STATE AND FACTORS OF DEVELOPMENT OF INNOVATIVE BANKING BUSINESS
Abstract
The purpose of this article is to identify the current state of innovative banking business, the factors that influence its development, as well as to develop proposals for the application of new potential directions for the development of innovations in the banking sector. The observational method was used to collect available data and indicators. The comparison method was used to analyze various data and identify patterns. Analysis and synthesis was used to identify patterns in statistical data and actions of fintech companies and banks. The method of induction and deduction was used to analyze the obtained data. Result. This article examines the state and factors affecting the innovative development of the banking business. The factors are identified and classified into external (those arising from the external environment, such as globalization or digitalization) and internal (those arising from intra-bank activity and its development). Successful examples of cooperation between fintech companies and banking institutions are indicated. Factors affecting the Ukrainian banking system are considered. The levels of interaction between fintech companies and banks are indicated. The advantages of neobanks over classic banks are indicated. The level of development of innovations in Ukrainian banking and its competitiveness in the world are analyzed. The state of the world banking system in terms of innovations was also considered, and trends in the development of Ukrainian innovations in the banking system were indicated. The article proposes a new way of classifying factors influencing innovation activity in the banking sector, namely the division into external and internal factors. The article also examines the state of Ukrainian innovative banking development and suggests the development of neobanks and open banking. The practical significance of this article lies in the deepening of knowledge about the state and factors influencing the development of innovations in the banking sector. Also, this article suggests a direction for the development of cooperation between fintech companies and banks, which will stimulate their interaction and innovative processes in Ukraine.
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