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Title: The impact of the digitisation of the financial industry on the modelling and pricing of financial assets

Authors: Maria Sigova; Igor Klyuchnikov; Sergey Vasilev; Anna Zatevakhina

Addresses: ANO HE International Banking Institute, Nevsky av. 60, 191023, Saint-Petersburg, Russia; ITMO University, Kronverkskiy av. 49, 197101 Saint-Petersburg, Russia ' ANO HE International Banking Institute, Nevsky av. 60, 191023, Saint-Petersburg, Russia; ITMO University, Kronverkskiy av. 49, 197101 Saint-Petersburg, Russia ' ANO HE International Banking Institute, Nevsky av. 60, 191023, Saint-Petersburg, Russia; ITMO University, Kronverkskiy av. 49, 197101 Saint-Petersburg, Russia ' ANO HE International Banking Institute, Nevsky av. 60, 191023, Saint-Petersburg, Russia; ITMO University, Kronverkskiy av. 49, 197101 Saint-Petersburg, Russia

Abstract: Digital financial services continue to expand and replace the delivery of traditional financial services to the customers. The purpose of the study is twofold. First, to consider the growing interest in price modelling for financial assets. The second goal is to trace the role of digitisation in finance on changes in the methodology of both modelling and pricing of financial assets. Digitisation automates financial products and services, as a result of which the quality of financial services is increasing, the set of offers is expanding, and the financial markets are growing numerically. The transformation of finance to 'digit' allows us to provide a real basis for the widespread introduction of Bayesian methods of modelling and valuation of financial assets. The article introduces preliminary premises for the demarcation of classical and digital finance, as well as traditional and new methods of pricing and predictive modelling in connection with the wide implementation of 'big data' and 'digit'.

Keywords: digital finance; financial modelling; methodology; Bayesian method in finance; pricing.

DOI: 10.1504/IJRAM.2020.106161

International Journal of Risk Assessment and Management, 2020 Vol.23 No.1, pp.14 - 26

Received: 21 Nov 2018
Accepted: 30 Mar 2019

Published online: 25 Mar 2020 *

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