E-Management (Feb 2019)
Development banks in the digital economy on the example of the asian development bank
Abstract
The article determines perspectives for the use of the development banks (DB) opportunities by the digital economy, fintech. The essence of the digital economy as a complex of cloud computing technologies, big data and their analysis, artificial intelligence (AI), which ensures the production of fundamentally new products and services is revealed. The advantages and disadvantages of the digital economy, associated primarily with the expansion of production automation, wide use of both corporate and personal data are highlighted. The author defines DB as development institutions providing technical assistance, consulting and project financing, including at the expense of the private sector. DBs operate in areas where the private sector is not active, create new markets, and multilateral development banks (MDBs), possess greater resources, better control the use of funds, manage risks, use a long-term approach to development, seek to use economic systems of countries more widely, for example , Asian Development Bank (ADB) in 2017 provided funding in the amount of 20.1 billion US dollars. In 2016-2017 ADB held two international conferences «Financial inclusion in digital economy», the materials of which allowed the author to highlight promising areas of financial and digital economy that would be actively developed by the DB: identification and biometrics, fast payments, technology of a distributed registry (blockchain), online trading platforms. It`s concluded that the digital economy, fintech, will allow DB not only to improve and accelerate the project cycle, i.e. implementation of the so-called “traditional” projects, but also to carry out fundamentally new projects in the field of financial services data processing, AI, creation of automated complexes. These measures will ensure the growth of value added production, increase the individual approach in the production and sale of products and services, reduce business expenses, expand the volume of financial services, that assure acceleration of economic growth. Simultaneously, there is a need to manage emerging new risks, which will require adaptation and development of traditional methods of risk management in the DB.
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