Fintech startups in Ukraine in the context of digital economy development

Keywords: finance, bank, virtual bank, digital economy, Fintech, startup, account,financial institution The article deals with the particular problems of today'sdigital economy. Particular attention is paid to the development of Fintech startupsin Ukraine. The foreign experience of creating and implementing Fintech startups isanalysed. The reasons for the failure of Fintech projects in Ukraine and other countriesare considered. Features of the innovative domestic mobile banking project Monobank (since2017), which was launched in partnership with the Fintech Band, are considered. Theshortcomings of Monobank are analysed, including the following: customers who donot have smartphones cannot use the product; Monobank does not have its own terminalsand ATMs to top up the card and withdraw cash. It uses iBox services and resourcesof other banks; not everyone can get a credit limit.Historical examples of the creation of «virtual» banks are studied. The first one isSecurity First Network Bank (SFNB) appeared in the United States in 1995, and inGermany in 1996, it was called Advance Bank. The emergence of virtual banks laterbecame a prerequisite for the creation of online banking (e-banking), which allows aperson to manage their bank accounts.It is proved that the era of electronic financial services requires the creation of conditionsto prevent fraud and abuse, and to this end should increase the level of financialliteracy of the population. There are prerequisites for further development of fintechin Ukraine. In this context, the USAID Financial Sector Transformation Projectof the National Bank of Ukraine (NBU) and the Independent Association of Banks ofUkraine (IABU) is analysed.The activity of innovation park in Ukraine in the field of fintech industryUNIT.City is considered.Special attention is paid to mobile applications with augmented reality.The typical problems faced by developers of fintech startups are analysed. Theseare, in particular, the following reasons for the loss of projects: the Ukrainian marketfor investment is not so big; not enough resources for successful work in this market;market regulation issues etc.