According to an expert in the field of international financial law Konstantin Krypopustthe Ukrainian financial system showed incredible resilience during the active phase of the war. Moreover, the market continued to develop despite constant threats and difficulties. What areas of fintech in Ukraine are the most promising after 33 years of independence and worth the attention of those who are planning to enter the market or are already working on it and want to succeed? More about this in the article.
Instant payments
Last year, the National Bank presented a new Strategy, which defines the main directions of further development of the financial system of Ukraine. In particular, one of the central bank’s key tasks is financial European integration. The regulator plans to initiate the process of joining Ukraine to the Single Euro Payments Area (SEPA). SEPA is called an analogue of SWIFT, created specifically for the Eurozone in 2008. Thanks to this, the National Bank notes, transfers to EU countries will become faster and cheaper for Ukrainian citizens and businesses. This will also facilitate the interaction of Ukrainian businesses and citizens with the EU market.
As part of the process of Ukraine’s integration with the SEPA payment infrastructure, one of the mandatory steps is to connect to instant credit transfers. From April 1, 2025, systemically important banks in Ukraine must ensure the sending and receiving of instant credit transfers. And from April 1, 2026, all other banks must ensure the acceptance of instant payments. According to the National Bank, instant payments will reduce the cost of payments for users, contribute to the development of the payment services market and increase competition, have a positive effect on the level of financial inclusion, and also contribute to the growth of Ukraine’s GDP due to the instant movement of funds.
Open banking
The size of the global market for open banking services will reach $330 billion by 2030, according to data from Juniper Research. And about 97% of surveyed companies that have already implemented open banking admit that it has brought benefits to their business, namely: improved customer service, customer engagement, the ability to provide new services and generate new revenue streams.
Ukraine also supports the global trend. Articles of the Law “On Payment Services” regarding open banking will enter into force on August 1, 2025. Given the fact that most market solutions are developed on the basis of an open API structure, thanks to open banking, the transformation of the payment market will take place, the development of fintechs will be stimulated, new opportunities will appear for the development and scaling of the ecosystem, and the level of competition among participants of the payment market will increase.
Financial inclusion
The recently approved National Strategy for the Development of Financial Literacy until 2030 aims to deepen the financial inclusion of the population of Ukraine. The document defines five key goals: providing quality basic financial education, promoting responsible financial life, creating financially knowledgeable entrepreneurs, advanced digital financial literacy and a favorable ecosystem for its development. The development of financial inclusion will affect the increase in the amount of financing provided to individuals and SMEs, the increase in the number of citizens who have bank accounts, the increase in the amount of non-cash payments and the use of digital means of payment.
National financial literacy strategies are being implemented in many countries. The development of this direction in Ukraine will provide Ukrainians with specific skills and abilities for a successful financial life and individual financial stability. In turn, a well-developed and inclusive financial sector is necessary to achieve sustainable economic growth.
Virtual assets
To date, two draft laws have been registered in the parliament, which should bring clarity to the issue of regulation of virtual assets in Ukraine. The first was proposed by the National Commission for Securities and the Stock Market, the other by the Ministry of Digital Affairs. In these documents, first of all, the regulator of the virtual assets market is determined and the tax rate for operations with virtual assets is established, as well as the norms of financial monitoring and adaptation of legislation to MiSA standards are covered.
Ukraine needs to introduce such conditions for the operation of the industry, which will satisfy the interests of the state, but will also be able to interest local and foreign companies to work in the crypto market of Ukraine. In this case, we will receive a powerful influx of foreign investments, necessary for the development and reconstruction of the economy. According to experts’ estimates, from 2016 to 2022, Ukraine lost $48.8 billion in personal and company income and $4 billion in tax revenues due to the lack of crypto-regulations.
Artificial intelligence
Ukraine is no exception to the global trend – artificial intelligence is currently penetrating most areas, particularly finance. According to this year’s survey by Kantar Ukraine, 78.7% of surveyed citizens know what artificial intelligence is. A significant proportion of Ukrainians already had experience using AI technologies, starting from interaction with chatbots and ending with the use of household appliances that contain artificial intelligence technologies.
AI can radically transform the financial industry. After all, AI tools give financial institutions new opportunities to meet the needs of customers – from access to funds to savings and investments. Artificial intelligence also helps banks and financial companies optimize processes ranging from credit decisions to cyber security and financial risk management.
In June, the Ministry of Digitization presented the White Paper on the regulation of AI in Ukraine. This document describes the approach to the implementation of the future regulation of artificial intelligence in Ukraine and the steps towards it.
Cyber security
According to forecasts, by the end of 2025, the financial loss from cyber attacks in the world will reach $10.5 trillion – compared to $6 trillion in 2021. In fact, if cybercrime were a country, it would be the third largest economy in the world after the US and China.
Cyber attacks have become more sophisticated thanks to artificial intelligence and self-learning software. In addition to protecting customer data, fintech providers, banks and other types of businesses need an effective cybersecurity strategy for their services.
Cyber protection is one of the key focuses and the new strategy of the NBU. Over the past year, increased cyber-attacks, attacks on infrastructure and many other threats associated with a full-scale intrusion have affected the stability of financial services providers.
Digital lending and BNPL
According to the results of a survey conducted by the Ukrainian Association of Fintech and Innovative Companies, digital lending and “Buy Now, Pay Later” (BNPL) belong to the most promising areas of development of the financial and technological sector of Ukraine in the next two years – this was the answer given by 42% of respondents.
Ukrainian banks also note the demand for BNPL services, especially among large retailers. In an attempt to meet this need, banks and fintech companies may introduce full-fledged BNPL models in the near future.
As for global prospects, according to Yahoo Finance, the size of the global BNPL market will reach $725.36 billion by 2030 with an average annual growth rate of 22.2%.
Management of personal finances
A full-scale war led to the loss of sources of income and a decrease in the solvency of the population. Financial problems encourage people to reduce expenses and carefully plan them, look for opportunities for savings. As a result, the demand for tools that help manage personal finances and make the right decisions is growing.
In the world, the trend for programs for managing one’s (or family’s) budget has also been relevant since the beginning of the pandemic. Verified Market Research predicts that the global market for personal finance software could reach over $1.42 billion by 2026.
Therefore, the prospects of fintech companies in the development of mobile applications for managing personal finances are difficult to overestimate. Taking advantage of open banking and artificial intelligence technologies, fintechs can develop a number of useful products that will allow users to track various cash flows, plan expenses, save money and even multiply capital.
ESG
The implementation of ESG standards in the work of Ukrainian business and, in particular, financial institutions is necessary for those institutions that plan to actively cooperate with international donors and investors for the reconstruction of Ukraine. After all, sustainable development is a powerful long-term trend all over the world.
Back in 2021, as part of cooperation with the IFC, the National Bank developed a road map for the development of sustainable financing in Ukraine, which provided for the implementation of ESG factors in the system of corporate governance of banks and non-bank financial institutions, management of environmental and social risks, selection of projects for financing only taking into account their roles for sustainable development, the obligation of financial institutions to disclose information about the sustainable nature of their activities. Due to the full-scale invasion, the policy on sustainable finance has been updated, but it is clear that ESG standards are becoming basic for doing business in all developed countries and covering all areas of the economy.
Digital services for SMEs
Simplifying access to financing for SMEs, launching new financial instruments, in particular, remote opening of accounts and deposits, as well as promoting the attraction of additional capital – these are the promising areas that need to be focused on in order to support Ukrainian business and restore it after victory.
