Over 80 Ukrainian companies are actively developing innovative products that apply technology solutions to the financial sector (FinTech). About 60% of these FinTech companies began operations in the last three years, and about 80% are already providing services to the market.
These were among the key findings discussed at the presentation of “FINTECH IN UKRAINE: Trends, Market Overview and Catalogue,” by the USAID Financial Sector Transformation Project and UNIT.City. In addition to discussing both global and Ukrainian market trends, the catalogue provides information about participants of the FinTech ecosystem of Ukraine (services, contact information, areas of specialization). The purposes of the Catalogue include increasing interest among investors, foreign and domestic, and facilitating strategic business partnerships for these young FinTech startups.
“Our goal is to promote financial inclusion and greater access to finance for all Ukrainians. The further development of the FinTech sector through better regulation, better products, increased investment, and strategic partnerships with traditional financial players, will contribute importantly to this objective,” – emphasized Robert Bond, Chief of Party of the USAID Financial Sector Transformation Project.
Max Yakover, CEO and Managing Partner of UNIT. City, stated “We believe that thanks to our survey banks will find innovative solutions for their business, startups will receive assistance in their development and investors will find potential partners and clients. Synergy and collaboration can create much more than we think. It is precisely this mission build in our DNA – to strengthen businesses, initiatives and the ecosystem as a whole.”
- 40 % of the FinTech companies that participated in the survey were started prior to 2015, while more than 60% emerged within the last three years. Approximately 84% of FinTech companies have launched services and products.
- Finance is a key issue. 45% of FinTech companies use their own capital to finance operations (no external finance).49% have or are seeking investments from outside investors.
- Investment needs of the Ukrainian FinTech sector are estimated by market players at $40 to 75 million.
- The areas of specialization of Ukrainian FinTech companies are payments and money transfers (31.6% of all companies), infrastructure and enabling technologies (19.3%), lending (14%), marketing (7%), insurtech (5.3%), digital banks (5.3%), personal finance (5.3%), mobile wallets (5.3%), blockchain (3.4%), and cryptocurrencies (1.75%).
The FinTech sector in Ukraine is at an early stage of development. It is important to encourage its development in ways such that it not only contributes to moving Ukraine toward a cashless economy, but supports financial awareness, access to financial services by small and medium businesses, and financial inclusion for underserved populations in rural and conflict areas. Increased investment and strategic business alliances are an important first step.
Copies of the Catalogue are available at : FST and UNIT.City