FEATURES OF DIGITAL FINANCE IMPACT ON BUSINESS INNOVATIVE ACTIVITIES

Abstract

The article considers digital finance as a starting point for the study of factors influencing business innovation. The current state of development of digital transformations in Ukraine and its impact on innovative business activities is analyzed. Systematized advantages of using digital finance in the direction of the development of innovative business activities: expansion of financial services to non-financial sectors and expansion of basic services for individuals; contribute to increasing the gross domestic product of digitized economies; long-term positive impact on banking activity; benefiting the government by providing a platform to facilitate increased aggregate spending, which subsequently generates greater tax revenue through increased financial transactions; advantages for regulators of financial and monetary systems. Among the key disadvantages of the use of digital finance, it is proposed to include: a decrease in financial accessibility for poor and low-income clients; geographic bias in the provision of digital finance, as digital finance providers based on their own internal risk assessment; lack of basic financial literacy to use and understand digital finance. The interrelationship of organizational capacity criteria for the implementation of digital innovations in domestic business through a combination of criteria: technologies, processes, personnel and management is determined. Reasonable driving forces that will contribute to the achievement of the set goals of using digital finance for the development of innovative business activities: the exponential growth of the set of technologies that are converging on new business models that challenge the modern financial services industry; changing customer preferences; a set of new financial rules. The vectors of stimulation of innovative business activities based on the use of digital finance are presented: reduction of information asymmetry between enterprises and financial creditors; expanding access to financing and the scale of financing innovative activities; increasing the efficiency of the use of credit resources. Proposed directions of state policy regarding the development of innovative business activities based on the use of digital finance: introduce incentives for industrial policy in the direction of encouraging the development of digital technologies, accelerate the industrial integration of digital technologies and finance, compensate for the shortcomings of traditional financial services and create a more comprehensive, diversified and inclusive financial system services; formulate and implement policies related to the promotion of innovation in a targeted manner and strengthen the protection of intellectual property rights.