In Ukraine most of the companies who pay salaries to their employees into bank accounts use so called ‘salary projects’ with one particular bank for payments to all employees.
Such a practice has been common in Ukraine since 2000 and is not used in the EU and other developed countries. As of today, employees cannot choose a bank according to their needs and comfort (closer to the office/home, where deposit or credit is placed etc.), but is forced to use the bank of the employer’s choice.
The experience of our European neighbours (for example, Poland) shows that freedom of choice in banking services forces a rise in financial literacy as well as improving competition in the banking market.
That is why we in the EBA Electronic Payments Committee fully support the initiative of the People’s Deputies to envisage respective provision in legislation (the Draft Law on Amending Certain Laws of Ukraine regarding right of employee to choose a bank for salary payments No. 2287a dated 3 July 2015).