NBU, IFC sign agreement on digital finance in Ukraine

The National Bank of Ukraine (NBU) and the International Finance Corporation (IFC) have collaborated on an agreement to promote digital finance and financial innovation in Ukraine. The partnership, along with Switzerland’s State Secretariat for Economic Affairs (SECO), took place during the IMF and World Bank annual meetings in Bangkok. NBU Governor Andrei Pyshnyy announced the initiative on Facebook, stating that the goal is to create a regulatory sandbox, develop open banking, and establish an Innovation Hub.

The agreement aims to expedite the transition of financial solutions from concept to practical application, and improve the accessibility of financial services. NBU Governor emphasized that the project will run until 2029, providing ample time to translate international expertise into tangible solutions for Ukraine's financial market.

The total budget of the advisory project 'Digital Finance Future Ukraine' approved by the IFC board of directors is $2.83 million. This funding will be used to develop digital financial services, draw in private capital, and foster private capital market participation.

The project's primary components include aligning Ukrainian legislation and regulatory environment with EU standards, modernizing financial infrastructure, and attracting private capital to the fintech sector through open banking, venture capital, and direct investment. Additionally, the agreement focuses on promoting cooperation, innovation, and regional integration of the fintech market, providing participants with the necessary tools and knowledge to enhance digital financial services and expand access to capital.