Financial that (market of Ukraine)

2019: The reasons why financial that in Ukraine do not develop

On December 18, 2019 Ernst & Young published results of a research which purpose consisted in search of the reasons of poor development of the Ukrainian market of financial technologies.

Banks and the financial technical-companies consider the main problem the outdated and adverse legislation in Ukraine. According to market participants, it is possible to recover it thanks to the important legislative changes connected, for example, with remote identification of the client and implementation of the European directive PSD2 (obliges banks to provide access to the third parties).

Ernst & Young published results of a research which purpose consisted in search of the reasons of poor development of the Ukrainian market of financial technologies

In number of other main barriers preventing the Ukrainian fintekh to develop survey participants carried a lack of financing, complexity of formation of partnership and the low level of financial literacy.

In a research it is said that in the market there is not enough extraneous capital: about 61% of the financial technical-companies develop at the expense of own means that slows down development of the sector and makes impossible fast expansion.

According to experts, the average financial technical-company by December, 2019 works at Ukraine more than three years and still develops the product or service. It is completely financed independently, is not connected with banks or banking groups, focused on the market of corporate clients, and experience in traditional financial services has its managements.

The problem of lack of cooperation between financial technical-startups and banks is particularly acute. Among the first 98% of the companies have no among the shareholders of banks, banking groups, corporate accelerators and other legal entities connected with banks.

Only 46.3% of respondents provide at least one service or a product of bank. 60.8% of respondents often observe unwillingness of a traditional banking system to implement new technologies which developed the financial technical-companies.^[1]

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