Ukrainian fintech

UK-Ukraine FinTech Summit 15th July 2021 London

Ukrainian fintech #togo Kate Shcheglova-Goldfinch Senior PM on fintech market, digital technologies and regulatory platforms development at the NBU | EBRD 1

WHAT IS THE UKRAINIAN FINTECH

Up to 150 fintechs, techfins, neobanks and innovative incumbents

Creating cool UX, developing digital age products, designing BAAS | SAAS platforms etc

Understanding the values of Open API ecosystem and learning on how to transform

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WHAT IS THE UKRAINIAN FINTECH

Growing cashless economy

Ukrainian fintech market core elements

Advanced and diversity-focused fintech community

Forward-thinking regulator with a long-term strategic view on how to innovate, fintech ecosystem’s development-based approach and innovative legal framework creation focus

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WHAT IS THE UKRAINIAN FINTECH

Growing cashless economy*

In Q1 2021, cashless transactions led in payment card transactions, both in numbers and in value 9 in 10 transactions in Q1 2021 were cashless (almost 90% of the total number of payment card transactions).

The share of cashless transactions in the value of all card transactions was 61% 89% of payment terminals support contactless payments**

* In January-March 2021, source NBU **UAFIC, survey-2020

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WHAT IS UKRAINIAN FINTECH Ukrainian customers’ payment preferences

Growing cashless economy*

49% are ready to completely switch to non-cash payments within 2-5 years 37% choose a smartphone with NFC for their everyday payments 39% are interested in paying by QR-code 17% are interested in paying via voice assistance 16% are interested in paying with cryptocurrency * Mastercard research, June 2021, 1507 respondents were covered, 18-60 years old

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WHAT IS UKRAINIAN FINTECH

Highly educated professionals being involved in fintech ecosystem

Advanced and diversityfocused fintech community

STEM activities in progress

Diversity-focused community - 28% of Ukrainian fintechs have female founders or executives*

* UAFIC, survey-2020

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WHAT IS UKRAINIAN FINTECH Strategic and legal framework

Financial innovations development is a core element of financial sector-2025 strategy

Forwardthinking regulator with a long-term strategic view on how to innovate and customer centric focus to be developed

The NBU’s regulatory sandbox concept has been adjusted (autumn 2020) and the full-fledged launch is scheduled on H2 2022 Remote customer identification and verification procedures have been verified and its usage is scaling on the market Open banking law has been passed and is due to come into force from H2 2022, giving the green light to Open banking era and the NBU’s regulatory sandbox as well Fintech market strategy-2025 has been verified and is focused on fintech ecosystem creation with the next FOUR core elements inside: innovative regulatory approaches and instruments (switch from “supervise” approach to “test and learn”), capital raise and investment opportunities extension, fintech products and services’ demand facilitation and talent pool development 7

UKRAINIAN FINTECH ECOSYSTEM

Source: UAFIC, survey-2020

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UKRAINIAN FINTECH ECOSYSTEM

Source: UAFIC, survey-2020

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UKRAINIAN FINTECH ECOSYSTEM

Source: UAFIC, survey-2020

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UKRAINIAN FINTECH MARKET EVOLUTION Fintech companies mostly have been founded 3-5 years ago

Fintechs by the year of foundation

Source: UAFIC, survey-2020

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FINTECH MARKET EVOLUTION Fintech companies mostly have been founded 3-5 years ago

Fintechs by the year of foundation

Source: UAFIC, survey-2020

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WHAT IS UKRAINIAN FINTECH Cashless-driven society and API-driven financial market Financial inclusion as a core Digital and omnichannel focused business models

UKRAINIAN FINTECH MARKET TRENDS-2025

Open banking implementation to go Embedded finance Remote customer identification and verification Coopetition and open fintech ecosystem development (BAAS | SAAS platforms) Scaling fintech products and services abroad Innovative regulatory approaches (e.g. regtech, regulatory sandbox) implementation to shorten time to market for innovators Data-driven market, cost effectiveness and alternative solutions raise 13

WHAT IS UKRAINIAN FINTECH Testing opportunities for market players – regulatory sandbox launch

Outdated legislation – legal framework improvements up to the fintech market development strategic view and regulatory sandbox tests conclusions

WHAT DO WE HAVE TO IMPROVE

Investments and capital raise opportunities – cross-sectoral cooperation, fintech ecosystem development

Talent pool development – fintech products’ demand facilitation, academic clusters growth, learning initiatives for market players development

New communication approaches development for more effective dialogue in between the regulator and market players – e.g. regulatory sandbox launch 14

UK-Ukraine FinTech Summit 15th July 2021 London

Thank you

Kate Shcheglova-Goldfinch kscheglova@gmail.com 15