THEORETICAL AND METHODOLOGICAL APPROACHES TO STRATEGIC MANAGEMENT OF NATIONAL FINANCIAL SYSTEM DEVELOPMENT IN THE CONTEXT OF PUBLIC SECTOR DIGITALIZATION

Abstract

This article examines theoretical and methodological approaches to the strategic management of the development of the state’s financial system in the context of the digital transformation of the public sector. The relevance of this study stems from the rapid development of digital technologies, the spread of e-government, the introduction of financial innovations, and the need to improve the efficiency of public finances in the context of globalization, the digitalization of the economy, and growing cyber risks. It has been determined that the digital transformation of the public sector is a key factor in the modernization of the state’s financial system, contributing to increased transparency of financial flows, the optimization of budgetary processes, the improvement of financial control mechanisms, and expanded access to financial services. The paper examines the main theoretical approaches to the strategic management of the financial system’s development, including the systemic, institutional, process-oriented, risk-oriented, adaptive, and digitally-oriented approaches. It justifies the advisability of their comprehensive use to formulate effective public financial policy in the context of digital transformation. It is demonstrated that strategic management of the financial system must be based on the principles of integrity, flexibility, innovation, data openness, cybersecurity, and a focus on long-term socioeconomic development. This paper analyzes the methodological foundations for formulating strategies for the development of the financial system in a digital environment, which involve the use of modern tools for digital data analysis, artificial intelligence technologies, big data, blockchain, cloud services, and digital platforms for public finance management. The role of digital financial ecosystems in ensuring effective interaction between the government, businesses, and citizens, as well as in improving the quality of management decisions, is identified. Particular attention is paid to the problems and challenges of strategic management of the financial system’s development in the context of digital transformation, including the insufficient level of digital maturity among government institutions, cybersecurity threats, uneven digital development across regions, a shortage of digital competencies, and the need to adapt the regulatory framework to new financial technologies. Conceptual directions for improving strategic management are proposed, which involve integrating digital technologies into the processes of financial planning, forecasting, monitoring, and control, as well as developing mechanisms for digital governance and e-democracy. It is concluded that effective strategic management of the development of the state’s financial system amid the digital transformation of the public sector is a necessary prerequisite for ensuring financial stability, enhancing the competitiveness of the national economy, and strengthening the state’s institutional capacity.