This book offers an in-depth analysis of the most salient features of contemporary financial systems and clarifies the major strategic issues facing the development of digital finance. It provides insight into how the digital finance system actually works in a socioeconomic context. It presents three key messages: that digital transformation will change the financial system entirely, that the State has a particularly important role to play in the whole process and that consumers will be offered more opportunities and freedom but simultaneously will be exposed to more risk and challenges.
The book is divided into four parts. It begins by laying down the fundamentals of the subsequent analysis and offers a deep understanding of digital finance, including a topology of the key technologies applied in the transformation process. The next part reviews the challenges facing the digital State in the new reality, the digitalization of public finance and the development of digitally relevant taxation systems. In the third part, digital consumer aspects are discussed. The final part examines the risks and challenges of digital finance. The authors focus their attention on three key developments in financial markets: accelerated growth in terms of the importance of algorithms, replacing existing legal regulations; the expansion of cyber risk and its growing impact and finally the emergence of new dimensions of systemic risk as a side effect of financial digitalization. The authors supplement the analysis with a discussion of how these new risks and challenges are monitored and mitigated by financial supervision.
The book is a useful, accessible guide to students and researchers of finance, finance and technology, regulations and compliance in finance.
Introduction Part I: Fundamentals
1. Digital finance: Systemic framework
2. Datafication - economization and monetization of data
3. Key digital
technologies transforming finance Part II: Digital State: Tasks and tools
4.
National digital sovereignty: what is at stake?
5. The state in the era of
digital finance: what role and policy
6. Digitalising the public financial
system: the road ahead
7. Digitalisation of the tax system Part III: The
financial consumer in the digital space: New issues and approaches
8. Ethics
in digital finance: towards a new paradigm of self-regulation
9. Protection
of digital consumers: new challenges
10. Digital exclusion in the financial
system: emerging agenda Part IV: The risks and challenges of digital finance
11. Systemic and cyber-risk: The two monsters of financial system
12.
Financial supervision in the digital age: innovations and data abundance
Lech Gsiorkiewicz is an Associate Professor at the Faculty of Management, Warsaw University of Technology, Warsaw, Poland.
Jan Monkiewicz is Professor of Financial Management at the Faculty of Management, Warsaw University of Technology, Warsaw, Poland.
