IFC Digital Data Corridor Initiative: Assist Forcible Displaced People from Ukraine to get access to financial services
Lack of access to credit history and banking services is a major challenge for Ukrainian refugees in host countries. This is why IFC worked with partners to launch the Digital Corridors initiative to help financial institutions receive identity verification and bank transaction data in real time.
With the new data exchange mechanism, Ukrainians will have more lending options as well as better access to jobs, opportunities, and accommodations.
IFC’s Digital Data Corridor Initiative connects credit bureaus from Ukraine with other credit information providers in the hosting countries to assist financial institutions to address issues with identity verification (KYC), payment and credit history by sharing reliable data. With this information, Ukrainians in host countries will be able to get easier access to credit cards, loans, and other services.
Started after the Russian invasion to Ukraine, IFC team backed by the National Bank of Ukraine, supported credit bureaus to develop needed basis for cross-border data exchange, conducted analysis of legal framework and coordinated with regulators in different countries to ensure that there are no obstacles for Ukrainians to get access to financial services in hosting countries.
“Forcefully Displaces Peoples (FDPs) are potentially an attractive segment for lenders as compared to, for example, unskilled groups of migrants. Millions of Ukrainian refugees are digitally savvy with good or excellent creditworthiness. The project is already leveraging the existing European infrastructure of-credit information providers to distribute data on the Ukrainian refugees. This is the first time that data and analytics are being used to help integrate FDPs. In an increasingly uncertain world, Digital Data Corridors will allow many Ukrainians to pick up their lives,” said Fabrizio Fraboni, IFC’s Lead Financial Sector Specialist, Financial Institutions Group.
The cross-border data exchange mechanism has already become operational in Poland, Georgia, Latvia, Lithuania, Estonia , and the Czech Republic. In the longer term, IFC plans to facilitate the opening of new Data Corridors in other European members states such as Germany, Italy, Austria, and other jurisdictions hosting FDPs from Ukraine .
Courtesy of International Finance Corporation