NEOBANKING AND DIGITAL TRANSFORMATION OF THE BANKING SYSTEM OF UKRAINE

Abstract

In the article the main features of the digital transformation of the domestic banking system are highlighted. The analysis of the current state of penetration of innovative banking technologies is carried out. In particular, it shows an increase in non-cash payments, an increase in the issue of contactless and toned payment cards with their further integration into international payment applications and financial markets, especially cryptocurrency markets. The study also summarizes the strengths and weaknesses of the operation of neo-banks.As a result, the article includes proposals for the formation of the banking sector digital transformation priority goals in the context of digital economy development, and measures for their implementation. Primary, this is, the banking ecosystem creation that distinguishes the digital form of data as a key factor of added value and ensures effective interaction of the financial system participants, both within the country and with other countries. In consequence, the implementation of the concept of open banking should become an incentive for the development of a new type of banking system. Finally, we came to the opinion that, it is necessary to create an institutional environment for the creation and development of high-tech banking and increase competitiveness both in the field of individual banking services and the banking system as a whole. The creation of institutional and infrastructural environment should be facilitated by the creation of incubators and accelerators, as well as regulatory sandboxes, as they allow to test innovative proposals on the market with real consumers under the supervision of the regulator. All things considered, it willcontribute to the emergence of new financial startups, expanding the range of payment market participants and the development of new products and services. Obviously, it will allow consumers to get truly competitive and high-quality payment services and high protection of their rights.