Implementation of financial technologies in public finance management processes under digitalization conditions

Abstract

In the context of global digitalization, the integration of financial technologies into public administration processes is becoming a determining factor in the sustainable functioning of the country's economic system. The study aims is to develop scientifically grounded recommendations for enhancing the efficiency, transparency, and security of public fund management through financial technologies under digitalization conditions. It has been established that fintech solutions play a key role in transforming public financial management, opening up new opportunities for process automation, improving budget planning, optimizing tax administration, and increasing the transparency of financial operations in the public sector. To achieve the stated goal, methods of analysis, generalization, a systems approach, and comparative analysis of current digitalization practices in public finance were applied. The results of the research confirm the need for a comprehensive approach to the implementation of financial technologies, which includes the development of a unified digitalization strategy for public finances and the use of innovative tools based on big data, blockchain technologies, artificial intelligence, and analytical platforms. The main challenges were identified, including cyber threats, vulnerability of financial infrastructure, and the risks of breaching citizens' personal data confidentiality. To minimize these risks, a number of measures were proposed, including the establishment of cybersecurity centers, the implementation of multi-layered data protection systems, regular security audits, and the development of standards for digital ethics. Within the framework of the study, the feasibility of creating unified state portals for financial information, developing open data, and analytical tools for monitoring public spending and revenues has been substantiated. The developed recommendations aim to form an adaptive, reliable, and transparent public financial management system that meets the modern challenges of the digital age. The conclusions emphasize the importance of interdepartmental coordination of digital transformation, the development of digital competencies of civil servants, and the formation of public trust in state financial processes under new conditions.