Abstract
The article examines the influence of the current stage of economy digitalization on the financial inclusion in Ukraine. The purpose is to assess the level of financial inclusion in the country, to determine the dominant influence of price and non-price barriers to access to financial services for the Ukrainian population when compared to other world countries and to define which part of the adult population is able to join the formal financial services system through the use of innovative channels and financial service systems. Based on the methodological approaches proposed by the World Bank and the G20 Financial Inclusion Indicators, the authors analyze the real traditional and digital access opportunities of the general public to financial services in Ukraine compared to other countries across the world. Particular emphasis is placed on overcoming existing non-price barriers that impede formal financial inclusion of the Ukrainian population. The research findings stress the need to adhere to the basic principles of digital financial inclusion in order to regulate activities of financial institutions and their agents in the digital provision of financial services, strengthen regulatory control over the use of innovative financial products and service systems, and protect the rights of consumers of financial services in Ukraine.
Highlights
The lack of the general population access to formal financial services reduces the level of citizens’ welfare and their social protection, leads to increased social tension in society, which slows the development of the country’s economy as a whole.The economic downturn in Ukraine increases the share of the financially excluded population, complicates citizens’ access to financial services in the most convenient due to price and non-price barriers
The purpose is to assess the level of financial inclusion in the country, to determine the dominant influence of price and non-price barriers to access to financial services for the Ukrainian population when compared to other world countries and to define which part of the adult population is able to join the formal financial services system through the use of innovative channels and financial service systems
Based on the methodological approaches proposed by the World Bank and the G20 Financial Inclusion Indicators, the authors analyze the real traditional and digital access opportunities of the general public to financial services in Ukraine compared to other countries across the world
Summary
The lack of the general population access to formal financial services reduces the level of citizens’ welfare and their social protection, leads to increased social tension in society, which slows the development of the country’s economy as a whole. Using financial innovation makes it possible to for digital financial inclusion, a remote create new products and services, develop effec- method of servicing is the key It allows consumtive data processing and storage models, help ex- ers to obtain services not directly from financial pand customer reach, reduce cost, and improve institutions, but from third parties, namely agents financial services provision. It is possible to estimate separately the digitization level of payments of the adult population by the following formula: Public inclusion in formal financial services is hampered by the existence of barriers. (3) unrelated to the of financial institution activities: religious reasons, lack of necessary docuwhere DPi is an indicator of digitizing payments of adult population with a formal financial institumentation, family member already has an account, no need for an account
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