Krupiak Iryna, Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Finances named after S.І.Yurii, West Ukrainian National University, Тernopil, Ukraine

ORCID: 0000-0001-5618-4863
e-mail: i.krupyak@wunu.edu.ua

Financial Advisory for Individual Investors in the Conditions of Digitalization

Abstract. Introduction. In the modern era, digitalization is changing traditional approaches to advisory activities by expanding their functionality and increasing the efficiency of interaction between advisors and investors. However, digital technologies create risks associated with information asymmetry, cyber threats, and the instability of digital financial instruments, so they place certain demands on the security, transparency, and adaptability of financial solutions. Therefore, a systematic approach is necessary for developing financial advisory services for individual investors in a digital environment. This approach should integrate digital platforms, analytical systems, and artificial intelligence into the advisory process. It should also develop a risk management methodology, increase financial literacy, and create adaptive advisory models that consider the individual needs of investors.

Purpose. The main purpose of this article is to identify the characteristics of financial advisory services for individual investors in a digital environment, with the goal of enhancing citizens’ financial capacity and mitigating the risks associated with ineffective financial decisions.

Results. The article examines financial advisory services for individual investors in the context of digitalization, ensuring a balance between information availability, objectivity, and investor interest protection. The article emphasizes that services for searching for investment opportunities, verifying and assessing project effectiveness, and providing legal support for transactions remain relevant for individual investors. The article highlights the multifunctional nature of financial advisory services, which combine expert knowledge with innovative technologies. The article substantiates that the current state of investment activity in Ukraine is characterized by low annual capital attraction volumes due to institutional and economic problems. The article provides an analysis of various types of financial advisory services for individual investors, each of which plays a crucial role in making informed decisions about the optimal use of one’s financial resources and forming a sustainable investment strategy that aligns with the investor’s personal needs and long-term plans.

Conclusions. The article presents recommendations for improving financial advisory services for individual investors in the context of digitalization. These recommendations aim to increase citizens’ financial capacity and minimize the risks of irrational financial decisions. The recommendations include institutional support for digital platforms, the formation of multifunctional advisory systems integrating analytics, communication, and investment process management, and the development of mobile applications and cloud services to ensure constant advisory service availability. Other recommendations include personalizing investment strategies using machine learning algorithms to provide individualized recommendations based on investors’ financial goals, risk tolerance, and time horizons. Additionally, the article recommends strengthening security mechanisms by implementing blockchain technologies and smart contracts to guarantee transaction transparency and protection, creating comprehensive cyber protection and data monitoring systems, developing a risk management methodology using digital simulators and volatility forecasting models, and forming strategic planning and rational investment skills to increase investors’ financial capacity. The article also recommends ensuring the further development of financial advisory services in the field of insurance investments through comprehensive insurance analysis. products based on their reliability and investment profitability and using digital technologies to predict the effectiveness of insurance programs and adapt them to existing conditions. With the help of modern digital technologies, proper financial advisory services for individual investors transform into a comprehensive support system that combines analytics, automation, and educational opportunities. This allows investors to navigate a complex market environment more effectively, reduce uncertainty, and develop sustainable investment strategies.

Keywords: financial advisory services; individual investors; financial capacity; digital technologies; stock market; investment portfolio; insurance services; investment strategy.

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