How has the digital economy changed the financial market?

The tendency to digitalize all financial services has become evident and is no longer a secret to anyone. Credit institutions are working diligently to reduce the number of employees and consulting offices without fear of talking about their reputation, and employing more technical specialists and technology technology experts.

The writer Mikhail Ismailov said in an article published by "News Re", that small banks, which sometimes resemble newly emerging companies in the field of business, are able to compete with financial institutions that occupy the first ranks thanks to the development of modern digital capabilities for some services.

The peer-to-peer lending service is one of the brightest emerging trends in the digital economy, which is lending money to individuals or companies through online services that connect lenders with borrowers, and Russia started using this service a few years ago.

Electronic loans
With the digital economy, the author adds, all transactions are online, giving investors and borrowers the opportunity to track the movement of their own money and monitor profitability independently.

Borrowers are classified according to special indicators such as their activities and the state of insolvency, and this classification will change in case of violation of the terms or term of payment. In general, these specialized lending services, such as banks, cooperate with debt collection companies.

According to the Russian Central Bank, at present the size of the lending market in Russia is more than 15 billion rubles. According to experts, thanks to the adoption of the country's crowdfunding law and the launch of new platforms, this lending rate could double by the end of 2020.

The writer explained that this modern trend, which is intended for the digital economy, involves some problems that have not been solved until now.

In the beginning, Russia lacks a sufficient number of qualified specialists who provide services in the market of modern technology in the field of finance, in addition to the absence of clear programs in educational institutions that will train these employees, which greatly prevents the development of digitization of the sector.

In addition, there is currently no clear legislative framework regulating high-tech products in the country, and although the crowdfunding law will come into effect soon, there are still many shortcomings, including those of a technical nature, especially as the Russians are still reluctant to use This technique.

Digital technologies
The writer quotes CEO of the "Gatland" crowdfunding platform Roman Khurushev that there are a lot of digital technologies being created today. Not only does modern companies lend and urge residents to save, it also includes digital banks.

This significant demand for digital transactions is due to the desire of customers to obtain approval for loans within a few hours, as well as conducting banking operations via the Internet.

The financial industry is steadily moving towards automation of operations, so in the near future credit institutions will compete for customers, not at the level of offices and tourist destination management devices, but at the level of technological capabilities for applications.

Consequently, the future share of banks in the financial market is expected to decrease significantly.

For example, the capital of the German bank, which was founded in 1870, fell to $ 16.6 billion today, after it was about $ 71 billion five years ago.