METRICS OF DIGITAL MATURITY OF FOREIGN BANKS IN UKRAINE

Abstract

This article explores the metrics of digital maturity among foreign banks operating within Ukraine’s financial market, with a focus on the network transformation of the banking sector. Against the backdrop of accelerating digitalization and evolving customer expectations, the study investigates how foreign banking institutions adapt their digital infrastructures and strategies in a competitive and regulatory environment distinct from their countries of origin.

Drawing on an extensive review of the academic and professional literature, the research identifies core indicators of digital maturity. These include the degree of connectivity between systems and platforms, the Digital Payment Activity Index (DPAI), the level of business process automation, and the extent of customer engagement through digital channels. These indicators are used as a framework to assess the current state of digital transformation in foreign banks.

The empirical component of the study involves the application of network analysis and comparative methods to evaluate the operational digital dynamics of foreign banks in Ukraine. The analysis reveals that foreign banks generally exhibit high levels of digital maturity, characterized by advanced payment systems, integration of omnichannel platforms, and investment in customer-centered technologies. However, challenges persist. These institutions often encounter difficulties aligning their global digital strategies with Ukraine’s regulatory requirements and adapting to the rapid digital innovation led by local banks and fintech companies.

Furthermore, the article highlights the unique positioning of foreign banks as both digital innovators and adopters within a hybrid financial ecosystem. Their experiences offer valuable insights into the convergence of global and local digital banking trends. Attention is also given to cybersecurity concerns, the scalability of digital solutions, and the role of data analytics in enhancing customer experience and operational efficiency.

Based on the findings, the article provides practical recommendations for improving the digital maturity of foreign banks. These include the localization of digital strategies, closer engagement with national regulators, enhancement of digital literacy among customers, and fostering partnerships with local technology providers. Finally, directions for future research are outlined, emphasizing the need for longitudinal studies, cross-country comparisons, and deeper analyses of customer behavior in digital banking contexts.