DIGITIZATION OF BANKING: SOME LEGAL ASPECTS

Abstract

The rapid expansion of the horizons of financial technologies determines the need for legal regulation, as well as the extent of such regulation. In order to ensure the safety of customers, as well as the reliability of the financial system, it was inferred that the achievement of the desired sufficient balance between legal regulation and legal vacuum is possible by developing of the legal field of new fintech institutions based on their actual practices. The practice of using regulatory platforms allows us to form an understanding where it is necessary to increase supervision, and where it is possible to keep regulation at a minimum level without erecting administrative barriers. This study demonstrates that the issues of confidentiality and security of customer data in connection with the development of digital banks are of particular relevance. The development of digital banking mediates the restructuring of the banking sector, the construction of various business models of its operation; the bank ceases to be a bank in its traditional sense, and becomes an ecosystem in the landscape of the digital universe. At the legislative level, it is important to study the issues of jurisdiction, as well as behavioral biometrics and the creation of digital banks.