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PURPOSE: The purpose of the article is to analyze the impact of FinTech factors on the financial inclusion of the society. The explanatory variables define the level of development of the FinTech sector in a given EU country. The article analyzes the impact of the FinTech sector on the financial inclusion of society, defined as the 1-% model of people having a bank account and the 2 -% model -% of people with access to internet banking., DESIGN/METHODOLOGY/APPROACH: As part of the research, an analysis of factors was carried out from the universally understood banking environment influencing the FinTech digital inclusion of society in the European Union countries in 2012-2019. The data for the research was obtained from the IMF (Financial Access Survey), ECB (Statistical Data Warehouse), Eurostat, BIS, ESMA databases., FINDINGS: The article shows the important relationships between FinTech variables and the financial inclusion of society. The existing literature research was confirmed and new variables influencing financial inclusion were identified, including functioning of the regulatory sandbox and innovation hub as well as the level of employment in the area using information and communication technology - ICT., PRACTICAL IMPLICATIONS: The article suggests creating an environment conducive to the implementation of financial innovations that improves the level of financial inclusion., ORIGINALITY/VALUE: The digitization of banking services in recent years has considerably influenced the way the society uses banking services. The increasing use of the Internet to use banking services allows a wider group of people to access these services., peer-reviewed

Blockchain and Distributed Ledger Technology (DLT) enable for disintermediation of services and decentralisation of the software processes enabling them. By doing so, processes can become transparent, verifiable, tamper‑proof, and immutable. They have the capacity to provide an unchangeable history, or log, of all actions that have taken place which could be traced back to specific stakeholders., peer-reviewed

Purpose: The article aims to determine the relationship between the FinTech ecosystem and ensuring a stable path of economic growth in the context of digitalization. The transition to digitalization of the financial sector is accompanied by a fundamentally new, qualitative transformation of socioeconomic relations in society. Design/Methodology/Approach: As part of the study, the concept of FinTech was considered both in the context of technological innovation and in the context of companies utilizing these innovations in business, as well as the systematization of business models of the FinTech industry. The classification of horizontal and vertical innovations of the financial industry is given. The authors presented the structure of the FinTech ecosystem as an instrument for ensuring sustainable. Findings: For the successful development of the FinTech ecosystem, the authors of the study presented a number of initiatives, the implementation of which will ensure the maintenance of the financial system stability, protection of consumer rights, as well as the digital innovations’ development and implementation. Practical Implications: The formation of a sustainable digital financial infrastructure tends to ensure the effective provision of services in the financial market, including for small and medium-sized companies, which will increase the availability of financial services and promote competition in the financial sector. Originality/Value: The key contribution of the study is the ecosystem approach, which allowed determining the possibilities of safe sustainable development of the financial sector., peer-reviewed

Purpose: The aim of the paper is to develop the approach to a legal definition of FinTech. Design/Methodology/Approach: In this paper we evolve possible approaches of FinTech legal definition, investigate existing approaches at the international level and examine the policies applied at the national levels. Document analysis, as a form of qualitative research, was used in this study. Findings: We found that in most countries the legislation does not specifically address fintech companies, and the legal framework equally regulates the activities of traditional service providers and fintech operators. In our opinion, no specific legislation for FinTech companies needed, each type of activity provided by a financial or technology company is subject to a specific legislation/regulation with primary focus on services and products provided as payments, insurance, investments etc. Practical Implications: The term FinTech is freely used by policy makers, regulators, companies, researchers, academics and the public, both nationally and internationally. According to international organizations such as the IMF, the World Bank and the OECD, FinTech offers the opportunity to accelerate economic growth and expand financial affordability/inclusion in all countries. Some countries are increasingly striving to become global or international regional hubs for FinTech and are working hard to develop interagency government strategies with a supportive legal environment. Originality/Value: There is still confusion about the nature and dynamics of FinTech among politicians, scientists and practitioners, as well as about the legal framework of this area. The value of this article is to clarify and propose an apprach to definition of FinTech by combining different approaches in a very original and innovative way., peer-reviewed

Purpose: The paper aims to review the academic research work done in the area of Islamic financial technology. The Islamic FinTech area has been classified into three broad categories of the Islamic FinTech, Islamic Financial technology opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. Finally, the study identifies and highlights the opportunities and challenges that Islamic Financial institutions can learn from the conventional FinTech organization across the world. Approach/Methodology/Design: The study collected 133 research studies (50 from Social Science Research Network (SSRN), 30 from Research gate, 33 from Google Scholar and 20 from other sources) in the area of Islamic Financial Technology. The study presents the systematic review of the above studies. Findings: The study classifies the Islamic FinTech into three broad categories namely, Islamic FinTech opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. The study identifies that the sharia compliance related to the cryptocurrency/Blockchain is the biggest challenge which Islamic FinTech organizations are facing. During our review we also find that Islamic FinTech organizations are to be considered as partners by the Islamic Financial Institutions (IFI’s) than the competitors. If Islamic Financial institutions want to increase efficiency, transparency and customer satisfaction they have to adopt FinTech and become partners with the FinTech companies. Practical Implications: The study will contribute positively to the understanding of Islamic Fintech for the academia, industry, regulators, investors and other FinTech users. Originality/Value: The study believes to contribute positively to understanding of Fintech based technology like cryptocurrency/Blockchain from sharia perspective., peer-reviewed

Purpose: The article aims to identify the features of digital techniques introduction and functioning in the insurance industry and the social insurance system. The information techniques used allows to quickly and with the best results to process large amounts of data, thereby increasing the efficiency of all the spheres to reduce social and commercial risks. Design/Methodology/Approach: In order to substantiate introducing the digital techniques expediency in the activity of the insurance system, it is necessary, first, to consider the advantages and disadvantages of information techniques use in the commercial and social insurance. Second, to describe the main digital programs, the implementation of which will increase the targeting and personalization of insurance services. Findings: For the digital techniques introduction in the sphere of insurance relations it is necessary to form the wholly new structure of insurance assets that meet the priorities of the digital economy; to create the necessary conditions for the development and implementation of modern actuarial techniques; to create conditions for increasing incomes and the life standard of the population in order to stimulate demand for insurance services; to change the structure and quality of social services. Practical implications: The results of the study can be implemented in the practice of social funds and insurance companies in order to improve the quality of insurance services. Originality/value: The main contribution of this research is to transfer the processes and mechanisms for the global digital economy and global digital space formation to the social and insurance relations., peer-reviewed

The reason for this work is the proposal to create a fintech to provide the opportunity of credit portability to the users of the Financial Institutions, which consists of the creation of a web portal in which the users will enter the main characteristics of the loan that they keep in force. The Fintech will make agreements with cooperatives and banks to feed the information base and will be responsible for making a proposal to change the credit operation to a new financial institution in which it offers better conditions to make the payment (interest rate more attractive) ), the user will be asked to authorize the new financial institution to make an advance payment by subrogation to the bank in which he forged his initial debt, in this way the user benefits by changing his credit to another financial institution that provides him with savings in terms of the interest rate and better credit conditions and financial institutions benefit from acquiring new customers, consequently this fintech will also contribute to encourage competition in the financial system... El motivo del presente trabajo es la propuesta de creación de una fintech que se dedica a brindar la oportunidad de portabilidad crediticia a los usuarios de las Instituciones Financieras, la cual consiste en la creación de un portal web en el cual los usuarios ingresarán las principales características del préstamo que mantienen vigente. La Fintech realizará acuerdos con cooperativas y bancos para que alimenten la base de información y se encargará de efectuar una propuesta de cambio de la operación crediticia a una nueva institución financiera en la cual se ofrezca mejores condiciones para efectuar el pago (tasa de interés más atractiva), posteriormente se solicitará al usuario para que autorice que la nueva institución financiera realice un pago anticipado por subrogación al banco en el cual forjó su deuda inicial, de esta manera el usuario se beneficia cambiando su crédito a otra entidad financiera que le proporcione un ahorro en cuanto a la tasa de interés y mejores condiciones crediticias y las instituciones financieras se benefician adquiriendo nuevos clientes, consecuentemente esta fintech contribuirá también a incentivar la competencia en el sistema financiero...

The successful introduction of the digital economy into the information space of the Russian Federation involves the solution of several problems associated with the transition to a new paradigm of economic development based on the digitization of social and economic processes. At the same time, the existing regulatory mechanisms and legislation do not create optimal conditions for the development of the market of new financial instruments and technologies in Russia today. There are socio-economic risks, the key ones including an increase in the outflow of capital and innovative projects to other countries, a lack of confidence on the part of potential investors in new financial instruments, a decrease in the stability of traditional financial institutions. On this basis, the following tasks have been set in this article. To consider the terminology in the field of digital economy from the theoretical aspect; to identify trends and justify the need for digitalization of economic processes based on the use of new financial technologies; to reveal the informative characteristics of financial technologies promising for Russia. This article ends with a conclusion that the development of the digital economy in Russia is due to the need to ensure the information and economic security of the state, realize the potential of the new economy to improve the standard of living and national well-being through the introduction of innovative communication and financial technologies. The impact of the “digital economy” on socio-economic processes is multifaceted. It is sustainable and permeates all spheres of life, being an integral part of modern society., peer-reviewed

How the banking business model in Latvia changes? What are the main forces determining these changes? What group of banks in the retail banking sector has had more intensive changes during the last three to five years? Are banks feeling competition from the FinTech companies and realising a more flexible and focused policy or are they continuing to believe on traditional banks’ domination? This paper explores this process by analysing banking products and services in Latvia. How advancements in technology continue to transform the lives of banking customers? The study shows that digitalization guarantees the development of banks. Banks are looking at new avenues such as mobile application and mobile marketing to provide value-added services to customers and increase revenues by charging nominal fees for the services. Latvian banks are getting more flexible in customer services and banking products like crediting and financial resources transferring. We divided Latvian commercial banks into two significant groups: banks more specialized in international customers servicing and banks more specialized in domestic customers servicing. Financial indexes have been compared in conformity to these two groups. The CIR, ROA, ROE estimates point out the profitability and efficiency of commercial banks. LIQUIDITY shows that banks in Latvia have an adequate stock of unencumbered high-quality liquid assets that can be converted easily and immediately into cash. The profitability and efficiency indicators are more predictable and stable in banks servicing domestic customers. Banks servicing international customers specialize in focused retail, but banks servicing domestic customers provide a wider range of products and services. As a result, banks servicing domestic customers are more flexible., peer-reviewed