Digital financial inclusion: evidence from Ukraine
-
DOIhttp://dx.doi.org/10.21511/imfi.16(3).2019.18
-
Article InfoVolume 16 2019, Issue #3, pp. 194-205
- Cited by
- 2106 Views
-
420 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The article examines the influence of the current stage of economy digitalization on the financial inclusion in Ukraine. The purpose is to assess the level of financial inclusion in the country, to determine the dominant influence of price and non-price barriers to access to financial services for the Ukrainian population when compared to other world countries and to define which part of the adult population is able to join the formal financial services system through the use of innovative channels and financial service systems. Based on the methodological approaches proposed by the World Bank and the G20 Financial Inclusion Indicators, the authors analyze the real traditional and digital access opportunities of the general public to financial services in Ukraine compared to other countries across the world. Particular emphasis is placed on overcoming existing non-price barriers that impede formal financial inclusion of the Ukrainian population. The research findings stress the need to adhere to the basic principles of digital financial inclusion in order to regulate activities of financial institutions and their agents in the digital provision of financial services, strengthen regulatory control over the use of innovative financial products and service systems, and protect the rights of consumers of financial services in Ukraine.
- Keywords
-
JEL Classification (Paper profile tab)D14, G02, G28
-
References24
-
Tables4
-
Figures6
-
- Figure 1. The digital financial inclusion components
- Figure 2. The sequence of analyzing the level of digital financial inclusion based on the G20 Financial Inclusion Indicators
- Figure 3 (а). Development of financial services infrastructure in Ukraine in 2009–2018
- Figure 3 (b). Development of financial services infrastructure in Ukraine in 2009–2018
- Figure 4. Financially excluded adults due to barriers of financial institutions in 2017 (age 15+), %
- Figure 5. Use of traditional and innovative financial service channels for adults in Ukraine and other countries in 2017
-
- Table 1. Financially excluded population in Ukraine and other countries, 2017, %
- Table 2. Number of commercial bank branches per 100,000 adults in selected countries in 2009–2018
- Table 3. Indicators of access to and use of the Internet by the Ukrainian population in 2017
- Table 4. Financial inclusion indicators by features of financial services to population in Ukraine and other countries across the world in 2017
-
- Allen, F. (2012). Trends in Financial Innovation and their Welfare Impact: an Overview. European Financial Management, 18(4), 493-514.
- Demirgüç-Kunt, A., Klapper, L., & Singer, D. (2017). Financial Inclusion and Inclusive Growth: A Review of Recent Empirical Evidence (Policy Research. WPS 8040).
- Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The Global Findex Database 2017. Measuring Financial Inclusion and the Fintech Revolution.
- Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: International development in the fintech era. New Political Economy, 22(4), 423-436.
- Global Partnership for Financial Inclusion (GPFI). (2016). G20 Financial Inclusion Indicators.
- Han, R., & Melecky, М. (2013). Financial Inclusion for Financial Stability: Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis (World Bank Policy Research Working Paper No. 6577).
- Hannig, A., & Jansen, S. (2010). Financial Inclusion and Financial Stability: Current Policy Issues (ADBI Working Paper 259). Tokyo: Asian Development Bank Institute.
- Honohan, P. (2008). Cross-Country Variation in Household Access to Financial Services. Journal of Banking & Finance, 32(11), 2493-2500.
- Jack, W., & Suri, Т. (2014). Risk Sharing and Transactions Costs: Evidence from Kenya’s Mobile Money Revolution. American Economic Review, 104(1), 183-223.
- Jin, D. (2017). The Inclusive Finance Have Effects on Alleviating Poverty. Open Journal of Social Sciences, 5, 233-242.
- Karthik, V., Niehaus, P., & Sukhtankar, S. (2016). Building State Capacity: Evidence from Biometric Smartcards in India. American Economic Review, 106(10), 2895-2929.
- Klapper, L., & Singer, D. (2017). The Opportunities and Challenges of Digitizing Government-to-Person Payments. The World Bank Research Observer, 32(2), 211-226.
- Mishchenko, V., Naumenkova, S., Mishchenko, S., & Ivanov, V. (2018). Inflation and economic growth: the search for a compromise for the Central Bank’s monetary policy. Banks and Bank Systems, 13(2), 153-163.
- Morgan, P. J., & Pontines, V. (2014). Financial Stability and Financial Inclusion (ADBI Working Paper Series No. 488). Tokyo: Asian Development Bank Institute.
- Naumenkova, S. (2015). Фінансова інклюзивність: економічний зміст та підходи до вимірювання [Finansova inkliuzyvnist: ekonomichnyi zmist ta pidkhody do vymiriuvannia]. Aktualni Problemy Ekonomiky, 166(4), 363-371.
- Park, C.-Y., & Mercado, R. (2018). Financial Inclusion: New Measurement and Cross-Country Impact Assessment.
- Sarma, M., & Pais, J. (2011). Financial Inclusion and Development. Journal of International Development, 23(5), 613-625.
- The Global Findex Database. (n.d.).
- The National Bank of Ukraine. (2019). Financial Inclusion Forum. Leaving No One Behind.
- Verkhovna Rada of Ukraine. (2018). Document 67-2018-р.
- World Bank Group. (2014). Global Financial Development Report 2014: Financial Inclusion.
- World Bank Group. (2016, April). Payment aspects of financial inclusion (English). Washington, D.C.: World Bank Group.
- World Bank Group. (2018). UFA2020 Overview: Universal Financial Access by 2020.
- Zimmerman, J. M., & Baur, S. (2016). Understanding How Consumer Risks in Digital Social Payments Can Erode Their Financial Inclusion Potential. CGAP Brief, Washington, DC.