Opening Project USAID «Financial Sector Transformation" in Kiev

The U.S. Agency for International Development (USAID) inaugurated a new 4-year program – the USAID Financial Sector Transformation Project – with an event addressing the knowledge, attitudes and behavior of Ukrainian consumers regarding finances. The Project launch presented the results of a January 2017 financial awareness and literacy survey conducted nationally in Ukraine. The survey polled 2013 Ukrainians, users of financial services, aged 18 and over, from across all regions of Ukraine. A total of 85 questions were asked in face-to-face interviews.

Key findings of the survey include:
- Most Ukrainians believe that buying on credit is either never justified, or should only be done in an emergency.
- Most Ukrainians have one bank or payment card.
- By a three-to-one margin, Ukrainians prefer to pay in cash rather than use cards.
- Few Ukrainians have long-term financial goals, and even fewer make or use a household budget.

U.S. Embassy Deputy Chief of Mission George Kent and First Deputy Governor of the National Bank of Ukraine Yakiv Smolii opened the event. Other commentators included Member of Parliament Mykhailo Dovbenko, Member of Parliament Ruslan Demchak, Deputy Managing Director of the Deposit Guarantee Fund Andriy Olenchyk, and Raiffeisen Bank Aval Board Chairman Volodymyr Lavrenchuk.

The goal of the USAID Financial Sector Transformation Project (October 2016-December 2020) is to transform Ukraine’s financial sector into a transparent, fair, and diversified system that supports businesses of all sizes and serves citizens’ needs. The project will support financial sector reform in Ukraine and will provide assistance in the following areas: raising confidence in the banking sector; increasing access to finance in the non-bank financial sector; developing digital financial solutions; reforming the pension system; and reaching out to vulnerable groups to better involve them in financial activities.

U.S. Embassy DCM George Kent explained: “It is critical that we keep the consumer of financial services in mind when we design and execute reforms. Financial engineering can be a hugely destabilizing factor, if it is not accompanied by consumer financial awareness and understanding, coupled with robust financial consumer protection.”

The USAID Financial Sector Transformation Project will pay special attention to financial literacy and financial consumer protection to help consumers gain the confidence, knowledge, information and security they need to empower them to participate fully in financial markets.