Impact of fintech on risk management in modern banking

Abstract

The digitalization of financial services transforms risk control mechanisms in banking, enabling the processing of large data sets, the automation of analytical procedures, and the prompt detection of potential threats. The integration of algorithmic transaction analysis systems, machine learning tools, blockchain infrastructure and cloud services creates a new level of transparency of financial transactions. The purpose of the article is to determine the role of financial technologies in increasing the efficiency of banking risk control and to generalize their impact on analytical procedures, the monitoring of financial transactions, and threat-prevention mechanisms. Methods. System analysis, generalization of scientific sources, comparative analysis of digital instruments of the financial sector and logical synthesis of research results in the field of financial technologies and banking security were used. Results. It is shown that the implementation of financial technologies enables the development of intelligent systems for analyzing financial transactions, capable of detecting atypical transaction behavior, assessing customer creditworthiness and predicting potential losses. It is established that algorithmic data analysis tools enable rapid information processing, improving the accuracy of risk assessment and reducing the likelihood of financial violations. It is proven that blockchain technologies create a secure environment for data exchange, and cloud computing resources ensure the scalability of analytical systems. The synergy of digital tools increases the efficiency of internal controls, optimizes the process of making management decisions, and strengthens the financial security of banking institutions. Conclusions. The introduction of financial technologies into banking processes enables accurate assessments of credit, operational and fraud risks, predicts potential threats and reduces the likelihood of financial losses. The use of blockchain technologies and cloud services guarantees the reliability of data exchange and the scalability of analytical systems. Digital tools increase the efficiency of management decision-making, support the continuity of business processes, and strengthen the financial stability of banking institutions.