Spatial Characteristics and Relationships in the System of Realizing the Potential of Finance in Social Development

Abstract

The article substantiates the importance of an integrative combination of the entire set of factors that determine the construction and development of financial relations, which determine the deep essence of the category of finance. It is emphasized that when forming the financial base of the state, along with taking into account the essential and meaningful content of financial relations, the spatial aspect of their functioning and management is no less important. It is noted that the use of the concepts of sphere and environment when giving spatial characteristics to financial relations is appropriate in understanding these concepts as a set of conditions in which the movement of such relations actually takes place. The possibility of financial relations to develop freely and manifest itself as fully as possible can be adequately expressed through the concept of space, which means a free, large area, unlimited length for the interconnection and interaction of relations of all economic subjects.

It was determined that the conceptual basis of the general development of financial relations should be the development and strengthening of the financial space, the boundaries of which, along with the market mechanisms of capital circulation, will unite all other possible sources of financial income, financial assistance, state borrowing, etc.

Considering that the key feature of the development of modern society is the phenomenon of digitalization, the clarification of the possibilities of modern development and organization of financial relations is inseparable from the formation of the digital space, which makes it possible to adjust the nature of the movement of such relations in organic unity with the financial space. It is argued that the result of the interpenetration of the financial and digital spaces lies not in the formation of a simple aggregate or the expansion of the financial space, but in the interconnection and interaction within the general financial and digital space in order to fully realize the potential of financial relations.

It was emphasized that the concept of the mentioned approach is based on the principle of coordination in the space of a set of methods and mechanisms, firstly, financial support for carrying out reforms in all spheres of activity, including in the field of digitalization, and, secondly, creation at a new technological level favorable conditions for the organization and implementation of the actual process of such reforms. The emerging trends of the digital transformation of the financial sphere are changing both the functioning models of financial institutions and the role of the financial system in general in ensuring economic development through the spread of financial innovations, the development of new financial products and the possibility of expanding access to both internal and external sources of financial resources.

The need to introduce it into scientific circulation is proven and the concept of "financial and digital space" is defined, which will contribute to increasing the level of scientific validity of strategic areas of practical implementation of the potential of finance in solving the tasks of economic development.