BANKING AND INNOVATION DEVELOPMENT FEATURES IN UKRAINE

The article is devoted to the problem of ensuring the development of banking innovations in Ukraine since in the event of lagging behind the banks of developed countries the domestic banking system will encounter serious difficulties in generating resources, servicing customers and conducting lending operations. The result of banking innovations is new banking services (products) that are of higher quality and have more attractive consumer features. The development of banking innovations is also associated with the fact that banks have competitors (technology companies, social networking websites, online retails, retails) that develop their own financial services. Innovations in the banking sector are associated with FinTech financial technology which allows optimizing financial services, banking service as well as allows consumers to receive services alternatively. In recent years, investments in financial technologies have been growing all over the world and a number of Fintech companies is growing as well. Banks are forced to compete with these companies in the field of payments and in the lending market. Banks are reported to be quite actively developing innovative technologies in their activities by the practice of introducing Internet banking. In the field of lending the cooperation between banks and Fintech companies is based on the development of electronic credit platforms. Cryptocurrency is used to a limited extent in the activities of Ukrainian banks, since it is necessary to solve technological problems of cryptocurrency circulation and some problems of state regulation in this sphere. The development of Big Data technology and machine learning will allow us to quickly analyze large amounts of data processed by banks and, eventually, it is going to improve the quality of customer service and the level of efficiency of banks. Non-bank payment systems that transfer funds, microfinance organizations that provide online loans, cryptocurrency sales services compete with banks in the Ukrainian banking market. The study has shown that the development of banking innovations in Ukraine are to be associated with the integration of traditional and Fintech-oriented business models.