JUSTIFICATION FOR THE IMPLEMENTATION OF DIGITAL FINANCIAL ECOSYSTEMS
DOI:
https://doi.org/10.32782/inclusive_economics.12-14Keywords:
digital financial ecosystems, financial technologies, network effects, transaction costs, embedded finance, decentralized finance, financial architectureAbstract
The current stage of global economic development is characterized by a cardinal transformation of the financial system under the influence of digital technologies. The digital revolution in the financial sphere determines the competitiveness of national economies in the XXI century. Financial science is experiencing an epistemological rupture: classical models (CAPM, efficient market hypothesis) are unable to explain the dynamics of hyper-connected algorithmic markets. The ecosystem approach (J. Moore, 1993) replaces the mechanistic perception of the market with a biological one–as a living adaptive system in general coevolution. The phenomenon of digital financial ecosystems (DFEs) precedes its theoretical comprehension. The evolution of FinTech from M-Pesa/WeChat Pay to BaaS/embedded finance blurs traditional boundaries between banks, platforms, and retailers. PSD2 regulation, DLT, and smart contracts create standardized interfaces for coopetition. Based on fundamental laws–transaction cost theory (Coase), network effects (Metcalfe), modularity (Baldwin-Clark) – the imperative of DFE implementation is proven, where digitalization radically reduces costs through unbundling services, Big Data-based KYC, and trust automation via smart contracts. Over 10 definitions have been synthesized (RDFE-CGAP, DeFi-FSB, Platformed Money Ecosystem): DFE is a multi-layered heterarchical network (banks, FinTech, regulators, users) that evolves through API/PSD2 interaction for innovative services with risk control of datafication and permissionless blockchains. For emerging markets like Ukraine, hybrid regulation is strategically justified, balancing centralized embedded finance mechanisms with decentralized technologies to achieve financial inclusion for underserved populations, robust data protection against cyber risks, and sustainable long-term growth. This approach addresses specific challenges such as limited banking infrastructure, high unbanked rates, and regulatory gaps by leveraging global platforms while adapting to local conditions. DFEs represent a new financial architectonics paradigm, replacing vertically integrated silos with modular coopetition platforms that enable rapid scaling, continuous innovation through API ecosystems, and resilience to economic shocks – transforming financial services from isolated products into seamless components of everyday digital life for millions.
References
Arner D. W., Barberis J., Buckley R. P. 150 Years of FinTech: An Evolutionary Analysis. JASSA: The FINSIA Journal of Applied Finance. 2016. № 3. P. 22-29. URL: https://www.researchgate.net/publication/313364787_150_Years_of_FinTech_An_Evolutionary_Analysis
Wenke C., Lang F., Buschle M. Distributed Ledger Technology in the Financial Industry: Managerial, Organizational, and Technological Challenges. ECIS 2022 Research Paper No. 38. 2022. URL: https://aisel.aisnet.org/ecis2022_rp/38/
Глущенко О. В. Фінансова архітектоніка: теоретико-методологічний аспект. Наука й економіка. 2013. № 4 (32). Т. 1. С. 43-49.
Moore, J. F. (1993). Predators and Prey: A New Ecology of Competition. Harvard Business Review, № 71(3), Р. 75–86.
Tjemkes B., Mihalache O. (eds.). Transformative Strategies: Strategic Thinking in the Age of Globalization, Disruption, Collaboration and Responsibility. London : Routledge, 2021. 238 p. ISBN 978-0-367-22310-6. URL: https://dokumen.pub/transformative-strategies-strategic-thinking-in-the-age-of-globalization-disruption-collaboration-and-responsibility-2020048180-2020048181-9780367223106-9780367223113-9780429274381.html
Botta A., Deuble S., Emmanuelli C., Figueiredo F., Flötotto M., Irlbeck Ch., Jerenz A., Mauerhoefer T., Olanrewaju T., Vassallo A., Vielmeier S., Windhagen E. Europe's fintech opportunity: A focused push along six strategic action areas. McKinsey & Company. 2022. URL: https://www.mckinsey.com/industries/financial-services/our-insights/europes-fintech-opportunity
Warokka A, Setiawan A, Aqmar AZ. Key Factors Influencing Fintech Development in ASEAN-4 Countries: A Mediation Analysis. FinTech. 2025; № 4(2):17. DOI: https://doi.org/10.3390/fintech4020017
Coase, R. H. The Nature of the Firm. Economica, 1937. № 4(16), P. 386–405. (Базова теорія трансакційних витрат).
Metcalfe, Bob. Metcalfe's law after 40 years of Ethernet. IEEE Computer. 2013. № 46 (12). Р. 26–31. Bibcode:2013Compr..46l..26M. DOI: https://doi.org/10.1109/MC.2013.374. S2CID 206448593
Baldwin, C. Y., & Clark, K. B. Design Rules: The Power of Modularity. MIT Press. 2000. (Фундаментальна праця з теорії модульності).
Gomber P., Kauffman R. J., Parker C., Weber B. W. On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems. 2018. Vol. 35, Issue 1. P. 220–265. DOI: https://doi.org/10.1080/07421222.2018.1440766
Ekpo, A. E., Drenten, J., Albinsson, P. A., Anong, S., Appau, S., Chatterjee, L., Dadzie, C. A., Echelbarger, M., Muldrow, A., Ross, S. M., Santana, S., & Weinberger, M. F. (2022). The platformed money ecosystem: Digital financial platforms, datafication, and reimagining financial well-being. Journal of Consumer Affairs, № Р. 56(3), 1062–1078. DOI: https://doi.org/https://doi.org/10.1111/joca.12458
Fintechs: A new paradigm of growth. McKinsey Global Banking Practice. McKinsey & Company. 2023. October. URL: https://www.mckinsey.com/industries/financial-services/our-insights/fintechs-a-new-paradigm-of-growth
Bailey B. J. Future of Fintech in Capital Markets. AIAR. 2025. Vol. 5, iss. 3. URL: https://caia.org/sites/default/files/10_aiar_vol-5_issue-3_future-of-fintech.pdf
Rossi, Enrico, Defi Defi-Ned: An Analytical Framework for the Definition and Characterization of Defi (December 4, 2022). DOI: http://dx.doi.org/10.2139/ssrn.4322901
CGAP. Responsible Digital Finance Ecosystem (RDFE): Conceptual Framework. 2024. URL: https://www.cgap.org/sites/default/files/publications/RDFEConceptualFrameworkDef.pdf
Олешко, Т., Марина, А. і Сушириба, Р. Напрями розвитку фінансових екосистем. Сталий розвиток економіки. 2025. № 1 (52), С. 116-120. DOI: https://doi.org/10.32782/2308-1988/2025-52-16
Iheanachor N., Umukoro I., Yela Aránega A. Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem. Technological Forecasting and Social Change. 2023. Vol. 190. Art. 122426. DOI: https://doi.org/10.1016/j.techfore.2023.122426
Financial Stability Board (FSB). Regulatory Issues of Decentralised Finance (DeFi). 2023. URL: https://www.fsb.org/2023/10/regulatory-issues-of-decentralised-finance-defi/
Олешко Т. Цифрові фінансові екосистеми в умовах воєнного стану: український досвід. Фінанси України. 2024. № 8. С. 45–58.
Arner D. W., Barberis J., Buckley R. P. (2016) 150 years of FinTech: An evolutionary analysis. JASSA: The FINSIA Journal of Applied Finance, no. 3, pp. 22–29. Available at: https://www.researchgate.net/publication/313364787_150_Years_of_FinTech_An_Evolutionary_Analysis
Wenke C., Lang F., Buschle M. (2022) Distributed ledger technology in the financial industry: Managerial, organizational, and technological challenges. ECIS 2022 Research Paper, no. 38. Available at: https://aisel.aisnet.org/ecis2022_rp/38/
Hlushchenko O. V. (2013) Finansova arkhitektonika: teoretyko-metodolohichnyi aspekt [Financial architectonics: theoretical and methodological aspect]. Nauka y ekonomika – Science and Economics, vol. 4(32), no. 1, pp. 43–49. (in Ukrainian)
Moore J. F. (1993) Predators and prey: A new ecology of competition. Harvard Business Review, vol. 71, no. 3, pp. 75–86.
Tjemkes B., Mihalache O. (eds.) (2021) Transformative strategies: Strategic thinking in the age of globalization, disruption, collaboration and responsibility. London: Routledge, 238 p. Available at: https://dokumen.pub/transformative-strategies-strategic-thinking-in-the-age-of-globalization-disruption-collaboration-and-responsibility-2020048180-2020048181-9780367223106-9780367223113-9780429274381.html
Botta A., Deuble S., Emmanuelli C., Figueiredo F., Flötotto M., Irlbeck Ch., Jerenz A., Mauerhoefer T., Olanrewaju T., Vassallo A., Vielmeier S., Windhagen E. (2022) Europe’s fintech opportunity: A focused push along six strategic action areas. McKinsey & Company. Available at: https://www.mckinsey.com/industries/financial-services/our-insights/europes-fintech-opportunity
Warokka A., Setiawan A., Aqmar A. Z. (2025) Key factors influencing fintech development in ASEAN-4 countries: A mediation analysis. FinTech, vol. 4, no. 2, article 17. DOI: https://doi.org/10.3390/fintech4020017
Coase R. H. (1937) The nature of the firm. Economica, vol. 4, no. 16, pp. 386–405.
Metcalfe B. (2013) Metcalfe’s law after 40 years of Ethernet. IEEE Computer, vol. 46, no. 12, pp. 26–31. DOI: https://doi.org/10.1109/MC.2013.374
Baldwin C. Y., Clark K. B. (2000) Design rules: The power of modularity. Cambridge, MA: MIT Press.
Gomber P., Kauffman R. J., Parker C., Weber B. W. (2018) On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, vol. 35, no. 1, pp. 220–265. DOI: https://doi.org/10.1080/07421222.2018.1440766
Ekpo A. E., Drenten J., Albinsson P. A., Anong S., Appau S., Chatterjee L., Dadzie C. A., Echelbarger M., Muldrow A., Ross S. M., Santana S., Weinberger M. F. (2022) The platformed money ecosystem: Digital financial platforms, datafication, and reimagining financial well-being. Journal of Consumer Affairs, vol. 56, no. 3, pp. 1062–1078. DOI: https://doi.org/10.1111/joca.12458
McKinsey & Company (2023) Fintechs: A new paradigm of growth. McKinsey Global Banking Practice. Available at: https://www.mckinsey.com/industries/financial-services/our-insights/fintechs-a-new-paradigm-of-growth
Bailey B. J. (2025) Future of fintech in capital markets. AIAR, vol. 5, no. 3. Available at: https://caia.org/sites/default/files/10_aiar_vol-5_issue-3_future-of-fintech.pdf
Rossi E. (2022) DeFi DeFi-Ned: An analytical framework for the definition and characterization of DeFi. DOI: https://doi.org/10.2139/ssrn.4322901
CGAP (2024) Responsible digital finance ecosystem (RDFE): Conceptual framework. Available at: https://www.cgap.org/sites/default/files/publications/RDFEConceptualFrameworkDef.pdf
Oleshko T., Maryna A., Sushyryba R. (2025) Napriamy rozvytku finansovykh ekosystem [Directions of development of financial ecosystems]. Stalyi rozvytok ekonomiky – Sustainable Development of Economy, vol. 1(52), pp. 116–120. DOI: https://doi.org/10.32782/2308-1988/2025-52-16 (in Ukrainian)
Iheanachor N., Umukoro I., Yela Aránega A. (2023) Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem. Technological Forecasting and Social Change, vol. 190, article 122426. DOI: https://doi.org/10.1016/j.techfore.2023.122426
Financial Stability Board (FSB) (2023) Regulatory issues of decentralised finance (DeFi). Available at: https://www.fsb.org/2023/10/regulatory-issues-of-decentralised-finance-defi/
Oleshko T. (2024) Tsyfrovi finansovi ekosystemy v umovakh voiennoho stanu: ukrainskyi dosvid [Digital financial ecosystems under martial law: Ukrainian experience]. Finansy Ukrainy – Finance of Ukraine, no. 8, pp. 45–58. (in Ukrainian)
Downloads
Published
Issue
Section
License
Copyright (c) 2026 С. О. Кузнецова
This work is licensed under a Creative Commons Attribution 4.0 International License.
