The regulator plans to have a developed cashless economy in the country by 2025
The National Bank approved the Fintech Development Strategy in Ukraine by 2025, which includes a phased plan to create a complete fintech ecosystem with innovative financial services and affordable digital services in the country.
As stated on the NBU website, the strategy details the structure and the trends and directions for the development of financial innovations for the next five years. The major operational elements will be:
- Development and implementation of a full regulatory “sandbox” concept for rapid testing of innovative projects;
- Raising the level of financial awareness and population and business participation;
- Launch of educational base with focus on open banking.
According to the director of the strategy and development department of NBU, Sergei Karpenko, Ukraine’s financial market has undergone dramatic changes over the past decade. During this time, he changed from a model of traditional corporate business of banks to an entire ecosystem of banking and non-banking markets. The changes are also determined by new challenges that encourage the active development of digital operations and generate demand for digital products and services in the financial sector, the expert emphasized.
Director of the Strategy and Development Department of NBU
NBU named three strategic directions of fintech development in Ukraine:
- Developed cashless economy;
- High level of digital and financial literacy;
- A fintech ecosystem.
The implementation of the strategy will also largely depend on the implementation of related digital projects that the National Bank is working on, the NBU Press Service notes. Specifically, we are talking about:
- Introduction of remote identification and verification;
- Implementation of the European Directive PSD2;
- Providing the possibility of immediate payment from account to account in SEP in 24/7 format;
- Strengthen regulation in the area of cyber security and all other innovative projects of the central bank.
So, the main indicators of successful implementation of the strategy are specifically identified:
- Transition of most market players to open banking standards and remote identification and verification tools;
- The launch of the regulatory “sandbox” and increasing the number of innovative products tested in it, to 16–20 per year;
- Balanced development of all fintech niches;
- Disseminate the use of innovative technologies in supervisory and regulatory processes;
- Increasing digital and financial literacy of the population, as well as the level of professional training of personnel in the market (especially in anticipation of the implementation of PSD2) and the development of talent gender based on the educational environment;
- National Bank of Ukraine’s entry into the global “sandbox” – Global Network of Financial Innovations (GFIN).
The National Bank promised to closely follow the development of fintech trends and financial technologies in the world and Ukraine, as well as regularly update the strategy to meet with financial market participants according to time requirements and challenges.
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On 16 July, Varkhovna Rada endorsed the appointment by the head of the National Bank of Ukraine to Kirill Shevchenko, president of Ukrugsbank. For the same resolution, first sent by Vladimir Zelensky to Parliament, voting took place on deputation of 332 people.
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