DYNAMICS OF BANK LENDING IN UKRAINE: INFLUENCE OF THE DEVELOPMENT OF DIGITAL INNOVATIONS AND TECHNOLOGIES

Andrii Semenog

Sumy State University,
Sumy, Ukraine
a.semenog@biem.sumdu.edu.ua


Pages: 39-51

Original language: English

https://doi.org/10.21272/1817-9215.2024.1-04

Summary:

The article examines the relevance of the development digital innovations and technologies and their impact on the growth of the fintech direction of digital lending, which is represented by the landscape of fintech companies that use the disruptive power of digital technologies and the advantages of innovations of service institutions to offer consumers a wide range of digital credit products and services. The purpose of the article is to define the essence of digital lending and identify the role of digital technologies and innovations in the development of fintech, using the example of calculating the dynamics of bank lending in Ukraine. The article characterises the essence, types and significance of digital technologies in the context of the general development of the financial sphere and the credit market. The role and types of financial innovations are highlighted as the ability of fintech companies to combine digital technologies through product and service transformations. The unique role in terms of scale and impact on other areas of financial innovation of digital lending as a direction of fintech focused on digital forms of providing and administering loans through digital channels using a range of digital technologies to collect and process digital customer data is emphasised. A description of the directions of digital lending and the critical component of its development is presented. The bank is proposed to be characterised as the primary mediator in the credit market using digital innovations and technologies. A set of more than 30 indicators has been formed within three groups of components for evaluating the effectiveness of digital lending by banks, characterising the state and dynamics of non-cash transactions, the use of payment cards, payment and credit banking infrastructure, and credit and deposit activities of banks. A methodology for calculating the Harrington desirability function is proposed to calculate a comprehensive assessment of the “quality” of the functioning of the electronic payment segment of the banking sector of Ukraine in the context of the potential for developing digital banking lending.

Keywords: 
bank, digital bank, digital lending, credit market, digital innovations, digital technologies, fintech, household.


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