As the global markets have felt the bite from the Coronavirus pandemic, banks have moved online, levels of online transactions increased, and the e-commerce market has reached fever pitch.
It is said that with every challenge comes and opportunity. When it comes to the financial services sector, every opportunity also comes with a challenge as to how best to regulate marketplaces in order to ensure a vibrant business climate and adequate consumer protections. As the Governor of the Ukrainian National Bank, this is my key challenge.
The Ukrainian financial sector is weathering the global pandemic and quarantine restrictions rather well – largely as a result of our domestic FS industry already being technologically advanced. In spring, during the worst days of lockdown, our banks were able to quickly adapt and provide their services remotely.
Unsurprisingly, the pandemic has hastened the decline of cash transactions as businesses and consumer harness the benefits digital payments bring from a convenience and health perspective. In contrast, in 2016 only a third of the total amount of card transactions were cashless; in September of this year, it was 56% – and rising. Contactless transactions in the retail industry increased from 30% to 42% compared to the beginning of the year, NFC payments from 15% to 19%.
