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Development of the Banking Services Market in Ukraine
Melnyk V. V., Kulpinsky S. V.

Melnyk, Vitalii V., and Kulpinsky, Serhiy V. (2025) “Development of the Banking Services Market in Ukraine.” Business Inform 7:377–386.
https://doi.org/10.32983/2222-4459-2025-7-377-386

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 336.7

Abstract:
The article examines the current state and prospects for the development of the banking services market in Ukraine in the context of enhancing digitalization, global challenges, and integration into the European financial space. A thorough study of the banking system reveals significant changes and analyzes fluctuations in key indicators, including assets, loans, and deposits. Furthermore, an assessment is made of the share of non-performing loans, which was 28.3% in May 2025. The research team conducted a comprehensive analysis of prevailing trends in the financial sector. This analysis was based on an exhaustive dataset from leading financial institutions and international organizations, including the National Bank of Ukraine, OECD, and IMF. Additionally, it relied on analytical reports from leading international consulting firms such as PwC, KPMG, and Deloitte. The analysis focused on three key trends: the rising popularity of cashless payments, which reached 70% in 2024; the introduction of digital tools; the development of fintech and open banking. The study examined successful practices of Ukrainian banks, including «PrivatBank», «Oschadbank», and «Ukrgazbank», and drew parallels with the experiences of Eastern European countries (Poland, Romania, Bulgaria, Estonia, and Lithuania), where national payment systems, streamlined digital identification processes, and financial literacy programs have been successfully implemented. The study proposes several pragmatic recommendations to enhance the competitiveness and resilience of Ukraine’s banking sector. These recommendations include the establishment of a national instant payment system, the implementation of a unified digital identification system, promoting concessional lending to small and medium-sized enterprises through the use of EU grants, fostering «green banking», and strengthening cybersecurity measures. The introduction of these measures is reported to have several positive economic effects, in particular, increasing financial inclusion, reducing non-performing assets, attracting foreign investment, and fostering sustainable economic development in the country. The findings of this study are significant from both theoretical and practical perspectives. On one hand, they contribute to the development of a strategy for the banking system. On the other hand, they provide a foundation for forming regulatory policy. Additionally, the study’s results serve as a basis for further scientific research.

Keywords: banking services, banking sector of Ukraine, digitalization, open banking, financial inclusion, non-performing loans, instant payment systems, digital identification, fintech, green banking, European integration.

Fig.: 1. Tabl.: 7. Bibl.: 13.

Melnyk Vitalii V. – Postgraduate Student, State Scientific Research Institute for Informatization and Modeling Economy (38 Mykoly Mikhnovskoho Blvd., Kyiv, 01014, Ukraine)
Email: [email protected]
Kulpinsky Serhiy V. – Doctor of Sciences (Economics), Senior Research Fellow, Department of Financial Policy, State Scientific Research Institute for Informatization and Modeling Economy (38 Mykoly Mikhnovskoho Blvd., Kyiv, 01014, Ukraine)

List of references in article

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