Ukrainians often have pioneered with leading companies and built products that have a positive impact on society, especially in the fintech sector.
Despite the hurdles of the war, the Ukrainian fintech community is working to create better infrastructure and regulations for the country, which can attract valuable companies and institutional investors from different backgrounds.
It’s a valuable market
I’m sure many investors think that the country’s IT sector is a risky investment right now. But it’s still business as usual at fintech companies here. They have proven their resilience, even in wartime, and impressively, 90% of Ukrainian tech startups are still hiring.
In March, Ukrainian President Volodymyr Zelenskyy signed a bill to establish a regulatory framework for cryptocurrency in the country. While the bill doesn’t allow you to use digital assets as a means of payment, it tries to create the right conditions to establish a strong cryptocurrency market.
Cryptocurrency exchanges can now claim a license to operate legally in the country. Banks can open accounts for crypto companies, which can opt for different licenses depending on what they do.
The Ukrainian IT sector is still growing
In the first five months of 2022, the Ukrainian IT sector generated approximately $3.2 billion of exports — 27% more than the same period in 2021, accounting for nearly half of the country’s total volume of export services.
One of the main goals of the Ukrainian government is to: increase the share of the IT sector in the country’s GDP from the current 4% to 10% in 2024.
Government support and strong growth together provide a strong signal of how the IT sector is ripe for investment.
Global financial and tech companies support Ukraine
Earlier this month, the Ukrainian Ministry of Digital Transformation presented Digital4Freedom — a global initiative that is the primary source of charitable donations for technology companies to support Ukraine.
Digital4Freedom is part of the global UNITED24 effort, empowering anyone around the world to contribute money to the recovery of the country’s economy.
The program consists of nine projects presented to 40 companies, the vast majority of which have pledged to help with monetary contributions or technology solutions.
Amazon for example will reportedly bring in over $100 million in cloud hosting services for Ukrainian state registries and plans to develop solutions for the deployment of artificial intelligence in courts.
Crypto exchange Binance will become an official partner of the Ministry of Digital Transformation of Ukraine to offer educational projects in the fields of IT, web3 and finance.
Meta, with the support of the Ministry of Digital Transformation, recently launched a $1.5 million aid program for the recovery of the Ukrainian economy, helping small and medium-sized businesses with a specialized training center.
Startups are an integral part of the Ukrainian economy
Ukrainian companies to expect a reduction in the production of goods and services as a result of the war. What’s more, business leaders predict that the next 12 months will bring inflation and devaluation of the hryvnia.
Ukrainian tech startups are committed to taking the industry to new heights. They will become the fundamental pillars for a new layer of technology companies that will add significant value to the economy.
Fintech is growing fast despite setbacks
This year, Ukrainian lawmakers introduced the Law of Ukraine on Payment Services (LPS)which will ensure better regulation for the fintech sector, including for payment services.
In addition, the Ukrainian Association of Fintech and Innovation Companies (UAFIC) became the first non-EU member to join the European Digital Finance Association (EDFA). Both organizations are working together to strengthen the fintech landscape in Ukraine.
I believe that Ukraine’s resilience to Russian aggression and the massive growth of the fintech landscape despite the crisis have proven that investors should not hesitate to invest in the fast-growing industry.
Despite the difficult situation in the country, the industry continues to develop. While attending numerous conferences and fintech events, I meet investors from all over the world interested in companies from Ukraine. All this tells us that the prospects for fintech in Ukraine look good, and now is an excellent time to invest in it.