INTEGRATION OF BANKS AND INSURANCE COMPANIES IN THE FINANCIAL MARKET OF UKRAINE: THE ROLE AND IMPACT OF FINANCIAL TECHNOLOGIES

Abstract

The article presents a comprehensive scientific study of the theoretical foundations and practical aspects of the integration of the banking and insurance sectors in the context of the dynamic digitalization of the financial market of Ukraine. The authors analyze in detail the essence and strategic significance of the Bancassurance model as a modern mechanism of synergy, which allows combining credit, deposit and insurance products on single technological platforms to ensure comprehensive customer service. Particular attention is paid to the role of financial technologies (FinTech), which act as a key catalyst for transformation processes, ensuring the automation of routine operations, increasing the accuracy of risk assessment and optimizing business processes of financial institutions. The study identified and systematized the main models of integration, among which direct interaction through banking networks, the use of common digital platforms, partnership under the B2B2C model and full vertical integration under a single legal structure are highlighted. It was found that the implementation of Big Data analytics tools, artificial intelligence (AI), Blockchain technology and smart contracts allows not only to improve the customer experience through personalization of services, but also to guarantee a high level of data security and automation of insurance payments in the event of an insured event. The practical part of the work is based on an analysis of the experience of leading domestic banks, such as PrivatBank, Oschadbank, Ukrsibbank and others, in the context of implementing joint projects with insurance companies (PZU Ukraine, ARX, AXA Insurance, etc.). The authors have proven that integration based on FinTech solutions contributes to the effective minimization of financial risks, reducing operating costs and expanding market share by creating innovative products, in particular online life, property and motor insurance. Special attention is paid to the transformation of approaches to risk management, where digital solutions allow for more accurate prediction of insured events and credit defaults. It is concluded that the further prospects for the development of the national financial market are directly related to the transition to an ecosystem approach, where the digital integration of banks and insurers becomes the foundation for ensuring their long-term competitiveness and financial sustainability in the face of global challenges.