Problems and prospects for the development of the financial services market based on innovative mechanisms: European experience and Ukraine

The relevance of the article's topic is determined by the fact that the financial services market plays an important role in the modern economic system, ensuring the redistribution of financial resources, supporting investment activity, and maintaining financial stability. It is shown that the European model of the financial services market is characterized by a high level of institutional maturity and the systematic implementation of innovative mechanisms. The Ukrainian market is in the phase of active transformation, where innovations serve as tools for adapting to wartime and economic challenges and, at the same time, form the foundation for future integration into the EU financial space. It is proven that innovative tools of Ukraine's financial market are an important factor in adapting the economy to conditions of uncertainty and wartime. They contribute to increased financial inclusion, effective resource redistribution, the resilience of the financial system, and bring the national financial market closer to EU standards. It is argued that under the economic instability and wartime conditions in Ukraine, the implementation of EU Directives will promote the digitalization of the financial market, enhance the resilience and accessibility of financial services. Innovative tools in the financial services market are becoming a key driver for Ukraine's integration into the European financial space. A comparative analysis of key directives showed that the active integration of Ukraine's financial services market into the EU has structural and institutional limitations, particularly in the development of the insurance and investment sectors. Ukraine's priority should be the growth of insurance innovations, the expansion of crowdfunding, and strengthening the cyber-resilience of financial services. Prospective directions for the development of Ukraine's financial services market are substantiated, focusing on strengthening the role of non-bank financial institutions, forming a long-term capital market, implementing European regulatory standards, developing a digital financial infrastructure, introducing innovative financial mechanisms, and improving the financial literacy of the population. Priority areas identified include the development of FinTech (financial technologies), BankTech (banking technologies), InsurTech (insurance technologies), and RegTech (regulation and compliance technologies). The application areas for these technologies are defined as banking supervision, digital payment systems, risk insurance of a military nature, investment diversification, the use of hybrid financial instruments, and interaction with international financial organizations. It is proven that the proposed measures, as they are implemented, will increase the competitiveness of the financial market, stimulate integration into the European financial space, and ensure the sustainable development of Ukraine's economy.