Digital financial inclusion: evidence from Ukraine

  • Received August 21, 2019;
    Accepted September 4, 2019;
    Published September 19, 2019
  • Author(s)
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  • Article Info
    Volume 16 2019, Issue #3, pp. 194-205
  • Cited by
    30 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

The article examines the influence of the current stage of economy digitalization on the financial inclusion in Ukraine. The purpose is to assess the level of financial inclusion in the country, to determine the dominant influence of price and non-price barriers to access to financial services for the Ukrainian population when compared to other world countries and to define which part of the adult population is able to join the formal financial services system through the use of innovative channels and financial service systems. Based on the methodological approaches proposed by the World Bank and the G20 Financial Inclusion Indicators, the authors analyze the real traditional and digital access opportunities of the general public to financial services in Ukraine compared to other countries across the world. Particular emphasis is placed on overcoming existing non-price barriers that impede formal financial inclusion of the Ukrainian population. The research findings stress the need to adhere to the basic principles of digital financial inclusion in order to regulate activities of financial institutions and their agents in the digital provision of financial services, strengthen regulatory control over the use of innovative financial products and service systems, and protect the rights of consumers of financial services in Ukraine.

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    • Figure 1. The digital financial inclusion components
    • Figure 2. The sequence of analyzing the level of digital financial inclusion based on the G20 Financial Inclusion Indicators
    • Figure 3 (а). Development of financial services infrastructure in Ukraine in 2009–2018
    • Figure 3 (b). Development of financial services infrastructure in Ukraine in 2009–2018
    • Figure 4. Financially excluded adults due to barriers of financial institutions in 2017 (age 15+), %
    • Figure 5. Use of traditional and innovative financial service channels for adults in Ukraine and other countries in 2017
    • Table 1. Financially excluded population in Ukraine and other countries, 2017, %
    • Table 2. Number of commercial bank branches per 100,000 adults in selected countries in 2009–2018
    • Table 3. Indicators of access to and use of the Internet by the Ukrainian population in 2017
    • Table 4. Financial inclusion indicators by features of financial services to population in Ukraine and other countries across the world in 2017