Natalia Ryzhykova, Doctor of Economics, Professor, Professor of the Department of Accounting, Audit and Taxation, State Biotechnological University: Kharkiv, Ukraine

ORCID ID: 0000-0002-3019-8172
e-mail: goncharenkonat@gmail.com

Roman Ostapenko, PhD in Economics, Associate Professor Associate Professor of the Department of Accounting, Audit and Taxation State Biotechnological University: Kharkiv, Ukraine

ORCID ID: 0000-0002-5976-5871
e-mail: rm_ostap@ukr.net

Oleksandr Horokh, PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, State University of Biotechnology: Kharkiv, Ukraine

ORCID ID: 0000-0003-1490-9074
e-mail: GorohSasha82@gmail.com

Vadym Kovalenko, PhD student, Department of Finance, Banking and Insurance, State Biotechnological University, Ukraine

ORCID ID: 0009-0009-5336-4514
e-mail: V.Kovalenko1586@gmail.com

Analysis of Fintech in Ukraine: Current State, Prospects Development and Investment Opportunities

Abstract. Introduction. The fintech sector in Ukraine has emerged as a critical driver of economic development, transforming traditional financial services with innovative technology. Despite economic and geopolitical challenges, the sector has demonstrated significant growth, making a comprehensive analysis of its current state, development prospects, and investment opportunities necessary.

Purpose. This study aims to analyze the current state of Ukraine’s fintech sector, evaluate its key segments, assess its investment potential, and propose strategies to enhance its development despite economic and regulatory challenges.

Results. The research identified over 100 fintech companies operating in Ukraine, more than half of which were established within the last three years, demonstrating the sector’s rapid growth. Key segments include payment services (31.6% market share), digital lending (14%), insurtech, regtech, and cryptocurrencies. Legislative support, such as the Payment Services Law and the Diia platform, as well as international partnerships, enhances the sector’s competitiveness. Significant investment opportunities exist in digital banking, blockchain, and cybersecurity, with a projected compound annual growth rate (CAGR) of 13.2% from 2024 to 2029. However, challenges remain, including outdated regulations, low financial literacy, and a shortage of skilled professionals. Recommendations include accelerating regulatory reforms, focusing investments on insurtech and regtech, and strengthening cybersecurity and collaborations between banks.

Conclusions. Ukraine’s fintech sector is resilient and globally competitive, driven by innovation and supportive legislation. Crucial factors for sustained growth include harmonization with EU standards (PSD2, GDPR), expansion of regulatory sandboxes, and increased investment in emerging segments. Future research should incorporate quantitative analyses and regional comparisons to further elucidate development pathways.

Keywords: fintech; digital payments; investment; regulatory environment; financial inclusion; technological innovation.

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