Implementation of Finance 4.0 in the Digitalization of the Financial System

Abstract

The accelerating development of modern digital technologies dictates the redefinition of the nature of money, dictating the modernization of the financial services industry in step with changes in information technologies. The definition of financial services was unambiguous in each century: financial firms were to serve as third-party intermediates in transactions, assuring the security of value exchange by acting as an implied trust. Financial services have historically leveraged existing technologies to save operating costs, but more recently, they have been used to introduce new digital services and put new digital strategies into place. Technology has advanced to the point where it has the power to radically alter both the function of financial intermediaries and the foundational ideas of trust in value exchange. But in contrast to earlier technology deployments, the current set of digital technologies can drastically cut down on the necessity for middlemen, which has historically been the main role of financial institutions. CZU: 336.717:004.78; JEL: G20, O33, O38