INNOVATION TRENDS: IMPACT ON DEVELOPMENT OF FINANCIAL SECTOR

Modern financial institutions are undergoing significant transformations driven by innovative technologies. This article examines current trends in financial innovations and their impact on the operations of banks, insurance companies, and financial institutions. The research focuses on the digitalization of financial services (FinTech), the application of artificial intelligence, blockchain, big data, new customer service models (mobile banking, online insurance), and risk management strategies. The study reviews the works of leading scholars who analyze the transformation of traditional financial services through digitalization and develop conceptual models, such as the “Digital Finance Cube.” The role of financial innovations in supporting economic growth and enhancing the competitiveness of companies is highlighted. The global experience in implementing financial technologies and their potential adaptation in Ukraine, considering regulatory barriers, is also examined. The research methodology is based on the analysis of scientific literature, statistical data, and applied studies in financial technologies. Special attention is given to the impact of digital tools on financial accessibility, particularly in the context of martial law in Ukraine. The study explores the role of blockchain, crowdfunding, and mobile financial services in addressing economic challenges and improving financial inclusion.The findings emphasize the necessity of further digital transformation in the financial sector, the expansion of financial technologies, and the development of innovative strategies to ensure the stability and efficiency of financial institutions.