Dominants of technological innovations in the financial sphere

• Main Author: Svitlana Volosovich
• Format: Article
• Language: English
• Published: Hryhorii Skovoroda University in Pereiaslav 2017-03-01
• Series: Економічний вісник університету
• Subjects: technological innovations; public finance; blockchain technology; financial services market; financial inclusion
• Online Access: https://economic-bulletin.com/index.php/journal/article/view/193

The subject of the research consists of theoretical and practical issues of technological innovations implementation and operation in the financial sector. The purpose of the article is to analyze the role of technological innovation in the modernization of the financial sector. Methods of the research. The methods of theoretical generalization, comparison and system analysis are used in the article. Results. Technological innovations in a financial sphere are the instrument of governance, counteraction to corruption, competitiveness increase for the financial services sellers, consumer needs satisfaction. Blockchain technology is the basis of technological innovation in a financial sphere. Blockchain technology is used to improve money transfer, sale payment, credit, investment and insurance services in the financial services market. Blockchain technology enhances the transparency of transactions, financial inclusiveness, counteraction to the terrorist financing and money laundering. The types of technological innovation in public finance are the following: implementation of open data portals and technology solutions based on blockchain by public financial institutions. The use of blockchain technology in public finance applies to the functioning of the electronic system «Transparent Budget», the state procurement system, provision of social assistance, the state policy in the field of health care, control of taxpayers. Area of the results application. The obtained results provide the theoretical basis for the promotion of technological innovations in the financial sphere. Conclusions. The complexity of the existing financial system creates significant risks for its subjects. The widespread introduction of technological innovations will help to minimize them and to create new financial products. This will increase financial inclusion, transparency of financial flows and reduce costs of financial relations for its participants. Technological innovations are able to raise the efficiency of public finances. They lead to healthy decentralization, giving the public access to the process of state finance management by increasing transparency and expanding human rights. The use of technological innovations in the financial sector will create conditions for the deshadowing of the national economy and the growth of international ratings of Ukraine. The transparency of funds movement will promote the audit, improve the investment climate in country.