Akademik Məlumat İdarəetmə Sistemi
Economic and Social Development 70th International Scientific Conference on Economic and Social Development, Baku, Azerbaijan, 25 June 2021, pp.140-145, (Full Text)
The digital finance is one of the key components of public policy, and it is particularly relevant in terms of the efficient utilization of financial resources, improving the quality of management in the financial system, and the formation and implementation of perfect financial services in coordination with international standards in modern globalization condition. The digital financial market of Azerbaijan is currently experiencing a rapid growth period, driven by digital financial decisions for more mature markets, such as the application of online payments and transfers, which are typical for emerging economies, and on the other hand, investment insurance, crediting and management. This area was one of the first to introduce advanced technologies such as biometrics and blockchain, and was the driving force behind the application of the national digital identification system. The economic structures, including the public sector, regulators, digital financial companies, banks and other financial institutions, should further promote innovation in this area by strengthening relevant regulatory and partnership relations in the digital financial system. The aim of the research is to investigate the theoretical and practical issues of the formation and development of the digital economy in the growth of the financial system based on the experience of developed market economies. Research methods such as scientific abstractions, comparative and empirical analysis, and logical generalization were used in the research. The practical significance of the research is to enrich the scientific and practical knowledge of the experts working in this area, as well as for the development and implementation of the digital economy in the fiscal policy of developing countries. The article reveals the role of the digital economy in the development of the financial system, and its impact on improving the existing financial infrastructure by highlighting the essence, content and character of digital finance in a global context. The importance of financial innovation in the digital financial system of the country has been identified, the potential benefits of digital finance such as efficiency, competitiveness and new business models have been emphasized, and the importance of partnerships with digital financial service providers is emphasized. The expansion of SMEs opportunities by enhancing of digital finance as well as improving the efficiency of regulatory processes and control over financial market participants have been substantiaed by the application of innovative technologies. The current situation of the digital economy in the financial system of Azerbaijan has been analysed and evaluated, the existence of potential opportunities for the wider use of digital financial technologies in the country have been revealed, and relevant recommendations have been made in their implementation. Keywords: financial system, digital economy, digital finance, financial innovation, innovative technology