Tsalan M.I., PhD in Economics, Associate Professor, Associate Professor of the Department of International Economic Relations, State Higher Educational Institution “Uzhhorod National University”, Uzhgorod, Ukraine

ORCID ID: 0000-0003-1878-1346
e-mail: myroslava.tsalan@uzhnu.edu.ua

Tsalan M.I., PhD in Economics, Associate Professor, Associate Professor of the Department of International Economic Relations, State Higher Educational Institution “Uzhhorod National University”, Uzhgorod, Ukraine

ORCID ID: 0000-0003-4031-0858
e-mail: maryna.korol@uzhnu.edu.ua

Innovative Digital Challenges of Financial Crises in the Context of Global Change

Abstract. Introduction. Global economic transformations are driven by the rapid development of technologies, changes in the structure of production and consumption, and the growing integration of global markets. Digitalization, automation, and artificial intelligence are fundamentally transforming economic models, forming new sectors and displacing traditional ones. These processes are accompanied by changes in employment and increasing demands on human capital, and are also exacerbated by global challenges. As a result, the world economy is increasingly dependent on innovation, flexibility, and adaptability, which makes transformation a necessary condition for progress in the 21st century.

Purpose. The purpose of the article is to analyze the benefits of digital innovations for the global economy, as well as identify challenges that can exacerbate financial crises and necessitate the search for effective mechanisms to prevent or overcome them.

Results. Financial crises are an integral element of economic dynamics, periodically manifesting themselves in the forms of banking, currency, or systemic global shocks. Their occurrence is usually accompanied by destabilization of financial markets, a decline in trust in institutions and significant economic losses. A financial crisis is a situation when there is sudden and profound instability in the economic system, which leads to a significant decrease in the value of assets, a fall in stock markets, the bankruptcy of banks and enterprises, as well as a loss of investor and consumer confidence. The progress of digitalization is fundamentally changing the financial sector, transforming the tools and mechanisms of market functioning. It contributes to the automation and acceleration of operations, reduces transaction costs and increases the efficiency of capital management. The development of fintech services, mobile applications, blockchain and digital payment systems expands access to financial services, particularly in regions with weak banking infrastructure. Digitalization also increases the transparency and security of transactions, creates conditions for personalized products and rapid response to market changes. Digital innovations have created the prerequisites for the development of alternative forms of financial intermediation, among which neobanks occupy a special place. Neobanks offer mobile applications, convenient online banking without branches, instant payments, primarily targeting youth and small businesses, which activates financial inclusion. Global shocks, in particular the COVID-19 pandemic and economic instability, have also stimulated the development of financial inclusion, as a significant part of services has been transferred to the online environment. The dynamic growth of neobanks encourages state institutions to develop new regulatory norms and standards in the field of digital finance, cybersecurity and personal data security in response to increasing digital challenges.

Conclusions. Overcoming the digital challenges of financial crises in the era of global transformations requires a comprehensive approach that includes the development of digital regulation, strengthening cyber resilience and international cooperation. Innovative technologies make it possible to more accurately predict risks and control instability, and the harmonization of global standards reduces the threat of systemic crises.

Keywords: financial crisis; global transformations; challenges; digitalization; innovation; financial inclusion; neobanks, international economic relations; globalization.

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