UKRAINIANS IN POLAND AND UKRAINE: IS THE WAR CRISIS ABLE TO CHANGE PATTERNS OF FINANCIAL BEHAVIOUR

Abstract

The russian war against Ukraine caused a large wave of displaced people both inside and outside the country. According to UNHCR as of 2023, more than 1.6 million Ukrainian citizens applied for protection status in Poland and 4.9 million people received internally displaced status in Ukraine. This paper aims to analyse the data from a 2023 survey of internally displaced Ukrainians and those who are considered refugees to identify how their financial patterns have changed and what measures can be applied for adjustment to a new environment. The results show that there are no significant changes in patterns of financial behaviour, however, both groups demonstrate coping strategies: more than 50% in both groups shorten their financial horizon plans. Their expenditures are focused mostly on essential needs.  In both countries, Ukrainians invest less because of the decrease in their income. As well, the majority in both groups do not invest at all. Bank deposits remain the most popular investment for Ukrainians (in Ukraine is more than 25%, and in Poland is more than 15%). The real estate objects in Ukraine are less attractive because of security as before 2022. At the same time, Ukrainians are searching for alternative ways of investment. Ukrainians demonstrate a high level of using different digital technologies for different purposes, including personal finance. The fintech solutions are recommended to facilitate better decision-making in personal finance and change the patterns of financial behaviour. Fintech can increase the financial inclusion of IDPs in Ukraine and migrants in Poland and direct money flows for investment for further their pension payments.