September 24, 2024, Kyiv – As part of the Access2Finance conference, after the panel discussion “Sources of Financing for Small and Medium-Sized Businesses (SMEs)”, an important event took place – the signing of a memorandum of cooperation between the Ukrainian Association of Fintech and Innovation Companies (UAFIC) and the Entrepreneurship Development Fund.
The memorandum was signed by Rostyslav Dyuk, Chairman of the Board of UAFIC, and Viktor Katrenych, Deputy Chairman of the Board of the Entrepreneurship Development Fund. The purpose of the agreement is to strengthen cooperation between the organizations to support regional economic development and strengthen the position of small and medium-sized enterprises (SMEs) in Ukraine.
The memorandum pays special attention to supporting veteran and women-owned businesses, which is one of the key aspects of social responsibility. The parties also intend to promote the implementation of the principles of sustainable development and ESG (environmental, social and governance criteria), which are important for ensuring sustainable economic growth and increasing the competitiveness of Ukrainian entrepreneurs.
The parties agreed on joint initiatives aimed at increasing SMEs’ access to finance, promoting regional economic activity, and introducing the latest technological solutions for business development.
“The signing of this memorandum is an important step for UAFIC towards expanding opportunities for small and medium-sized enterprises in Ukraine. It is important that as part of our cooperation we will focus on supporting veteran and women-owned businesses, which are the basis for creating a more inclusive and sustainable economy. In addition, the implementation of ESG principles will be a key aspect for increasing the competitiveness of Ukrainian enterprises,” said Rostyslav Dyuk, Chairman of the UAFIC Board.
“For the Fund, the top priority is to support Ukrainian business, especially in such difficult times. In addition, this is exactly the period when it is necessary to involve businesses in the implementation of ESG standards and further develop in this direction for the successful implementation of economic activities. That is why we are pleased to sign a memorandum with UAFIC to jointly support entrepreneurs in our country,” said Viktor Katrenych, Deputy Chairman of the Board of Ford Entrepreneurship Development.
The signing of this memorandum is an important step in strengthening Ukraine’s economy, improving the business climate and supporting entrepreneurship that meets the principles of sustainable development.
The memorandum was signed at the Access2Finance conference, which was supported by the USAID Project Investing for Business Sustainability.
COOPERATION, Entrepreneurship Development Fund, FINTECH, MEMORANDUM
Today, financial technologies are one of the most promising areas of business development. Modern fintech companies provide a wide range of services from securing electronic payments and open banking transactions to the exchange of crypto assets. Since electronic financial services such as, for example, shopping with a credit card or smartphone have long been an integral part of our lives, the fintech sector already hold leading positions in capitalization and development dynamics, even despite adverse market conditions preveiled in 2022.
To characterize a company operating in the fintech market, one can be guided by such criteria as the use of the latest technologies in financial transactions, including payments, electronic payments, insurance, blockchain and cryptocurrency, digital banking, investment and wealth management, as well as lending and personal financing. Currency exchange operations, electronic banking, government digitalization (in the field of taxation) and telecommunications services are also part of financial technologies.
How to determine the development dynamics of a financial company in the technology sector? First of all, you need to take into account the volume of finances spent through digital channels for a certain period. It is also important that such a company has its own application for a smartphone, the amount of download of the application, as well as the number of its active users. An important factor is the number of countries in which the company operates. It takes into account growth dynamics over the past year, as well as examples of innovations in digital payments and the impact of these innovations on consumers and businesses. And, perhaps, the most important thing is the availability and volume of funding from venture capitalists, since investors are a priori market experts and will not invest in a non-viable startup, otherwise they will simply have nothing to invest over time.
So, taking into account the above factors, our portal has compiled a list of the five most dynamically developing fintech companies in 2022.
Fifth place
Chime. One of the fastest growing American fintech companies that specializes in providing customers with free online banking opportunities. The Chime platform allows users to access mobile banking systems through a website and smartphone app. The company makes most of its money from the exchange. Chime, which is relatively new to the market, now has over 9 million users and is worth over $1.6 billion, with over 185,000 Twitter followers.
Fourth place
PayJoy. The main mission of this company is to provide access to credit operations to a billion people in emerging markets around the world. PayJoy’s unique mobile device locking technology allows customers to afford to buy their first smartphone on credit, using the phone itself as collateral, and then provides additional access to loans to overcome financial difficulties and improve wealth. PayJoy services millions of customers in countries such as Mexico, Brazil, India, Kenya and South Africa. The dynamics of development and the amount of investments allow us to say with confidence that the company will achieve its goal of attracting a billion customers in the coming years.
Third place
AMAN Holding. Founded in Egypt in 2015, the fintech company is one of the largest players in this market in the Arab world, with almost half a billion potential customers. The company services more than two million consumers daily through its terminals and smartphone app. AMAN also has a super app that allows doing e-commerce, paying bills and utility bills, making charitable donations and playing games, among other things.
Second place
Volgende Kft. This is a dynamically developing Hungarian company that is actively developing the European financial services market. The company is actively implementing innovative technologies, in particular, in the development of mobile financial applications. The main activity is the development and implementation of investment strategies, primarily in the field of venture capital investments. Volgende Kft successfully works with the world’s largest funds to attract investments, as well as the implementation of large fintech startups at various stages of development. In addition, the company is an active player in the insurance market.
First place
Western Union. One of the most famous companies in the global fintech market continues to firmly hold leadership in many areas and does not lose ground to its younger and more aggressive competitors. Today, this American company helps clients move finance around the world with a set of electronic currency transaction tools. On the Western Union platform, users can initiate transfers online, through a smartphone application or offline anywhere in the world where there is a branch of the company. Western Union maintains the largest network of branches in dozens of countries, which allows customers to quickly transfer money.
FINANCE, FINANCIAL_TECHNOLOGIES, FINTECH, STARTUPS, VOLGENDE_KFT
