FINTECH AND BIG TECHS AS DIGITALIZATION DRIVERS OF THE GLOBAL FINANCIAL SERVICES MARKETS AND THE INTERNATIONAL CAPITAL MARKET
DOI:
https://doi.org/10.31891/mdes/2022-5-30Keywords:
digitalization, fintech, Big techs, financial market, capital market, banking market, insurance market, consulting market, labor market, innovation, risksAbstract
The purpose of the article is to study the drivers of digitalization of the global financial services markets and the international capital market, with an emphasis on highlighting the relationships between banks, Big techs and FinTech companies and identifying new risks for the stability of the functioning of various segments of the financial market. It has been established that Fintech affects all market segments - banking, insurance, consulting, which is expressed, among other things, in the large-scale automation of related service markets, the transformation of the value chain and the increase in the use of customer data as a new production factor. Fintech is transforming the way companies operate in the financial services market, as well as the debt and equity markets, the way payments are made, how credit is assessed, regulatory compliance requirements, and many other aspects of financial services. The classification of Fintech companies is given. The spheres of development of business models based on the construction of platforms are analyzed. The banking and insurance sectors were compared for the implementation of Fintech innovations in their activities. The transformations in the intermediary channel of the financial market under the influence of the processes of digitalization of international capital markets are considered. FinTech payment and credit systems are characterized. The ambiguity of the relationship between the expansion of FinTech lending and the efficiency of financial and banking institutions has been revealed. A wide range of both tactical and strategic risks produced in various segments of the financial market (money market, capital market, insurance market, derivatives market) under the influence of Fintech development has been identified. The advantages of Big techs over banks and Fintech companies have been established. The consequences of the merger of FinTech companies and traditional banks for global financial markets are considered.
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