Nowadays, servicing of budgetary organizations for banks gives an opportunity to increase the number of customers and the development of the network as a whole. That’s why one of the major areas of development is the focus on cooperation with budgetary organizations and recipients of budget funds.

The Ministry of Finance of Ukraine has published a list of authorized banks on February 1, 2021, through which pension payments, social aid and salaries are paid to employees of budgetary institutions. However, not every bank can provide such services, because according to the resolution of the Cabinet of Ministers of Ukraine №1231 "On approval of the Procedure for competitive selection of banks through which pensions and social aid are paid with the consent of pensioners and beneficiaries" [1], during the last selection The Ministry of Finance selected only 44 banks and gave them licenses, so they can officially serve budgetary organizations and pensioners. It should be noted that the criterias for the last selection were quite simplified as opposed to previous years, but even this did not allow everyone to obtain a license. Among these banks, state-owned banks, banks of foreign origin and banks with private capital were selected [2]. These are those banks that comply with NBU standards and to which no measures of influence and special control have been applied, as well as the temporary suspension or complete cessation of certain types of activities.

For banks that have decided to start working in this direction, one of the main impulses has been the desire to increase the level of service to their existing customers to avoid them moving to another bank to receive a pension, social aid or salary. It also expands the list of services they will now be able to provide to civil servants and public sector employees. Thus, obtaining a license to service budgetary organizations greatly increases a chance of attracting a certain range of customers.

However, there are also banks that don’t want to take on the services of budgetary organizations. They are explaining this by the fact that they focus, first of all, on improving existing services, and only after the complete modernization of their internal systems will be ready to start working in a new direction.

Illustrative examples are: A-Bank, which follows a slightly different development strategy; ProCredit Bank, which has chosen the main direction of development of corporative financial services. These areas do not require a fairly extensive retail network of branches and active work with customers - individuals. Therefore, the payment of pensions and maintenance of salary projects of budgetary organizations are not a priority for these banks. For small banks, services to retirees and government employees in 2021 are not as attractive as before, because most retirees cannot have loans. In addition, due to the COVID-19 pandemic, which has been going on for a long time, the number of deposits has vastly decreased, which makes such customer service unprofitable for small banks.

Considering all of the above, we propose to consider the interaction of local governments and banks on the example of the Executive Committee of the Kryvyi Rih City Council. The choice of the bank for servicing the executive committee is largely made by the chairman of the executive committee and the chief accountant, who are most interested in ensuring that all financial transactions are carried out quickly and efficiently. They meet with representatives of various banks to choose the one that will meet all the requirements and will be most convenient for them. Meetings are held with the heads of areas involved in servicing budget organizations, who best understand the specifics of the work and can satisfy needs of such clients.

Today, it was decided to choose JSC CB "PrivatBank", which won the tender and has a license to serve budget organizations in 2021. The range of services and products of the bank offered to budget organizations is quite large: from the Salary project to the cash acceptance. At the same time, the Executive Committee has employees who do not want to be served in certain banks due to their personal beliefs, but this is also an issue that PrivatBank has brilliantly resolved. To simplify the work of the accountant, giving the opportunity to pay wages through his salary project on the cards of other banks to cover the maximum number of customers receiving payments, and the accountant spends on such an operation exactly as much time as for payment on the card of "PrivatBank". This fairly simple feature allows to satisfy the needs of both - managers who want to get fast and qualitative service, and employees who reserve the right to choose servicing in any bank of their choice. Also, pay attention to the possibility of free and most quickly to issue a declaration of income through internet banking "Privat24" because it is one of the most necessary services to employees of the Executive Committee and to conduct more than 140 banking operations, which realized PrivatBank in its internet banking has greatly simplified the lives of customers and freed them from constant queues.