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A set of recommendations for regulating the activities of Ukrainian neobanks has been formulated, embodying a balanced approach, promoting European integration, while ensuring compliance with requirements and supporting their competitiveness. The aim of the article is to extrapolate valuable foreign insights for developing recommendations on constructing regulatory and legal framework that will contribute to the inclusion of Ukrainian neobanks into the EUʼs financial space. The research is based on the hypothesis that the existing regulatory gap in the organization and supervision of neobanking in the EU and Ukraine prevents Ukrainian neobanks from fully realizing their innovative and competitive potential. The research aim was accomplished thanks to the application of a wide range of general scientific and specialized methods, in particular a comprehensive review of scientific sources, legal, comparative, statistical performance analysis, case study, grouping and systematization, as well as formulation of neobanks regulation policy content. The relevance of improving the regulation system of neobanks has been proven, taking into account the acceleration of the global expansion of neobanks as an alternative to the traditional banking business. The article reveals development trends and reasons for the growing popularity of neobanks in certain countries, as well as successful regulatory initiatives that can be adapted for implementation in Ukraine in order to overcome the challenges and threats that Ukrainian neobanks are currently facing. A particular emphasis is placed on the study of the regulatory system of neobanks in the EU countries, which is based on the principles of financial stability, consumer protection, and prevention of financial crimes. On the basis of a comparative analysis of different approaches, successful initiatives for implementation in Ukraine have been determined, which will make it possible to adapt the regulatory infrastructure of the neobanking sector to the level of best practices. Such adaptation is necessary, since the imperfection of the current regulatory and legal framework makes it impossible to comprehensively analyze and effectively control the neobanksʼ activities, which causes risk of uncertainty, unreliability of services, threats to security and compliance with international regulatory and legal requirements. This diminishes trust on the part of clients and investors, thereby hindering their international competitiveness. To ensure the sustainable development of neobanks in Ukraine, a roadmap for the step-by-step formation of the regulatory infrastructure of the neobanking sector has been developed
KALYTA et al. (Tue,) studied this question.