Олександр Глотов
Адвокат
FinTech companies in Ukraine do not require a single, dedicated "FinTech license." Instead, the licensing requirements depend entirely on the specific financial services the company intends to provide. As the regulator of non-bank financial institutions, the National Bank of Ukraine (NBU) issues licenses for regulated activities such as payment services, money transfers, lending, factoring, financial leasing, currency exchange, or issuing electronic money.
For example:
- Providers of payment initiation services or account information services under open banking rules must register or obtain authorization as third-party providers (TPPs).
- Companies offering non-bank lending or other credit services need a license as a non-bank financial institution.
- Pure technology providers (e.g., software developers for financial apps without handling client funds) typically operate without a financial license, provided they do not cross into regulated activities.
Compliance with anti-money laundering (AML), cybersecurity, and consumer protection standards is mandatory in all cases.
What Is FinTech and Its Role According to the NBU?
Financial technologies, or FinTech, refer to the sector that integrates innovative technologies with financial services. This integration involves the use of software, mobile applications, blockchain technologies, artificial intelligence, and other cutting-edge solutions.
The National Bank of Ukraine (NBU), as the regulator of the financial services sector and the authority responsible for state supervision and control over non-bank financial institutions, has its own perspective on FinTech. Although the dedicated FinTech Development Strategy in Ukraine until 2025 (adopted in 2020) has since been integrated into broader financial sector strategies, its core vision remains influential. According to this framework, financial innovations or FinTech encompass companies that combine technologies and innovations to deliver a seamless payment experience and inclusive services to end consumers of financial products.
Market Overview
According to data from the Ukrainian Association of FinTech and Innovative Companies—prepared with support from the Ministry of Digital Transformation, the NBU, the International Finance Corporation (IFC) in partnership with the Swiss State Secretariat for Economic Affairs (SECO), the UK Government's Good Governance Fund in Ukraine (GGF), and the Ukrainian Startup Fund—the Ukrainian market featured approximately 240–250 active FinTech companies in recent years, reflecting steady growth from prior figures.
Even amid the full-scale war, the sector has demonstrated resilience, with a continuing upward trend in the number of FinTech companies in Ukraine—and, consequently, increased state regulatory oversight. As FinTech exerts a growing influence on the national economy, the NBU is actively working to establish order in the sector by launching new regulatory initiatives and proposing clear rules of engagement, including:
- Timely updates to regulatory acts and policies;
- Enhanced data collection, analysis, and supervisory oversight in the area of anti-money laundering (AML);
- Introduction of open banking standards and distributed ledger technologies;
- Implementation of a robust cybersecurity resilience framework;
- Promotion of "green" financial products and services, alongside the development of sustainable business models for financial institutions.
Regulatory Framework
The activities of FinTech companies involving regulated financial services—such as lending, insurance, payment services, billing, and similar—are currently governed by the following key legislative acts:
- Law of Ukraine "On Licensing of Types of Economic Activity";
- Law of Ukraine "On Financial Services and Financial Companies" (which replaced the previous Law "On Financial Services and State Regulation of Financial Services
- Markets" effective from 2024);
- Law of Ukraine "On Insurance";
- Law of Ukraine "On Credit Unions";
- Law of Ukraine "On Financial Leasing";
- Resolutions of the Cabinet of Ministers of Ukraine and the Board of the National Bank of Ukraine;
- The Civil Code of Ukraine, the Tax Code of Ukraine, and other relevant normative legal acts.
Additional sector-specific regulations, including those related to payment services (under the Law "On Payment Services") and open banking, also apply depending on the nature of the services provided. The National Bank of Ukraine serves as the primary regulator for non-bank financial institutions and oversees compliance with licensing, prudential, and consumer protection requirements.
Licensing of Banks, Including FinTech Institutions Operating as Banks
If a FinTech company qualifies as a banking institution (e.g., by accepting deposits or performing other core banking activities), it falls under the scope of the Regulation on Licensing of Banks, approved by Resolution No. 149 of the Board of the National Bank of Ukraine dated 22 December 2018 (as amended) (hereinafter – Resolution No. 149).
This Regulation establishes the procedures for:
- establishing banks;
- obtaining banking licenses;
- approving charters;
- acquiring or increasing qualifying holdings;
- qualification requirements for managers and key personnel;
- assessing the financial condition and business reputation of owners;
- commencing new types of activities;
- opening branches, subsidiaries, and representative offices;
- accrediting foreign banking structures; and
- terminating banking activities.
The key stages in obtaining a banking license are as follows:
- Submission of required documents to the NBU.
- Review by the NBU, including analysis of the submitted documents, evaluation of the applicant's financial condition, transparency of the ownership structure, business reputation, and compliance with qualification requirements.
- Issuance of the license or a reasoned refusal.
- Entry of the entity into the State Register of Banks.
Note that obtaining a full banking license is a rigorous process reserved for institutions intending to conduct traditional banking operations. Most FinTech companies in Ukraine operate as non-bank financial institutions or payment service providers, subject to lighter licensing regimes unless they expand into deposit-taking or similar regulated banking activities.
Licensing of Non-Bank Financial Institutions
If a FinTech company operates as a non-bank financial institution (NBFI), Ukrainian legislation requires licenses for conducting economic activities involving the provision of financial services, such as:
- attracting financial assets with an obligation of subsequent repayment;
- financial leasing;
- extending loans, including on financial credit terms;
- issuing guarantees; and
- similar activities.
The procedure for obtaining such licenses is governed by the Regulation on the Authorization of Financial Service Providers and the Conditions for Conducting Activities Involving the Provision of Financial Services, approved by Resolution No. 199 of the Board of the National Bank of Ukraine dated 29 December 2023 (as amended) (hereinafter – the Regulation).
Under the Regulation, an NBFI must be registered as a business entity in the form of a limited liability company (LLC) or joint-stock company (JSC) in accordance with Ukrainian law.
The NBFI must form a statutory (authorized) capital in an amount that meets the NBU requirements for the selected type of financial services, such as insurance, leasing, or lending. For example, for an insurer licensed to conduct direct insurance activities in one or more classes, the minimum statutory capital requirement is UAH 32 million (pursuant to Part 3, Article 40 of the Law of Ukraine "On Insurance").
The specific amount varies depending on the type of activity, but it must be fully paid up prior to submitting the license application.
The NBFI must also provide comprehensive information on its ownership structure, including all owners holding qualifying (substantial) participations (direct or indirect). The structure must be transparent, without the use of complex schemes or offshore entities that could obscure ultimate beneficial owners.
Founders holding qualifying participations in the NBFI—whether individuals or legal entities—must meet strict criteria to ensure the institution's reliability (Section IV of the Regulation).
Founders must have an impeccable business reputation. According to Appendix 7 to the Regulation, grounds for refusing a license may include:
- outstanding convictions for economic crimes, crimes against property, or crimes related to economic activity;
involvement in the bankruptcy of companies due to poor management; - sanctions imposed by foreign states or international organizations for money laundering or terrorist financing.
All funds contributed to the statutory capital must have a verified lawful origin. The NBFI must be prepared to submit documents confirming the legitimacy of these funds (e.g., from the sale of assets, receipt of dividends, inheritance, etc.).
To obtain a license, a business plan must also be submitted, demonstrating how the institution intends to provide financial services. This plan should include, inter alia, projections of income and expenses, a description of potential risks, and measures to mitigate them.
Additional Requirements for Non-Bank Financial Institutions to Obtain a License
To successfully obtain a license, an NBFI must comply with a range of conditions related to technical readiness, risk management, and—in the case of operating as a financial company—additional specific requirements. These are detailed in Section IV of the Regulation approved by NBU Resolution No. 199 dated 29 December 2023 (as amended), as well as in Appendix 6.
In order to provide financial services, the NBFI must be fully prepared from both a technical and organizational standpoint. This includes:
- equipment and software (the availability of modern technical facilities ensuring uninterrupted operations, such as computers, servers, or specialized software for processing financial transactions);
- internal rules and procedures (development of internal policies governing the provision of services).
Risk Management
A non-bank financial institution (NBFI) must implement a risk management system capable of identifying and mitigating risks associated with its activities (Section IV of the Regulation). This system must address the following key risks:
- Credit risks, including procedures for recovering non-performing debts;
- Operational risks (procedures for responding to system failures, unauthorized interference with software or servers, cyberattacks, and countermeasures);
- Market risks (procedures for operating amid fluctuations in exchange rates or asset prices, along with risk minimization measures).
Special Conditions for Financial Companies
If an NBFI operates as a financial company (e.g., providing leasing, factoring, or lending services), it must comply with additional requirements set out in Appendix 6 to the Regulation. These include, in particular, standards for staff qualifications and technical infrastructure. To this end, the NBFI must provide evidence of relevant education and/or professional experience among its employees, as well as confirmation that its equipment meets established standards (e.g., software certifications or documentation of employee qualifications).
In addition, the appointment of the NBFI's senior managers and chief accountant must be pre-approved by the NBU to verify their fitness and propriety (Section IV of the Regulation).
Further requirements relate to financial soundness. The institution must demonstrate its ability to meet obligations to clients even under adverse economic conditions, which may involve maintaining reserves or providing guarantees.
Cases Where FinTech Companies Operate Without the Aforementioned Licenses
Not all FinTech companies require the licenses described above.
A prominent example is monobank, which functions as a retail digital banking product of JSC Universal Bank. It offers clients credit cards, deposit placement options, and other banking services exclusively through a mobile application, operating under Universal Bank's full banking license.
Another illustrative case is PROBANKER LLC, operating under the Hotline Finance brand. One of its core activities is acting as an insurance intermediary (broker/agent). Through its mobile application and website, it enables users to search for, select, calculate, compare, arrange, and purchase insurance products offered by licensed insurers, without itself providing the underlying insurance services.
Conclusion
The FinTech sector in Ukraine continues to demonstrate resilient growth, as evidenced by the expanding ecosystem of innovative companies. Leveraging technologies such as artificial intelligence, blockchain, and mobile applications, FinTech firms—whether operating independently or in partnership with banks and non-bank institutions—facilitate greater access to financial products, including lending, insurance, and payment services, thereby enhancing convenience and financial inclusion for consumers.
However, this growth must be balanced with robust regulatory oversight. The National Bank of Ukraine plays a central role in fostering innovation while ensuring stability, consumer protection, and compliance with prudential standards.
Ultimately, the FinTech sector in Ukraine represents a promising avenue for modernizing financial services, but its sustained development depends on effective adaptation to evolving regulatory requirements. Strict adherence to these standards is essential for ensuring long-term growth and competitiveness in the national market.