Problemi Ekonomiki (Mar 2022)
Changes in Household Financial Behavior Caused by Innovative Information Technologies of Financial Institutions
Abstract
The article is aimed at identifying and analyzing changes in the financial behavior of households caused by innovative information technologies used by financial institutions. The study considers the leading innovative technologies in the financial sector and outlines areas of their application from the standpoint of households. The advantages, as well as new and/or additional opportunities arising in households due to using innovative information technologies by financial institutions are identified and characterized. It has been proven that in order to succeed in the financial market, financial institutions need to adapt quickly to changes in consumer needs and respond promptly to customer requests and desires. It has been found out that the financial market today is becoming more segmented, and among its participants are new groups of customers who until recently were not a priority for financial institutions, e.g. low-income households, young people and adolescents, retired people etc. It is also proved that in the situation when financial technologies are actively used and spread, households not only receive an opportunity to use new financial products, services and tools specially developed for them, but also to use new methods and approaches, as well as various forms of their servicing, communication and interaction leading to positive consequences (strategic socio-economic effect). It is substantiated that successful introduction of innovative information technologies depends on the customers’ willingness to use them, which in its turn is conditioned by the customers’ mastery of the necessary knowledge and skills, as well as their ability to apply skills competently and successfully. The main changes in the financial behavior of households are highlighted and outlined taking into account factors that promote or constrain the use of innovative technologies by households, and those that affect such use by financial institutions.
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