Digital financial space as a factor of economic development: assessment of the potential for Ukraine

Abstract

Вступ. Глобалізація економічних процесів та посилення конкуренції вимагають від фінансового сектору постійної адаптації до нових умов. Цифровізація фінансових послуг є одним із ключових трендів сучасності, який радикально змінює традиційні моделі ведення бізнесу. Цифровий фінансовий простір відкриває нові можливості для розвитку фінансових інновацій, підвищення прозорості та ефективності фінансових операцій. У статті досліджено трансформацію фінансового сектору України під впливом цифрових технологій, проаналізовано потенціал цифрового фінансового простору для стимулювання економічного зростання країни.

Introduction. Globalization of economic processes and increased competition require the financial sector to constantly adapt to new conditions. The digitalization of financial services is one of the key trends of our time, which radically changes traditional business models. The digital financial space opens up new opportunities for the development of financial innovations, increasing transparency and efficiency of financial transactions. The article examines the transformation of Ukraine`s financial sector under the influence of digital technologies and analyzes the potential of the digital financial space to stimulate the country`s economic growth. Purpose. The purpose of the study is to assess the potential of the digital financial space, determine its impact on Ukraine`s economic development, and identify problems and develop recommendations for its further development, taking into account global trends and Ukraine`s integration into the global digital economy. Materials and methods. The study was based on the legal acts of Ukraine regulating the development of digital technologies, and analyzed the scientific works of domestic and foreign authors on the digital transformation of the financial sector. The methods of theoretical generalization, comparative analysis, and a systematic approach were used to identify trends in the development of the digital financial space in Ukraine and to assess its impact on economic growth. Results. The scientific article describes the advantages and risks of introducing digital financial technologies into the economy, in particular their impact on cashless transactions. It was established that the growth of the volume of non-cash transactions has a positive effect on the stability of economic indicators, although there are certain risks associated with the adaptation of the market to digital innovations. The need for further improvement of the regulatory framework for the development of the digital financial space in Ukraine has been accepted. The prospects for the use of digital finance as a key tool for ensuring sustainable economic growth, which can be taken into account in the formation of state policy and strategy for the development of the financial sector, are outlined. The hypothesis that the development of the digital financial space is one of the key factors in increasing the competitiveness of the Ukrainian economy is substantiated. Proposals have been developed for the formation of an effective regulatory environment that will contribute to the development of digital financial instruments and ensure their sustainable integration into the financial system. The need for active implementation of digital technologies in the banking sector and financial institutions is emphasized, which will reduce the costs of financial operations, increase transparency and efficiency of cash flow management. The importance of harmonizing national legislation with European and international standards was emphasized, which will contribute to the attraction of investments in the digital financial sector and accelerate Ukraine`s integration into the global financial market. Discussion. In further research, it is proposed to focus attention on the development of state policy mechanisms to create favorable conditions for the development of digital financial technologies. It is also important to determine ways to integrate digital solutions into the financial system of Ukraine and improve the regulatory environment for their sustainable implementation. This will increase the efficiency of using the digital financial space and ensure the competitiveness of Ukraine`s economy in the world.