Victoria Kovalenko, Doctor of Economic, Professor, Professor of the Department of Banking, Odesa National Economic University, Odesa, Ukraine

ORCID: 0000-0003-2783-186X
e-mail: kovalenko-6868@ukr.net

Digital Retail Banking and its Impact on Shaping Household Saving Motivation

Abstract. Introduction. The study addresses the critical shift in household saving behaviour that has been driven by the digitalisation of retail banking in Ukraine. Traditional economic models (such as rational choice theory) are now insufficient to explain this shift, necessitating the analysis of behavioural economics principles, specifically nudging theory, within mobile financial applications to stimulate savings.

Purpose. The primary objective is to identify and empirically assess the effectiveness of key digital nudging tools in motivating households to save amidst the rapid digitalisation of Ukraine’s banking sector.

Results. Digital retail banking (DRB) effectively employs automation (e.g. round-up and auto-save) and gamification (e.g. goal-based saving) to overcome problems such as self-control and present bias. Empirical data from the NBU confirms that the high proportion of demand deposits (approximately 70%) and the substantial volume of small non-cash transactions are direct evidence of successful passive accumulation facilitated by mobile interfaces.

Conclusions. The research concludes that DRB is an effective mechanism for transforming saving from a conscious, rational decision into an automated process. Future research should focus on mitigating risks such as digital fatigue, as well as on implementing ethical regulatory standards for AI-driven financial advice, in order to ensure long-term household financial stability.

Keywords: Digital Banking; Household Saving; Saving Motivatio; Behavioural Economics; Nudging; Automation; Gamificatio; FinTech.

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