Introduction
The relevance of the study of financial technologies implemented by the enterprise was aggravated by the August 1998 crisis, as a result of which external conditions entrepreneurial activity have deteriorated significantly, the internal potential for self-preservation has approached zero, and the slogan of supporting entrepreneurship is appropriate to replace with a call to preserve it as a class. In the current situation, the ability to timely solve the financial problems of an enterprise is tantamount to its survival. The correct choice of solution methods, that is, specific financial technologies, becomes main task, both management tactics and its strategy. The purpose of financial technologies is to analyze the practice of using the entire range of financial technologies and develop recommendations for forming a network and developing principles for the activities of credit, insurance, and guarantee organizations that provide enterprises with access to financial resources on regional level.
Entrepreneurial activity is inseparable from financial relations that mediate all stages of production process. The problem of finance in any field of activity and at any stage of the operation of an enterprise depends on the severity of the situation and the degree of emotionality of the entrepreneur.
Everyday practice of contacts with market infrastructure organizations and government authorities teaches a manager how to “make money,” where to get it, and what to spend it on. And few managers will correctly say that the main subject of this compulsory entrepreneurship school is financial technology. He won’t name it, but he studies it with special diligence, hoping, with the knowledge gained, to defend, strengthen, and develop his business.
State policy in this regard declares support in solving its financial problems. The proposed support measures (direct, indirect), criteria (social, economic), priority areas (production, innovation) and stages (start, development) change. But there remains a gap between the declared and implemented support measures due to gaps in legislation, lack of elaboration of implementation mechanisms, and failure of the state to fulfill its obligations. The implementation of an effective maintenance policy is seriously complicated by the fact that government bodies often do not have complete, reliable and timely information about the state of affairs in this sector of the economy, both as a whole and for individual problem blocks. This is largely true in relation to the characteristics of the company’s finances
Almost every publication related to finance, in one way or another, touches on the “money aspect” in an accusatory (don’t pay taxes) or apologetic (high taxes) tone. Most studies in this area have paid attention to the financial problems of enterprises, defining and ranking their significance, identifying the consequences, tracing the attraction and use of financial resources, as well as analyzing the mechanisms for solving them in the context of financial technologies are offered for the first time. In the current situation, the ability to timely solve the financial problems of an enterprise is tantamount to its survival. The correct choice of solution methods, that is, specific financial technologies, becomes the main task of business tactics.
The practice of using financial technologies by enterprises has significant regional differences depending on the level of development of market infrastructure and the degree of government support for entrepreneurship. The most favorable conditions have been created in Moscow, which is confirmed by statistics and the results of a number of studies. The analysis of the mechanisms for using financial technologies and recommendations for their improvement are based on the best practices and best practices of both entrepreneurs and business support structures, which makes it possible to recommend the results for widespread implementation in other regions of Russia. The key problem is the choice of financial technologies used to solve specific issues; measure of need and degree of effectiveness of using a specific financial technology; factors facilitating and hindering the use of financial technologies in enterprises; improving the forms and methods of supporting the financial activities of enterprises by the state.
Challenges of financial technologies
Financial activities is an integral part economic activity and includes all monetary relations associated with the production and sale of products (services), reproduction of fixed and working capital, generation and use of income.
Financial technology is the process of developing ways to solve financial problems. In general, speaking, the financial problems of enterprises express all other problems in their activities, so this definition is very broad. IN general view The following main operational elements of financial technologies can be distinguished:
· Identification of financial problems to be solved;
· Selection of suitable alternatives for solving financial problems;
· Assessing the rationality of use and compatibility of possible solutions within the framework of the ongoing financial policy;
· Selecting a solution based on the “cost/effectiveness” criterion;
· Implementation of the solution.
The main tasks of financial technologies include the following:
1. identifying needs for the use of financial technologies;
2. assessment of the prevalence of practical use of financial technologies;
3. analysis of factors promoting and limiting the use of financial technologies;
4. assessment of the rationality and effectiveness of the use of financial technologies;
Principles of organizing financial technologies:
1). Sameness of impact external factors on producers and consumers of goods.
2). A certain balance of financial instruments (i.e. prices, interest rates, rates and commissions, etc.)
3). The use of legislative and regulatory acts to regulate the independent actions of each business entity.
4). Competition as a condition for development and a regulator of economic processes. As a result, the most advantaged efficient production.
6). Self-financing of entrepreneurial activity.
The most important principle of financial technologies is the so-called principle of continuity, which is applied in the sense that management personnel makes adjustments to financial technologies as new legislation is introduced, new technologies emerge, and so on, that is, the flexibility of technologies should ensure their viability, and financial technology came up with the “rolling budget” principle. This principle applies to most expenditures, especially when calculating government appropriations.
Enterprise finance also has its own own organization based on its technologies.
The formation of financial technologies can be ensured through the following sources:
1. monetary and material contributions from the founders or participants of the enterprise;
2. income received by the enterprise from all types of activities;
3. interest, dividends received as a result of ownership of various securities;
4. bank loans;
5. funds of creditors;
6. temporary possession of someone else’s funds in circulation;
7. subsidies, subsidies, investments from budgetary and extra-budgetary funds and other types of rehabilitation;
8. rent;
9. charitable contributions;
10. income from long-term financial investments.
Financial technologies affect social reproduction in the following directions:
¨ financial support for the reproduction process;
¨ financial regulation of economic and social processes;
¨ financial stimulation of the economy.
The development of financial technologies is of great importance. Taking into account the conditions in the process of implementing a particular financial technology requires identifying the appropriate techniques and methods necessary for the implementation of assigned tasks related to social security, tax regulation, the development of scientific and technological progress, solving problems of the production process, and providing financial resources targeted programs, development of the economy of all regions. The implementation of financial technologies is carried out using a financial mechanism. The financial mechanism includes types, forms and methods of organizing financial relations and methods of their quantification. Many financial relationships predetermine various forms and methods of organization.
Financial technologies can be considered both as an object and a subject of management. If they are considered as a subject of management, it is clear that they play an active role in managing the economy. And in this understanding, we are dealing with financial technologies as a tool for economic management. On the other hand, there is an object of management, where financial technologies act as an objective economic category that needs to be managed through knowledge of the capabilities and properties of this category. It follows that without managing financial technologies, financial relations, and specific forms of manifestation of the category of finance, it is impossible to develop the economy. And the specific object of management is the sphere of financial relations or financial relationships that materialize in financial resources.
Key problems and choice of financial technologies by an enterprise
Almost all key problems in the activities of an enterprise manifest themselves (albeit in some cases mediocrely) in its financial problems and determine the enterprise’s needs for the use of certain financial technologies. However, the actual use of financial technologies by an enterprise is limited by the imperfection of the external environment of its functioning (deficiencies in current legislation, the continuity of individual elements of the market infrastructure, macroeconomic trends), and the internal capabilities of the enterprise. The use of financial technologies by an enterprise fundamentally depends on a number of factors, including the following:
· specificity determined by the type of product (service);
· history of creation;
· type of control over the enterprise;
· stage of enterprise development;
· financial condition;
· development strategy.
Problems associated with decreased demand for products (services), unfavorable rental conditions for premises, and high federal taxes are also significant for enterprises. Separately, we note in this same series the instability of legislation. Almost every enterprise has significant negative impact this factor. At the same time, among all the factors, this is the only one, the elimination of which, on the one hand, is completely within the power of the state, on the other hand, does not require any resources. Factors that have a negative impact on enterprises can be conditionally grouped into several main groups that use financial technologies to solve them:
1. problems of formation of financial resources
low solvency of consumers
· decrease in demand
· high competition
2. the problem of shortage of financial resources
· shortage of financial resources for development
lack of cash working capital
· loan conditions
3. problem of distribution of financial resources
· conditions for renting premises
· worn-out equipment, backward technology
· difficulties with supply
Difficulties in management
· insufficient level of qualification of workers
4. problem of optimization and reservation of financial resources
high local taxes
high federal taxes
· instability of legislation
· unreliability of banks
As an enterprise passes through various stages of formation and development, the composition of the key problems in its development changes noticeably. For “young” enterprises, the problem of high taxes is less significant - they enjoy certain benefits, but the problem of high competition due to entering new markets is more significant. For “mature” enterprises, the problem of rising costs, obsolescence of existing equipment and technologies is becoming more acute, and due to the accumulation of financial resources, the problem of unreliability of banks is becoming more important. At this stage of creation, firms have some minor problems with the organization of supply, which are quickly resolved, but as they grow, shortcomings in management begin to appear. After approximately 2-4 years from the moment of creation, the need for enterprises to make investments in order to maintain competitiveness increases noticeably. This causes an aggravation of the problem of the shortage of financial technologies for development as firms “age”.
So, based on the key problems in the activities of enterprises, the following groups of financial technologies can be distinguished:
· sales problem pricing policy, accounts receivable management, formation of additional financial flows from the development of new types of activities
· problems of shortage of financial resources - raising funds, managing accounts payable
· the problem of distribution of financial resources and investment - use of profits, direction of investment of funds, investment design, leasing
· the problem of unfavorable external conditions and their instability - optimization of taxation, reserving funds to adapt to possible external changes
Financial technologies for optimization and adaptation to instability
The tasks of financial optimization and adaptation to external changes are determined, first of all, by the existing “tax pressure” and the instability of the external environment of enterprises. The irrationality of the existing tax system, both in terms of the amount of taxes and their quantity, is generally recognized. The main factor hindering the development of the enterprise is high federal and local taxes. In these conditions, the interest of enterprises in optimizing taxation is obvious. The fact of using tax-optimizing technologies is most common among enterprises with a satisfactory condition, while at the same time, representatives of crisis enterprises and firms with a good financial position, the practice of using tax optimization was noted much less frequently. One of the private options for tax optimization is leasing technologies. But the most widespread technologies are “shadow” turnover as a tool for enterprises to adapt to high levels of taxes. One of the optimization technologies is franchising, which is very common among enterprises abroad. IN Russian conditions this technology is not widely used.
The specificity of all enterprises is the exceptional importance for its activities of a system of diverse and reliable connections. Many financial technologies of enterprises are determined primarily by the presence and “quality” of enterprise connections. Such technologies, of course, include, for example, private credit. Let us note that when we talk about the connections of an enterprise, we are talking, to a greater extent, about the personal connections of its director, manager, owner.
The value for enterprises of connections in support funds and with local authorities indicates the high importance of government support for them. Despite unfavorable lending conditions, communications are forced to take out loans from banks to maintain their stable position. The possibility of minimizing costs (or threats) associated with taxation and “commission” to criminal structures is manifested in the existence of connections in tax and law enforcement agencies.
Let us note that the system of basic connections ensuring a stable position is practically invariant to the “age” of enterprises. This indicates the “weakness” of the processes of forming market advantages from long-term existence: the reputation of products (services) does not replace the need to ensure connections with suppliers, the practice of working with banks does not reduce the need for connections in the banking system. The only type of connections whose importance decreases with the “age” of the company are connections in law enforcement agencies. Maintaining stable connections, especially in government agencies, usually requires informal expenses. This determines the widespread use of various technologies by enterprises to generate unaccounted cash, including the use of shadow circulation technologies.
The role of financial management and financial technology in business
Financial technology management is the most difficult task among other enterprise management tasks. Most often, enterprises experience the greatest difficulty precisely in the area of financial technology management, and management seems to be a more difficult task for the heads of trading firms than for managers industrial enterprises.
The connection between the “problems” in financial management and profitability is quite clearly visible: if about a third of unprofitable enterprises and firms with small profits experience difficulties in this area, then among firms with average profitability – only one in five. Note that this kind of dependence is not observed in any area of management, which confirms the primary importance of financial technologies in leading an enterprise out of the crisis and ensuring current sustainability.
While experiencing major difficulties in financial management, business leaders in a somewhat smaller area attribute this to the need to use new technologies. Among representatives of enterprises with small profits, 21% indicate the need to introduce new financial technologies, and in the group of enterprises with average profits - only 14%. Although this is due to the fact that more profitable businesses simply have less financial management problems, in my opinion, constant innovation in financial management is necessary regardless of the presence of any problems, especially in the face of dynamic changes in the external environment , constant expansion of the sector of available financial instruments. Thus, we have to admit that financial innovations are not independent in nature, but are a consequence of the accumulation of problems in financial management and attempts to solve them.
Conclusion
The most significant problem in the development of enterprises is the low solvency of consumers. Problems associated with unfavorable rental conditions for premises, high federal taxes, and instability of legislation are also significant for the enterprise.
As an enterprise passes through various stages of formation and development, the composition of the key problems in its development changes noticeably. For “young” enterprises, the problem of high taxes is less significant - they enjoy significant benefits, but the problem of high competition due to entry into new markets is more significant. For “mature” enterprises, the problem of rising costs, aging of existing equipment and technologies is becoming more acute, and due to the accumulation of financial resources, the unreliability of banks is becoming a more important problem. At the creation stage, firms have some minor problems with the organization of supply, which are quickly resolved, but as they grow, shortcomings in the management of the enterprise begin to appear. After approximately 2-4 years from the moment of creation, the need to make investments in order to maintain competitiveness increases noticeably, this causes the problem to worsen as the enterprise “aging”.
It is important to pay attention to supporting enterprises with a long period of existence, which have higher investment needs. This will help reduce the level of systemic risks inherent in almost every enterprise as a sector of the economy. Moreover, apparently, it is the old enterprises that are more focused on increasing the scale, ensuring its stability by expanding the number of operating firms and diversifying types of activities.
The shortage of financial technologies in investments is one of the key problems in the development of approximately every third enterprise; lack of cash working capital. This determines the dominant role of technologies aimed at attracting financial resources.
The most widely represented in the company's plans are technologies for attracting budget funds - obtaining loans from support funds and government loans. At the initial stage of their activities, most managers believe that financial resources are not needed or it is impossible to attract them. This significantly limits the list of actively used technologies for attracting financial resources at the stage of enterprise formation, while obtaining loans from support funds, loans from friends, relatives, acquaintances, and so on – partners, is becoming less common among them.
The technology for attracting funds from new partners seems to be very significant in the absence of a developed system. This technology has a clear investment focus, and if we exclude various forms of government support from consideration, then it is the main reserve for the development (investment) of enterprises through external sources. However, significant limiting factors for the spread of this technology are the “closedness” of enterprises to new owners, the lack of the necessary degree of financial “transparency” and adequacy financial statements the real state of affairs.
Managing financial technology is the most difficult task of enterprise management. Most often, the surveyed enterprises experience the greatest difficulties in the area of technology management. There is a clear connection between the degree of “problem” in financial management and profitability: if among firms in this area approximately a third of unprofitable enterprises and firms with low profitability experience problems, then among enterprises with average profit – every fifth.
Some economists highlight the following goals for the introduction of financial technologies, such as: reducing inflation rates (to which especially much attention is currently being paid, since the latter is now one of those evils that most threaten the well-being of citizens), smoothing economic cycles (while primarily refers to the use of financial policy as a tool to combat downturns).
In 2017, the total volume of investments in fintech - “smart” online services that help ordinary users and professional market participants manage finances - amounted to $27.4 billion, data show consulting company Accenture. This is 18% more than in 2016.
As noted by the compilers of the list of the most promising fintech projects The Forbes Fintech 50 - 2018, in the USA financial services are already formidable rivals to the local banking sector with a market capitalization of $8.5 trillion. Fintech is not only changing consumer behavior in all areas of personal finance, from saving to borrowing or saving, but is also transforming the financial market itself. In this industry, there are more and more solutions designed for professional participants - banks, investment companies, hedge funds. These developments help them analyze data, calculate the situation on the stock exchange, and choose investment strategies.
According to the director for ecosystem development "Skolkovo - venture investments» Stanislav Kolesnichenko, in the coming years the fintech sector will undergo dramatic changes. The industry has been growing rapidly over the past five years, with international markets More than one “unicorn” (a company with a capitalization of over $1 billion) has appeared, but further growth is constrained by legislative restrictions and competitive pressure from traditional banks, the expert explains.
“Fintech is now becoming more and more technologically advanced and is moving towards b2b products,” emphasizes Kolesnichenko. He highlights several fintech trends that can be observed in the next couple of years both in the world and in Russia: the penetration of blockchain technologies, the development of scoring models using big data and artificial intelligence, various technologies for remote user identification, automation of fraud detection mechanisms.
Konstantin Molchanov, head of the project support and development department of the investment company Finam, agrees with him. He notes that recent years have seen rapid growth in consumer fintech. Now most of the niches in this market are occupied, so developers will have to concentrate on business solutions. Most promising direction Molchanov considers the development of user identification systems. “This is a very pressing issue both in Russia and in the world,” says the expert.
The Forbes Fintech 50 allows you to understand how the world of fintech is changing and what ideas in this market will be in demand in the coming years. The list includes Internet services operating in or influencing the US market, including those of foreign origin, with the exception of public companies. So, what financial technologies are the future?
Robinhood investment service, whose investors include: Russian billionaire Yuri Milner and actors Jared Leto and Ashton Kutcher also provide the opportunity to invest in the popular cryptocurrencies Bitcoin and Ethereum, and the Fundrise platform - in real estate.
The principle of operation is quite simple: the user registers in the application, links it to a brokerage and bank account and invests in instruments of interest to him by simply pressing the “Buy” key. This distinguishes mobile investment services from traditional trading terminals like QIUK or MetaTrader, which have a much more complex interface.
Among those on the list there is also a platform with artificial intelligence that can independently determine a user’s risk profile, select an investment strategy for him based on the same ETFs, and systematically implement it - the Betterment robo-advisor. Some outliers include Acorns, which rounds up every spend on a user's credit or debit card to the nearest dollar and invests additional funds in a portfolio of low-cost ETFs, as well as Circle Up, a venture capital investing service.
Applications: Acorns, Betterment, Cadre, CircleUp, Ellevest, Fundrise, iCapital Network, Robinhood
The audience of fintech developers is not limited to private investors: more and more solutions are appearing on the market for professional participants in the financial industry. This year, ten such startups were included in The Forbes Fintech 50.
As a rule, these are services for big data analysis and massive online trading. Working with Big Data is necessary for banks to quickly study a large amount of information and identify fraud or calculate operational risks. Hedge funds need this technology to determine market entry points and manage positions.
A striking example is the Ayasdi artificial intelligence platform, developed by a team of scientists from Stanford University. It was this service that helped Citigroup bank pass stress tests by the US Federal Reserve after a series of failures.
Feedzai, developed by a former rocket scientist, harnesses the power of big data to detect fraud. The Enigma and Quandl platforms are used by the world's largest hedge funds to analyze hundreds of thousands of information sources. Another service from the rating - Digital Reasoning - turned out to be in demand at the investment bank Goldman Sachs and the Nasdaq exchange, which use it to identify attempts to manipulate the stock market.
Applications: Addepar, Ayasdi, Digital Reasoning, Enigma, Feedzai, IEX, Kensho, Quandl, Symphony, Trumid
Statista estimates that by 2019, total global mobile payment revenues will exceed $1 trillion, up 28% from 2017. Against this background, payment services are rapidly developing for transactions both between consumers and businesses, and between enterprises.
Some of the ten projects included in the rating managed to successfully combine mobile payments with cloud technologies, for example, a service for charging wages Gusto, also with deep machine learning - Forter transaction risk assessment platform.
Standing out in The Forbes Fintech 50 are applications for p2p transfers, which challenge traditional banks and online services like Western Union. These are the TransferWise service, developed by Estonians Taavet Hinrikus and Kristo Kaarmann, which promises transfer costs eight times lower than those of British banks, and the Remitly platform for transferring funds from the US, Canada and Australia to ten developing countries.
Applications: Adyen, Forter, Guideline , Gusto, Plaid, San Francisco, Remitly, Seattle, Stripe San Francisco, TransferWise, Veem San Francisco
Lending was one of the first financial market segments to experience technological revolution. As a result, the first players in the field of online lending have already managed to grow into real giants, and some have even entered IPO (for example, the American platforms LendingClub and OnDeck).
Nevertheless, this market continues to actively develop. In addition to p2p lending and crowdlending services, The Forbes Fintech 50 list includes platforms that intend to compete with mortgage brokers and banks in the home loan market.
Thus, the Better Mortgage and Blend services promise the borrower a full range of services - from assessing a mortgage loan based on scoring data and the borrower’s income to obtaining a mortgage.
Among the platforms providing loans for businesses, the Upstart service stands out, which over the course of five years has “trained” its algorithms to assess the reliability of the borrower so that it now has one of the lowest default rates on the market.
Applications: Affirm, Better Mortgage, Blend, CommonBond, GreenSky, Kabbage, LendingHome, Tala, Upstart
Cryptocurrencies and blockchain are firmly established in the daily news. The Forbes list includes startups that are developing infrastructure both for technological support of cryptocurrency trading and for transforming existing blockchain protocols.
It is noteworthy that among them was the Chainalysis service for tracking cryptocurrency transactions, which is already actively used by the FBI, the US Tax Administration and Europol.
Another project that has found application in the field of financial supervision is the Symbiont platform. Together with the authorities of the state of Delaware, which is considered a kind of offshore zone in the United States, it is working on technology that allows it to track the issue of shares and ownership structure in the region. In addition, along with investment company Vanguard Group startup is testing the possibility of using blockchain to exchange market data.
Applications: The Bitfury Group, Blockchain, Chain, Chainalysis, Coinbase, Ripple, Shapeshift, Symbiont, Xapo
Fintech developers are forced to expand the available options in the field of personal finance management - startups in this market are increasingly resorting to fashionable Big data technologies and experimenting with new business models.
For example, the Credit Carma service, using high-tech scoring, calculates what the user’s chances are of receiving a particular loan product and which bank will definitely not refuse him a loan.
Metromile provides car insurance for a flat, low subscription fee and then charges you extra interest for every mile you drive. The app tracks mileage independently using a special device connected to the vehicle's diagnostic system - this also helps track the details of any accident and resolve claims quickly.
Earnin's mobile service allows hourly workers to use their already earned income before payday. Cash - up to $500 - instantly goes to the user's bank account.
Applications: Credit Karma, Earnin, Lemonade, Metromile, Qapital
Page Content
Recruitment: 2017.
Form of study: full-time.
Duration of training: 2 years.
Program managers
Fedotova Marina Alekseevna,
Doctor of Economic Sciences, Professor, Head of the Department of Corporate Finance and corporate governance Financial University, Honored Economist Russian Federation, Laureate of the President of the Russian Federation Prize in the field of education, member of the Council for appraisal activities Ministry of Economic Development of Russia, member of the Council for Actuarial Activities of the Bank of Russia, President of the Self-regulatory Interregional Association of Appraisers
Doctor of Economics, Professor, Head of the Department of Data Analysis, Decision Making and Financial Technologies of the Financial University, Member of the Board of the Russian Union of CIOs, laureate of the CEEMAN Champion Award, three times Winner of the “Project of the Year” award of the Official portal of Russian CIOs GlobalCIO.
Abstract of the master's program
The master's program "Financial Technologies in Business" is in many ways a pioneer and corresponds to modern trends development of both banking and real business sectors.
The program is aimed at developing economists in Russia who are proficient in fintech methodology, fintech tools and technologies for developing and implementing strategies for rapid business growth.
A distinctive feature of the program is the interconnected study of modern financial and information technology based on best business development practices.
Preparation is carried out in accordance with
with principles European system offset of credit hours (ECTS);
with the requirements of a competency-based approach and a credit-modular organization of training (State Educational Standard for Higher Professional Education of the third generation).
The need for graduates in the field of fintech exists in various institutional structures:
telecommunications companies;
IT companies;
innovative companies and funds;
government agencies working with big data.
Proposed places of employment and places of practice: Sberbank, VTB Bank, VTB 24, Raiffeisenbank, Uralsib Bank, MTS, Beeline, Megafon, Rostelecom, QIWI<, Лидер, Х5.
The master's program provides knowledge of modern tools and technologies for business development. A significant part of practical training takes place in the form of trainings based on case studies, which allow you to study the best business development practices.
Skills in working with big data and designing financial systems and services are acquired using modern information technology tools and are completed in practical classes and hackathons in the computer classes of the Financial University, as well as in on-site classes in banks and fintech companies.
As a result of successful completion of the program, students must have various competencies. Among them are the abilities:
creative thinking;
teamwork;
design thinking;
ability to analyze big data and make management decisions based on them;
ability to design financial systems and services;
ability to manage business value based on modern technologies.
Compulsory disciplines
Compulsory disciplines
Intelligent information systems
Financial Marketing in the Information Economy
Elective disciplines
Russian and foreign teachers participate in the program. 100% of the teaching staff have an academic degree (title), 40% of teachers are practicing.
Leading teachers:
Recently, in the field of finance, as in other areas of human activity, another technical revolution has emerged. The transformation of services in the financial segment is associated with the introduction of digital technologies that industrialize processes, reduce costs and ensure compliance with regulatory requirements.
The innovative financial technology system is called FinTech. Today, the topic of FinTech is discussed among representatives of credit institutions and commercial companies, in the Central Banks of some countries and at international economic forums.
New technologies in finance are actively being introduced into the areas of banking, stock exchange operations, insurance, money transfers, asset management, etc. However, their implementation is associated with certain difficulties. They are caused by the following factors:
However, these difficulties create the basis for healthy competition between established market participants and start-ups. In 2017, European and American investors each invested $1,000,000,000 in FinTech businesses. As a result, credit institutions, by reducing costs, must increase the quantity and quality of services provided; new high-tech companies should appear on the market; In general, the deteriorating current financial system must improve and take the path of progress. New technologies are most often used by small and medium-sized businesses because they are more mobile.
New technologies in the financial sector include:
Financial and technological digital platforms have recently gained great popularity (one of them is 3DEXPERIENCE of the French company Dassault Systemes, operating in the CAD and PLM segment), and specialists are creating software for them. Innovative methods are transforming internal banking operations and customer services.
In a business environment, organizations interact both with customers and with each other. Within the second concept, companies developing business optimization technologies appear. They offer them on more attractive terms and at a lower cost than credit institutions. Digitization of processes allows you to optimize costs, make operations transparent and improve the quality of interaction with customers.
Dassault Systemes has developed and is actively implementing the 3D FinTech Challenge program into business. With its help, it is possible to accelerate the introduction of innovations and development of enterprises in the credit industry. This program helps new companies quickly get used to the conditions of the actual market.
Cryptocurrencies owe their appearance to the financial crisis of 2007-2009, which led to the collapse of the classical banking system in almost all countries of the world. IT outsiders took advantage of this situation and offered disappointed investors and borrowers new financial instruments – cryptocurrencies.
The peculiarity of cryptocurrencies is that they can not only be bought for real money (dollars, pounds, euros), but also mined, that is, “mine.” Many people rushed to their computers to mine bitcoins. Today it is the most famous cryptocurrency.
People and organizations from the ICT world are revolutionaries in the field of financial technology. They are distinguished by creativity, aggressiveness, and good organization, which allows them to seize new bridgeheads and destroy the existing status quo. They are looking for allies among those in power. By the way, the Bitcoin creation project is a striking example of cooperation between IT companies and US intelligence agencies.
Bitcoin entered the market in 2009. This is a very powerful project; its creator could not have been created by a lone specialist. The first to become interested in the new money were criminal organizations, since cryptocurrency provided complete anonymity. In 2013, actions were carried out in the United States to “clean up” criminal businesses that used bitcoins. And since 2015, cryptocurrency has been practically legalized.
Interest in Bitcoin is fueled by publications in the media. Cryptocurrency is positioned as a means of payment that provides anonymity, confidentiality and complete freedom. But in fact, the peer-to-peer networks used by Bitcoin enthusiasts are under the control of American intelligence agencies.
With the development of technological progress, a quantum computer will soon become a reality. Government organizations, intelligence agencies and private corporations spend billions of dollars annually on its development. These computers will allow hacking the cryptographic protection of bitcoins.
Therefore, some financial companies, taking as a basis the blockchain technology that underlies the creation of bitcoin, have developed their own practical settlement money. The digital currency is planned to be used in settlement and clearing operations and transactions with securities without the involvement of intermediaries, which are currently played by banks. Large credit institutions from many countries are joining this system, which indicates the success of the project, which is planned to be implemented this year.
Mobile money has a significant impact on the economy of different countries. Oddly enough, mobile banking is especially developed in sub-Saharan African countries. The infrastructure of this region does not allow full use of the classical banking system, so more than half of borrowers use illegal sources of loans. With the introduction of mobile banking, the share of official loans increased by 16%.
For example, Kenya has a mobile money transaction system called M-Pesa. Operators accept cash from users and place it in electronic accounts, after which they transfer it to recipients via SMS. In 2014, funds worth $11,000,000,000 were transferred through this service in Kenya. A similar system is also common in Romania and India.
But mobile currencies are used not only in third world countries; they are also used by well-known participants in the financial market of developed countries. For example, Circle and Venmo provide e-wallets for online transfers and payments. The well-known company Facebook Pay also uses new financial technologies.
Modern marketing is a system in which statistics, information processing and feedback are of great importance. With the help of analytical panels, the user receives more accurate information about the target audience, and innovative services help create individual offers. Various cutting-edge startups offer banks and companies modern services:
But the future belongs to those enterprises that can integrate as many automated services as possible into their work, connecting them with each other without compromising quality.
The financial segment of the global market is changing rapidly. Almost all new technologies in the field of finance are aimed at successful integration into the conditions of the new reality associated with changes in the spheres of B2B and B2C payments, leveling of obstacles in the process of industry transition to digital technologies, the creation of new standards for electronic payments, business optimization, cost reduction through automation, reducing the workload on workers, using electronic assistants, and personalizing goods and work. For a successful business in modern conditions, it is not the haphazard use of individual tools that is important, but a well-thought-out digital transformation strategy.
