IMPROVING THE DEVELOPMENT OF FINANCIAL SERVICES MARKET IN THE REGIONAL ECONOMIC FINANCIAL STABILIZATION SYSTEM

Abstract

The article finds that during the last 10 years the financial services sector has undergone significant changes. Due to its accelerated development, the number of financial products offered on the market has significantly increased, the number of different organizations that offer these products has increased. At the same time, the main problem remains the lack of primary information on the functioning of providers in the regional financial services markets. The lack of control over processes occurring in the financial services market can be dangerous as it leads to the creation of various non-licensed organizations that can provide financial services under conditions that no one controls, mislead consumers of financial services, or provide services on deliberately unprofitable conditions for the consumer. In turn, knowledge and understanding of the processes taking place in the financial services market can help regional authorities to make informed decisions aimed at developing the regional economy as a whole.

The article identifies constraints hindering the development of the regional financial services industry. At the moment, the two main groups of constraints inherent in the regional financial services sector are: low availability of credit services for the population and regional business; low financial literacy of the population and subjects of the small and medium business of the region.

The article analyzes the levers of influence on the situation on the regional financial services market by local authorities. Such influence can take place in two directions: administrative regulation and creation of incentives for development of the regional sphere of financial services.

The incentives for the development of the regional sphere of financial services are identified: creation of a system of financial ombudsman in the region; Implementation of Regional Programs for the Development of Financial Literacy; the development of institutes of regional funds for entrepreneurship support, and the full support of the institution of credit brokers existing in the region.

The article emphasizes the fact that low financial literacy of the population and subjects of small and medium-sized businesses in the region can be overcome by creating local financial authorities through a local financial and consulting center. It was noted that the creation of such a center, provided that citizens and entrepreneurs were sufficiently informed, could significantly improve the efficiency of the financial services market by increasing the financial literacy of users of financial services, and would also help develop providers that deliver truly high-quality financial services.