Innovation management as basis of digitalization trends and security of financial sector

Abstract

Digital innovations significantly affect the security of the financial sector of Ukraine, Latvia, and the world, and transform financial services. Financial innovations such as mobile money, peer-to-peer or market-based lending, robot advisors, insurtech, and cryptocurrencies have emerged around the world. Over the past decade, financial technology has contributed to the access, convenience, and security of financial services for retail users. Meanwhile, artificial intelligence, cloud services, and other technologies are being transformed into wholesale markets in a variety of areas such as trading in financial markets, regulatory and supervisory technologies (regtech and suptech). Many new firms have emerged to deliver new technologies to meet consumer demand, and most officials point to the fact that digital transformation is a strategic priority for the financial sector. The purpose of the article was to substantiate the need for the development of digitalization of the financial sector, analysis of digitalization and security trends, identify areas for further management of consumer expectations of financial products and services. Constant innovation and new technologies in the financial sector, on the one hand, undermine the market and pose threats, and on the other hand, open up many financial opportunities to prosper. The pace of change in financial services is only increasing, as is the need for industries and businesses to respond to them. This paper assesses the steady growth of new business models and technologies emerging in the world and Ukraine in the financial sector.