When we discuss the development of the banking system, the conversation often comes down to numbers. How many banks operate in Ukraine? Are there enough for the economy? Are new players needed?
In my opinion, this is not the main question today. Approximately 60 banks operate in Ukraine. This is significantly fewer than in many European Union countries. For comparison, Germany has over 1,000 banking institutions, Poland has over 500, and Austria has nearly 400.
But quantity alone guarantees nothing. The main question is different: how many of these banks are ready to systematically work with micro, small, and medium-sized businesses (MSMEs).
MSMEs today are the foundation of the Ukrainian economy.
According to World Bank data, MSMEs account for over 90% of businesses worldwide and provide over 50% of jobs. In Ukraine, the role of micro, small, and medium-sized businesses during the war has become even more critical.
Micro, small, and medium-sized businesses in Ukraine represent over six million jobs. The majority of these are precisely micro and small businesses. In fact, every second working Ukrainian is connected to the MSME sector.
During the war, this segment has demonstrated the greatest adaptability. Entrepreneurs opened production facilities in new regions, relocated teams, created jobs, and found new markets.
But at the same time, MSMEs remain the segment for which access to financing is often the most difficult. And here we face a paradox.
In recent years, the National Bank has done tremendous work to strengthen the financial system. Ukrainian banks remain resilient even during full-scale war. There is liquidity in the system. There is capital.
However, in practice, thousands of entrepreneurs continue to experience a shortage of financing. The reason is not a lack of resources.
The reason is that a significant portion of the financial sector has still not learned to effectively manage MSME risks.
Many businesses do not fail due to a lack of customers or orders. They fail due to cash flow gaps.
An entrepreneur ships goods today but receives payment in 60 or 90 days. For a large company, this is an inconvenience. For a small business, this can cause operations to halt.
That is why the next stage of financial system development should not only ensure stability. It should create conditions under which MSME financing becomes as clear and widespread a product as retail lending is today.
Factoring, digital credit solutions, embedded finance, new scoring models, open data, and automated business analysis are already gradually changing the rules of the game.
And it is important that the regulator in recent years has consistently supported this direction, creating conditions for the digitalization of financial services and the development of new financing models.
After the war, Ukraine will need not only infrastructure reconstruction.
It will need new economic growth. And this will be provided not only by large corporations. It will be provided by hundreds of thousands of entrepreneurs. Therefore, the main question for the banking system today is simple. Not how many banks operate in Ukraine. But how many banks are truly ready to finance the development of Ukrainian MSMEs?
It seems that the Ukrainian economy today needs financial institutions of a new generation. If you combine a banking license, deep expertise in financing micro, small, and medium-sized businesses, modern scoring models, and embedded financial products, you can get not just another bank.
You can create a new type of banking institution that will work with entrepreneurs differently than has traditionally occurred in the Ukrainian banking sector.
Source: https://epravda.com.ua/biznes/mmsp-rushiy-ukrajinskoji-ekonomiky-chi-gotovi-banky-do-novogo-etapu-finansuvannya-823223/
