MODERNIZATION OF STRUCTURE OF FINANCIAL SYSTEMS WITH THE DEVELOPMENT OF FINTECH

Abstract

INTRODUCTION In a general sense, the financial system is a collection of financial instruments, markets, institutes that provide a redistribution of financial resources between economic agents who have a scarcity or surplus of funds. The basic functions of the financial system are the accumulation of temporarily redundant funds and their transformation into investments; risk management; information function; monitoring; reduction in business expenditures 1 . Their effective implementation creates favorable conditions for growth of well-being. However, the functions of the financial system are relatively stable in time and space, while financial institutes are transforming and their functions are changing 2 . The sphere of their activity – the financial system – remains unchanged. This is due to the fact that under the influence of globalization, technological change and innovations, the financial system acquires new characteristics, properties, elements, as new financial instruments and innovations appear in the financial environment, and shifts in demand for them occur. As a result, competition between financial instruments and financial innovations leads to the expansion of functionalities of the financial system, increases the efficiency of its functioning and modifies the role of the financial system in the economy. Features of the implementation of the functions of the financial system determine the nature of its functioning, which depends on structural and organizational characteristics. The structure characterizes the composition of the financial system, the nature of the relationships of its segments and the elements that ensure its integrity, the preservation of