CLUSTER APPROACH IN ASSESSING THE PRE-WAR LEVEL OF FINANCIAL INCLUSION OF POPULATION FROM DIFFERENT REGIONS OF UKRAINE IN THE MARKET OF BANK LOAN

Abstract

The problem of financial inclusion of the population is relevant in developing countries, including Ukraine. Analysis of the state of financial inclusion demonstrated a fairly low level of financial services provided to Ukrainians. The purpose of the article is to assess the level of financial inclusion of households in the regions of Ukraine in the market of bank loans in the pre-war period using cluster analysis tools and justify the possibility of their application for the formation of an effective state-regional policy for the restoration and development of the affected territories, in particular, in the context of ensuring access to bank loans. Cluster analysis was the methodological tool of the study. An algorithm of clustering of regions of Ukraine by the level of financial inclusion of the population in the market of bank loans was designed, taking into account such indicators as the number of bank branches, amount of a loan for one person, interest rates on loans to individuals in the regions. As a result of cluster analysis, four clusters were formed with low, middle, high and advanced-level regions by the level of financial inclusion of the population in the market of bank loans. Most Ukrainian regions (15) were determined as having a low level of access to the market of bank loans. This made it possible to conclude that these regions need special attention from the central and local authorities, as well as from financial institutions in terms of facilitation of public access to banking services. The need to strengthen the financial inclusion of the population in Ukraine during martial law and in the post-war period, taking into account the needs of de-occupied and front-line territories, as well as regions with a large number of internally displaced persons, is substantiated.