Transformation of the financial services industry under the influence of fintech: global and regional dimensions

The article defines the concept of fintech as an innovative industry and as a financial product. The processes and possibilities of using innovative technologies, in particular blockchain, artificial intelligence, Big Data, cloud technologies, artificial neural networks, and machine learning technologies for the financial services industry are generalized. The author notes the promise of the application of such innovative technologies for the expansion of crediting, reduction of credit, investment and other risks, personalization of financial offers for the client, trading, money transfers, insurance business, etc. The world investments in fintech in the period from 2013 to 2019 are analyzed. The author points out the increase in total investment and average value of one transaction over the past two years. Analyzed the application of fintech for local markets and in various areas of the financial services industry, in particular investments in InsurTech. The author shows the opportunities of the introduction of fintech in the regional section. It is concluded that the coverage of the population with fintech services is higher in the countries where the market of traditional financial services is less developed. Countries with developed financial markets have a conservative approach and a certain lag in the introduction of financial technologies. At the same time, the author points out a high level of concentration of investments in developed markets. It is concluded that digitalization in the financial and other sectors in Ukraine is promising; in particular, it concerns non-cash payments of insurance companies, remittances and services related to RegTech. Highlighted the priorities for fintech in Ukraine in terms of improving digital literacy, cash economy, and development of fintech ecosystems. The positive and negative effects of the introduction of fintech are considered. It is emphasized that the problems that need to be addressed relate to the risks associated with personal security, privacy, loss of personal data, cybersecurity, job cuts, and various other aspects.