{"id":41640,"date":"2026-03-23T12:00:38","date_gmt":"2026-03-23T09:00:38","guid":{"rendered":"https:\/\/ces.org.ua\/?p=41640"},"modified":"2026-05-26T13:56:48","modified_gmt":"2026-05-26T10:56:48","slug":"how-ukrainians-save-money-financial-discipline-deposits-and-cashback-trends-dmytro-musiienko-from-privatbank","status":"publish","type":"post","link":"https:\/\/ces.org.ua\/en\/how-ukrainians-save-money-financial-discipline-deposits-and-cashback-trends-dmytro-musiienko-from-privatbank\/","title":{"rendered":"How ukrainians save money: financial discipline, deposits, and cashback trends. Dmytro Musiienko from PrivatBank"},"content":{"rendered":"

\u201cWhat\u2019s up with the economy?\u201d <\/span>is a weekly podcast by the Centre for Economic Strategy in collaboration with Hromadske Radio and supported by PrivatBank.<\/span><\/i><\/p>\n

Hosts<\/span><\/i> Anhelina Zavadetska<\/span><\/a> and<\/span><\/i> Maksym Samoiliuk<\/span><\/a> speak with experts, entrepreneurs, analysts, and government officials about the current state of Ukraine\u2019s economy.<\/span><\/i><\/p>\n

In this episode, we discuss how Ukrainians have adapted their saving and spending habits since the full-scale invasion, the role of strong financial discipline in driving deposit growth and low-risk lending, the surge in retail credit, and why banks like PrivatBank use cashback programs to boost transactions and loyalty. The conversation draws on PrivatBank’s 2025 results and broader banking trends.<\/span><\/p>\n

The guest is <\/span>Dmytro Musiienko<\/b>, PrivatBank Chief Retail Business Officer, Member of Management Board.<\/span><\/p>\n

We have summarised the main points of the conversation with expanded direct quotes:<\/span><\/p>\n

Strong Financial Discipline Post-Invasion<\/b><\/p>\n

Ukrainians have shown remarkable financial responsibility since February 2022, leading to near-zero non-performing loans (NPL) on new credits issued after the invasion. This discipline has enabled safe credit expansion despite the war, with people avoiding unsustainable debt and repaying on time. Deposits grew substantially in 2025, reflecting cautious saving habits focused on essentials rather than luxuries.<\/span><\/p>\n

\u201cWhat we noticed after the start of the war is very good financial discipline among Ukrainians. For example, the new credits we issued after the beginning of the war have an NPL level practically at zero\u2026 Ukrainians are really financially disciplined people; they repay funds, they don\u2019t get into obligations they don\u2019t understand.\u201d \u2013 Dmytro Musiienko said. <\/span>
\n<\/span>
\n<\/span><\/p><\/blockquote>\n

Deposit and Credit Growth in 2025<\/b><\/p>\n

Musiienko shared that PrivatBank added 85 billion UAH in current accounts and term deposits in 2025, contributing to stable system-wide deposit growth. Retail credit portfolios expanded significantly (26% at PrivatBank, over 30% system-wide), driven by disciplined borrowing and shifted spending toward necessities, auto loans, and state-supported mortgages like eOselya. Overall, savings remain positive but below pre-war peaks due to war uncertainties.<\/span><\/p>\n

\u201cThe entire banking system grew significantly \u2014 we alone grew by 85 billion hryvnia\u2026 That is, Ukrainians are saving. Deposits increased, and people are accumulating money despite everything.\u201d \u2014 shared Dmytro <\/span><\/p>\n

 <\/p><\/blockquote>\n

Cashback as a Win-Win Tool for Banks and Clients<\/b><\/p>\n

Cashback programs allow banks to share profits, build long-term client relationships, increase transaction volumes, and stimulate the domestic economy (money stays in circulation rather than leaving). PrivatBank’s AI-personalized offers reach 99% of its 14 million app users, driving events like \u201cGreen Friday\u201d with +25% transaction growth. National cashback initiatives further encourage local production without tax burdens in some cases.<\/span><\/p>\n

\u201cFrom our point of view, cashback is: first \u2014 we share part of the profit\u2026 showing clients that we are loyal to them. Second \u2014 this way we continue the relationship between the client and the bank\u2026 It increases turnover, client lifetime value, and stimulates the economy because the money doesn\u2019t leave the country \u2014 it cycles through commissions from partners.\u201d \u2013 noted Musiienko
\n<\/span>
\n<\/span><\/p><\/blockquote>\n

Cashless Trends and the Role of Physical Branches & ATMs<\/b><\/p>\n

Ukraine continues its strong shift toward cashless payments, with transactions increasingly done via cards, phones, or watches \u2014 reducing the everyday need for cash. Cashback programs accelerate this by incentivizing non-cash use, boosting transaction volumes, and keeping money circulating domestically. However, demand for cash remains stable, especially during blackouts, migration, and war-related uncertainties.<\/span><\/p>\n

According to Musiienko PrivatBank keeps branches and ATMs for several important reasons beyond just digital convenience. They give customers access to complex products\u2014such as investments, pensions, and in-depth consultations\u2014that AI or mobile apps cannot fully handle, especially as Ukraine moves closer to EU standards and introduces more sophisticated financial services.<\/span><\/p>\n

A physical presence provides reassurance and a sense of security: clients frequently want to visit a branch to see that the bank is \u201calive and working,\u201d particularly in front-line regions or during crises. In the winter blackouts of 2025, PrivatBank actively operated 600 branches using generators, solar panels, Starlink, and fiber optics. These branches turned into true \u201cpoints of invincibility,\u201d offering extended working hours, tea, phone charging stations, and even weekend openings in high-demand areas such as Kyiv\u2019s left bank.<\/span><\/p>\n

\u201cWe have the largest infrastructure among banks: today there are 1053 branches, about 7,000 ATMs, 12,000 terminals. And accordingly, we must maintain this infrastructure because there is demand from clients for it\u2026 For now, we have 1050 branches, and we do not plan global reductions. But still, there is demand for branches. And often people need to come to branches, get consultation, see that the bank is alive and working\u2026 when people see the bank and branches in cities near the front line, they feel safer.\u201d \u2014\u00a0 said Dmytro Musiienko<\/span><\/p>\n

 <\/p><\/blockquote>\n

Adaptation to War Challenges and Future Outlook<\/b><\/p>\n

Ukrainian banks, especially PrivatBank, have invested heavily in resilience amid blackouts, migration, and war disruptions. Branches feature generators, solar panels, Starlink, and fiber optics; during the 2025 winter, ~600 branches served as \u201cpoints of invincibility\u201d with extended hours, tea, charging stations, and weekend operations in high-need zones like Kyiv\u2019s left bank. The goal is 100% generator coverage by end-2025.<\/span><\/p>\n

Spending has shifted toward essentials, with credit cards used more for daily needs and loans focused on bigger items (education, repairs, vehicles). Auto loans and programs like eOselya show strong demand.<\/span><\/p>\n

PrivatBank plans to hold its retail leadership (53% card market, 34% credit share) while ensuring profitability for the state shareholder. Disciplined habits, robust infrastructure, cashback incentives, and digital tools continue to support banking stability and gradual recovery under war conditions. Savings and responsible credit remain central to rebuilding financial resilience.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cWhat\u2019s up with the economy?\u201d is a weekly podcast by the Centre for Economic Strategy in collaboration with Hromadske Radio and supported by PrivatBank. Hosts Anhelina Zavadetska and Maksym Samoiliuk speak with experts, entrepreneurs, analysts, and government officials about the current state of Ukraine\u2019s economy. In this episode, we discuss how Ukrainians have adapted their […]<\/p>\n","protected":false},"author":12,"featured_media":41589,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[666,200],"tags":[560,568],"experts":[462,525],"news_type":[138],"class_list":["post-41640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts","category-news-list-en","tag-financial-sector-en","tag-business-and-investment-en","experts-maksym-samoiliuk-en","experts-anhelina-zavadetska","news_type-press-release"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/41640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=41640"}],"version-history":[{"count":5,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/41640\/revisions"}],"predecessor-version":[{"id":43240,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/41640\/revisions\/43240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media\/41589"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=41640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=41640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=41640"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=41640"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=41640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}