Financial security of banks at the payment card market in Ukraine

Serhieieva Olena
PhD (Economics), Associate Professor, Department of Banking Odessa National University of Economics, Odessa, E-mail:lenasergeeva2007@ukr.net, ORCID ID: https://orcid.org/0000-0002-5523-3894

Cite this article:

Serhieieva O. (2023) Financial security of banks at the payment card market in Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Finansova bezpeka bankiv na rynku platizhnykh kartok Ukrainy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 9 (310), pp. 90-97.

Abstract

Introduction. The modern development of the banking business is associated with a significant number of risks that, in light of globalization processes, political and economic issues in Ukraine and the world, and the advancement of technological and information systems, tend to transform, making them very challenging to identify. Adhering to the financial security of banks is an essential element of bank management, as it enables a focus on long-term results, successfully develop measures to achieve set objectives, and enhance the ability to more effectively control the activities of banks. Purpose. An analysis of research in the direction of financial security of banks has revealed that the pressing issue is the enhancement of financial security for operations involving payment cards. This necessitates the adoption of decision-making policies that allow for timely and consistent utilization of all the bank's capabilities while simultaneously maintaining risks at an acceptable and manageable level. Results. The development of payment infrastructure and the implementation of innovative payment methods for goods and services create a continuous demand for banking payment cards. However, the risk of abuse and fraud in this sphere is on the rise, making it a contemporary challenge for banks to anticipate and mitigate these risks. Banks and financial institutions are becoming increasingly vulnerable to cybercriminals who employ various methods and techniques to obtain card data and gain unauthorized access to user accounts. Mitigating criminal activities in this area should be considered holistically, involving the use of modern technologies and cybersecurity methods by banks, as well as increasing user awareness regarding the security rules for using banking payment cards. Conclusions. The issue of financial security for banks in the Ukrainian payment card market is quite serious and requires continuous improvement in the age of digitalization. It is the prevention of losses in their operations that enhances financial security and the robust financial stability of banks.

Keywords

bank, financial security, risk, payment card market, fraud, cyber attacks.

JEL classification: G210, G340; DOI: 10.32680/2409-9260-2023-9-310-90-97

UD classification: 336.7-049.5

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