Grant Money Awarded for ‘Digital Transformation’ of Ukrainian CUs
The grant money will be used to help Ukrainian credit unions upgrade and modernize core banking systems.
The Worldwide Foundation for Credit Unions (WFCU), in partnership with WOCCU’s Credit for Agriculture Producers (CAP) Project and USAID, announced the launch of a new $200,000 grant program to fund Ukrainian credit unions efforts to upgrade the country’s core banking systems and modernize services for its members.
According to the launch announcement Dec. 6, “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. Low digitalization levels also prohibit these credit unions from attracting younger Ukrainians seeking modern financial services, which contributes to an increasingly aging membership.”
WFCU officials said it is using $200,000 from the Ukrainian Credit Union Displacement Fund, set up just days after Russia invaded the country, to support the following:
- 26 credit unions introducing a modern core banking system with Application Programming Interface (API) integration.
- 52 credit unions optimizing operational processes with third-party providers (Anti-Money Laundering (AML) procedures, access to credit bureaus and key databases).
In all, the 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, according to WFCU’s announcement.
“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.
Since February 2022, WFCU 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.