Actual problems of innovative economy and law

Journal "Actual problems of innovative economy and law" is included in category B for specialties: in the field of knowledge "Management and administration": 073, 076 (order of the Ministry of Education and Science of Ukraine dated 23.08.2023 No. 1035) and 071, 072, 075 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543); in the field of knowledge "Social and behavioral sciences" 051 (order of the Ministry of Education and Science of Ukraine dated August 23, 2023 No. 1035); in the field of knowledge "Law" - 081 and "Public management and administration" - 281 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543).
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Digitalization of banking services in Ukraine: trends, challenges and development prospects

# 04 20-25 Download/view the full text of the article

УДК: 336.71:004.9(477)

DOI: https://doi.org/10.36887/2524-0455-2026-2-4

Bitner Iryna,
PhD in Economics,Department of Banking and Financial Technology, Educational and Scientific Institute “
Karazin Banking Institute” V.N. Karazin Kharkiv National University,
https://orcid.org/0000-0003-0269-5670
Viadrova Nadiia,
PhD in Economics, Department of Banking and Financial Technology,
Educational and Scientific Institute “Karazin Banking Institute” V.N. Karazin Kharkiv National University,
https://orcid.org/0000-0003-2386-3231
Dobrovolska Iryna,
PhD in Economics, Associate Professor,
Institute “Karazin Banking Institute” V.N. Karazin Kharkiv National University,
https://orcid.org/0009-0008-1957-6962

Published: 31.05.2026

The article investigates the current state, trends, and prospects of digitalization of banking services in Ukraine amid a full-scale armed invasion and the country’s European integration course. The relevance of the study is driven by the rapid transformation in the banking sector, shaped by technological innovations, shifting consumer behavior, escalating security challenges, and the need to adapt to European Union standards. In circumstances where physical banking infrastructure is being destroyed, and millions of citizens are internally displaced, digitalization has transformed from a competitive advantage into a condition for the operational survival of financial institutions. The purpose of the article is to provide a comprehensive analysis of the key trends of digital transformation in Ukraine’s banking sector, identify the main challenges along this path, determine strategic development directions over the 2025–2028 horizon, and formulate practical recommendations for banking institutions. To achieve this goal, the methods of systemic analysis, statistical generalization, comparative analysis, and forecasting were applied. The research findings establish that Ukraine demonstrates one of the highest levels of digital banking service penetration in Central and Eastern Europe. The share of cashless payment card transactions by number reached 94.6% in 2024 (8,184.8 million transactions worth UAH 4,243.5 billion), rising further to 95.5% by the end of 2025. The total number of payment cards issued reached 132 million as of early 2025 – an increase of 15% compared to the end of 2023. Leading mobile banks – Monobank and Privat24 – each serve between 10 and 12 million active users, forming fully-fledged ecosystems of digital financial services. The article systematizes four key trends in banking services digitalization: the development of mobile and internet banking as core service channels; integration with state digital platforms, in particular the Diia application, which simplifies KYC procedures and electronic identification; the introduction of cloud solutions and back-office automation based on RPA technologies; and the development of open banking and API ecosystems in accordance with the requirements of EU Directive PSD2, the regulated implementation of which in Ukraine commenced in August 2025. Five principal challenges of banking sector digitalization are identified: the escalation of cyber threats (the number of cyberattacks on Ukraine increased by 70% in 2024); the lag of the regulatory framework behind the pace of technological development; digital inclusion challenges for vulnerable population groups; significant infrastructure and financial costs associated with the modernization of legacy IT systems; and a shortage of qualified personnel under martial law conditions. Attention is devoted to the ethical management of data, the protection of client privacy, and ensuring the transparency of artificial intelligence algorithms in banking operations. Within the framework of strategic development prospects, four priority directions are substantiated for the 2025–2028 horizon: enhanced service personalization through AI and broader application of analytics for lending and credit scoring; the expansion of ecosystem products – BNPL, embedded finance, and subscription financial services; the digitalization of back offices and migration of critical systems to the cloud with a hybrid approach to risk control; and expanded integration with state digital platforms in KYC and verification processes. Practical recommendations are formulated for banks: conducting cyber risk audits and implementing Zero Trust architecture; developing an API strategy and preparing for Open Banking requirements; implementing a phased cloud migration and automating routine operations; and implementing principles of responsible AI use and preparing for the requirements of GDPR and the EU AI Act. The scientific novelty of the study lies in the comprehensive systematization of the factors driving the accelerated digitalization of the banking sector under conditions of armed conflict and in the identification of strategic transformation priorities about the European integration dimension. The practical significance of the findings lies in their potential application by banks, regulators, and fintech companies to develop digital strategies and design customer-centric products.

Keywords: digitalization, banking services, mobile banking, neobank, cashless payments, fintech, digital transformation, digital transformation strategy of banking institutions.

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Bitner I. , Viadrova N. , Dobrovolska I. Digitalization of banking services in Ukraine: trends, challenges and development prospects. Actual problems of innovative economy and law. 2026. №2. 20-25 pp. https://doi.org/10.36887/2524-0455-2026-2-4

Quote article, MLA style

Bitner I. , Viadrova N. , Dobrovolska I. Digitalization of banking services in Ukraine: trends, challenges and development prospects. Actual problems of innovative economy and law. https://doi.org/10.36887/2524-0455-2026-2-4