The transformation of traditional banking activity in digital

Purpose: This article investigates specifics of the transformation of banking activity in the conditions of digitalization of the economy. In the light of penetration of digital technologies into all the spheres of our life, the rapid development of financial technologies and their active implementation in the banking sector of the economy, digital financial innovations are formed at the intersection of the concepts of "financial technologies" and "financial innovations". Design/Methodology/Approach: In order to investigate the process of transformation of the banking sector in the context of digitalization, it is necessary to consider this issue from three points of view: 1) theoretical understanding of the concept of "financial technologies"; 2) the need to ensure the efficiency and sustainability of the banking sector; 3) the change in the IT- architecture of banking activities and the formation of the digital ecosystem with banks in the center. It is also reasonable to analyze promising areas of implementation of financial technologies into the banking sector. Findings: The main directions of the development of financial technologies in the banking sector, aimed at further transformation of traditional banking services through digital technologies. Practical Implications: The results of the study can be applied in the development of the legislative regulation of the FinTech industry in Russia. Originality/Value: The main contribution of this study is to determine the prospects for the development of the domestic banking sector in the context of digitalization, the need to transform in order not only to improve the competitiveness and efficiency of functioning, but also to stay in the banking business.peer-reviewe

New challenges and problems of the nancial market in the open bank system conditions

The main trends in the development of the global financial market in conditions of active development of open digital banking, which determines new opportunities and challenges for the creation of innovative banking and financial products are revealed. The key stages of “financial repression”, which predetermined new challenges and problems for the traditional model of the financial market, are considered. The main difficulties and problems connected with the transition from the traditional banking model to the Open Banking Standard model are substantiated. The analysis proves that further development of the financial market dictates the need to increase efficiency and reduce costs in the development of next-generation digital services. In this regard, the widespread introduction of Open Banking Standard will create new products for the financial market. The implementation of Open Banking Standard in real time will allow to open access for the consumer to more personalized information resources, and services will be provided through a secure open service in order to more effectively manage personal finances. Today, many small and medium-sized companies use third-party commercial development for accounting purposes, but they have to enter transaction data manually. The practical use of Open Banking Standard will allow the consumer not only to receive data in real time, but will also partially solve the problem of gaining access to more personalized information resources for making banking decisions. Also, clients will be able to offer better loan terms, as credit institutions will be able to analyze its transaction data to determine the level of the borrower’s risk