Monobank Ukraine: A Comprehensive Guide to Banking and Fintech

Monobank Ukraine is a digital bank that has revolutionized the way people think about banking in Ukraine. It was founded in 2017 by Oleksandr Korsunskyi, a Ukrainian entrepreneur.

Monobank offers a wide range of services, including a mobile app that allows users to manage their accounts, make payments, and even request a loan. The app is available for both iOS and Android devices.

One of the standout features of Monobank is its lack of fees for most services, making it an attractive option for those looking to save money. This includes no fees for ATM withdrawals, online payments, or even account maintenance.

Monobank has quickly gained popularity in Ukraine, with over 10 million users and a 20% market share in the country's digital banking market.

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To use Monobank, you'll need to download their mobile app from Google Play or the App Store, as they don't have a web version.

You can then take a picture of your passport and personal tax reference number, and pick up your card at an outlet or have it delivered.

Monobank offers checking and deposit accounts in UAH, EUR, and USD, but you can only make deposits and withdrawals of foreign currency at certain bank branches.

Their mobile app provides a range of banking services, including free money transfers and paying utility bills with no commission.

You can also access credits and cash-backs through the app, with the option to choose two categories of expenses and receive a cash back of up to 20% from purchases.

Monobank's customer support is available through popular messengers in Ukraine, such as Viber and Telegram, as well as on the phone.

The bank uses advanced technology, including neural networks for image recognition and gradient boosting for credit risk analysis, which evaluates over 2000 parameters to assess customer risk.

Monobank's success story began with collaboration between Universal Bank JSC and Fintech Band, an IT consulting firm founded by former PrivatBank senior executives. They invested an estimated 2 million USD in the mobile app and around 6 million USD in the entire project.

Monobank started an invite-only beta testing in October 2017 and completed it in just a month's time. It was also one of the first banks to launch Apple Pay in Ukraine.

One of the biggest challenges Monobank faced was overcoming misconceptions about using an acquiring partner, rather than the customer's own bank. They had to educate the market about the benefits of choosing Monobank as their acquiring partner.

Monobank is a great example of a successful fintech project, born out of collaboration between Universal Bank JSC and the Fintech Band.

The founders, Dmytro Dubilet, Michael Rogalskiy, and Oleg Gorokhovskyi, had a clear vision of creating a product that would positively impact people's spending capacity in Ukraine, thereby developing small and medium-size businesses.

Monobank started with an invite-only beta testing in October 2017 and completed it in just a month's time. This rapid testing phase allowed them to refine their product and gather valuable feedback.

An estimated 2 million USD was invested in the development of the mobile app, demonstrating the significant resources poured into creating a high-quality product.

Navigating the Ukrainian market can be a daunting task, especially when it comes to overcoming misconceptions. Many people still believe they have to use their own bank to process transactions.

One of the biggest challenges the acquiring space in Ukraine faces is educating the market about the benefits of choosing a reliable acquiring partner. The misconception that businesses must use their own bank for transactions is a common obstacle.

Building trust with businesses is crucial in the Ukrainian market. They need absolute confidence in the system's reliability and security, particularly when it comes to payments.

Regulatory issues and fiscalization requirements in Ukraine add an extra layer of complexity to the acquiring process. The team had to navigate these requirements to ensure compliance.

The complexities of multi-currency transactions are another challenge that businesses operating internationally face in Ukraine. With the increasing adoption of digital wallets and contactless payments, acquiring solutions need to be flexible enough to accommodate these evolving consumer preferences.

In Ukraine, Apple Pay is the most popular method, accounting for 40% of online transactions, followed by monoPay at 27%, then Google Pay at 22%, with manual card entry trailing behind at just 11%.

Monobank Ukraine offers a range of card services that cater to different needs and preferences.

You can choose from various types of cards, including a basic card with a credit line and a fixed interest rate of 3.1%, a debit card for receiving salary payments to entrepreneurs with no commission fees, and the premium Platinum card that offers elite benefits like 24-hour concierge service and airport lounge access.

The Platinum card also provides mileage accrual for air ticket purchases, 11 miles per 1,000 hryvnias spent, and special conditions for booking on certain hotel websites.

The Iron card, another premium option, has a metallic design and a separate app, and offers commission-free payments to legal entities' accounts and free cash withdrawal abroad up to UAH 10,000.

You can also issue a children's card for kids between 6 and 16 years old, which has parental control and a debit card with a credit limit.

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Monobank's card services also include a discount card for ATB supermarkets, which offers a 5 to 45% discount when paying at an ATB shop.

Here are some of the card types offered by Monobank Ukraine:

Monobank's service rates are quite impressive. They don't charge a commission for opening and maintaining accounts, making it a hassle-free experience.

Any payments within Ukraine and tax payments are also commission-free, which is a big plus. Generating account statements is also free of charge.

Here's a comparison of rates with other banks to put Monobank's services into perspective:

Monobank offers a wide range of banking services to its customers.

You can issue both digital and physical cards in hryvnia, dollars, and euros, making it convenient for international transactions and purchases. This feature is especially useful for travelers and online shoppers.

Monobank's accounting suite allows you to manage reports, send, and process payments with ease. You can even grant access to an accountant, making it a great tool for business owners and freelancers.

Depending on your business needs, you can connect additional services such as Check by mono, which offers fiscal receipts, inventory management, remote control, and payment acceptance. Expirenza by mono is another useful service, designed specifically for restaurants to manage menus, payment acceptance, and tips.

Here's a brief overview of Monobank's additional services:

Monobank's service rates are quite generous, and they don't charge a commission for opening and maintaining accounts, any payments within Ukraine, or tax payments.

They also don't charge for generating account statements, which is a convenient feature for keeping track of your finances.

One of the most notable advantages of Monobank is their zero fee for certain services, including opening and maintaining accounts, which is a significant cost savings compared to other banks.

Here's a comparison of some key services with other banks, as shown in Table 1:

As you can see, Monobank's terms are more favorable, especially when it comes to transfer fees, which are a zero fee compared to the other banks listed.

Opening a Monobank account is a straightforward process that can be done quickly and for free online. You can open an account as a simple individual, which takes just a few minutes.

To open an account as an individual entrepreneur in Ukraine, you can register for free through Diia, which only takes 15 minutes.

You have two options to open an account as an individual entrepreneur: either go to the account opening section in the app and select "Individual Entrepreneur" or use a specific affiliate link, which will give you 150 UAH upon opening.

With a Monobank account, you can make various transactions, including transfers to cards and payments via IBAN, as well as payments to the budget and tax authorities.

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Monobank is committed to playing by the rules, with clear and transparent agreements with its clients. The bank's contracts with clients outline the terms of service, including payment solutions, fees, and conditions for changing payment systems.

Dmitro Glynisky explains that Ukrainian law requires banks to be heavily regulated in their dealings with clients, including the provision of services and the terms of contracts. This includes requirements for the content of contracts and the process for changing the terms of service.

Monobank's flexible contracts allow for the introduction of new services and products, while also including strict conditions to prevent financial institution abuse.

In Ukraine, there are clear regulations regarding the content of contracts and the order of changing the terms of bank services. The National Bank has an active Consumer Protection Department that reviews customer complaints and monitors banks' compliance with the law.

Banks in Ukraine are quite well-regulated in terms of providing services and establishing relationships with clients. When a client opens an account, a contract is signed that outlines the conditions of service, including payment means, terms, and fees.

Dmitry Glinsky notes that bank contracts for comprehensive bank services are often written quite flexibly, allowing for the introduction of new services and products for clients. However, there are also strict requirements in place to prevent financial institutions from abusing their power.

The law requires banks to clearly outline the terms and conditions of their services, including any changes to those services. This is to ensure that customers are protected and can make informed decisions about their banking relationships.

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Supporting businesses through thick and thin is crucial in times of crisis, and Ukraine is no exception. The ongoing conflict has presented immense challenges for businesses across the nation.

mono has risen to the occasion, providing reliable payment solutions that help businesses continue to operate despite the obstacles they face. These solutions are designed to be secure and trustworthy, giving businesses the confidence to keep going.

Eduard acknowledges that it's a tough time, but mono is proud to play a role in helping the Ukrainian economy stay strong. By offering digital tools that allow businesses to operate remotely and process payments without interruptions, mono is making a real difference.

mono's journey from a mobile banking disruptor to an acquiring powerhouse is a testament to their unwavering commitment to innovation, customer-centricity, and adaptability.

Their deep understanding of the Ukrainian market positions them as a true leader in the fintech space.

Customer experience is at the core of everything mono does, with a focus on making financial services simple and intuitive for users.

The monobank app is a key example of this, offering a smooth experience that's been built on fast support, quick issue resolution, and continuous innovation based on user feedback.

As mono continues to evolve and expand its offerings, they're shaping Ukraine's digital future.

Ukraine's thriving tech scene and innovative spirit are creating a bright future for fintech in the country.

Expanding into acquiring was a natural next step for monobank, building on their strong customer base from the issuing side.

They recognized a growing demand from businesses, particularly in e-commerce, for more advanced payment solutions.

mono's vision was to offer a comprehensive suite of financial services, allowing users to manage everything in one place.

This included credit cards, payments, and financial data, providing a seamless experience for businesses.

By entering the acquiring space, monobank aimed to simplify the payment process for businesses, reducing costs and improving efficiency.

Their goal was to provide a streamlined system that was easy to use and helped businesses grow.

Businesses in Ukraine were craving reliability and flexibility, frustrated with traditional payment processing systems that didn't adapt to their needs.

monobank's decision to enter acquiring was driven by the desire to offer a better experience and ensure businesses had access to modern tools that allowed them to scale efficiently.

Monobank has made a significant impact on the Ukrainian banking scene since its launch in 2017.

The bank's digital-only approach has allowed it to offer competitive interest rates on deposits, with rates reaching up to 6% APY.

Monobank's user-friendly mobile app has made it easy for customers to manage their accounts, pay bills, and even invest in the stock market.

The bank's innovative approach to customer service has also been a major success, with customers able to get help and support 24/7 through the app.

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Monobank has also introduced a range of innovative features, including a built-in wallet and a feature that allows customers to send and receive money instantly.

One of the most significant advantages of Monobank is its low fees, with no commission fees for transactions and a maximum monthly maintenance fee of 0.35 UAH.

The bank's commitment to innovation and customer satisfaction has earned it a loyal customer base, with over 5 million customers in Ukraine.