Neobanks as drivers of Ukraine's digital financial infrastructure

Abstract

This study aims to determine the role of neobanks as one of the key drivers of the digital transformation of Ukraine’s financial infrastructure and to analyze their advantages, limitations, and development prospects in the current economic and regulatory context. The study applies a comprehensive approach combining systemic, comparative, and structural-functional analysis elements. Both global trends in digital financial technologies and national characteristics of the development of neobanking in Ukraine are considered.

The article explores the prerequisites for the emergence of neobanks, emphasizing the crucial impact of financial technology development, changing consumer expectations, the consequences of the COVID-19 pandemic, the global digitalization of banking processes, and local challenges caused by martial law in Ukraine. Neobanks are defined as next-generation financial institutions operating exclusively in the online environment, offering a wide range of banking services without physical infrastructure. The paper analyzes the dynamics of neobank expansion worldwide and in Ukraine, identifies leading regions by the number of digital banking platforms, and outlines the factors behind their concentration.

The findings confirm that neobanks in Ukraine play a vital role in strengthening financial inclusion, expanding access to banking services, enhancing customer experience, and stimulating competition in the financial market. The study systematizes the key advantages of Ukrainian neobanks, including 24/7 availability, high levels of digitalization, convenient mobile services, simplified service procedures, and operational flexibility. At the same time, several obstacles hindering the growth of the neobanking sector are identified, such as regulatory uncertainty, underdeveloped financial markets, limited access to investment, and low levels of digital literacy among the population.

It is concluded that the full integration of neobanks into Ukraine’s financial ecosystem requires updating the regulatory framework, implementing technological regulatory tools (such as RegTech and SupTech), and stronger government support for digital financial innovations. Future research should focus on assessing cybersecurity risks, behavioral patterns of digital banking users, and comparative analysis of regulatory practices in countries that have demonstrated substantial success in developing neobanking.