Seniv Bohdan, Candidate of Economic Sciences, Assoc. Prof., Department of Financial Technologies and Banking Business, Western Ukrainian National University, Ternopil, Ukraine

ORCID: 0000-0001-6151-7044
e-mail: bohdan.seniv@gmail.com

Competitive Strategies of Ukrainian Banks: Challenges and Opportunities of the Financial Market

Abstract. Introduction. The article examines the competitive strategies of Ukrainian banks under the influence of wartime economic conditions, macroeconomic uncertainty, structural changes in the financial market, accelerated digitalization and increasing regulatory requirements. The relevance of the research is determined by the need to strengthen the resilience of the banking sector, maintain public trust, expand credit support for economic recovery and improve the quality of financial services in a highly unstable environment. It is emphasized that bank competition is no longer limited to price instruments, interest rates or the scale of branch networks. In modern conditions, it increasingly depends on the ability of banks to create customer value, develop digital channels, introduce innovative products, ensure operational continuity and maintain an acceptable level of risk.

Purpose. The purpose of the study is to substantiate theoretical provisions and develop practical proposals for increasing the competitiveness of Ukrainian banking institutions through the improvement of instruments for forming and implementing their competitive strategies. Special attention is paid to the relationship between market positioning, financial performance, digital maturity, customer-oriented development, product innovation and risk-based strategic management.

Results. The study identifies the main features of banking competition in Ukraine and defines competitiveness as an integrated characteristic of a bank’s ability to maintain and strengthen its market position while ensuring financial stability and high-quality customer service. The current state of the Ukrainian banking sector is characterized by resilience, profitability and structural transformation. It is shown that banks have adapted to the shocks of the full-scale war, restored lending activity, preserved client funding and increased their role in financing the state through domestic government bonds. At the same time, the concentration of assets in low-risk government instruments creates the need to balance short-term profitability with long-term credit expansion and support for the real sector. The article systematizes the competitive profiles of leading Ukrainian banks. It is established that state-owned banks mainly implement strategies of large-scale presence, stability and participation in socially important programs; PrivatBank demonstrates a model of technological leadership and digital differentiation; banks of international groups rely on service quality, risk management and corporate standards; large private Ukrainian banks focus on flexibility, product innovation and segment expansion. The research substantiates the need to improve competitive strategies through customer micro-segmentation, personalized products, omnichannel service models, fintech partnerships, ESG-oriented products, strategic controlling, cyber resilience and risk-adjusted assessment of new products and business areas.

Conclusions. It is concluded that increasing the competitiveness of Ukrainian banks should be considered as a systemic process combining institutional support, development of competitive infrastructure and modernization of strategic management tools at the level of individual banks. The most promising competitive models are those that integrate customer orientation, digital differentiation, operational efficiency, innovation, ESG priorities and strong risk management. Such an approach enables banks not only to maintain stability in the short term, but also to create long-term competitive advantages, support the financing of economic recovery and strengthen Ukraine’s integration into the European financial space.

Keywords: competition, competitiveness of banking institutions, competitive position, competitive strategy of banks, diagnostics of competitive strategy, financial marketplace, omnichannel model, cyber resilience of the financial sector

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