Transformation of population finances in Russia and abroad in the Era of digitalization and industry 4.0

Abstract

Purpose: The purpose of the article is to reveal the main manifestations of population finances transformation occurring under the digitalization influence and the Industry 4.0 onset. Design/Methodology/Approach: The authors, relying on the essential characteristics of population finances identified earlier in their studies at three levels of the domestic economic system (nano-, micro- and macro- ones), determined and examined three main areas of population finances transformation in Russia. The methods applied involve historical and logical analytical methods, systems analysis, synthesis, induction, and deduction. The authors used the method of sociological surveys and expert opinion to study the digital and financial literacy level of Russians. Findings: The first area of population finances transformation includes changes in the forms and sources of active and passive income. The second one is transformation of level and forms of financial products and services consumption by the population. The third one is actualization of society needs in improving digital and financial literacy. Under the digital technologies and Industry 4.0 influence, the economy and finances are changing at both the national and global levels. Active income of the population is changing due to labor market transformation and demand for professions, as well as the rapid growth of Internet entrepreneurship forms in the scientific and technological revolution fourth wave. Passive income of Russians does not change its form, but it acquires digital ones. Originality/Value: The authors argue for the need to improve both financial and digital literacy of Russians as the electronic (digital) forms of consumption, savings, and investment are gaining more weight in the population finances, the possibility of overcoming country territorial borders for the personal investment of Russians is increasing, the digital financial fraud risks are growing, and the area and instruments of state control over the population cash flow are expanding.