Modern Vector of Development of Pawnshops in Ukraine

The article is aimed at establishing a modern vector of development of pawnshops in Ukraine. The current state of the pawnshop loans market is analyzed and its detailed analysis is carried out from the point of view of opportunities and threats at the macrolevel and strengths and weaknesses at the microlevel. In the course of a SWOT analysis of the state of the pawnshop loans market, the relative balance of prospects and challenges of economic, social and political nature, which have an impact on the functioning of pawnshops, is determined. The hypothesis about the significant impact on the development of pawnshops in Ukraine such factors as the solvency of the population and the volume of economic development (in terms of GDP per capita) is put forward. A regressive model of development of the pawnshop lending market is formed, the economic interpretation of which is the possibility of increasing the volume of issued pawnshop loans with an increase in the volume of average monthly incomes of citizens, and their reduction is possible with an increase in the unemployment rate in Ukraine and a build-up in the level of GDP per capita. It is assumed that the results of the model reflect a critical limit of the cumulative impact of selected socio-economic factors, when low incomes of the population with high unemployment and slow GDP growth cause an unconventional effect – a reduction in the volume of the short-term lending market, characterized by the effect of behavioral finances, when it is more important for borrowers to avoid unjustified costs than to receive short-term benefits. It is emphasized that the possibilities of development of pawnshops are concentrated in the vector of their qualitative renewal: the formation of a legislative basis for self-regulation of the market, deepening of work to improve financial literacy of the population, in particular, public awareness of the risks of obtaining loans in pawnshops