Financial Technology Innovation Research Articles

The role of financial inclusion, technology innovation, energy and environmental degradation in determining sustainable growth in Asia

AbstractSustainable growth is a top priority for all economies as they work towards creating a prosperous and resilient future for current and future generations. This study empirically explores the important role of financial inclusion (FI), energy consumption, technological (TECH) innovation and environmental degradation in the economic growth of 13 selected developing Asian countries from 2000 to 2021. The feasible generalized least squares method is used for empirical examinations due to the nature of the data. The study focuses on three dimensions of FI: penetration, usage and availability of financial institutions. The results show that FI, energy consumption and TECH innovation encourage economic growth, whereas ecological footprint discourages economic growth in selected Asian countries. The empirical findings highlight the importance of promoting sustainable growth in Asia through enhanced FI, TECH innovation, sustainable energy practices and environmental conservation. Governments in these countries should prioritize strengthening the financial sector, investing in research and development and implementing effective policies to ensure a clean and green environment. This will lead to inclusive and environmentally responsible development that benefits both current and future generations in the region.

Blockchain to blockchange? NFTs and DIY entrepreneurship in music production

Recently, developments in blockchain technology have shaken up the creative industries. Especially in the visual arts, NFT trade gained traction. Yet, musicians have also experimented with implementing blockchain technology. Most notably during the COVID-19 pandemic, the sales of NFTs were thought to compensate for some of the income loss caused by restrictions on live music. This paper explores why musicians engaged with blockchain technology, specifically by selling their music as NFTs, and how they perceive this affected their income, work practices and business models. Building upon 14 interviews with musicians who have sold their songs as NFTs, we highlight two main motivations for selling music NFTs: commercial autonomy from gatekeepers and platforms, and artistic autonomy. Financial gains were less prevalent and often remained obscured in respondents’ discourses. Above all, this research shows that pursuing autonomy and authenticity remains key for musicians, regardless of their appetite for new financial-technological innovations.

Gauging the dynamic interlinkage level between Fintech and the global blue economy performance

PurposeWe investigate connections between the development of Fintech and the blue economy from September 14th, 2020, to August 11th, 2023.Design/methodology/approachIn this research, we use a cutting-edge model-free connectedness approach to investigate the relationships between FinTech and blue bond volatility. Our work is the first to investigate the effects of unknown events, such as the COVID-19 pandemic and Ukraine–Russia conflicts, on the interconnection of volatility derived from FinTech development and blue bond volatility.FindingsOur results highlight the two-way relationship between the development of Fintech and the blue economy during our sample period. The net total connectedness shows that the blue economy index is a net shock receiver, especially in late 2021 and the second half of 2022, while most of the fintech indexes in our sample are mainly net shock transmitters. The Ukraine–Russia tension threatens the development of a sustainable blue economy. The development of Fintech plays an important role in promoting the blue economy.Practical implicationsOur results have important policy implications for investors and governments, as well as methods from the spillovers across the various indicators and their interconnections. Sharp information on the primary contagions among these indicators aids politicians in designing the most appropriate policies.Originality/valueOur paper contributes to the literature in at least four ways. First, as previously stated, our article is the first to investigate the relationship between FinTech and blue bond volatility. Second, this study presented a framework for studying volatility interconnections between distinct variables that is more suited to analyzing these interconnections. In this research, we use a cutting-edge model-free connectedness approach to investigate the relationships between FinTech and blue bond volatility. Third, our work is the first to investigate the effects of unknown events such as the COVID-19 pandemic and Ukraine–Russia conflicts on the interconnection of volatility deriving from FinTech development and blue bond volatility. Lastly, our research provides a daily dataset for the BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF to analyze 50 businesses from various markets that are at the forefront of the responsible application of ocean resources and other ESG standards. The Global X FinTech ETF (FINX) and the ARK FinTech Innovation ETF (ARKF) seek exposure to companies developing financial technology innovations. The development sectors include insurance, investment, fundraising and third-party lending by utilizing cutting-edge mobile and digital technologies. Our time series runs from September 14th, 2020, to August 11th, 2023. By using this database, we provide a comprehensive analysis of the link between the volatilities arising from various markets.

How does climate change risk affect energy poverty? International evidence.

Based on cross-country data from 2002 to 2019, we explore the impact of climate change risk (CCR) on energy poverty (EP), and the moderating role in the CCR-EP nexus is also discussed. The empirical results suggest that CCR can exacerbate EP, especially for rural areas. Moderating effect analysis shows that financial development, technological innovation, and adaptation readiness can modify the negative impacts of CCR on EP to some extent. Moreover, the impact of CCR on EP is heterogeneous, demonstrating that CCR is more likely to exacerbate EP in countries with low economic development, low economic freedom, high carbon intensity, and the Africa region. Our findings emphasize the challenge of balancing EP alleviation with climate change response and provide the policy guidance to promote coordinated development of CCR management and energy supply security.

Data Security and Consumer Trust in Fintech Innovations using Technology Adoption Method

This study investigates the interplay between data security and consumer trust in the context of fintech innovation, employing the Technology Adoption Model (TAM) as the theoretical framework. Fintech, characterized by its rapid technological advancements, has revolutionized traditional financial services, offering convenience and efficiency. However, concerns about data security and privacy have emerged as significant barriers to consumer adoption and trust. The research methodology involves a comprehensive literature review to establish the theoretical foundation and empirical analysis of consumer perceptions through surveys and interviews. The TAM framework, which examines users' attitudes and behaviors towards technology adoption, serves as a lens to understand how data security measures influence consumer trust in fintech platforms. Results indicate that consumers prioritize data security and privacy when evaluating fintech services, with perceptions of security significantly impacting trust levels. Factors such as encryption protocols, authentication mechanisms, and regulatory compliance play crucial roles in shaping consumer perceptions of data security. Additionally, transparency and communication regarding data handling practices enhance trust and mitigate concerns. The study identifies the role of user experience design in fostering trust, as intuitive interfaces and clear privacy policies contribute to perceived security. The findings underscore the importance of proactive measures by fintech companies to address data security concerns, including robust cybersecurity protocols, regulatory compliance, and transparent communication strategies. The study highlights the intricate relationship between data security and consumer trust in fintech innovation, emphasizing the need for comprehensive approaches to mitigate risks and build consumer confidence. By understanding and addressing consumer perceptions and concerns, fintech companies can enhance trust and drive widespread adoption of innovative financial technologies. Keywords: fintech, adoption, security, trust, inclusion, investment, payment, insurance, technology, efficiency, innovation.

Exploiting green energy potential via FinTech: The role of DLT-based crowdfunding in PV and ESS investments

This article explores the interplay of green energy potential and innovative financial technology (FinTech). To achieve this, an in-depth study on the technological, economic, and environmental aspects of residential-scale solar energy and storage investments was performed. As the first part of the study, residential-scale solar energy and associated energy storage investments were modeled in the assessed countries. As the next step, the effects of Distributed Ledger Technology (DLT) enabled crowdfunding on the modeled investments were highlighted with a Proof-of-Concept (PoC) DLT-enabled investment tool. As the last step, the Life Cycle Assessments (LCAs) of the investments were carried out for each of the assessed countries in order to provide better investment decisions to various investors. The results of this research indicate that with the integration of novel Fintech tools, the Levelized Cost of Storage (LCOS) values of the assessed investments may be reduced by up to 58%. Meanwhile, the LCA results highlighted that solar silicon production and battery cell manufacturing have the highest LCA results, accounting for 19.1 and 63.8 kgCO2eq/kWh respectively. Meanwhile, the transportation sector had an emission of 9 kgCO2eq/kWh. Thus, with cleaner manufacturing and transportation, the emissions from PV and ESS investments may be reduced drastically.

The Effect of Generation Z Participation and Financial Technology Innovation on Community Welfare and Sustainable Development in MSMEs in Indonesia

This study investigates the effect of Generation Z participation and Financial Technology (FinTech) innovation on community welfare and sustainable development within Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. A quantitative research approach was employed, utilizing a cross-sectional survey design to collect primary data from MSME owners, employees, and stakeholders. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was used to analyze the data and test the hypothesized relationships. The findings reveal significant positive relationships between both Generation Z participation and Financial Technology Innovation with Community Welfare and Sustainable Development. The results underscore the importance of harnessing youth entrepreneurship and technological innovations to drive socio-economic development and promote sustainable growth within the MSME sector. These findings have significant implications for policymakers, entrepreneurs, and stakeholders striving to foster inclusive and sustainable development in Indonesia.

Financial Technology (FINTEC) Innovation and Disruption

Abstract: The advent of financial technology (fintech) advances has caused a rapid transformation of the financial industry, causing major disruptions to the traditional banking and finance sectors. In an effort to shed light on how the financial industry is changing, this thesis examines the patterns and ramifications of fintech innovation and disruption. The first section of the paper is a thorough examination of the literature that describes the development of fintech as well as the theoretical underpinnings of disruption and innovation. Through case studies of profitable fintech businesses, it investigates current developments in fintech innovation, such as robo-advisors, blockchain technology, and digital payments.

Projecting a long‐term healthcare expenditure in the United States: Do climate change, globalization, and technological innovation play a major role?

AbstractRecognizing the paramount importance of health, the United Nations Development Program has outlined sustainable development goals, emphasizing Goal 3, which focuses on ensuring and promoting healthy lives and well‐being for all. Consequently, this study delves into the determinants of healthcare expenditure (HCE), specifically focusing on financial development (FDV), tourism (TOR), technological innovations (TINs), economic growth (EG), and climate change in the United States. The investigation utilizes data spanning from the first quarter of 2000Q1 to the fourth quarter of 2020Q4. To achieve this objective, we employed innovative quantile‐based methodologies, including wavelet quantile regression and quantile‐on‐quantile Granger causality. These approaches facilitated a comprehensive exploration of the dynamic interactions between HCE and its influencing factors across various quantiles and periods. The wavelet quantile regression and quantile‐on‐quantile regression analysis findings consistently indicate a positive impact of CO2, TOR, EG, globalization, FDV, foreign direct investment, and TIN on HCE in the United States. Furthermore, the results obtained from the quantile‐on‐quantile Granger causality demonstrate that CO2 emissions, TOR, EG, globalization, FDV, foreign direct investment, and TIN significantly predict HCE across all quantiles. These insights have informed the formulation and implementation of various policies addressing the complex interplay between healthcare spending and its driving factors.

A REVIEW OF SMALL BUSINESS GROWTH STRATEGIES IN AFRICAN ECONOMIES

This comprehensive review delves into the dynamic landscape of small business growth strategies within the diverse economies of Africa. Small and medium-sized enterprises (SMEs) play a crucial role in driving economic development and fostering job creation across the continent. However, the challenges faced by these enterprises are multifaceted, ranging from limited access to finance and market constraints to regulatory hurdles. This review examines a spectrum of strategies employed by small businesses to overcome these challenges and achieve sustainable growth. The study analyzes various financial mechanisms that facilitate small business growth in African economies. From traditional banking channels to innovative fintech solutions, the review explores the evolving landscape of financial inclusion and assesses its impact on SME development. Additionally, the role of government policies and interventions in creating an enabling environment for small businesses is scrutinized, shedding light on successful models that have spurred entrepreneurial growth. Market access is a critical determinant of small business success, and this review investigates the strategies employed by SMEs to penetrate local and international markets. From leveraging digital platforms to forming strategic partnerships, the examination reveals the importance of adaptability and innovation in overcoming market entry barriers. Furthermore, the study explores the impact of technology adoption on small businesses, highlighting the transformative power of digital tools in enhancing efficiency, reaching new customers, and optimizing operational processes. In the context of the African continent's unique socio-cultural and economic diversity, the review also delves into the significance of knowledge transfer and skills development. Collaborative initiatives, mentorship programs, and educational interventions are assessed for their role in equipping entrepreneurs with the capabilities required for sustainable growth. In conclusion, this review synthesizes current literature on small business growth strategies in African economies, offering valuable insights for policymakers, practitioners, and researchers alike. The findings underscore the importance of a holistic approach that integrates financial inclusion, policy support, technological innovation, and capacity building to foster a vibrant small business ecosystem and contribute to overall economic development in Africa. Keywords: Small Business, Growth, Strategies, Economies, Development.

The dynamics of the financial inclusion index for developing countries: lessons learned

PurposeThe purpose of this paper is to calculate the financial inclusion index and analyze its dynamics in developing countries.Design/methodology/approachThe authors use the two-stage principal component analysis (PCA) method and consider financial technology innovations to improve the accuracy of the financial inclusion index.FindingsThe authors found a downward trend in the financial inclusion index in most developing countries over the study period. The authors also found that a high financial inclusion index is linked to high scores in the Doing Business and high business climate regulation ranking. In addition, the authors observed that the rates of low financial inclusion in developing countries are due to low utilization of and unequal access to financial services.Practical implicationsThe analysis suggests that policymakers in developing countries could invest in digital infrastructure to extend access to financial services in remote areas. They could also encourage financial innovation, particularly in financial technologies, by adopting flexible regulatory frameworks. Promoting the financial inclusion of marginalized groups through targeted initiatives tailored to their needs is another solution. They could also encourage the use of financial services by raising awareness and educating populations through training programs. Finally, to improve the business climate, governments could simplify administrative procedures and promote transparency and legal stability.Originality/valueUnlike previous studies, the use of the two-stage PCA method and the consideration of financial technology (Fintech) innovations such as mobile money in the determinants of the financial inclusion index improve the accuracy of the index.

ENHANCING GLOBAL ECONOMIC INCLUSION WITH FINTECH INNOVATIONS AND ACCESSIBILITY

The objective of this paper is to explore the transformative role of financial technology (fintech) innovations in enhancing global economic inclusion. Recognizing the persistent barriers that impede access to financial services for marginalized communities worldwide, this study employs qualitative case studies across several economies. The research methodology includes the examination of mobile payment systems, blockchain-based solutions, and digital banking platforms to assess their impact on financial inclusivity. Key findings indicate that fintech innovations significantly lower the cost of delivering financial services and expand their accessibility, especially in remote areas lacking traditional banking infrastructure. Notably, mobile payment systems have empowered individuals by facilitating peer-to-peer transactions and enabling micro-lending practices. Blockchain technology has further enhanced transparency and security, encouraging higher usage rates among underserved populations. The paper concludes that while fintech innovations hold substantial potential to drive economic inclusion, challenges such as regulatory frameworks, digital literacy, and infrastructure still require comprehensive strategies to maximize their impact. It suggests that ongoing collaboration between governments, technology providers, and financial institutions is crucial to developing inclusive fintech ecosystems that not only promote access but also ensure the sustainability and scalability of financial services globally. Keywords: Fintech, Financial Inclusion, Emerging Markets, Accessibility Barriers, Mobile Payments, Digital Banking, Blockchain, Digital Divide

Navigating sustainable horizons: exploring the dynamics of financial stability, green growth, renewable energy, technological innovation, financial inclusion, and soft infrastructure in shaping sustainable development.

This paper examines sustainable development, which employs an integrated approach to tackle environmental, social, and economic challenges. It provides a theoretical underpinning by examining sustainable development's inception, fundamental tenets, and conceptual structures. This study highlights the interdependence of social equity, economic prosperity, and environmental conservation, emphasizing the need for a comprehensive approach. Quantitative methodology is utilized in this study, and the dependent variable is sustainable development. Financial risk, green growth, technological innovation, renewable energy, financial inclusion, and soft infrastructure are all independent variables. The analysis is predicated on secondary data from the Organization for Economic Cooperation and Development and World Development Indicators databases spanning 2004 to 2019. An entropy-weighted method used for the green growth index is a metric that enhances the precision of variable indicators. Cointegration, correlation, VIF, cross-sectional dependency, and stationarity tests are among the diagnostic tests that inform the selection of methods for the panel data set. It is determined that fully modified ordinary least squares is the suitable technique. The findings suggest statistically significant positive correlations among greenhouse gases, financial inclusion, and soft infrastructure. Conversely, significant negative correlations exist between financial risk, green growth, renewable energy, and technological innovation. An estimated 55% long-run variance is present. The study's key finding is that financial risk has an adverse effect on sustainable development, while an impactful relationship where increased green growth is linked to decreased GHG emissions. This association is notably significant. Results show that renewable energy has a negative coefficient and significant negative impact on greenhouse gases, showing an active relation to enhancing sustainable development. In contrast, financial inclusion has a significant positive effect on sustainable development. The implications imply that providing incentives to institutions engaged in alternative energy, precisely renewable sources, could positively impact the environment. Government policies and funding regulations oriented toward sustainable development are indispensable for environmental sustainability. Government policies and incentives are pivotal in advancing an environmentally conscious and sustainable future. This study's contribution lies in elucidating the positive correlation between government interventions and promoting renewable energy adoption, thereby paving the way for a greener tomorrow.

Analisis Tanggung Jawab Otoritas Jasa Keuangan dalam Pelaksanaan Pengawasan Market Conduct pada Kegiatan Investasi di Indonesia

This research is an in-depth review concerning the responsibility of the Financial Services Authority (OJK) in overseeing market conduct in investment activities in Indonesia. Within the complexity of the financial market context, OJK's role in ensuring compliance with principles of ethics, integrity, and transparency becomes the primary focus. The research also highlights the role of market conduct supervision as a safeguard for investors and an effort to maintain fairness and equality in the investment market. The study outlines the current conditions of the investment market in Indonesia, including recent changes and trends. Challenges faced by OJK in executing the function of market conduct supervision, such as adapting to financial product and technological innovations, are also detailed in this analysis. The aim of this research is to provide a broad perspective on the role of OJK in market conduct supervision, and to offer crucial insights into the dynamics of the Indonesian investment market. The research methodology employed in this study is Normative Legal Research, also known as Doctrinal Law, which conceptualizes law as provisions written within legislation or as norms representing human behavior deemed appropriate. It is hoped that this analysis will contribute significantly to formulating policies and strategic steps aimed at enhancing the financial market's health and investor protection in Indonesia.

Blockchain in banking: A comparative review of developments in the USA and Nigeria

This review paper systematically examines the adoption and impact of blockchain technology within the banking sectors of the United States of America (USA) and Nigeria, offering a comparative analysis of developments across these divergent economic and regulatory landscapes. Through an extensive literature review, the paper synthesizes findings from a range of sources, including peer-reviewed journals, industry reports, and case studies, to explore how blockchain technology is being integrated into banking operations, the challenges encountered, and the opportunities it presents in both contexts. The analysis reveals that in the USA, the integration of blockchain into banking has progressed significantly, supported by a mature technological infrastructure, a clear regulatory environment, and substantial investments in financial technology innovations. This has facilitated enhancements in transaction efficiency, security, and cost reductions. Conversely, Nigeria’s adoption of blockchain technology in banking is at a nascent stage, primarily focused on addressing financial inclusion and improving the efficiency of cross-border payments. Despite this, regulatory uncertainties and infrastructural deficits pose challenges to its broader adoption. The paper concludes that while blockchain technology offers the potential to transform banking operations globally, its adoption and impact are heavily influenced by specific national contexts. The study underscores the need for adaptive regulatory frameworks and infrastructure development to fully harness the benefits of blockchain in the banking sector. It advocates for further research into blockchain’s practical applications in banking, emphasizing the importance of cross-country studies to understand its global implications.

Global economic policy uncertainty and renewable energy demand: Does environmental policy stringency matter? Evidence from OECD economies

Existing literature recommends the essential role of renewable energy consumption (REC) in achieving environmental sustainability. Although prior works have investigated the significant factors of REC, the effect of green environmental policies remains largely understudied, particularly in OECD countries. Therefore, this study specifically examines the role of environmental policy stringency (EPS) in enhancing (or diminishing) REC in 27 OECD economies between 2000 and 2019. Furthermore, we aim to specify the determinants of REC and investigate whether EPS could help moderate the relationship between global economic policy uncertainty (GEPU) and REC. To accomplish this, we employ both the fixed effects and panel quantile estimation methods. The findings underline that EPS has a positive and significant impact on REC, indicating that stricter green environmental policies lead to encouraging REC. Besides, the findings show that EPS has a beneficial role in lessening the negative effect of GEPU on REC, and its negative effect on REC is more moderated as moves from environments with low EPS to high EPS. The results also underscore that financial market development, FDI, remittances, technological innovation, and economic development positively promote REC whereas CO2 and natural resources rents have a detrimental impact. The findings are significant and a wide range of policy suggestions is recommended to governments, policymakers, and regulators to attain the energy and environmental sustainability targets set out in SDG 7 and SDG 13, respectively.

Current trends in the development of digital financial and payment market in Azerbaijan

Aim. To consider the key aspects of digital transformation of the financial sector in the context of large-scale changes taking place in the digital financial sphere.Objectives. To determine the sequence of actions of the Central Bank of Azerbaijan in the direction of cashless economy; to study the change in the architecture of the financial sector in connection with advanced financial technologies; to study the problems of FinTech providers of new financial technologies as a result of the introduction of the concept of open banking.Methods. The dialectical approach to analyzing the key phenomena and regularities contributing to the development of economic relations, as well as a systematic approach to revealing the main factors of development of digital transformation of the financial and payment sector served as the methodological basis of the research. Along with this, such methods of scientific analysis of socio-economic phenomena and processes as statistical, comparative, fundamental and functional analysis, expert assessments and modeling were used. The theoretical basis was formed by the final results of fundamental and applied research, reflected in periodicals, a number of monographs, materials of scientific conferences.Results. The Central Bank of the Republic of Azerbaijan with the purpose of expanding the process of application of innovative financial technologies on the basis of advanced technological solutions and thus supporting FinTech activities has started to implement measures on formation of appropriate legislative bases for introduction of open banking and technological infrastructure. The main reason for people’s decreasing attachment to traditional banking is the availability of digital banking services in a convenient and easy way, without wasting time and waiting in long queues.Conclusions. Azerbaijan has formed a positive trend in the development of digital banking, which can be considered one of the main challenges of modernity. Today, digital banking in Azerbaijan is replacing traditional banking services. The emergence of prominent FinTech providers of new financial technologies as a result of the introduction of the concept of open banking, which allows individual banks and customers to share financial information with third parties, is changing the status quo of the financial ecosystem. This new paradigm has the potential to transform the traditional financial services ecosystem into a dynamic and competitive environment where startups and small innovative companies, competing with larger providers, offer new products and services. A positive trend in the development of digital banking as one of the main challenges of modernity has emerged in Azerbaijan. Today digital banking in Azerbaijan displaces traditional banking services.

Paradigm shift in the digital transformation of the banking sector: A bibliometric analysis

This study attempts to provide a comprehensive analysis of the impact of digital technology on the banking industry. The banking industry is undergoing a rapid paradigm shift, driven by the need for reliable, intuitive, and efficient financial services, as well as the proliferation of innovative financial technologies and changing regulations. This calls for a comprehensive study of digital transformation in the banking industry. The main objective of the study is to analyze the growth pattern of technological transformation in the banking industry. This paper adopts bibliometric analysis of data with substantial use of R package and VOSviewer software. The study examines 328 articles published in the Web of Science and Scopus databases between 2009 and 2023. The results show an increasing trend of 18.29% in the publication of articles based on their annual production. The study conducted a network analysis to identify the paradigm shift in banking technology related to FinTech, innovation, digital transformation, adoption of digital banking technology, digital economy, e-commerce, and digitization. The results show that the period from 2017 to 2023 is of great importance, as it has witnessed a significant increase in the volume of publications related to digital transformation in the banking sector.

ASSESSING THE DIFFUSION OF FINTECH INNOVATION IN FINANCIAL INDUSTRY: USING THE ROUGH MCDM MODEL

We develop a conceptual structure to explore how financial technology (FinTech) innovation is being implemented to deal with vague, inconsistent and ambiguous knowledge in actual world. The structure of this study is built upon the technology, organization, environment (TOE) context, which one uses the concept of multi-criteria estimation to measure the significance of FinTech innovation. We develop an integrated MCDM (multiple criteria decision-making) model through rough set theory help administrators obtain a strategic influence relation map for enhancing performance approaching towards the aspiration value. This model involves three steps: primary, we apply this rough number to define group views which reflect upon experts’ real experiences; second, we use the rough DEMATEL-based ANP-(RDANP) to acquire the rough influential weights and rough influential network relationship map (RINRM) based on this TOE structure and its corresponding attributes; finally, we utilize the rough modified VIKOR with the influence to analyze the gap between the performance value and the aspirated level. The empirical case was originated from financial industry in Taiwan. According to the weighting results the expected benefits, technology integration, and competitive pressure were the most important criteria. Our results also illustrate how FinTech innovation can be used for promoting financial services.

Financial instruments of crisis reversal in the Russian economy

Aim. To study the economic crises that occurred in the Russian Federation (RF) from 1991 to 2022 from the point of view of analyzing the causes of their occurrence and the factors of reversal, as well as identifying the chances of overcoming the stages of slowdown and decline in economic dynamics, including those associated with digitalization.Objectives. To reveal the causes of economic crises by identifying the risks realized during this or that crisis; to determine the financial instruments of economic crises reversal in the Russian economy since 1991; to identify the chances of the economic system to overcome the stages of slowdown and decline in economic dynamics and to turn the economic system to sustainable growth.Methods. General scientific methods, including comparative, retrospective and analogy methods, were used as methodological tools.Results. The article identifies the realized risks of economic crises in the Russian Federation, from the crisis of 1991 to the crisis of 2022. As chances of economic growth in the period of digital transformation of the economy and the financial sector, the risks of innovative financial technologies, risks of digitalization of the banking sector, risks of insurance and financial services were identified. Financial and non-financial tools to turn the economic crisis to the recovery period and subsequent sustainable growth were identified.Conclusions. Any crisis is based not only on factors that aggravate and destabilize its parameters, but also on factors that present new chances for further economic development. When assessing economic dynamics during crises, one should take into account the realized risks, possible chances and tools for economic turnaround, including financial and non-financial instruments. Financial instruments, which allow to implement extraordinary management decisions, serve as instruments of turnaround. Additional state budget expenditures from the reserve fund (until 2017) or from the national welfare fund represent corrective financing in periods of uncertainty and are associated with emergency management decisions during crises, including during a special military operation. The main task of the regulator is to limit the negative effects of realized internal and external risks.