The impact of innovation and fintech on the banking business

Abstract

The object of research. The study analyzes the impact of fintech innovations on the effectiveness of the functioning of the banking business and outlines the prospects for their further implementation in Ukraine, taking into account the EU experience.
 Investigated problem. In the conditions of the spread of digitalization processes as a key factor of competitive advantages, the question of researching the introduction of fintech innovations into the banking sector of Ukraine, determining their impact on the effectiveness of the functioning of the banking business, and delineating further prospects for the digitalization of banking institutions' activities becomes relevant.
 The main scientific results. The results of the study proved the existence of potential opportunities for expanding the innovative activity of the banking system of Ukraine. In recent years, there has been an intensification of the processes of digitalization of banking services. On the basis of a comparative analysis of the neobanks of Ukraine, their main advantages are outlined and prospective areas of activity expansion are substantiated. At the same time, problematic aspects in the implementation of digital technologies in the banking sector of Ukraine are identified, in particular, imperfect legislation in the field of digital technologies in neobanking and licensing of their activities, low level of financial literacy of the population, expensive initial investments. This requires further research into the possibilities of implementing the positive experience of the EU countries.
 The area of practical use of research results. The results of the study can be used by banking institutions of Ukraine when justifying strategies for introducing fintech into their activities.
 Innovative technological product. The results of the study made it possible to outline strategic directions for the introduction of digital technologies in the banking sector of Ukraine.
 Scope of the innovative technological product. The results of the research concern the implementation of banking innovations.

Conceptualizing Fintech's Impact on Banking: A Comparative Study of the Usa and Nigeria

“…Furthermore, Karangara's study on the impact of FinTech in the UK and Europe offers insights into the varied effects of FinTech integration across different banking systems, which can be extrapolated to understand the dynamics in the USA and Nigeria. Lastly, Khudolii and Hlushko (2023) analyze the impact of FinTech innovations on the banking business, providing a perspective on the potential and challenges of digital transformation in the banking sector. The impact of FinTech on the banking sectors in the USA and Nigeria presents a multifaceted narrative of technological advancement, regulatory adaptation, and market evolution.…”