a binding decision aimed at resolving the dispute, restoring justice and based on regulatory legal acts.

Customized financial literacy: a boon for universal financial inclusion of PWDs post COVID-19 pandemic in developing countries

PurposeCurrently, consumers of financial products and services have become more vulnerable to predatory financial institutions, especially in the aftermath of Covid-19 pandemic. Therefore, financial consumers like the persons with disabilities (PWDs) should be equipped with knowledge and skills to help them to evaluate complex financial products on offer in financial markets, especially in developing countries to avoid being victims of fraudulent lending. The purpose of this study is to establish whether customized financial literacy mediates the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.Design/methodology/approachSmartPLS 4.0 was used to construct the measurement and structural equation models to test whether customized financial literacy significantly mediates the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.FindingsThe results revealed a partial mediating effect of customized financial literacy in the relationship between financial consumer protection and financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic. Conducting customized financial literacy increases financial consumer protection by 12 percentage points to promote financial inclusion of PWDs’ owned MSMEs in rural Uganda post Covid-19 pandemic.Research limitations/implicationsThis study focused only on customized financial literacy and financial consumer protection to promote universal financial inclusion of PWDs’ owned MSMEs post Covid-19 pandemic. Future studies may use data collected from other vulnerable groups amongst the unbanked population in developing countries, Uganda inclusive. In addition, this study also collected only quantitative data from the selected population. Further studies can be conducted using key informant interviews and focused group discussion to get the perceptions of the PWDs on being protected from exploitation by unscrupulous financial institutions.Practical implicationsThe findings from this study can help policymakers in developing countries like Uganda to revise the existing consumer protection law to include strong clauses on protection of people with special needs like the PWDs. The law must ensure that they are not exploited by financial institutions because of their conditions. The law ought to make sure that the PWDs are educated about their rights in the financial market place and all information on financial products offered by financial institutions should be simplified and interpreted to them before they make consumption decisions.Originality/valueTo the best of the authors’ knowledge, the present study is amongst the first few studies to provide a meticulous and unique discourse on the ever increasing role of financial literacy combined with consumer protection to reduce consumption risks within the financial markets, especially in developing countries in the aftermath of global pandemic shocks. This study uses the social learning theory, theory of reasoned action and theory of planned behaviour to elucidate how customized financial literacy can enhance consumer protection to increase financial inclusion of groups with special needs like the PWDs who have become more susceptible to exploitation by unscrupulous financial institutions in under-developed financial markets, especially in post Covid-19 pandemic.

THE CRYPTOCURRENCY ASSETS MARKET IN THE CONDITIONS OF MILITARY AGGRESSION

The Russian-Ukrainian war transformed the needs of consumers of financial services, both in Ukraine and abroad. On the one hand, the civilian population and the Armed Forces of Ukraine needed immediate help from the international community. On the other hand, individual and institutional investors were concerned about threats to traditional financial investments. The purpose of the article is to identify the priority directions for the development of the cryptocurrency asset market against the background of the Russian-Ukrainian war. The article presents an analysis of the cryptocurrency asset market with an emphasis on its structural changes in the conditions of the Russian-Ukrainian war. In the study, a survey was conducted to find out the impact of the war on the Ukrainian cryptocurrency market. The analysis of the survey results substantiates the hypothesis about the impact of increased hacking attacks by pro-Russian forces and missile attacks on the functioning of the cryptocurrency market in Ukraine. It has been confirmed that investments and payments are promising segments of the cryptocurrency market in Ukraine, in which, the most interested users and potential users of cryptocurrency are. Based on the received data, the weaknesses and strengths of the functioning of the cryptocurrency market in the conditions of war were identified. Threats and opportunities for the development of the cryptocurrency market against the background of Russian armed aggression are substantiated. The conducted research made it possible to formulate scenarios for the development of the cryptocurrency asset market in Ukraine in war conditions and the conditions for their implementation.

Being Emotionally Supportive: Exploring the Value of Emotional Appeals Retargeting in Recovering Consumers of Financial Services

This study investigates whether retargeting, an operational approach broadly adopted in traditional retail but underexplored in financial services, is effective in recovering valuable consumers. Whereas informative appeal retargeting operations have been found useful and thus prevalently employed in traditional retail, we propose that emotional appeals retargeting operations should be more effective in successful financial consumer persuasion drawing on the uniqueness of financial services. Particularly, we explore the value of two types of emotional appeals retargeting strategies tailored for financial services: empathetic support and privacy commitment retargeting. Our field experiment involving a microloan platform reveals the effectiveness of emotional appeals retargeting in the financial service market. Specifically, empathetic support retargeting successfully recovers 11.93% of consumers, whereas privacy commitment retargeting recovers 17.27% of consumers. These effects translate to 5.19 and 10.53 percentage-point increases in the rate of return, respectively, over the no-message operation. This study further evaluates the quality of consumers retained by these retargeting strategies and finds that consumers called back by the empathetic support and privacy commitment retargeting present high credibility, with loan approval rates 11.4 and 13.69 percentage points higher than those of nonabandoning consumers, respectively. Accordingly, a more specific retargeting strategy is explored. Our study provides a systematical implication for nascent retargeting operation practices in the financial service market by elucidating the causes and effects of consumer returns.

Complaint and Severity Identification From Online Financial Content

The automatic detection of <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">financial complaints</i> ( <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">FINCORP</i> ) can benefit businesses and online merchants. Compared with manually tagged complaints, they can use this information to monitor and address issues and effectively route them to appropriate teams. This can also promote greater transparency and accountability when dealing with consumer financial products and services, strengthening the firm’s brand value. In linguistic studies, complaints have been classified into severity categories based on the level of risk the complainant is prepared to accept. Furthermore, since emotions influence every speech act, an individual’s emotional state considerably impacts the complaint expression. In this article, we introduce a <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">FINCORP</i> resource, a collection of annotated complaints arising between financial institutions and consumers expressed in English on Twitter. The dataset has been enriched with the associated emotion, sentiment, and complaint severity classes. The dataset comprises 3149 complaint and 3133 noncomplaint instances spanning over ten domains (e.g., credit cards, mortgages). For a comprehensive evaluation of our dataset, we develop a multitask framework for complaint detection and severity classification with emotion recognition (ER) and sentiment classification as the additional tasks and compare it with several existing baselines. The corpus and code are available here: https://github.com/RohanBh23/FINCORP.

Globalization of Stock Markets and The Factors Affecting It

Stock exchanges occupy a special place among the links of the financial and credit system. Mobilization of temporarily free cash and its effective distribution is carried out on the stock exchange. The financial market is an extremely complex and multifaceted structure, where the following participate: 1. Market infrastructure institutions; 2. Financial intermediaries; 3. Consumers of financial services. It is important to note that trading on modern stock exchanges is mainly carried out through electronic trading terminals. However, in the world stock markets today, all the conditions exist for stock trading and stock exchange settlement to be affected by blockchain technology, and even more so than traditional currency markets. One of the important benchmarks for investors and speculators in organized stock markets to make transactions is the stock market index. Stock market indices are directly related to share prices and are calculated based on the value of shares (in appropriate proportions) included in the base for calculating the index. Thus, the participants of the financial market and the instruments circulating in the market, which serve its various types of operations and segments, are characterized by great diversity at the modern stage. Therefore, it is necessary to go through the listing procedures on the stock exchanges and trade in the securities of only those issuers that meet the established requirements, which include financial indicators of the issuer, level of liquidity and degree of risk. Keywords: stock markets; globalization of exchanges; Factors affecting

Behavioral supervision of the Bank of Russia over the activities of microfinance organizations providing loans

The article discusses issues related to the implementation of behavioral supervision of the Bank of Russia over the activities of microfinance organizations, including the provision of loans. The main purpose of the study is to identify changes in approaches to supervision in the microfinance market since the transition to mega-regulation, identify the reasons for the emergence of a new type of supervision aimed at protecting the rights of consumers of financial services, and analyze the work of the mega-regulator in this area. The study examines in detail the issues of legal regulation of the implementation of behavioral supervision in this area and the consolidation of relevant provisions at the level of normative legal acts. Special attention is paid to the results of this supervisory activity of the Bank of Russia, in particular, their reflection at the level of the relevant acts of the mega-regulator. The methodological basis of the research is the general scientific method of analysis, private scientific methods of formal legal analysis and interpretation. The results of the application of behavioral supervision by the Bank of Russia are analyzed and it is shown that this type of supervision is an effective tool for supervisory activities, allowing not only to monitor compliance with the requirements of current legislation, but also to combat unfair practices on the part of supervised organizations. The importance of the preventive component of behavioral supervision is separately noted. Problematic aspects in legal regulation are considered, including the lack of a legal definition of the relevant term and special norms at the level of normative legal acts, and, as a result, the need to improve the legal regulation of behavioral supervision. The novelty of the study lies in the proposed concept of behavioral supervision of the Bank of Russia over the activities of microfinance organizations, as well as in the analysis of the use of a new type of supervision by the mega-regulator in relation to specific subjects of the financial market.

ISSUES OF PROTECTING CITIZENS' RIGHTS IN THE FIELD OF FINANCIAL SERVICES

Today, in the Russian Federation, situations of violating the rights and interests of consumers of financial services are quite often allowed, which negatively affects the economic situation of citizens and undermines confidence in the banking system of the state. The purpose of the study is to analyze the judicial practice and to develop recommendations for consumers of savings services and services on providing borrowed (credit) funds, compliance with which will significantly reduce the risks arising from concluding and executing bank deposit and loan agreements. Materials and methods. The materials of the reports made for the International Confederation of Consumer Societies on the state of protecting the rights and interests of consumers of the savings services market in Russia were used. General and specific methods were used as research methods, including system-legal, logical, structural-functional ones and others. Study results. Based on the analysis of modern legislation, law enforcement and judicial practice of the Russian Federation, the authors have identified the most typical violations of consumer rights in the market of savings services and services for providing borrowed (credit) funds. Of particular interest are cases related to toughening the requirements for personal identification and security of banking operations in the context of digitalization of the economy, which cannot but affect traditional procedures for processing and withdrawing funds under a bank deposit agreement. The article analyses the most common situations of violating the rights and legitimate interests of consumers of savings services and services for providing borrowed (credit) funds in Russia during execution of bank deposit agreements and loan agreements. The issues that require regulation in order to avoid violation of the rights and interests of the parties to the above-mentioned agreements have been studied. Recommendations are also proposed to reduce risks when implementing protection of savings services consumers, which was the ultimate goal of the study. Conclusions. Realization of the citizens' constitutional right to judicial protection of banking services, on the one hand, reveals acute and obvious problems in this area, on the other hand, contributes to optimization of banking and civil legislation. In the context of financial services digitalization, the interests of citizens are not sufficiently protected. However, solution to the problem should be comprehensive, since cases of cybercrime are often associated with mobile communications; therefore, they depend on the effectiveness of control and supervision in this area. It is important to provide the consumer with preliminary structured information that enables him to realistically assess the risks and, on this basis, make a well-founded decision about opening or managing an account.

ASSESSMENT OF KEY MARKETS FOR INSTITUTIONAL INVESTORS IN UKRAINE IN THE CONTEXT OF WAR

The article is devoted to the assessment of key markets for institutional investors in Ukraine in the context of Russia's full-scale invasion. The purpose of this study is to assess the institutional investor market in Ukraine during the war. To achieve this goal, it is necessary to solve the following tasks: to study the legal status of an institutional investor in Ukraine and its types, to assess changes in the institutional investor market after the start of a full-scale invasion, to identify key risks that exist in the market now, and to provide proposals on the need to improve state regulation of the institutional investor market to protect citizen investors in times of war. The methodological basis of the study was formed by general scientific methods of cognition: the dialectical method of cognition of the phenomena of the surrounding reality and the comparative legal method for establishing the legal status of an institutional investor, methods of logic (analysis, synthesis, induction, deduction, analogy), economic analysis, absolute and comparative advantages and statistical methods for analysing the market of institutional investors and making proposals, mathematical methods for calculating the volume of the market of institutional investors. In accordance with the systemic and structural approach, the institutional investor market was assessed by each of the structural elements of this market. The authors propose to consider an institutional investor as a financial intermediary that attracts and accumulates funds of individual investors (consumers of financial services) and carries out investment activities in the interests of individual investors aimed at financing socially and economically important sectors of the economy for the state and society. The authors pay special attention to the concept of responsible business conduct, pointing out that today, socially responsible business conduct is extremely important for the activities of an institutional investor, which includes "responsible attraction (accumulation) of funds" and "responsible spending (investment) of investors' funds". The study found that the main markets for institutional investors in Ukraine – banking, insurance and private pensions – showed stability and a slight increase in key indicators, which is very positive for Ukraine today. However, in the long term, there are a number of risks that should be taken into account by the government when formulating the state policy on the activities of institutional investors in these markets to protect the interests of citizen investors. The article provides suggestions on the main areas of improvement of the legislation on the activities of institutional investors to minimise the risks of citizen investors.

The Consumer Protection System Formation: Historical and Legal Perspective

The paper examines historical and legal aspects of the formation of the consumer protection system. On the basis of a number of provisions of the Laws of Hammurabi and the Laws of Manu, the Digests of Justinian, the author defines the features of protection of the rights of buyers from unfair actions of the seller. Taking into account the analysis of regulatory sources, the author draws a conclusion regarding a set of unsystematic norms and mechanisms and the absence of a consumer protection system. The situation began to change gradually only at the turn of the 19th–20th centuries when special legislation and state and public institutions ensuring consumer rights were developed. Referring to the provisions of the Law of the Russian Federation dated 7 February 1992 No. 2300-1 «On Consumer Rights Protection», the author notes the absence in its structure of special norms aimed at protecting the rights of consumers of financial services, which does not seem quite adequate to the economic relations that are developing in the financial market. According to the results of the study, the author concludes that at the moment there is a new stage in the development of the consumer protection system, involving both the formation of narrow-profile regulation for consumers, depending on which sphere they act as such, and the creation of specialized institutions to protect their rights.

Особливості оцінки фінансової грамотності та фінансової поведінки українців під час війни

This article emphasises the need to improve the level of financial literacy of the population, which is a qualifying driver of the harmonious development of the state's financial system and has particular relevance in the post-war economic recovery. The impact of the war on financial behaviour and the use of FinTech innovations by Ukrainians is determined. The purpose of the article is to clarify the peculiarities of assessing financial literacy and financial behaviour of Ukrainians during the war, taking into account the specifics of the impact of financial technologies (Fintech) on the economic development and welfare of Ukraine. The conceptual framework for assessing financial literacy and financial behaviour of the population is formed, which is presented as a set of interrelated elements. The paper presents the results of a survey conducted among Ukrainians, including those with IDP status, within the framework of the UK-Ukraine twinning grants scheme (Project UUT23 "Fintech as a fence for the shock and fuel for the recovery? Lessons from the war"). The results of the survey allowed us to formulate a set of recommendations both at the macro level and at the level of an individual provider to ensure that the financial market and fintech tools perform the function of economic recovery after the social trauma suffered by consumers of financial services.

Independent Expertise Organized by the Ombudsman for the Rights of Consumers of Financial Services: Procedural Problems and Place in the System of Evidence in Civil Proceedings

The present research deals with the procedural problems connected with the independent expertise, organized by the Financial services consumer rights ombudsman, the conclusion about the significant differences of this expertise from the judicial expertise, the conclusion that the expertise organized by the Financial services consumer rights ombudsman in the judicial process refers to the written evidence, and at the same time leads to an increased standard of justification for the appointment of judicial expertise. Within the framework of the article the author proposed measures aimed at detailed regulation of the process of independent expertise, organized by the ombudsman for the rights of consumers of financial services, which would increase the level of objectivity and protection of the rights of consumers of financial services.

News in legislation about the protection of the rights of contents

The paper analyzes the New Edition of the Law of Ukraine "On the Protection of Consumer Rights" No. 3153-IX dated June 10, 2023. Based on the results of the analysis, the author outlined the main positive trends in bringing the legal norms of the new Ukrainian Law closer to the acts of European consumer law, in particular food products were returned to the sphere of consumer legislation; the terminology has been approximated, the concept of a significant drawback has been eliminated; consumers was given the right to exchange the product under warranty for the same or similar product; the declarative practice was eliminated when most of the violations of consumer rights did not involve any responsibility, the need for consumer policy was determined, and the main subjects of the consumer rights protection system were outlined. However, on certain issues, in the new edition, the practice of promoting provisions that directly contradict or distort the provisions of European law has been continued. In particular, it was established that the mention of the constitutional right of consumers to the protection of their rights by the state, as well as the basic right of consumers to product safety, was removed from the new edition of the Law. The paper substantiates the fallacy of the decision regarding the removal of the reference to the extension of the Law to consumers of financial services, as well as the norm regarding the need for business entities to create an exchange fund for goods, and the norm regarding the application of penalties. It has also been established that there are certain shortcomings in defining the essence of the consumer rights protection system and its subjects, in the name of the national body responsible for the implementation of the policy in the sphere of consumer rights protection. According to the results of the analysis, proposals were made to eliminate the identified shortcomings.

Adapting to the digital age: Investigating the frameworks for financial services in modern communities

AbstractThe digital age has brought about a revolution in the way we manage our finances, with more and more financial services moving online. However, not all communities have the same level of digital competency, leading to disparities in access to financial services. This study delves into the digital competencies' framework necessary for financial services to sustain vulnerable communities in the digital era. The COVID‐19 pandemic has accelerated the digital shift, leaving many communities struggling to adapt. The study aims to understand the challenges and opportunities presented by this shift, and how key stakeholders can support disadvantaged communities in developing their digital skills and accessing resources. The “Digital Financial Services Consumer Competency Framework” was identified as most appropriate for the study. Respective governments and other key stakeholders must assist with the development of digital hubs, from which vulnerable communities can access digital skills and resources. The research method used is a systematic literature review of 19 published papers, which were analyzed to generate statistics, visualization maps, and theories for the study. The findings of the study will be used to guide the development of policies to necessitate and encourage community ICT adoption.

The Effect of Financial Services Authority Regulatory Implementation Concerning Financial Consumer Protection on Banking Financial Performance

Many parties engage in banking as the financial services industry grows, particularly in Indonesia. To keep banks safe, financial services must emphasize customer protection. The Financial Services Authority (OJK), Indonesia's financial services regulator, implemented several consumer protection measures. The policy may hurt banks despite protecting customers. Consumer protection laws strengthen banks. Proper protection would make clients feel safer and increase bank trust. Banks with strong consumer protection regulations will attract more clients since customers will feel safe doing so. This study examines how the OJK regulation's implementation on financial services consumer protection affected national commercial banks' financial performance from 2017 to 2021. This study adopts descriptive and verifiative approaches to analyze 93 national commercial banks in Indonesia from 2017 to 2021. The research utilizes secondary data from the Financial Services Authority (OJK) and bank financial statements. The investigations done have led to the conclusion that implementing consumer protection can improve bank financial performance and lower credit risk

Digital Economy Technologies and Financial Security

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.

НЕОБХІДНІСТЬ ТА МОЖЛИВОСТІ ВИКОРИСТАННЯ ЕЛЕКТРОННИХ ДОКАЗІВ У ФІНАНСОВИХ РОЗСЛІДУВАННЯХ

In today’s digital age, electronic evidence plays an important role in the investigation of financial crimes. As consumers of financial services have become increasingly dependent on technology and the widespread use of electronic devices, financial criminals have also adapted to use these digital channels. As a result, investigators must navigate the content and types of electronic evidence to uncover valuable information and organize strong evidence based on it. Therefore, the questions of researching the meaning and nature of electronic evidence in financial investigations, the challenges they create, and the methodologies used for the effective collection, analysis and presentation of such evidence are topical. The purpose of the article is to specify the theoretical and methodological principles of using electronic documents in financial investigations. In accordance with the set goal, the following tasks were formulated: justify the essence of the electronic document as a source of evidence in the investigation of financial crimes and characterize its place in the evidence system; determine the criteria for assessing the reliability and status of electronic evidence; outline the stages of application of the methodology of collection and analysis of electronic documents. Taking into account the specificity of the topic, the goal and tasks of the research, a number of methods were used: the historical-legal method was applied during the study of the state of scientific development of electronic documents in Ukraine; the comparative legal method contributed to the comparison of the norms of the legal framework; formal and logical methods were used to substantiate the conclusions. The article highlights the scientific and applied problem of using electronic evidence in financial investigations, outlines the theoretical and methodological principles of using special tools and technologies in domestic legal practice. Taking into account the domestic legal framework and scientific sources, the electronic document essence as a evidence source in the financial crimes investigation was revealed, and its place in the system of evidentiary and control financial information was clarified. Emphasis is placed on such criteria for evaluating evidence in financial investigations as appropriateness, admissibility, reliability, sufficiency, interconnection of evidence. The methodology application stages of electronic documents collection and analysis are characterized.

ЦИФРОВА ФІНАНСОВА ГРАМОТНІСТЬ: КОМПОНЕНТИ ТА МЕТОДИ ПІДВИЩЕННЯ

This article is dedicated to the topic of financial literacy and its development in the context of the digitization of financial services. Traditional financial literacy is insufficient for effectively utilizing financial resources in today's digital world. The concept of digital financial literacy is introduced. It combines the skills of using financial services and the use of digital technologies. In the article is proposed authors’ definition of digital financial literacy by components, which include awareness of digital financial products and services, awareness of potential digital financial risks, control over them, and knowledge of the rights of consumers of financial services. These components are crucial for the development of digital financial literacy. The article highlights potential security risks, such as digital fraud, technical failures, and excessive reliance on digital services. The importance of understanding digital footprint and online reputation is emphasized. The article provides simple principles to help users protect their personal information and avoid fraud. It explains the need for understanding consumer rights and compensation procedures to enable individuals to protect their rights. Understanding these aspects of digital financial literacy is essential for effectively managing financial resources in today's digital world. Research conducted in 2021 showed that technology users have a higher level of financial literacy compared to those who do not use technology. However, the overall level of financial literacy in Ukraine is still insufficient for making informed financial decisions. The National Bank of Ukraine, the Ministry of Digital Transformation and other international, governmental, and non-governmental organizations are focusing on the development of financial literacy among the population. It is recommended to focus on the development of digital financial literacy, using communication campaigns, sharing information about providers of digital financial services, financial education initiatives, and awareness-raising about digital crimes and consumer rights in financial services.

Artificial intelligence implementation in ukrainian banks: perspectives and limitations

Methods. During the research, the method of scientific abstraction was applied – to define the concept of «artificial intelligence»; analysis and synthesis – when identifying the functional capabilities of artificial intelligence; comparison – to determine the level of use of artificial intelligence systems in Ukrainian banks. Results. The article examines the genesis of algorithms of generative artificial intelligence (AI) from the point of view of the prerequisites for its appearance, development and impact on economic and financial agents. It was determined that artificial intelligence is the main factor in revitalizing economic growth and a strategic advantage in the long term. The current state of implementation of AI tools in the activities of Ukrainian banks in comparison with foreign banks is analyzed. For further development, commercial banks are suggested to create joint projects with scientific institutions, technological companies regarding training and adaptation of models for clients of financial institutions and parallel implementation of algorithms in internal bank processes, including search, adaptation and development of personnel, marketing, internal information technologies and processes or in the event of sufficient financial resources, the creation of intra-bank divisions for the development of AI. The transition to innovative types of services will also require financial institutions to communicate properly with clients. Novelty. The level of use of artificial intelligence systems in Ukrainian banks was determined. According to the results of the study, it was determined that the key factor that negatively affects the introduction of new technologies is the high cost of investments in the preparation of models and the selection of teams. Other challenges relate to the regulation of relations with consumers of financial services and insufficient attention from the regulator. Practical value. Applied research results are focused on taking into account the specific positions and opportunities of the enterprise's competitive potential when evaluating the effectiveness of its innovative activities.