Mykytiuk Ihor, PhD in Economics, Associate Professor, Associate Professor of Department of Financial Analysis and Audit, State University of Trade and Economics, Kyiv, Ukraine

ORCID: 0000-0001-5523-0485
e-mail: i.mykytiuk@knute.edu.ua

Digital Financial Control Technologies in the Financial Services Market

Abstract. Introduction. The intensification of the digitalization of financial service provision processes, the strengthening of regulatory requirements for financial service providers, and the instability of the internal and external environments of financial service markets necessitate the use of information technology in financial control over market entities.

Purpurse. This article aims to clarify the role and importance of digital technologies in financial service market control.

Results. The article identifies the prerequisites for applying digital technologies to financial control. It reveals the priority principles for implementing financial control based on digital technologies in the financial sector. A new classification of digital financial control is presented, which is based on the nature of the relationship, timing of implementation, subjects and objects of financial control, and digital technology tools used. The dynamics of global investments in regulatory technologies and the number of financial authorities worldwide using supervisory technology tools are examined. The geographic structure of the regulatory technology market is examined.  The structures of RegTech companies are examined based on the nature of their activities. Three levels of FinTech solution use in financial control are distinguished: the financial services provider level, the regulator level, and the financial services consumer level. It identifies promising directions for the development of digital financial control in the financial services market.

Conclusions. Applying digital technologies to financial control has led to stronger consumer protection, the development of a more stable and transparent financial market, the opportunity to monitor financial transactions in real time, and a reduction in the risk of money laundering and terrorist financing.

Keywords: financial control; financial services market; RegTech; digital technologies; SupTech.

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