Analysis of trends and prospects of digital banking in Ukraine

Abstract

The article analyzes the current state of digital banking in Ukraine. The analysis showed that digital banking in Ukraine is in a phase of active development: the number of online banking users has grown by almost 90% since 2018, which demonstrates high demand for digital services among the population. Despite these positive changes, the level of online banking usage in Ukraine remains significantly lower compared to EU countries. This is due to infrastructure deficiencies, limited access to high-quality internet in the regions, and the need to strengthen cybersecurity to build user trust. Studies have shown that banks that actively develop digital banking have a competitive advantage by increasing operational efficiency and meeting the growing demand for modern banking products. Today, key strategies for maintaining customer loyalty include improving the customer experience, providing fast and convenient services, introducing loyalty programs, and expanding the range of financial instruments. It is noted that the development of digital banking in Ukraine in the near future will be significantly influenced by factors such as artificial intelligence, "Know Your Customer" (KYC/AML) technologies, and open banking. At the same time, the military conflict has significantly narrowed the Ukrainian fintech sector, acting as a key barrier to further growth. Other factors hindering the development of fintech in Ukraine include political and economic instability, brain drain abroad, insufficient funding, strict legislative restrictions, and increased control by the NBU (National Bank of Ukraine). It is expected that with the development of financial technologies and the deepening integration of Ukraine into global economic processes, Ukrainian banks will continue to play a key role in the development of the country's digital economy. It is argued that digital banking provides customers with broad opportunities for remote access to financial operations, ensuring convenient and prompt service.