TRENDS OF DIGITALIZATION OF CERTAIN COMPONENTS OF THE FINANCIAL SYSTEM
Abstract
The article examines the trends of changes in the banking, payment and insurance sectors of the financial system in the conditions of digitalization. Digitization of banks includes comprehensive digitization of internal operations, development of online platforms and IT systems in order to improve interaction with clients. An important trend in the development of digital banking is the spread of API, which is the basis of open banking (Open banking) and Banking-as-a-Service (BaaS). It was determined that the mass transition to digital cashless payment transactions in the banking system leads to large-scale digital transformations of the payment system in the direction of the formation of a payment ecosystem. The change in relations between participants is initiated by the spread of the offer "buy now, pay later" (BNPL). The advantages of cloud technology for the digital transformation of banking financial services are shown, namely: easier control over operations, cost savings due to the transfer of business applications and data to the cloud, which frees banks from their local storage. It was found that the digital transformation of the insurance sector is taking place at a slower pace due to the rigid and changing policy of regulation. It is shown that a highly effective digital insurance business is based on a digital portfolio of products and services in an ecosystem of partners; application of advanced analytics technology, multi-channel customer experience and automated operations. It was determined that in the conditions of digitalization, insurance companies need to create an ecosystem around the flow of data by cooperating with companies from other industries and expanding the offer of products and services in which insurance is one of the built-in components. It has been established that advanced analytics based on the use of artificial intelligence advances will be the future must-have insurance company competency at the core of the digital insurance value chain. Insurance companies must provide online shopping capabilities, navigation and online customer journeys, as well as integration of sales and consulting capabilities. It was concluded that all components of the financial sphere are undergoing digital transformation, which leads to the formation of a new financial ecosystem, which is built on new principles of relationships between its participants and technologies for the implementation of innovative solutions for the formation and implementation of financial services.
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