Financial Inclusion and Social Stability in Ukraine in the Context of Global Turbulence
Authors:   Kyiv National Economic University named after Vadym Hetman, Buriachenko Andrii Ye. , Sluzhenko Andrii Yu. ,   Kyiv National Economic University named after Vadym Hetman
Published: January 2025

The article examines the critical issue of financial inclusion in Ukraine and its impact on social stability under the conditions of global turbulence. The author analyzes the dynamics of key indicators of financial inclusion in Ukraine and other countries over the period 2014–2021. In particular, the study focuses on the accessibility of financial accounts, which is a fundamental metric of inclusion levels. A significant growth of this indicator in Ukraine has been revealed. The research identifies the core factors constraining the progress of financial inclusion in Ukraine compared to more economically advanced nations. Among them are: low public trust towards financial institutions, poor financial literacy, constrained access in rural areas, high costs of services, etc. The paper substantiates the paramount importance of furthering financial inclusion as a vehicle for poverty alleviation and reduction of excessive social inequality, especially under crisis circumstances. The positive experience of Bangladesh in utilizing microfinance for rural poverty reduction has been reviewed. The analysis establishes close interlinkages between the financial inclusion and development capacity of small and medium enterprises (SMEs) in Ukraine. Key barriers faced by domestic SMEs in accessing finance have been detected. The study formulates strategic directions for improving public policies aimed at stimulating financial inclusion in Ukraine. Namely, enhancing financial literacy of the population and optimizing regulatory conditions for the financial sector. The author concludes that in the environment of a multidimensional crisis, advancing financial inclusion becomes critical for strengthening the socioeconomic resilience of Ukraine. Overall, the paper demonstrates significant novelty and analytical depth examining a very topical issue for Ukraine – how improved financial inclusion can empower social stability in times of sweeping global challenges. The research applies a broad set of empirical data from reputable sources including World Bank to gauge dynamics of key financial inclusion metrics across countries over 2014-2021. Comprehensive benchmarking reveals a positive trajectory in Ukraine regarding the foundational indicator of financial account penetration, while also identifying obstacles for further progress compared to advanced economies. Timely insights have been generated regarding the potential of widened financial inclusion in Ukraine to help lessen poverty and inequality – matters of pressing concern given current hardships. Reference to microfinance success in alleviating Bangladeshi rural poverty supplies an instructive example. The linkage between financial inclusion and SME development capacity constitutes another salient issue explored by the study, since vibrant small business growth enables economic dynamism and societal stability. The policy recommendations put forward on raising Ukrainians’ financial literacy and optimizing settings for the finance sector appear well-justified amid turbulent conditions demanding urgent economic resilience and social cohesion. In summary, the paper undertakes significant analytical work around the extremely topical public policy challenge of utilizing financial inclusion to empower Ukraine’s stability and prosperity during a period of global trials. The breadth of indicators examined, benchmarking against regional and international patterns, assessment of barriers and solutions, as well as application for poverty alleviation and SME assistance lend the study pronounced value. It provides a model for leveraging financial inclusion analysis to inform strategies for fortifying Ukraine’s welfare and independence going forward.