DIGITALIZATION OF FINANCIAL SERVICES AND CHALLENGES OF ADAPTATION OF CONTROL
Abstract. Recently, we heard much more about digitalization and related processes around the world. In other words, digitalization is already an important part of modern trends. The main aspects of digitalization, digital transformation and its impact on the financial services of the banks have been discussed and analyzed in this article. Along with the effect of digitalization on everyone’s life, the influence on financial services of the banks and on their businesses are also important. It is noted that banks need to make changes in their approaches to financial services, business models and strategies in accordance with the new requirements. The paper also focuses on the start of a new digital age in financial markets and the need for the regulator to adopt a new approach over the course of its existence. Formation of the reality of regulators working with wider companies and areas, the need to analyze the larger databases, the importance of extensive use of digital opportunities for more effective run of their functions have been examined. It is stated that the supervisors should be interested in technological development, take the leadership in its application, have to consider possible development trends, new regulations with financial institutions, as well as large bigtech companies. In this regard, the measures taken by the European regulatory authorities, innovations have been analyzed, as well. Emphasizing the importance of defining a common framework approach by the ECB, aspects of the policy set by national regulators within that framework are examined. The obvious positive advantages of new technological solutions application are also discussed. Thus, possibility of modern technological development to create a fertile ground for concealing a number of criminal acts, such as money laundering, terrorism, fraud and tax evasion is noted.
Keywords: digitalization, digital transformation, financial supervision, digital finance, financial stability, financial services, risk management.
JEL Classification G21, O14, K20
Formulas: 0; fig.: 0; tabl.: 0; bibl.: 27.
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Copyright (c) 2021 Г. Михайлюк, A. Рустамзаде, А. Бахішов
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