DEVELOPMENT OF DIGITAL TECHNOLOGIES IN THE BANKING SYSTEM OF UKRAINE: INNOVATIONS IN LENDING, RISKS AND PROSPECTS
Abstract
The purpose of the research is to study peculiarities of digital technologies and innovations implementation in the banking sector and their impact on the development of the national economy in general and the banking sector in particular. The main scientific methods used in current research are observation, forming testable explanation and predictions based on this explanation and analysis. Some of the main innovative approaches to manage the public part of banking sector and several approaches that have great customer related impact through innovative digital customer`s services and applications such as internet banking and neo banking are analyzed. The role of artificial intelligence and API interfaces are determined in the scope of modern banking sector digitalization. The problems of implementing such technologies in Ukraine, on the credit market in the context of risks and new challenges for cyber security, are outlined. The main directions of digitization of banking operations are characterized. It was determined that the main advantages of the banking sector digitalization are the improvement of service provision quality and the increase in the efficiency of banking processes due to their cost reduction. Though the main disadvantages are the need for significant investments, as well as an increase in the probability of fraudulent actions, which requires expanding of security technologies usage. Key directions and trends that could sufficiently impact Ukraine`s banking system are highlighted. Main worldwide trends in banking sectors in different countries and applicability of such trends in Ukraine are analyzed. Strategic vision of Ukraine banking sector development and highlighted key points that should be taken into consideration for this strategy to be successful in scope of fintech solutions are determined. It is argued that stimulating the development of digital technologies in Ukraine`s banking system should take into account the necessity to balance benefits and risks and effective management of cyber threats, which will be important for the post-war recovery of the country.
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