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DOMINANTS OF THE FINTECH MARKET IN THE CONTEXT OF THE COVID-19 PANDEMIC

Автор: Sveta on .

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Mazaraki A., Volosovych S. Dominanty rynku FinTech pid chas pandemii' COVID-19. Visnyk Kyi'vs'kogo nacional'nogo torgovel'no-ekonomichnogo universytetu. 2021. № 2. S. 4-20.

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DOI: http://doi.org/10.31617/visnik.knute.2021(136)01

UDC 336.7.06:616-036.21
JEL Classification: G14, G29, O33

MAZARAKI Anatoliy,
Doctor of Economics, Professor, rector
of the Kyiv National University of Trade and Economics
Kyoto str., 19, Kyiv, 02156, Ukraine

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ORCID: 0000-0001-5283-8444
 
VOLOSOVYCH Svitlana,
Doctor of Economics, Professor, Professor at the Department of Finance
Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine 

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ORCID ID: 0000-0003-3143-7582

DOMINANTS OF THE FINTECH MARKET IN THE CONTEXT OF THE COVID-19 PANDEMIC

 Background. The COVID-19 pandemic has caused problems in many areas of human life and forced individuals to change their habits to which the business is trying to adapt quickly. The financial services market is no exception, where the consumers have significantly limited or even completely closed access to physical institutions of financial service offerors, thereby a variety of FinTech tools are increasingly used in customer service.
Analysis of recent researches and publications. The problems of the FinTech market in the context of the pandemic are studied not only by the scientists but also by the prac­titioners. However, the issue of institutional transformations of the FinTech market in the con­text of the COVID-19 pandemic needs further solution despite the high level of existing theoretical researches.
The aim of the article is to identify the prevailing trends in functioning of financial technologies in the context of the COVID-19 pandemic, to build scenarios for the deve­lopment of the FinTech market in the post-pandemic period.
Materials and methods. The theoretical and methodological basis of the article includes the works of domestic and foreign scientists devoted to functioning of the FinTech market, the role of financial technology instruments during the COVID-19 pandemic in ensuring functioning of global and national economies. Methods of theoretical genera­lization, comparative analysis and synthesis were used in this research.
Results. The FinTech market may be considered from functional and institutional points of view. FinTech is a complex concept, with a specific institutional environment which is formed within it, the internal components of which are FinTech tools, and the external are the various areas that combine these tools into a financial ecosystem. There is no clear dis­tinction between FinTech and other sectors of EverythingTech, as all members of Every­thingTech belong to a single financial ecosystem and perform their functions within it. The FinTech market may be segmented according to FinTech tools; the type of service in the financial market provided on the basis of FinTech tools; financial instruments; financial services offeror; consumers of FinTech services; deployment regime; aims of technologies application. The pandemic specified challenges for the financial sector to ensure business continuity in the context of social distancing; ensuring the safety of employees; creating conditions for remote work of employees; creating of new cyber security protocols; func­tioning of the relevant IT service for remote work support; closure of financial institutions branches; reduction of financial sector employees. At the beginning of the pandemic, FinTech companies’ access to financing became more difficult, but according to the results in 2020, both individual segments of FinTech and the entire industry showed an increase in global investment. As a result of the application of quarantine restrictions, the digitalization of tra­ditional financial intermediaries intensified, the regulation of BigTech companies was stimu­lated and public-private partnerships between FinTech and state institutions were intensified.
Conclusion. The COVID-19 pandemic increased the financial services consumers’ dependence on technologies and created a strong basion for the formation of financial ecosystems. The pandemic intensified innovative strategies for the development of traditional financial intermediaries and their use of FinTech tools in business processes against the background of modernization of companies’ technological infrastructure. We offered optimis­tic, pessimistic and neutral scenarios of FinTech development. One of them may be realized in the future as a result of the introduction of governments’ restrictions during the pandemic.
Keywords: financial technologies, financial ecosystem, FinTech market, COVID-19 pandemic. 

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