PROBLEMS AND PROSPECTS OF THE DEVELOPMENT OF NEOBANKING IN UKRAINE

Abstract

The article is devoted to the study of the peculiarities of neobanking in Ukraine, the topical issue of the development of banking activity in the conditions of the digital economy. Neobanking is what society needs at the moment. Due to such banking systems, a person can quickly transfer funds, as well as receive credit funds, or open a deposit in a few minutes. In the conditions of war, time has become more important than ever, the time it takes to collect funds to help the Armed Forces, or the time it takes to send funds to a family abroad, neobanks perform such tasks in a few minutes, which attracts the attention of users even more. The article researched and analyzed the number and dynamics of the development of neobanks in the world, as well as determined their number in different parts of the world, considered the richest and largest banks in terms of client audience. Neobanking in Ukraine is only at the nascent stage and the number of neobanks will continue to grow. Therefore, it is quite expedient and relevant to consider the problems and prospects of the development of this type of banking in Ukraine. The article defines the location and number of existing neobanks in Ukraine, their features and the number of users. The essence of the concept of “neobanking” and the history of its emergence are considered. The main problems of neobanking have been identified, including the high cost of establishment, distrust of consumers, the need to work on the basis of a traditional bank. The advantages of Internet banking (remote management of the card, quick execution of financial transactions, payment for services, interaction with the bank, minimum or zero commission) and disadvantages (insufficient trust of customers in online banks, high risks of cybercrimes, probability of server errors, but data shortcomings can be solved with the help of financial literacy, development of tools to ensure safe and continuous use of banking). Conclusions were made regarding the existence of neobanks and traditional banks in Ukraine, about positive dynamics in Ukraine as a whole (legal changes at the legislative level have begun).