FINTECH in Ukraine: what is it and how it makes the lives of Ukrainians more comfortable

2018-02-27 13:19

FINTECH in Ukraine: what is it and how it makes the lives of Ukrainians more comfortable
This is called FINTECH – technology that enhance and optimize financial services.

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Every year the world is becoming increasingly digital. Media, stores and communication already familiar in the network. Now experiencing the transformation of the financial sector. To the Internet are the banks, payments, lending, crowdfunding, there are a variety of cryptanalytic, reports Rus.Media.

This is called “FINTECH” – technologies that improve and optimize financial services.

In Ukraine, FINTECH is developing the last three years. Now on the market of the country operate 80 companies. Among them are startups and Mature companies.

How financial technology can change the life of Ukrainians?

As financial technology has made money

Financial technology began to develop after the crisis of 2008. In order to reduce their costs and optimize operations, the banks launched the robots-advisers, have begun to offer loans online and move financial transactions online.

The impetus for the development of financial technologies have become mobile Internet, smartphone penetration and the discontent of the population with banking services.

In the FINTECH market has several trends:

Services via mobile phone. Almost every second person on the planet has a smartphone. With the advent of larger screens, mobile applications easier for people to make payments and use a range of financial services.

Financial services and social networks. FINTECH companies have learned to analyze information in social networks. This allowed us to offer customers personalized services. And mass distribution programs have simplified the communication between the financial company and the client. This helps to better inform and educate users.

Alternative payments. After the emergence of e-wallets, mobile payments, access to financial services received by millions of people.

Marketplace. The development of non-banking credit and lending services allowed to provide loans to intermediary clients through digital platforms which connect lenders with borrowers using its own funds such platforms or direct lending between the parties.

A new business model. With the development of platforms, aggregators of services that will offer the user all the services for free or for a small fee, banks will need to change the terms of their services. Marketplace are in direct competition with banks.

Artificial intelligence. The use of artificial intelligence gives the ability to automate a lot of important banking services. Today banks use bots that answer customer questions. The emergence of chat-bot-tools for better communications personalitywe financial literacy.

Digital identification and biometrics. Biometrics that involves the identification by fingerprints or facial recognition, is changing the way financial services. The complexity of the introduction of passwords and codes deters most people from using new digital financial solutions.

Open API (application programming interface) makes it easy for developers to create new products and services FINTECH companies.

As FINTECH is developing in Ukraine

For the development of FINTECH needs a stable mobile coverage and Internet access, favorable legislation, access to capital and investment and, importantly, educated people.

Now the Ukrainian FINTECH at the stage of nucleation. Until recently, the largest FINTECH was now state Privat. His technology was ahead of not only the Ukrainian market, but also European.

In Ukraine, a financial technology began to develop after 2015.

“Funahashi appear when the banking sector is unable to cope. In 2015, during the crisis, it was a great environment for startups,” says Executive Director of the UNIT.City Maxim Cover.

The first study of FINTECH-sector in Ukraine was presented recently, the USAID project “Transformation of the financial sector” and UNIT.City.

As it turned out, in Ukraine 80 FINTECH providers. They work in such directions:

Payments and money transfers to 31.6%;

Technology and infrastructure of 19.3%;

Кредитування14%;

Marketplace – 7%;

HorTech – 5,3%;

Digital and palanki – 5,3%;

Financial management – 5,3%;

Mobile wallets – 5,3%;

Blockchain – 3,4%;

Cryptanalytic of 1.75%;

Regtech is 1.75%.

“Normally, Ukraine has lagged behind innovation and technology for 10 years. Now we have ceased to be late. How we reacted to the financial crisis that happened just as around the world. FINTECH is developing in developed countries and in countries that are developing. Driver – those countries that have economic problems. Startups has all the capabilities to make the leap, considering the quality of brains and the resources available,” says Olga Afanasyeva, Executive Director of the Ukrainian Association of venture capital and private equity.

Funding startups in FINTECH is a major problem. 45% of the FINTECH companies to Finance operating activities using its own capital, 49% of companies receive funds from external investors, or looking for him.

The need for investment in Ukrainian FINTECH sector is estimated by the market players in the $40-75 million.

FINTECH Ukraine to 2018 could rise four times, said co-founder UAPAY Dmitry editor-in-chief. In the country the market is open.

“It seriously boosts the e-Commerce market and the specifics of the state. We have a large population and territory, which covered about the same,” says editor-in-chief.