Today, Ukrainian fintech sector accounts for over 100 companies, more than a half of which commenced operation in the last three years. The most popular line of business is payments and mobile wallets. This information was released in the Ukrainian Fintech Catalogue 2019 that was presented on 15 July 2019 at the National Bank of Ukraine (NBU).
The catalogue was published by the Ukrainian Association of Fintech and Innovation Companies together with Visa technical function and the NBU.
The Ukrainian Fintech Catalogue 2019 contains more than just research of the Ukrainian fintech market, but also trend analysis of this market. Also, it is a kind of a map for domestic fintech environment and a company catalogue (with questionnaires) that operate in the Ukrainian market.
According to the Ukrainian Fintech Catalogue 2019, 63% of fintech companies in Ukraine are self-funded and are beyond the break-even point. At the same time, 14% companies have more than 75 employees on staff. And 43% Ukrainian fintech companies are conquering the international market. Of those companies operating only in Ukraine, 73% intend to commence operations abroad.
“Today fintech is one of the main drivers of the digital transformation of the financial sector and of financial inclusion advancement. When we worked on the catalogue, we have once again confirmed that Ukrainian fintech market is growing rapidly, and hence the country is heading in the right direction to simpler and accessible financial servicing, transparent economy and involving more and more people to the present financial system,” said Rostyslav Diuk, Chairman of the Ukrainian Association of Fintech and Innovation Companies, at the presentation of the publication.
“The NBU being the leader of the financial sector reform endorses introduction of innovations and development of the fintech market in Ukraine, and actively channels its efforts in series of projects able to advance innovative financial services in Ukraine,” noted Sergii Kholod, NBU Deputy Governor.
According to the Deputy Governor this pertains:
- the start of fundamental revision of legal regulation of Ukrainian payments market and fund transfers covering transposition of PSD2 into the national law to improve competition in the financial market and development of technologies
- operation of the NBU BankID remote identification system that simplifies banking, financial, and other commercial services
- upgrade of the NBU System of Electronic Payments (NBU SEP) making it possible to transact domestic payments nearly 24/7 and in line with IBAN and ISO 20022.
Sergii Kholod added that in developing innovative financial services the NBU pays special attention to protection of users of innovative solutions and products. This covers cybersecurity and protection of consumer rights in financial services. Recently, the NBU has announced a new mechanism for protection of consumer rights in financial services that makes banks and nonbank financial institutions liable for the quality of offered services.
Another step towards development of the fintech industry is the Expert Advisory Board on Communications with Innovation Companies appointed by the NBU in May this year. This instrument will enable the regulator to better understand the needs and developments of the fintech market, while innovation companies will gain insight into the specifics of the regulation and the legal framework.
“According to the World Bank, almost 2 billion people in the world are left outside the official financial system. And 37% of Ukrainians are among them. So the primary task of fintech market leaders is to inform the public on the benefits of innovative IT solutions and implement those in their daily life. Visa sees its role in ensuring effective cooperation of fintech and traditional banking for forming the payment environment and providing consumers with innovative, simple, and safe solutions,” noted Vira Platonova, Senior Vice President, Visa Group Country Manager for CIS and South East Europe.
The Ukrainian Fintech Catalogue 2019 is a commercial project intended to become a calling card for the present fintech market for communication of its participants with international peers and partners, representatives of state authorities and investors. The full version of the catalogue is available on https://map.fintechua.org