Transformation of the Financial Sector in the Context of the Digital Economy

Abstract

Today’s transformational changes affect all spheres of business. The economic space is changing, which in turn is changing the economic tools of doing business. Under such conditions, the development of the financial sector also acquires its own characteristics, which is conditioned by the formation of the digital economy. The purpose of the presented work is to determine the main transformations of the financial sector under the influence of digitalization and under the conditions of the formation of a digital economy. The main research methods are: methods of deduction and induction to determine the main transformation vectors, synthesis and analysis to study the main components of the transformation of the financial sector in the conditions of the digital economy, mathematical methods to confirm and justify the results of the research. That is why it should be noted that the digital economy promotes the development of alternative forms of financing, such as crowdfunding, crowdlending and cryptocurrency ICOs (Initial Coin Offerings). These mechanisms provide new opportunities to attract capital for startups and innovative projects, providing quick and direct access to investments for entrepreneurs. The digital economy is driving culture change in the financial sector by increasing openness, transparency and collaboration between financial institutions, customers and other stakeholders. This contributes to increasing trust in financial services and improving interaction with clients. Financial institutions are actively experimenting with new technologies such as artificial intelligence, machine learning, distributed ledgers and quantum computing to improve their services and processes.