Features of Ukrainian digital banks

Do you love fintech as much as I do? Especially the Ukrainian one, which runs the banking system in my home country. It is still very young, but is making progress that fascinates foreign banks. PrivatBank was, for example, the first in the world to develop mini payment terminals, made it possible to enter online banking via QR code, launched online payments and made digital covers for bank cards. Today it offers a unique catalog of digital covers (pure bank fashion).

Many Ukrainians, including myself, have encountered the banking systems of different countries over the past seven months. Unlike the Ukrainian one, they are more regulated, slow and too conservative. Over the past 10 years, Ukrainians have become accustomed to fast and accessible services, technology and digital environments. We have reasons to be proud of, therefore I want to tell you about interesting features of Ukrainian online banking.

Review of Ukrainian digital banks

Today, there are several digital banks operating in Ukraine:

• monobank (operating under the Universal Bank banking license);

• Bank Vlasny Rakhunok (a digital project of Bank Vostok, Mastercard and Fozzy Group – one of the leading Ukrainian retailers);

• O.Bank (belongs to Idébank);

• Neobank (operating under the ConcordBank license and based on Concord Fintech Solutions, first in Ukraine open fintech ecosystem);

• izibank and Sportbank (TASCOMBANK mobile partner neobanks).

Many services can be called basic: joint payment and mobile top-up with zero commission, credit limit ($1000-6666.67), low interest within the grace period up to 62 days (0-0.00001%), interest on the balance of a customer’s own funds, online currency exchange , bonus programs (“Jar”, “Backpack”, “Nazbiratus”), open deposits, add cards from other banks, issue credits and installments, transfer money to recipients from a phone book, free service, cashback and analysis of expenses, regular payments with one click, and referral programs (some banks don’t give during the war).

Each application has its features (the most interesting one above). For example, Bank Vlasny Rahunok allows its customers to top up their accounts with cash and zero fees at Silpo checkouts and redeem points at Silpo and Le Silpo supermarkets (two of the largest Ukrainian food supermarkets and delicatessen chains). O.Bank provides zero fees for currency conversion, while Neobank allows the purchase of non-cash currency during the in-app deposit. Sportbank, which positions itself as a financial partner for those involved in sports and outdoor life, offers a monthly 10% cashback on goods and services in the “Sports” category.

The Monoinvest application allows trading in shares of companies from the S&P500 и ETF fund list, using a free brokerage account (monobank provides clients with sub-brokerage services). War bonds can be purchased in mobile applications of Ukrhazbank, PUMB and monobank, and domestic government bonds in Privat24. Here, customers can open an internet card for online shopping (currencies available – UAH, USD, EUR) or add personal discount cards to the app.

Original features of Ukrainian fintech

All functions are taken from the Privat24 and monobank applications. I visited a number of countries and now live in Europe. Nowhere have I seen such a variety of online banking benefits and conveniences as offered by these banks. There are several reasons to choose them.

The Privat24 application from PrivatBank, nationalized in 2016, provides the most services. It was the world’s first bank to use one-time SMS passwords to enter the app. It then became possible to withdraw cash from PrivatBank machines even without a physical card, as well as cash from cashiers in shops and petrol stations. Privat24 for business allows legal entities and individuals to settle accounts with partners and suppliers, process loans and make money transfers, carry out currency transactions and carry out document flow. Privat24 allows ordering cash to withdraw at a specific bank branch. Once a year, users can check their credit history for free and their credit score for $1.66, and activate the StatusControl service for $16.66 to monitor their credit history.

Monobank not only embodies convenience and functionality, but also offers emotional banking services to customers, unlike others. According to Oleh Horohovsky, one of the founders, everything the team creates is emotion, since mono creates the product that loves.

Free card issuance and the possibility to take it in person at a place convenient for the customer – the nearest bank branch, issuing place, Nova Poshta (express delivery service) – or wait for a courier. Today, almost all Ukrainian banks offer this service.

Shake To Pay. Sounds like the name of the cocktail, but actually everything is much better. The Monobank clients launch the app and turn on geolocation, do the “shoooop” with their phone, and money is transferred to a friend’s account. The GPS-based function makes it possible to transfer money without having to enter card details manually. The technology works when the monobank application is launched, including searching for bank customers near a user (30-50 meters). It can also be used to pay for services in taxis, bars, cafes and restaurants, which added this feature.

Transfer money in a minute. Let’s be honest – almost in seconds.

24/7 life support. Monobank, for example, offers care services, and specialists communicate in user-friendly messengers (Viber, Messenger, Telegram).

Instant statements and receipts on a personal account, e-mail or messenger (Viber, Messenger, Telegram). Account statements to the embassy (in Ukrainian and English) about the presence and status of a card or account, absence of debt, certificates for public authorities.

Open a private entrepreneur account with one click. It is possible to manage a personal card and private entrepreneur account in an established accounting network.

Internet acquisition from monobank allows to accept one-time payment links (an ideal option for those who shop on social networks) or create mini-sites. It is also suitable for payments on content management systems. The service’s benefits include tax checks for each sale, earnings credited the next day, practical analyses, management through an online personal account and operating cards from all banks worldwide.

Expirenza service by mono gives restaurants and cafes a single QR code for everything: contactless electronic menu, instant invoices and tipping, automated distribution of money to the bar, food and tips to relevant accounts, reviews and evaluations from customers. A service with an open API integrates with the r_keeper, iiko and Poster cashiers. Available to customers in all banks.

Buy tickets for the cinema, train, plane and bus, as well as buy various insurances (health, property, tourism) in the Privat24 application.

SmartID signature — an analogue of a token that is always in a phone and does not require additional configuration — can be created in Private24.

Cat. QR cat. The protagonist of the Ukrainian fintech and virtual assistant in the monobank application reminds users that banks are created for cats.

What is happening to the Ukrainian banking system today?

The war was a test of strength, and the banking system survived and is functioning. Ukrainian banks gave customers credit holidays for several months or the entire period of martial law, restructuring programs and renewals for war-affected people. Alfa-Bank, later changed its name to Sense Bank, launched a service to change a financial account number and obtain a declaration of closure of an account.

Financial institutions do not stop creating new products. In September 2022, Unex Bank, together with Weld Money, a Ukrainian fintech startup, launched Weld Card – Ukraine’s first crypto card based on Debit Mastercard®. It can be attached to a cryptocurrency wallet on the Weld Money platform and added to Apple Pay and Google Pay, thus using cryptocurrency to pay for goods and services without converting to fiat currency. Each transaction is carried out in UAH. I assume that this card will gain popularity, since Ukraine closes the three leaders in the ranking of countries with the most active cryptocurrency users (data from Chainalysis).

A thirst for development is quite understandable: today high competitiveness is observed in online banking, companies are fighting for customers, looking for outlets for new target groups and trying to offer a unique product. This results in high service and interesting, user-friendly offers. And most importantly – all projects change the approach to banking, making them simple and fast and eliminating trips to offices. According to Mastercard, every second cashless payment in Ukraine is a digital payment with NFC or online.

Innovation, speed and comfort in combination with an interactive component are the options offered by Ukrainian digital banks. They keep up with the times and are sometimes ahead of the curve, since demanding and slightly spoiled customers demand a similar banking service.