Theoretical Approaches to Researching Digitalization Processes in the Global Economy

Abstract

Digitization as a new tool for the transformation of socio-economic relations and a modern tool for sustainable development is characterized by a global spread throughout the world. The article presents certain theoretical approaches to digitalization research. In particular, theories of the information society, theories of economic cycles and theories of globalization – the theoretical and methodological foundation of digitalization research – are systematized. These theoretically substantiate the patterns of digitalization of the economy. In addition, it is found that digitalization is a practical rather than a merely theoretical tool for modernization of the economy that can solve economic problems (in our study, this is the Mandell-Fleming dilemma). The study results reveal the main trends of digitization, in particular in the financial sector. In our opinion, the global monetary and financial system is being significantly modernized and will be characterized by the use of cryptocurrencies and/or digital currencies of central banks in international settlements. This trend is confirmed by the dynamics of significant growth in the volume of crypto-assets in the world. The article additionally examines the peculiarities of digitalization in Ukraine, in particular the banking sector. It is established that the digitalization of the Ukrainian banking sector contradicts the global trends of banking fintech solutions, because Ukrainian banks consider digitalization not as an opportunity for development, but as a «parallel world». Currently, domestic banks have a low level of participation in the capital of fintech companies. We recommend further involvement of Ukraine in global economic relations based on digital transformation.

Digital transformation in banking: The HR perspective on managing change and cultivating digital talent

“…To address this, HR practitioners and leadership teams are recommended to adopt strategies for upgrading and attracting digital talent, support employees in upgrading their digital skills, and provide a clear career development path for digital talent (Fahmy et al, 2022). Furthermore, the banking industry is experiencing a shift in its development trend, perceiving digital transformation not as a possibility, but as a "parallel world" (Borzenko & Hlazova, 2022).…”