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Open finance is evolving and extending open banking. This creates a large context that implies a financial and identity data exchange paradigm, which faces challenges to balance customer experience, security, and the self-control over personal identity information. We propose Self-Sovereign Banking Identity (SSBI), a Blockchain-based self-sovereign identity (SSI) to secure private data sharing by utilizing trusted customer’s banking cards as a key storage and identity transaction-signing enclave. The design and implementation of the SSI framework is based on the Veramo SDK and Ethereum to overcome the limitation of signing curve availability on the current banking Java Cards needed for Hyperledger Indy. SSBI uses the elliptic curve SECP256K1 for transaction signing, which exists for several payment cards in the market. SSBI enables automated financial services and trust in the service provider communication. This work analyzes the flow and framework components, and evaluates the usability, integration, and performance in terms of throughput, latency, security, and complexity. Furthermore, the proposed approach is compared with related solutions. The presented prototype implementation is based on a test Ethereum network and signing transactions on the banking card. The preliminary results show that SSBI provides an effective solution for integrating the customer’s banking cards to secure open banking identity exchange. Furthermore, it allows the integration of several scenarios to support trusted open banking. The Blockchain layer settings need to be scaled and improved before real-world implementation.

The subject of the study is the digitalization of banks’ activities in the provision of services to clients in the management of investment resources The purpose of the article is to study the features of digitization of banking services in the management of clients’ investment resources, substantiation of the role of digitization as a marker of service innovations in the banking sector. Methodology of work. The methodology of the article was determined by the basic cognitive methods of cognition – systemic, dialectical and comparative. The provisions of the theory of the efficiency of financial markets, investment and portfolio theory, money and credit, financial risk management have been elaborated. Separate special methods are used as important research tools – whole and part, analysis and synthesis, observation, comparison, formalization. The results of the work are presented aspects of the digitalization of banking services in the management of investment resources and funds of client–trustees. The growing role of digitization and new financial technologies in improving banking services is substantiated. The mutual need for banks and their clients to maintain the safety of transactions in the management of investment resources is emphasized. The features of bank digitization in the modern financial and technological environment are shown. Revealed aspects of competition between banks and fin–tech companies in customer service. Conclusions. New financial technologies open up new opportunities for banks and their clients. But at the same time, banks and clients need a new technological and operational quality of communication, mutual training, mutual responsibility for coexistence in the new digital environment. Financial and banking systems of Ukraine are undergoing significant technological changes, according to which banks and fintech companies competitively provide various services to clients. Features of investment resource management are being formalized in the context of increasingly widespread digitalization. The movement of investment resources is accompanied by the use of new service platforms and digital banking tools. With the introduction of national digital currencies into circulation, the role of central banks is expected to grow not only as regulators, but also as important intermediary financial institutions.

The subject of the study is the digitalization of banks’ activities in the provision of services to clients in the management of investment resources The purpose of the article is to study the features of digitization of banking services in the management of clients’ investment resources, substantiation of the role of digitization as a marker of service innovations in the banking sector. Methodology of work. The methodology of the article was determined by the basic cognitive methods of cognition – systemic, dialectical and comparative. The provisions of the theory of the efficiency of financial markets, investment and portfolio theory, money and credit, financial risk management have been elaborated. Separate special methods are used as important research tools – whole and part, analysis and synthesis, observation, comparison, formalization. The results of the work are presented aspects of the digitalization of banking services in the management of investment resources and funds of client–trustees. The growing role of digitization and new financial technologies in improving banking services is substantiated. The mutual need for banks and their clients to maintain the safety of transactions in the management of investment resources is emphasized. The features of bank digitization in the modern financial and technological environment are shown. Revealed aspects of competition between banks and fin–tech companies in customer service. Conclusions. New financial technologies open up new opportunities for banks and their clients. But at the same time, banks and clients need a new technological and operational quality of communication, mutual training, mutual responsibility for coexistence in the new digital environment. Financial and banking systems of Ukraine are undergoing significant technological changes, according to which banks and fintech companies competitively provide various services to clients. Features of investment resource management are being formalized in the context of increasingly widespread digitalization. The movement of investment resources is accompanied by the use of new service platforms and digital banking tools. With the introduction of national digital currencies into circulation, the role of central banks is expected to grow not only as regulators, but also as important intermediary financial institutions.

This dissertation deals with the impact of FinTech and the digital transformation in banking and other financial services. In our digital era and with significant demographic changes in the population, people are looking for convenience, efficiency, and speed in their financial transactions. They want to trade through platforms and mobile applications, and these activities include managing their economic life, monitoring their total expenses, applying for a loan, or optimizing their investment strategies. The FinTech industry is an emerging service industry that provides technological solutions, electronic services, and digital products. The FinTech industry is booming after the global financial crisis because the people lost their trust in the banking system. In the FinTech environment, apart from the companies, there are also the Neobanks and Challenger banks, breaking the monopoly of the traditional banks. For this reason, banking institutions are beginning to partner or acquire FinTech companies to integrate new technologies and platforms into their services. BigTech is also moving forward with new services and products in the financial sector. All of them will have to comply with regulations and rules such as GDPR, PSD2, and Open Banking. The GDPR fundamentally shapes how FinTech companies and everyone else should manage data and approach data privacy. Every FinTech business and bank - whether based in Europe or not - must be aware of and comply with the GDPR as if the new rules are violated, companies will face the imminent threat of potentially significant fines of up to € 20 million or 4% of total global annual turnover. Finally, it is worth mentioning that the global health crisis, the coronavirus pandemic gave growth to FinTech. Even traditional banks rushed in to offer FinTech services as the bank’s branches were closed. Technology plays a key role in our lives.

Submitted by Anna Barbara Alves Beraldine (annabarbara@unisinos.br) on 2021-07-05T19:58:27Z No. of bitstreams: 1 Alexandre Matté_.pdf: 1045906 bytes, checksum: 10093025b626174ce66430a20e4599f2 (MD5) Made available in DSpace on 2021-07-05T19:58:28Z (GMT). No. of bitstreams: 1 Alexandre Matté_.pdf: 1045906 bytes, checksum: 10093025b626174ce66430a20e4599f2 (MD5) Previous issue date: 2021-05-28 Nenhuma Este estudo procura analisar, sob o enfoque crítico-reflexivo o impacto do Blockchain no sistema financeiro num contexto de Open Banking, com base na compreensão do conceito dessa tecnologia e seus impactos sejam eles causados pela sua essência de descentralização, na falta de regulamentação, na criação de novos produtos já inseridos num novo Ecossistema tecnológico para o sistema financeiro. O desenvolvimento de novas tecnologias como o Blockchain, impulsionam o crescimento do sistema Financeiro, ao mesmo tempo, que desafiam conceitualmente a perda da autoridade central (reguladora), pois com o uso Blockchain a confiança passará para uma rede de infraestruturas tecnológicas. Num contexto mais amplo de Open Finance, o Blockchain será a tecnologia para registrar, rastrear e dar credibilidade a transações para entes que não se conhecem, além de garantir a imutabilidade dos registros, deixando seu rastro virtual que ajudará no combate à lavagem de dinheiro. O objetivo principal desse trabalho é entender de que forma o Blockchain poderá contribuir para Open Banking em uma Instituição Financeira. Para tanto foi realizado um estudo de caso junto a profissionais das áreas de Blockchain e Open Banking em uma das três maiores Instituições Financeiras do Brasil. A coleta de dados foi feita por entrevistas a um seleto grupo de Experts nas referidas áreas e a análise do conteúdo foi efetuada com ajuda do Software NVIVO. Como resultados desse estudo se apurou que o Blockchain não está na pauta do Open Banking, mas certamente estará em seu segundo estágio denominado Open Finance. Também foi verificado que produtos e serviços que irão utilizar o Blockchain precisam ser desenvolvidos nessa arquitetura digital e por isso possuem um custo de implantação versus substituição que encarecem num primeiro momento e, atrasam a utilização da tecnologia. Em relação ao grau de maturidade dessa tecnologia, verificou-se que a Instituição pesquisada possui pesquisas e projetos em fase de testes e que deve prevalecer a parceria com Blockchains privadas para alavancar seu uso de forma sistêmica. This study seeks to analyze, under a critical-reflective approach, the impact of the Blockchain on the financial system in a context of Open Banking, based on the understanding of the concept of this technology and its impacts, whether caused by its essence of decentralization, in the lack of regulation, in the creation of new products already inserted in a new technological ecosystem for the financial system. The development of new technologies such as Blockchain, drive the growth of the Financial system, while conceptually challenging the loss of central (regulatory) authority, as with the use of Blockchain trust will pass to a network of technological infrastructures. In a broader context of Open Finance, Blockchain will be the technology to register, track and give credibility to transactions to entities that do not know each other, in addition to guaranteeing the immutability of records, leaving its virtual trail that will help in the fight against money laundering. The main objective of this work is to understand how the Blockchain can contribute to Open Banking in a Financial Institution. Therefore, a case study was carried out with professionals in the areas of Blockchain and Open Banking in one of the largest Financial Institutions in Brazil. Data collection was carried out through interviews with a select group of experts in these areas and content analysis was carried out with the help of NVIVO Software. As a result of this study, it was found that the Blockchain is not on the Open Banking agenda, but it will certainly be in its second stage called Open Finance. It was also verified that products and services that will use the Blockchain need to be developed in this digital architecture and, therefore, have an implementation versus replacement cost that becomes more expensive at first and delays the use of the technology. Regarding the degree of maturity of this technology, it was found that the researched Institution has research and projects in the testing phase and that the partnership with private Blockchains should prevail to leverage its use in a systemic way.

Стаття присвячена дослідженню тенденцій розвитку фінансових технологій (далі – фінтех або Fintech) у світі та в Україні. Виявлено залежність між віком та кількістю взаємодій з банками. Визначено, що в результаті імплементації директиви про платіжні послуги ЄС PSD2, трансформувалися старі тренди та з’явилися нові напрями розвитку фінтех. Встановлено, що директива дозволяє компаніям з електронної комерції розвивати фінансові послуги на основі даних та інфраструктури банків, оскільки нові сторонні постачальники мають кращі пропозиції диференційованих інноваційних послуг. Існує цілий ряд технологічних рішень, одні з найбільш революційних та таких, що швидко розвиваються є блокчейн (Блокчейн - це зростаючий список записів, названих блоками, які пов'язані за допомогою криптографії); штучний інтелект (Технологія, яка дозволяє реплікувати поведінку людини, наприклад, схильність до навчання та вирішення проблем), одним з важливих ринків в галузі штучного інтелекту є великі дані (Big data) ( "великі дані"-галузь, яка виникла в наслідок збору, аналізу та формування плану дій на базі цих даних); краудфандинг (механізм збору коштів через електронні платформи з метою реалізації певного проекту). Визначено, що успіх фінтех компаній став каталізатором появи нових ніш на ринку фінансових послуг. Так, страховий, кредитний, інвестиційний ринки, державний сектор стали базою для появи нових технологій. Регуляторна технологія (RegTech) буде і надалі надзвичайно цікавою для фінансових установ, які бажають не лише ефективніше та більш раціонально виконувати свої регуляторні зобов’язання, але також зменшити ризики та витрати, пов’язані з подібними функціями. Іншуртех (іnsurtech) – це фірми, які використовують нові технології для поновлення або розриву ланцюжка вартості страхування. Lendtech – кредитні маркетплейси, які становлять сукупність сервісів та додатків які поєднують позичальників та кредиторів – не тільки фізичних осіб, а й представників малого, середнього та великого бізнесу. Визначено, що основними трендами будуть підвищення рівня консолідації у сферах які вже майже сформувались, таких як платежі та кредитування, а також у таких нових сферах, як блокчейн; виникнення більших угод між інвесторами та фінтех компаніями; глобальна експансія необанками; врегулювання відкритого банкінгу; співпраця між fintechs та банками в Азії в таких сферах, як KYC (know your customer), AML (antimoney laundering); розвиток управління цифровою ідентичністю - включаючи розпізнавання обличчя та розпізнавання голосу. The paper considers the theoretical principles and applied principles concerning financial technologies. Currently, the rapid development of the digital economy has become an important global trend of dynamic socioeconomic development, which has led to the spread of financial technology impacts on the entire system and structure of socio-economic relations. It is stated that as FinTech develops, the younger generation is now gaining more access to a wider variety of sophisticated financial products and services, some of which carry higher risks that are not yet known in the market. However, the financial knowledge of the younger generation is generally lower than their parents, as the Organization for Economic Co-operation and Development (OECD) notes. Studies have shown that the trend in the financial sector towards increasing automation, mobility and digitalization of financial services is changing. Blockchain, machine learning, AI and robotics are all creating huge waves in fintech, bringing both synergies and disruption to industry. However, as a result of the implementation of the PSD2 directive, the data that banks need to share is essentially sensitive financial data, and this naturally raises many privacy and security issues along with consumer uncertainty. Considering the international trends in the development of fintech companies, Ukrainian banks are interested in creating joint projects with domestic and foreign fintech representatives. As fintech companies become more mature and technology-oriented, they are faced with the need to invest more in sophisticated software, supported by advanced analytics and personalized marketing campaigns. This brings fintech to a more consumer-oriented state where service providers are driven by the ongoing challenges of society and the need to meet their customers' needs. The major client for most fintech companies is business, both large corporate and SMB (37% for each). 21% of companies operate in the mass retail market, and only 6% target the premium retail segment.

Banking and financial services have traditionally been a heavily regulated industry where technology alone has not been a sufficient factor to transform the operating architectures of the industry. The pervasive view in the financial industry has been that digitalization and its integrational development will take place on the platforms of the banks. Due to the inherent secondary nature of financial services, however, it is more likely that the customer interface of financial services will increasingly migrate towards primary service platforms. As a result, the commoditization of payment processing services is expected to increase. Additionally, the visibility into customer data will become more opaque and the value capturing capabilities of the financial industry will be radically redefined. Furthermore, a strategic impact can also be anticipated on several public institutions, such as financial supervisory authorities, the tax administration and other public registry holders.

Стаття присвячена дослідженню тенденцій розвитку фінансових технологій (далі – фінтех або Fintech) у світі та в Україні. Виявлено залежність між віком та кількістю взаємодій з банками. Визначено, що в результаті імплементації директиви про платіжні послуги ЄС PSD2, трансформувалися старі тренди та з’явилися нові напрями розвитку фінтех. Встановлено, що директива дозволяє компаніям з електронної комерції розвивати фінансові послуги на основі даних та інфраструктури банків, оскільки нові сторонні постачальники мають кращі пропозиції диференційованих інноваційних послуг. Існує цілий ряд технологічних рішень, одні з найбільш революційних та таких, що швидко розвиваються є блокчейн (Блокчейн - це зростаючий список записів, названих блоками, які пов'язані за допомогою криптографії); штучний інтелект (Технологія, яка дозволяє реплікувати поведінку людини, наприклад, схильність до навчання та вирішення проблем), одним з важливих ринків в галузі штучного інтелекту є великі дані (Big data) ( "великі дані"-галузь, яка виникла в наслідок збору, аналізу та формування плану дій на базі цих даних); краудфандинг (механізм збору коштів через електронні платформи з метою реалізації певного проекту). Визначено, що успіх фінтех компаній став каталізатором появи нових ніш на ринку фінансових послуг. Так, страховий, кредитний, інвестиційний ринки, державний сектор стали базою для появи нових технологій. Регуляторна технологія (RegTech) буде і надалі надзвичайно цікавою для фінансових установ, які бажають не лише ефективніше та більш раціонально виконувати свої регуляторні зобов’язання, але також зменшити ризики та витрати, пов’язані з подібними функціями. Іншуртех (іnsurtech) - це фірми, які використовують нові технології для поновлення або розриву ланцюжка вартості страхування. Lendtech - кредитні маркетплейси, які становлять сукупність сервісів та додатків які поєднують позичальників та кредиторів – не тільки фізичних осіб, а й представників малого, середнього та великого бізнесу. Визначено, що основними трендами будуть підвищення рівня консолідації у сферах які вже майже сформувались, таких як платежі та кредитування, а також у таких нових сферах, як блокчейн; виникнення більших угод між інвесторами та фінтех компаніями; глобальна експансія необанками; врегулювання відкритого банкінгу; співпраця між fintechs та банками в Азії в таких сферах, як KYC (know your customer), AML (antimoney laundering); розвиток управління цифровою ідентичністю - включаючи розпізнавання обличчя та розпізнавання голосу. The paper considers the theoretical principles and applied principles concerning financial technologies. Currently, the rapid development of the digital economy has become an important global trend of dynamic socioeconomic development, which has led to the spread of financial technology impacts on the entire system and structure of socio-economic relations. It is stated that as FinTech develops, the younger generation is now gaining more access to a wider variety of sophisticated financial products and services, some of which carry higher risks that are not yet known in the market. However, the financial knowledge of the younger generation is generally lower than their parents, as the Organization for Economic Co-operation and Development (OECD) notes. Studies have shown that the trend in the financial sector towards increasing automation, mobility and digitalization of financial services is changing. Blockchain, machine learning, AI and robotics are all creating huge waves in fintech, bringing both synergies and disruption to industry. However, as a result of the implementation of the PSD2 directive, the data that banks need to share is essentially sensitive financial data, and this naturally raises many privacy and security issues along with consumer uncertainty. Considering the international trends in the development of fintech companies, Ukrainian banks are interested in creating joint projects with domestic and foreign fintech representatives. As fintech companies become more mature and technology-oriented, they are faced with the need to invest more in sophisticated software, supported by advanced analytics and personalized marketing campaigns. This brings fintech to a more consumer-oriented state where service providers are driven by the ongoing challenges of society and the need to meet their customers' needs. The major client for most fintech companies is business, both large corporate and SMB (37% for each). 21% of companies operate in the mass retail market, and only 6% target the premium retail segment.