The impact of fintech innovations on global currency markets

Abstract

The purpose of the scientific article is to study the impact of fintech innovations on currency markets and the global financial system to ensure greater stability and efficiency of financial and currency transactions. To achieve this goal, the following research methods were used, namely: analytical – to collect information on various types of fintech innovations, their essence, advantages, disadvantages and limitations of application, as well as for deeper understanding of the scientific problem; expert – to identify risks and prospects for fintech innovations development in the global currency markets; critical analysis – to compare the current and future state of the technology use by the participants of foreign exchange markets; method of scientific generalization – to identify priority areas of using fintech innovations in the conditions of risks and uncertainty of the external environment. In course of scientific research, it was proved that the role of fintech innovations in currency markets is constantly growing. New financial technologies expand capabilities of users of financial services by reducing access barriers, automating and optimizing financial processes, and therefore reducing the cost of time and resources, focusing new financial products and services on the needs of consumers, strengthening security measures for financial transactions and protecting personal data of customers and other aspects. According to the author, the main fintech innovations that affect the functioning of currency markets are Blockchain, Smart Contracts, Machine Learning, Artificial Intelligence, digital payment technologies and robotized financial services (Robo-Advisors). Within the study, the main opportunities that all participants of foreign currency markets receive by using fintech innovations were identified and summarized; and the main problems, obstacles and limitations of their implementation and use were formulated. It is possible to study the impact of fintech innovations on the functioning and development of the global and national currency markets on account of financial indicators. With this in mind, a system of the basic absolute and relative indicators was formed to identify the impact of each of the listed financial technologies on stability and efficiency of financial and currency transactions. According to the study, fintech innovations have a significant potential for reducing costs, improving reliability, speed, availability, efficiency of currency and other operations, and can also provide an opportunity to create and implement new financial products. However, the use of these technologies is associated with risks and threats, minimizing the negative impact of which will allow us to form long-term plans for future research.