Lunkina T., Burkovskaya A., Gulich K. Application of financial technologies in the banking system of Ukraine

UDC 336.71:338.28

 

Lunkina T., Burkovskaya A., Gulich K.

 

The article examines the essence of financial technologies and their role in the development of the financial sector of Ukraine. The issue of the emergence of financial technologies is covered in this article. In Ukraine, as in other countries, fintech companies are the subject to the general laws and regulations governing the financial services market, as most fintech solutions are aimed at providing payment services and money transfers. It is worth noting that in recent years there has been an improvement in the legal and regulatory environment to support fintech and other start-ups. Among the important changes that have taken place in Ukrainian legislation are: permission to sign invoices and transactions with an electronic signature; intensive use of documents in English; simplified taxation system for IT companies (5% per year); gradual lifting of restrictions on the repatriation of dividends; gradual adoption of European Union directives (PSD2); introduction of identification and trust services for electronic transactions in the domestic market of Ukraine.

Consumers’ desire to experiment with digital services has led to the emergence and growth of new fintech companies. Thus, in Ukraine this area is actively developing, there are more than 100 companies operating in the financial services market.

It is considered how and with the help of which financial technologies the work of banking institutions is carried out during the COVID-19 pandemic. To identify strengths and weaknesses, opportunities and threats, a SWOT analysis of the use of online technologies by Ukrainian banking institutions during the COVID-19 pandemic was conducted. It was found that there was an increase in demand among the population of fintech technologies, especially during the COVID-19 pandemic, because due to the spread of quarantine measures, almost all institutions ceased operations and resulted in a decrease in profitability. To overcome this difficult situation, mobile applications began to be created and used, which greatly facilitated the use of banking services during the pandemic. But financial companies should focus on ensuring that the use of new financial technologies is convenient, high quality, affordable, understandable and safe for every consumer of financial services.

 Key words: financial technologies, banking system, pandemic, startups, banking institutions, financial inclusion.

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