DIGITAL TRANSFORMATION OF THE STRATEGIC MANAGEMENT MECHANISMS OF THE STATE FINANCIAL SYSTEM: POTENTIAL, LIMITS AND DIRECTIONS OF IMPLEMENTATION

Abstract

The object of the research is the strategic management mechanisms of the state financial system under digital transformation. One of the main problems is the identification of digital transformation with the volume of technology adoption, so that resources go to automating processes that are not the management bottleneck. The purpose of the study is to determine the potential and the limits of the digital transformation of strategic management mechanisms and to substantiate the directions of its implementation in Ukraine. The information base consists of the Strategy of the financial sector development of Ukraine, the European Union acts on digital operational resilience, materials of the Bank for International Settlements and papers in peer-reviewed journals. The systemic approach, comparative analysis of strategic documents, typologisation and structural functional analysis were applied. It is established that digital tasks are present in two of the five strategic goals of the national strategy, yet they are detailed only for service development and the internal efficiency of regulators and are almost absent for interagency coordination. A criterion is proposed for distinguishing managerial deficits by their nature: digital means resolve problems of informational and coordinative origin but not those of political, institutional or structural origin. Under this criterion, three of the five systemic problems of strategic management in Ukraine are amenable to a digital solution: fragmented goal setting, weak interagency coordination and regulatory asymmetry. A five-step implementation sequence is substantiated, each step relying on the previous one. The originality lies in substantiating a criterion that matches a digital instrument with the deficit it addresses, instead of assessment by the volume of technology adoption. The proposed distinction can be applied when shaping digitalisation programmes of financial regulators to prioritise expenditure.