Financial Sector Supervision in Digital Age: Transformation in Progress

Abstract

The paper aims at the identification and analysis of major issues facing financial sector supervision resulting from the digitalization of financial markets and the digitalization of supervisory architecture with the tool box applied. It is based on the desk research using foremostly industrial studies which provide necessary information on the current international accomplishments and plans. The paper indicates a growing application of new supervisory tool box and digital-based suptech instruments. It is reinforced by increased digitalization of supervisory analytics, application of big data, and artificial intelligence. Digitalization involves additionally changing relationships between supervisors and supervised entities. The findings of the paper allow for better understanding of the necessary adaptive actions to be taken by both supervisors and supervised entities. The issues raised by the paper are poorly documented by current research and may constitute a contribution to further research in the area.

Research trends on digital transformation on financial market development

“…In managing a business, financial management must be taken into account. Because of the importance of financial management, it is often overlooked by owners (Monkiewicz & Monkiewicz, 2022). His research explains that the development of financial markets is influenced positively and significantly by financial markets.…”

Improving the governance and legal framework for implementing financial and fiscal innovation in a digitalized environment

“…This is due to the wide coverage of indicators and criteria of the financial market, which makes it impossible to solve this deficiency. More detailed conclusions are contained in article [2]. The authors focus on identifying and analyzing the main problems arising in the field of control over the financial sector as a result of the digitalization of financial markets and the use of digital tools.…”

“…Summarizing the information given in [1][2][3][4][5][6][7][8][9][10][11][12][13][14], we can conclude that problematic issues regarding the peculiarities of financial and tax innovations in the context of digitalization have an essential research base. At the same time, the issues of regulation of these instruments are not sufficiently covered, in particular, the peculiarities of management and legal support for financial and tax innovations require more detailed attention.…”