Strategic Priorities for Banking Brand Development in the Context of Digital Transformation of the Financial Sector (Financial and credit systems prospects for development)

Summary

• Digital transformation is turning the banking brand from a marketing category into a strategic intangible asset affecting acquisition costs, margins and customer base stability.p.1
• The number of operating Ukrainian bank branches decreased from 6,685 in January 2022 to 5,011 in January 2025, a 25% decline.p.7
• In the first nine months of 2024, cashless card transactions were 94.5% of all transactions by number and 64.8% by value.p.7
• The study identifies five strategic priorities for banking brand development, from digital service quality to competitive positioning against neobanks.p.7
• Digital service quality is expected to reduce customer service costs and increase transaction frequency.p.5
• Building brand trust and security is expected to reduce churn and stabilize the deposit base.p.5
• The approach is predominantly qualitative in assessing the financial effect of each priority.p.10

Key insights

1. Brand awareness and branch network accessibility are losing importance, while digital service quality, brand image and customer orientation are gaining it.p.7
2. Cashless card transactions were 93.5% by number and 65.4% by value in the corresponding period of 2023.p.7
3. Personalization of brand communications is expected to increase cross-selling and product portfolio margins.p.5
4. Integrating offline and online experiences is expected to increase customer lifetime value.p.5
5. Competitive positioning against neobanks and fintechs aims to maintain market share and reduce customer acquisition cost.p.5
6. Systemically important banks are advised to measure the Customer Effort Score for channel transitions at least once per quarter.p.9