Features of use of modern financial technologies in the activities of credit organizations

Abstract

This article describes the characteristics of the FinTech industry and presents the cycle, geography, key elements and stages of development of FinTech 1.0, FinTech 2.0, and FinTech 3.0. The impact of improving the quality and quantity of information technology, changing consumer habits, as well as the need to improve the efficiency of financial and non-financial institutions in the development of FinTech is revealed. An analysis of the main advantages and disadvantages of the development of the FinTech industry in the world shows that FinTech is a sector of the economy that includes companies that use technology to provide financial services more efficiently. Opportunities and disadvantages of financial technologies are also grouped into cloud technologies, artificial intelligence, blockchain, machine learning, the Internet of Things, big data, intelligent communications, application programming interface, cryptography, biometrics, etc. The description and types of regulation and control technologies are given, in which RegTech is divided into specific technologies: transaction monitoring technology; risk management technology; reporting technology; and control technology (SupTech). The latter is a technology with automated processing of reports and other received data from financial market entities related to monitoring and analysis of market and operational risks of digitalization, regulatory requirements, etc. The authors grouped FinTech classifications by industry, subject of management and types. The structure of the banking system of Tajikistan was analyzed and it was concluded that the main reason for the reduction in the number of credit organizations in Tajikistan in recent years is unpreparedness for the radical changes taking place in the world and the ongoing economic crisis – the COVID-19 pandemic – which had a significant impact on the activities of domestic credit organizations. Due to the fact that clients of credit organizations did not receive loans during this period, the financial condition of many organizations deteriorated, as a result of which they were declared bankrupt. The main indicators of the balance of credit organizations, the financial stability of the banking system of Tajikistan, and the number of means of payment used are analyzed, and it is concluded that the banking system, like any economic system, is constantly evolving, and its structural elements must work together. Currently, the banking system is undergoing changes under the influence of new financial technologies. To determine the level of digitalization of the banking system, the indices of digital financial services for 2018–2021 were calculated and analyzed, which confirmed its low level. The influence of factors on the share of payment orders received by credit institutions via the Internet and the share of payment orders received by credit institutions via messages using mobile subscriber devices was determined by the regression method. The study also identified the prospects for the impact of blockchain technology on GDP and, in conclusion, recommendations are provided for the introduction of financial technologies in the activities of organizations in Tajikistan.