FINTECH TOOLS AS A DRIVER OF FINANCIAL MARKET TRANSFORMATION: CHALLENGES OF REGULATION AND TRUST

Abstract

Introduction. The digital transformation of financial markets, driven by the rapid development of FinTech, provides a foundation for the emergence of new models of financial intermediation, expansion of financial service inclusivity, automation of credit scoring, and a reduction in transaction costs. However, this transformation is also accompanied by growing challenges, including a lack of regulatory harmonisation, cyber threats, institutional instability, and declining levels of digital trust.

Methods. The research is grounded in a structural-functional approach and employs comparative analysis of FinTech regulatory models, content analysis of the strategic documents of the National Bank of Ukraine (NBU), and generalisation of practical cases concerning the implementation of digital financial services in payments, lending, and investment intermediation.

Results. The study finds that Ukraine's FinTech sector is marked by a high level of innovation, particularly in neobanking, digital wallets, and peer-to-peer platforms. At the same time, the legal framework remains fragmented, and the practical implementation of open banking principles is inconsistent. While the NBU’s regulatory policy exhibits elements of strategic coherence, further refinement is needed in the areas of proportional regulation, algorithmic supervision, and integration of digital ethics principles.

Discussion. Future research should focus on the development of adaptive regulatory models, especially those based on regulatory sandboxes, indicative monitoring of FinTech-related risks, and the assessment of the impact of institutional trust on financial inclusion.