Institutional transformations of the global financial system in technological revolution’s terms

Abstract

Humankind stands on the top of technological revolution, which is changing the entire global financial system fundamentally. Financial sector implements new financial technologies (alternative payment systems and lending systems, chat bots, BigData, quantum computing and algorithmic trading, Cryptography, blockade, artificial intelligence, etc.),that respond quickly to changes in market conditions. These financial technologies independently analyze the whole range of information necessary for the investor and make investment decisions, excluding human emotions and fallacy. As a result of the implementation fintech, profitability of the financial business increases, structure of the financial system becomes more difficult, and unidentified relations and interdependencies begin to operate and create a potentially unstable environment with a high level of uncertainty. The purpose of the article: to determine features institutional transformations of the global financial system in the terms of fourth technological revolution. Conclusions.In the conditions of the technological revolution, institutional transformations of the global financial system are just beginning. However, it is already clear today, that under the influence of Fintech, institutional structure of the global financial system will change radically. Financial innovations increase complexity of the financial system and become a source of its vulnerability. Under these conditions, habitual practices cease to operate, instruments of regulation and forecasting, spontaneity of factors increase, which may cause a new crisis. Therefore, participants in the financial system need to institutionalize new financial technologies effectively. Government institutions and businesses should encourage change, create new alternatives within the existing financial system, rather than to protect the elements of the old system.