KYIV, Ukraine—The Worldwide Foundation for Credit Unions, in partnership with the USAID/World Council of Credit Unions’ Credit for Agriculture Producers Project (CAP) have launched a $200,000 digitalization program to help Ukrainian credit unions upgrade core banking systems and modernize services in an effort to improve member experience.
“Financial institutions must be able to provide online and mobile banking services to be competitive, but a lack of such services at Ukrainian credit unions negatively impacted their performance throughout the COVID-19 pandemic and during the first few months of Russia's full-scale invasion of Ukraine,” the Worldwide Foundation said. “Low digitalization levels also prohibit these credit unions from attracting younger Ukrainians seeking modern financial services, which contributes to an increasingly aging membership.”
Displacement Fund Tapped
To support what it called the “crucial, but barely affordable” digital transformation for credit unions in Ukraine, WFCU said it tapped its Ukrainian Credit Union Displacement Fund to disburse a $200,000 grant to help: 26 credit unions introduce a modern core banking system with Application Programming Interface (API) integration.
According to the organization, 52 credit unions optimize operational processes with third-party providers (Anti-Money Laundering (AML) procedures, access to credit bureaus and key databases).
As a result, said the Worldwide Foundation, these 78 Ukrainian credit unions will be able to increase the scope of services provided to their members, decrease the time for client servicing and reporting, and reduce operational risks and costs.
‘Digital Solutions are Key’
“Digital solutions are key for credit unions to remain competitive in the financial services market of Ukraine, attract young members and start serving legal entities,” said Viacheslav Vytiuk, CEO of First All-Ukrainian Credit Union, which is participating in the program.
According to the WCUF, a core banking system upgrade and access to third-party provider solutions will be the first step in the digital transformation of Ukrainian credit unions, leading to the opportunity for credit unions to integrate other IT solutions and launch online services.
Since February 2022, the Worldwide Foundation for Credit Unions reported it has raised over $1.8 million through its Ukrainian Credit Union Displacement Fund, implemented seven relief programs and launched three early recovery programs totaling nearly $1.5 million that have focused on providing assistance to Ukrainian credit unions and their members in wartime.
How to Make Donation
For info: WFCU Relief Results report. To donate to the Ukrainian Credit Union Displacement Fund, click here.
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