HOUSEHOLD DEMAND FOR FINANCIAL SERVICES: REGIONAL ASPECT

2020;
: 106-114
1
Lviv Polytechnic National University, Departament of Finance
2
Lviv Polytechnic National University, Department of Entrepreneurship and Environmental Examination of Goods

The purpose of this paper is to evaluate the features of the regional distribution of households demand for financial services and identification of factors and characteristics of such distribution. The authors undertook to fulfill this aim by dividing all regions in Ukraine into regions with household-donors and household-recipients. First of them are characterized by the predominance of household demand for financial services, which provide an increase in their financial costs. In Ukraine, 2/3 of the regions belong to the group of donor households. The rest belong to the group of regions with recipient households. In these regions, the demand for financial services, which causes an increase in financial resources of households, prevails. The analysis is based on data from the State Statistics Service of Ukraine and encompasses the period of 2017-2018.

The k-means method was used to cluster the regions. The cluster, which brings together regions with a low overall description of households demand for financial services, is the largest. This place includes 14 (58.33%) of regions. The smallest is the cluster, which brings together regions with high household demand for financial services. It includes only 1 (4.17%) region of Ukraine. Based on this, the authors concluded that household demand for financial services was generally low.

The authors tested the hypothesis about the type of distribution. It is proved that the demand of households for financial services in the regional context is distributed according to Poisson's law. According it high and very high demand per household is typical for only 8% of regions. The annual volume of financial services in the amount of UAH 245.88 is considered sufficient for most households in Ukraine, regardless of the region.

The authors calculated the correlation coefficients between the volume of financial services used by households and the level of their income. Correlation coefficients were also calculated between the volume of household demand for financial services in a particular region and the value of gross regional product. Based on these calculations, the authors concluded that the volume of household demand for financial services does not depend on the level of household income or the level of gross regional product. This indicates the presence of certain non-economic factors that determine the distribution of regions according to the level of household demand for financial services. This indicates the presence of certain non-economic factors that determine the distribution of regions according to the level of household demand for financial services.

1. Aivazyan S.A, Mkhitaryan V.S. (2008). Prikladnaya statistika i osnovy econometriki [Applied statistics and basics of econometrics]. M. 1022 p. [In Russian].
2. Honta O.I., Dubyna M.V. (2017). Osoblyvosti vplyvu rynku finansovyph posluh na rozvytok natsionalnoyi economiky [Features of the influence of the financial services market on the development of the national economy]. Bulletin of Khmelnytsky National University. Economic sciences. No. 6 (3). Pp. 94-100 [In Ukrainian].
3. State Statistics Service of Ukraine (2020)a. Valovyu regionalnyu produkt 2004-2019 [Gross regional product in 2004-2019]. Retrieved from: http://www.ukrstat.gov.ua/ (accessed 09.09.2020).
4. State Statistics Service of Ukraine (2020)b. Vytraty I resursy domogospodarstv Ukrainy po koghnomu regioni [Costs and resources of Ukrainian households in each region]. Retrieved from http://www.ukrstat.gov.ua/ (accessed 09.09.2020).
5. Esh S. M. (2011). Rol rynku finansovyph posluh u pidvyschenni konkurentospromoghnosti finansovoho rynku Ukrainy [The role of the financial services market in increasing the competitiveness of the financial market of Ukraine]. Formation of market relations in Ukraine. № 12. pp. 92-97 [In Ukrainian].
6. Kondrat I. Yu., Yaroshevich N.B. (2020). Modernizacia vzaemodiyi strahovyph kompaniy z klientamy v umovaph pandemiyi koronavirusu [Modernization of insurance companies' interaction with clients in the context of the coronavirus pandemic]. Management of the innovation process in Ukraine: the development of cooperation: tesis of the VIII International Scientific and Practical Conference. Lviv Polytechnic National University (Lviv, June 18-20, 2020) p. 103-104. Retrieved from: http://ena.lp.edu.ua:8080/handle/ntb/53749 [In Ukrainian].
7. Matsuk, Z. (2018). Otsinka regionalnoho rozpodilu finansovyph posluh instytutiv spilnoho investyvannia [Evaluation of the regional distribution of the collective investment funds' financial services in Ukraine]. Ekonomika ta derzhava, vol. 11, pp. 55-60. DOI: 10.32702/2306-6806.2018.11.55 [In Ukrainian]. https://doi.org/10.32702/2306-6806.2018.11.55
8. Nikolaieva A.M. (2017). Rol rynku finansovyph posluh u socilno-ekonomichnomu rozvytku regioniv: teoretychnyy aspekt [The role of the financial services market in the socio-economic development of regions: a theoretical aspect]. Economic forum. № 2. pp. 318-326 [In Ukrainian].
9. Pro finansovi posluhy ta derghavne reguliuvannia rynkiv finansovyh poslyh [About financial services and state regulation of financial services markets]. Law of Ukraine from 12.07.2001 No. 2664-II (with changes and additions) Retrieved from: http://search.ligazakon.ua/l_doc2.nsf/link1/ed_2010_12_02/T012664.html (accessed 1.09.2020 р.)
10. Soloshkina IV (2013). Finansovi posluhy yak pravova kategoriia: poniattia? Suttievi storony ta inshi oznaky [Financial services as a legal category: concepts, significant aspects and other features]. Law Forum. № 4. pp. 388-394 [In Ukrainian].
11. Shevchuk O.R. (2012). Doktrynalni pidhody do vyznachennia pravovoho zmisty ta klasyfikatsiyi finansovyh posluh [Doctrinal approaches to determining the legal content and classification of financial services]. Lawyer. No. 11. Pp. 27-30 [In Ukrainian].
12. Shkvarchuk L., Slav'yuk R. (2019). The Financial Behavior of Households in Ukraine. Journal of Competitiveness. 11(2). Pp. 144-159.doi.org/10.7441/joc.2019.03.09 [In English]. https://doi.org/10.7441/joc.2019.03.09