OPTIMIZACIJA LOKALNIH BUDŽETA PUTEM FINTECH REŠENJA
OPTIMIZATION OF LOCAL BUDGETS THROUGH FINTECH SOLUTIONS

Summary/Abstract: Over the past decade, local governments have faced increasing challenges in financial management, including excessive bureaucracy, limited transparency, and inefficient decision-making processes. Traditional budgeting models often fail to meet contemporary requirements, hindering optimal resource allocation and the provision of quality public services. Financial technologies (FinTech) represent a key innovation that can significantly enhance these processes, contributing to the modernization of governance and increasing the efficiency of financial flows within local communities. This study examines the application of FinTech solutions in the context of local government, with a particular focus on optimizing budget planning, financial management, and the digitalization of administrative procedures. The advantages and limitations of contemporary technologies, including mobile banking, digital payments, blockchain, artificial intelligence, and big data analytics, are analyzed. Special attention is given to regulatory aspects, security challenges, and the need to adapt legislation to the rapidly evolving technological landscape. The methodological framework of the study includes a review of relevant academic literature, case study analysis, and comparative evaluation of key industry trends. The research findings highlight the significant potential of FinTech in improving the efficiency of financial management while simultaneously identifying critical challenges, including regulatory compliance, security risks, and the necessity of digital education for employees in administrative institutions. The study concludes that integrating FinTech into the public sector can contribute to more transparent, faster, and more efficient financial management. Further analysis of regulatory frameworks, development of risk management strategies, and implementation of educational programs aimed at strengthening employees’ digital literacy are recommended.

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