INNOVATIVE DEVELOPMENT OF EMBEDDED DIGITAL FINTECH TECHNOLOGIES IN THE FINANCIAL MARKET ECOSYSTEM

Introduction. Purpose. In the context of rapid digitalization, the development of innovations and digital technologies, the financial services sector should be as customer-oriented as possible. The modern customer expects personalized services and becomes part of the financial ecosystem. That is why large-scale personalization and experiential banking are becoming the main factors for customer loyalty and growth. The modern formula for success includes the ability to provide customers with interesting products anytime and anywhere in the digital space. The purpose of the study is to determine the vectors of development of embedded digital financial technologies and modernization of business models of financial market participants. Materials and methods. The research materials are statistical data of the NBU, works of domestic and foreign authors conducting their scientific and practical research in the field of embedded finance. In the course of the study, the following methods were used: theoretical generalization (justification of the need, characteristics of embedded banking financial technologies and BNPL); analysis and synthesis (to determine the features of embedded finance, bank as a service, BNPL); graphical (to visualize the results of the study); statistical (to identify development trends); logical generalization (formulation of conclusions). Results. The research article deepens the understanding of new approaches to customer service, in particular Embedded Finance and Banking as a Service (BaaS). The dynamics of cashless payments in Ukraine is analyzed. It is noted that under the influence of the development of digital financial technologies, the financial service «buy now, pay later» (BNPL) is gaining popularity, which allows consumers to divide their expenses into interest-free payments. BNPL payment schemes are identified and characterized. The benefits and costs for each participant (seller, user and platform) are discussed. It is emphasized that BNPLs are available even for consumers without credit history or stable income and usually do not affect their credit ratings. Relying primarily on commission income, platforms face profitability challenges due to high operating costs and rising credit losses. Traders pay high fees to transfer credit risk to platforms and expand their customer base. Discussion. When planning financial services offerings, banks should take into account the process of digitalization, competition with fintech companies, relevance, and customer engagement. This will require them to move to platform business models. This area requires further research to determine the directions of their development.