Fintech as a Driver of Transformation in the Financial Sector

This article examines FinTech as a factor in the transformation of the modern financial sector. It identifies and systematises the main areas in which financial technologies are influencing payment, banking, credit, investment and insurance services, risk management, regulatory and supervisory processes, and financial inclusion. It analyses current trends in the development of digital payments in Ukraine, in particular the dynamics of cashless transactions using payment cards, the development of instant credit transfers and the formation of the regulatory and technological environment for Open Banking. It explores the potential for using Big Data, machine learning and artificial intelligence in lending, insurance, asset management and risk management. The dynamics of global FinTech investments in 2024-2025 are analysed, and it is established that the growth in their total volume was accompanied by a reduction in the number of deals and an increase in the average capital per FinTech deal. It has been established that key manifestations of the FinTech transformation of Ukraine’s financial sector include the dominance of cashless transactions using payment cards, the development of instant payments and the introduction of open banking. It is demonstrated that the further spread of FinTech solutions creates the conditions for improving the accessibility of financial services, fostering competition and expanding financial inclusion. It has been determined that, alongside improvements in the technological efficiency, accessibility and personalisation of financial services, further FinTech transformation places greater demands on cybersecurity, personal data protection, operational resilience, the oversight of algorithmic models and consumer protection. The paper justifies the need to combine the introduction of financial innovations with ensuring financial stability, competitiveness and the proper management of digital risks in the process of the further transformation of Ukraine’s financial sector.