СТРУКТУРНІ ЗМІНИ НА РИНКУ ФІНАНСОВИХ ПОСЛУГ УКРАЇНИ: ВПЛИВ ВІЙНИ

The article determines the changes having taken place in institutional design and identifies trends in the recovery of the financial services market as a complex systemic phenomenon. The essence of current tendencies on the market of financial services of Ukraine as well of those in the period of crisis is revealed. Their influence on the financial system of our country is also determined. The research conducted showed that the vast majority of subjects of the Ukrainian financial services market have experienced a significant decrease. This is especially true of banks and credit unions, though the number of financial companies is growing. The growth in the number and amount of the activities of financial companies suggests that the microcredit sector is also growing. Slowing down real salary increases indicates a loss of public confidence in banks and in the future may lead to a decline in effective demand of the population. This has led to the conclusion that the credit market of Ukraine is becoming non-institutionalized. These processes have led to a concentration of capital in the credit segment of the financial services market. The decline in the number of financial institutions is not critical to the market while the growing number of non-bank financial intermediaries is considered to be a negative trend. The deep socio-political crisis has caused capital outflows from the Ukrainian stock market and the reduction in the volume of contracts at the domestic stock exchanges. This is clearly a negative trend, since the decrease in the volume of contracts on the stock market is one of the factors that affect the investment climate and reflect investors’ interest in buying securities of domestic companies. State regulation of the financial services market needs to be reformed in two stages: the first is to reduce the number of regulators to two and move to a task-based patter with the division into licensing activities and macro-prudential supervision; the second is the transition to a single regulator. This is in line with current global trends and will make government regulation of the financial services market comprehensive and systematic in order to avoiding hyper-regulation and lack of regulatory influence in certain market segments.

FinTech field began to develop rapidly since 2008, after the Global Financial Crisis. This was due to the fact that financial institutions could not quickly respond to consumer needs because of a number of regulatory and legislative restrictions that were implemented to overcome the consequences of the crisis. At the same time the main factors of FinTech development were technological evolution, emerging customer expectations, availability of funding and capital, and support from governments and regulatory authorities. FinTech makes traditional financial services more affordable, flexible and secure, and therefore FinTech is one of the main drivers of digital transformation of the whole financial sector and the development of financial accessibility in the world. The development of the FinTech industry has a huge influence on the financial sector. FinTech strives to make financial services more accessible for both consumers and businesses. FinTech companies are fast growing and attract a large amount of investment each year in their development. At the same time, traditional financial institutions feel threatened on their part, because with the increasing number of FinTech companies, competition in the financial services market is growing too. In order to stay on the market, traditional banks are forced to adapt to modern realities and develop cooperation with FinTech companies. FinTech companies can help banks provide financial products and services more effectively and strengthen their competitive advantages. For example, they can improve financial inclusion, enhance customer experience, increase transparency, improve security, and provide support and guidance. Thus, financial institutions in cooperation with FinTech companies are able to provide new financial products and services to groups of customers who previously did not have access to traditional financial services. In addition, thanks to new technologies, financial institutions can offer personalized services and communicate online with customers, which significantly increases their engagement and experience. Furthermore, FinTech companies can help financial institutions detect fraud and deal with cyber-attacks and other online risks. Keywords: FinTech, financial technologies, financial services, financial innovations, FinTech adoption.

The article emphasizes the unprecedented growth of the role and importance of monetary relations in the formation of the market component of society, by supplementing it – the financial market and financial services markets, non-bank financial institutions professionally engaged in large-scale financial transactions. In this regard, monetary relations in their interaction with legal norms give rise to financial legal relations, which simplifies and disciplines the understanding and perception of monetary relations as an object of financial and legal regulation. It is stated that the regulatory impact on monetary relations in the activities of non-bank financial latter in market relations goes beyond public finance, expanding due to corporate and private finance, their market component, and the volume of private and commercial monetary resources in such conditions are one of the parties to the financial and credit relations. The environment for the implementation of modern monetary policy is formed by many factors, which together create extremely difficult conditions and reduce the effectiveness of monetary policy in achieving its goals. However, the most significant is the spread of the global financial crisis, to overcome which Ukraine needs to improve the legal framework for monetary regulation and apply market mechanisms to regulate the credit system. From a legal point of view, it is important when considering monetary relations (especially the forms of their expression) to understand the substantial nature of the financial mechanism as a whole. It is not the institutions of the financial system such as commercial banks, insurance companies, pension funds, investment funds or other institutions that generate credit as such, but, on the contrary, the existence of monetary relations generates the relevant institutions. And this is not just a scholastic play on words or manipulation of scientific concepts, but a legal fact. Thus, despite the rather intensive formation, the non-banking financial sector has not yet become the main and convenient mechanism for providing the real sector of the economy with the necessary financial resources. They are going through the initial period of their formation, their development remains little dynamic, sometimes even chaotic, which is why it is important to further study their legal nature, activities, functions they perform in the economy of the state and so on. In order to minimize the risks that may result from the lack of stability, transparency and competitiveness of the non-banking financial sector, it is necessary to strengthen the institutional and financial capacity of bodies regulating the financial services market and create an effective system for preventing crimes committed by non-banking financial institutions. Public policy in the non-banking financial sector should be aimed at: creating a system of risk identification, monitoring and ongoing analysis of the financial services market in order to ensure opportunities to take precautions to ensure financial security; strengthening transparency and openness in the activities of financial institutions and the body that carries out state regulation and supervision of such institutions; increasing the solvency and financial stability of non-bank financial institutions; ensuring proper protection of consumers of non-banking financial services; preventing the use of non-bank financial institutions for unproductive withdrawal of capital abroad.

The economic meaning of the term «financial behavior» has been researched. In this study, financial behavior is considered as a special type of economic behavior that is related to the actions of the population in the financial services market, which involves the mobilization, redistribution and investment of the population’s monetary resources. The classification of financial behavior of the population is considered. It should be classified on the basis of such features as the activity in the financial services market, the type of the result of financial behavior, the source of financial resources, the form of implementation, the instruments used in the financial services markets, the degree of risk, the propensity to innovate, the type of property of financial resources. The factors influencing financial behavior of households are analyzed, and the following types are distinguished: political, demographic, cultural, social, psychological, economic. The features of financial behavior of the population in Ukraine in comparison with other countries are determined. It has been established that the level of penetration of financial services is significantly lower than the world standards: on average, one Ukrainian has only one bank card and one current account in the bank, and the intentions of the population to save and invest are passive in nature. It is established that the greatest determinant of financial behavior, inclusiveness and literacy in Ukraine is the age and property status of financial services consumers. The problems, the solution of which will facilitate the increase of financial behavior of domestic households and their involvement in the financial market of Ukraine, are outlined. The main issues are as follows: 1) The absence of financial traditions and positive practices in financial activity in Ukraine, which is due to past historical development of the state; 2) Insufficient development of the financial market in terms of working with a private investor and limited supply of financial services to such clients; 3) Absence of the Institute of financial advisers; 4) The scope of application of compensatory mechanisms in the financial market; 5) Lack of effective tax incentives for citizen investments; 6) Low level of public confidence in financial intermediaries; 7) Disadvantages of providing market participants with the necessary financial information; 8) Low level of financial literacy of the population.

The article examines the essence and strategic directions of digitalization in the financial and insurance services market. It is established that digitalization in the financial and insurance sectors is not only a technological trend, but also a key factor in strategic development. The rapid development of modern technologies significantly affects the financial and insurance services market, changing both the financial products themselves and the principles of their use and distribution methods. In today's conditions of global digitalization of the world, the dynamic development of the country's economy and financial market requires the implementation of an effective mechanism for their functioning and the use of a set of innovative scientific approaches. It is proven that in today's conditions, the digitalization of financial and insurance services means the transition from traditional forms of service to the implementation of the latest electronic technologies. The article defines the essence and analyzes the Digital Transformation Index of Ukraine. In Ukraine, the digitalization of the financial and insurance market is becoming a driving force for the transformation of financial practices and increasing the efficiency of financial process management. This contributes to increasing the availability and quality of services, reducing their cost for consumers, and the overall development of the financial sector. A study of the key components of InsurTech was conducted and it was found that the advantages of this type of insurance are convenience in registration, minimization of papers and availability anywhere in the world. It was determined that FinTech is a set of innovative digital technologies used to carry out financial activities and provide financial services. In the insurance services market, in the context of digitalization, the InsurTech direction has become relevant as a modern form of providing insurance services in an online environment. In the context of strategic directions of digitalization in the financial and insurance services market, we note that the key ones are the implementation of digital identification and the implementation of electronic document management, the development of FinTech and InsurTech, the transition to cloud technologies and the strengthening of cybersecurity and personal data protection. Further expansion of the integration of FinTech and InsurTech solutions into the financial ecosystem is expected in the near future.

The purpose. The aim is to analyze the condition, structure, and dynamics of the financial sector of Ukraine, identifying key trends. It also involves determining the major problems and growth opportunities for the financial sector as a significant factor affecting the national economy. Method. The study is based on the examination of statistical and empirical data from the National Bank of Ukraine, as well as the analysis of changes in regulatory acts governing financial services. Additionally, the author reviewed expert opinions on market issues related to specific entities. Using a comprehensive approach, the author was able to formulate general trends characteristic of the market as a whole. The results. This research presents the impact of martial law on the structure and dynamics of the financial sector in Ukraine, analyzes the causes of these changes, and identifies factors influencing the financial sector of Ukraine. Scientific novelty. The scientific novelty of the article lies in exploring the relationship between military-political factors and the transformation of Ukraine's financial sector. The proposed study highlights the unique experience of the impact of military-political factors on the country’s financial system, which is relevant and significant for further research and practical applications. Practical significance. The practical significance of this article is that the research results will provide analytical information to financial institutions regarding the needs and opportunities for adapting to military-political risks. This will enable them to develop more effective risk management strategies and maintain stability in conflict conditions. Studying the impact of military-political factors on the stability of Ukraine's financial system can help identify key risks and ways to strengthen the resilience of financial institutions and national infrastructure.

Methods. The results are obtained through the use of the following methods: analysis – when studying and processing statistical data and determining the share of exports of financial services from total world service export; synthesis – when identifying essential signs of the impact of the pandemic on demand for financial services; generalization – when determining global trends in the global market of financial services and changes in the practical, legislative environment of Ukraine in the direction of modernizing the regulation of the Ukrainian financial services market. Results. It is determined, that the current stage of evolution of international financial services markets is characterized by the greatest intensification of financial flows. The composition of financial services in accordance with international norms and Ukrainian legislation is defined. It is emphasized that in recent decades, international trade in financial services has significantly intensified, becoming global in nature. The factors of intensification of international trade in financial services, which are becoming global, are determined. It is substantiated that 2020 was in many respects an unprecedented year for financial markets. The lockdowns because of the COVID-19 resulted in an aggressive monetary and fiscal reaction from the Central Bank and governments of developed markets. As a result, in 2020, the economy, production of goods and volume of services provided fell sharply due to the pandemic of the COVID-19 and related restrictions (about 38 countries have applied restrictive measures to trade in services). Financial services, on the contrary, continued to grow. The financial services market has reacted to the restrictions due to the COVID-19 pandemic by moving online rapidly. It is noted that technology in any form has always been the driving force of change, and in these uncertain times it is particularly relevant. The necessity of structuring the major trends of development of the world market of financial services is grounded. Novelty. The factors changing the conditions of functioning of the financial services market under Covid-19 pandemic are identified. Practical value. The authors have systematized the most current technological trends in the development of the global financial services market and changes in the practical, legislative environment of Ukraine in the direction of bringing it into compliance with the EU legislation.

Introduction. It is emphasized that the sustainable development of national economy is possible as long as the financial services market functions effectively. The market is formed by the entities providing insurance, banking and investment services.Purpose. The purpose of the article is to identify the current challenges which hinder the development of Ukraine’s financial services market.Methods. The methodological framework of the study includes the following general research methods: induction, analysis, and generalization.Results. The main indicators reflecting the performance of the domestic insurance services market are analysed. Based on gross insurance premiums and insurance payments, it is found out that the most common type of insurance is vehicle insurance. The research paper claims that nowadays various types of insurance are being developed progressively in Ukraine. Special attention is paid to life insurance, because this type of insurance is viewed as socially essential. However, the development of life insurance market in Ukraine is rated as low.The presence of domestic banks on the financial services market is determined through the following indicators: the amount of funds received by business entities and individuals; the amount of gross loans granted to them. Under the current conditions, the domestic banks are providing financial services with innovative solutions.The main performance indicators of the domestic market of investment services with the participation of joint investment institutions are analysed. The development of this segment of the investment services market is evidenced by the increasing volume of assets owned by investment funds. The author also notes that there is a lack of people’s involvement in joint investment institutions.Discussion. The research findings are applicable and can be used in implementing strategies for the growth of Ukraine’s financial services market.

The estimated state of the financial services market requires search for means and methods to activate the activities of its main subjects, financial intermediaries, increasing their efficiency in functioning. Identified main reasons for the low efficiency of non-bank financial institutions in the market financial services, which was the result of both the financial and economic crisis, the COVID-19 pandemic and the problems associated with non-compliance with certain requirements current legislation in the process of providing financial services. The significant complication of the situation in the financial services market due to the introduction of martial law as a result of military aggression against Ukraine is demonstrated. It is noted that in under martial law, the functions of non-bank financial institutions that are aimed at restoring trust in them, at the security of their money contributions to protect their financial interests, which involves the development and implementation of a new business strategy for financial intermediaries based on the principles of social responsibility. The essence and nature of the specified strategy are revealed by identifying the social responsibility of financial intermediaries in foreign affairs and internal environments. The most significant manifestations of customers' social responsibility are given the most attention. For the successful implementation of the policy of social responsibility, it is shown that institutional support is needed and the corresponding scheme is provided. A scheme for the implementation of social responsibility of non-banks has been developed financial institutions under martial law, which takes into account their special features functioning in the situation that developed as a result of military aggression against of Ukraine. It is noted that the implementation of non-bank financial institutions of the principles of social responsibility contributes to the increase effectiveness of their functioning, activation of the financial services market and forms the conditions for the sustainable development of the national economy.

The relevance of the study is determined by the increasing number of new technologies being implemented in the financial sector (or FinTech) and the associated changes in the traditional model of their operation. In particular, the highlighted model undergoes a series of changes that result in the expansion of the intermediation function of its core agents. Such changes can include increased speed and accessibility of financial services; improved decision-making processes; enhanced data security. In fact, new technologies in the financial sector are shaping digital financial assets and enabling the development of new forms of financial services. At the same time, new digital technologies in the financial sector are leading to a transformation of the essence of financial services markets, forming a distinct model of their transformation aimed at improving the efficiency of conducted operations. Based on the provided provisions, the research is aimed at studying and determining the key indicators that most comprehensively characterize the state of financial services markets, as well as establishing a methodology for assessing the transformation of financial services markets in Ukraine. Digital financial technologies (FinTech) are considered as various tools for influencing the financial sector, which are utilized by resident corporations of Ukraine, including quasi-corporations whose primary function is to provide financial services. It is worth noting that these technologies themselves are not functional but shape such functionality when integrated into various technological structures existing in the financial sector. It is precisely the processes of such integration that define the forms of FinTech-related transformations in financial services markets, including their performance indicators (which are linked to the value of underlying assets). It is important to highlight that these technologies themselves are not inherently functional; rather, they shape functionality when integrated into various technological structures within the financial sector. The processes of integration are what define the manifestations of FinTech-driven transformations in financial services markets, including their performance indicators, which are closely tied to the value of underlying assets.

Problem setting. Artificial intelligence is rapidly affecting the financial sector with countless potential benefits in terms of improving financial services and compliance. In the financial sector, artificial intelligence algorithms are already trusted to account for transactions, detect fraudulent schemes, assess customer creditworthiness, resource planning and reporting. But the introduction of such technologies entails new risks. Analysis of resent researches and publications. The following scientists were engaged in research of the specified question: D.W. Arner, J. Barberis, R.P. Buckley, Jon Truby, Rafael Brown, Andrew Dahdal, O. A. Baranov, O. V. Vinnyk, I. V. Yakovyuk, A. P. Voloshin, A. O. Shovkun, N.B. Patsuriia. Target of research. The aim of the article is to identify key strategic issues in developing mechanisms to ensure the effective implementation and use of artificial intelligence in the financial services market. Article’s main body. The paper investigates an important scientific and practical problem of legal regulation of artificial intelligence used by financial services market participants. The legal risks associated with the use of artificial intelligence programs in a particular area are considered. The most pressing risks to address targeted AI regulation are fundamental rights, data confidentiality, security and effective performance, and accountability. This article argues that the best way to encourage a sustainable future in AI innovation in the financial sector is to support a proactive regulatory approach prior to any financial harm occurring. This article argues that it would be optimal for policymakers to intervene early with targeted, proactive but balanced regulatory approaches to AI technology in the financial sector that are consistent with emerging internationally accepted principles on AI governance. Conclusions and prospects for the development. The adoption of rational regulations that encourage innovation whilst ensuring adherence to international principles will significantly reduce the likelihood that AI-related risks will develop into systemic problems. Leaving the financial sector only with voluntary codes of practice may encourage experimentation that in turn may result in innovative benefits – but it will definitely render customers vulnerable, institutions exposed and the entire financial system weakened.

The National Bank of Ukraine, as a central body of state administration, which has a special status, has been increasing its influence on the system of entities providing financial services since its establishment. In this process, the player uses a significant role in the regulatory function, as a general function of state administration. Ensuring the stability of the system during the period of the large-scale attack of the Russian Federation on our state and maintaining public confidence in banking and other financial institutions has become a priority task of public authorities and the National Bank of Ukraine, as part of this authority. In the universal implementation of government, a number of actions are performed, certain functions enshrined in the norms of law, because the implementation of any function of a public authority is possible only in the case of its regulatory consolidation. The nature of the tasks related to management affect the content of management functions, and in a separate industry they are mentioned with the features of this industry. The regulatory function of the sphere of wide use in the financial sector is enshrined in the Law of Ukraine “On the National Bank of Ukraine” and is implemented by the National Bank through the installation for entities providing financial services, general requirements and rules for activities in the financial services market, requirements for the creation, maintenance, filling of information systems (registers, databases) by banks, non-bank financial institutions, postal operators; implementation of banking, currency regulation; determination of the procedure for issuing licenses to legal entities within their competence, etc. At the legislative level, ensuring the financial stability of the state (including the stability of the banking system), which, in turn, requires the application of the regulatory function, has been determined. The process of strengthening the status of the NBU as a regulator of the banking and financial system has been ongoing for several years. From year to year, amendments and additions are made to existing legislative acts, new laws are adopted (the Law of Ukraine “On Financial Services and Financial Companies”, the Law of Ukraine “On Cloud Services”, etc.). The powers of the National Bank of Ukraine are expanding significantly, which requires research into changes in this area.

In modern conditions, the financial services market is actively developing and transforming taking into account the impact of complex information and digital technologies. The active use of such innovations by financial institutions gradually changes the established model of providing services to economic entities, including households. Moreover, the introduction of the outlined technologies affects the model of financial behavior of consumers of banking and non-banking institutions, changes the process of interaction between them and producers of financial services. Accordingly, the outlined situation actualizes the issues of research of such behavior, the features of formation of its modern model in the conditions of digitalization of the financial services market. At the same time, development and study require not only theoretical and applied aspects of ensuring the formation of the optimal model of financial behavior of households, taking into account the impact of digital technologies on financial services, but also methodological ones. Within the article, conceptual provisions for the study of the transformation of financial behavior of households as a result of the impact of digital technologies are analyzed and studied. In particular, the essence of the financial services market, the main changes that occur within it in the context of the digital economy are considered. Methodological problems of the cognition of financial behavior of households are also singled out and analyzed on this basis, two aspects of the cognition of models of such behavior are singled out, namely: static and dynamic; their essence is considered. The use of the methodology of the process approach allowed to develop the concept of the RCPS methodology for the implementation of the study of the digitalization impact on the transformation of household behavior within this market. The essence of this technique is to identify and study the effects of certain types of digital technologies used today by financial institutions in providing services to their customers, within certain stages of forming the models of this behavior. In particular, the content of the following main stages is singled out and described: reflection (R - reflection); choice (C - choice); purchase (P-purchase); service (S-service).

The purpose of the article is to reveal the content and essence of the legal concept of "critical infrastructure of the financial sector of Ukraine" in order to confirm or refute the statement that it is possible or not to define this phenomenon from the perspective of the object of administrative and legal protection.Results.The article reveals the content and essence of the legal concept of "critical infrastructure of the financial sector of Ukraine" in order to confirm or refute the statement that it is possible or not to define this phenomenon from the perspective of the object of administrative and legal protection.The term "critical infrastructure" is defined as the main element in this phrase, and the term "financial sector" is defined as the dependent element.The author specifies that from the economic perspective, the financial sector of Ukraine's economy is characterised by a set of financial transactions of state or commercial entities in the form of intermediary activities that objectify the distribution of financial capital in the economy.In legal discourse, it is defined by the existence of certain institutions (participants in legal relations) that, through compliance with the established rules of economic or regulatory activities, meet the public demand for the provision of quality financial and related services.It is found that according to the legislative provisions in the context of critical infrastructure of the financial sector, there are two types of objects of protection within it: 1) those determined by the National Bank; 2) those determined by the Ministry of Finance of Ukraine.Conclusions.It is concluded that the legal concept of "critical infrastructure of the financial sector of Ukraine" refers to the range of social relations which arise due to the need to ensure the smooth functioning of certain components of the financial sector which are critical in terms of the State's ability to meet its needs and develop towards autonomy and selfsufficiency, as well as to assert itself as a legal, democratic, sovereign state that properly fulfils its social purpose in the discourse of guaranteeing everyone the inviolability of their rights and legitimate interests.This interpretation does not give rise to any doubt or discussion that the state should create all conditions necessary to ensure that all critical components of the financial sector are protected, that is, provided with the ability to make an adequate, appropriate, permissible, necessary and effective response to factors, causes, circumstances, events, etc. that are potentially or actually capable of or have a negative impact on the functionality of their work.

PurposeGiven that managers play a crucial role in developing and deploying AI for marketing financial services, this study was aimed at better understanding their awareness regarding AI and the challenges they are facing in providing the attendant technologies, as well as highlighting key stakeholders and their collaborative efforts in providing financial services.Design/methodology/approachExploratory, inductive research design. The data was gathered through semi-structured interviews with 47 bank managers in both developed and developing countries, including the United Kingdom, Canada, Nigeria and Vietnam.FindingsManagers are aware of the prospects of AI and are making efforts to address AI as a business need but find that there often exist certain challenges in accelerating AI adoption. The study also presents a conceptual framework of AI in relation to financial service marketing, which captures and highlights the interactions among the customers, banks and external stakeholders, as well as the regulators.Research limitations/implicationsBanks must understand their business objectives, the available resources and the needs of their customers. Managers should keep the ethical implications of their working relationships in mind when selecting a team or collaborating with partners. In addition, managers should be trained and assisted in comprehending AI in relation to financial services, while the regulators must be involved in the development of AI for financial service marketing. Finally, it is critical to communicate the prospects for AI to consumers.Originality/valueThis study provides empirical insight into the opportunities, prospects and challenges pertaining to the use of AI in the area of financial service marketing. It also specifically calls into question certain preconceptions regarding AI and its role in financial services, the chatbots adopted for financial service delivery and the role of marketing managers in developing AI.