DEVELOPMENT OF FINANCIAL INNOVATIONS IN THE CONDITIONS OF DIGITALIZATION OF THE ECONOMY

The paper is devoted to the features of the development of the financial innovation market, since the digitalization of the economy has significantly influenced the vectors of the formation of financial technologies and new innovative financial products, and also contributed to their transformation. The purpose of this research is to study the market of financial innovations and identify threats to the development of this market, as well as the formation of directions for further development. In the course of the study, it was found that traditional approaches to the provision of financial services do not meet the growing demand and expectations of customers, the requirements of high efficiency, and profitability. In this paper, FinTech companies and FinTech services are defined as the newest instrument in the financial innovation market that satisfies the current requirements of the modern development of national economies. The study examines current trends and characteristics of financial innovations. The main principles for the introduction of financial innovations are determined, in particular: accessibility, growth point, targeting, diversity of media, openness, and cooperation, standardization, confidence, and security. The role of FinTech companies and FinTech technologies in the modernization of the financial services market has been revealed; the current global trends in the development of the FinTech sphere, as well as the prospects for its use, are explored. The FinTech boom at the end of 2021 quickly morphed into recession fears in the first half of 2022, as uncertainty surrounding a full-scale Russian military invasion of Ukraine, ongoing supply chain issues, and rising inflation and interest rates, took its toll on both states and businesses. The advantages and disadvantages for the banking business, caused by the digitalization of the economy, are identified, as well as an increase in the need for the development and implementation of new financial innovations. It is concluded that the current stage of digitalization of the economy has determined the trends and directions for the development of the financial services market and the banking sector in particular.