IFC: Financial Inclusion for Growth Ukraine
The Financial Inclusion for Growth Ukraine Project aims to improve access and responsible usage of financial services by the population and SMEs in remote areas and strive for a better financial inclusion (FI) in the country. The project is implemented by the International Finance Corporation.
Private sector and entrepreneurship
- International Finance Corporation
Greater Financial Inclusion - the availability, usage and quality of responsible financial services at affordable costs - is a key enabler for sustainable economic growth and poverty reduction. To foster the delivery of responsible financial services, there is a need to reduce the information asymmetry through transparent credit reporting and improve financial literacy for individuals and SMEs. Digital solutions allow for an efficient scale-up of financial services. FI remains limited in Ukraine due to a number of factors. They include the neglected remote areas, lack of information and crowding out of SMEs.
The project contributes to greater responsible FI in Ukraine by improving those areas in the financial sector that reduce information asymmetries and facilitate access to financial services such as credit, savings and payments for individuals and SMEs in a responsible manner. This will support sustainable economic growth and job creation. Improving the credit reporting system and promoting financial literacy and consumer protection will reduce the information asymmetry, whereas enhancing the regulatory system for digital financial services will enable the underserved segments of the population to access financial services.
Improved supervision over financial services
Improved consumer protection framework
Increased access to credit for SMEs and individuals
Lower costs of financial services
Better access to financial services
Improved financial literacy and financial behavior
Credit reporting legistation development and development of new credit bureaus' products. Capacity building of government officials and private credit bureaus.
Developing digital financial regulations and standards. Implementing a Cashless Zone to prepare for national scale-up. Facilitate a public-private dialog on digital solutions.
Develop a National Financial Inclusion Strategy for the National Bank. Developing financial capability programs for individuals and SMEs. Prepare the establishment of a Consumer Protection Department at the National Bank.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 2’717’000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 5’870’000|
|Project phases||Phase 2 15.04.2019 - 14.04.2023 (Current phase) Phase 1 01.11.2019 - 31.12.2023 (Current phase)|