Authors: Justin Archer, Sonja Kelly, and Megan Dwyer Baumann.
On March 14, e-MFP was pleased to launch the European Microfinance Award (EMA) 2024, which is on ‘Advancing Financial Inclusion for Refugees and Forcibly Displaced People’. This is the 15th edition of the Award, which was launched in 2005 by the Luxembourg Ministry of Foreign and European Affairs — Directorate for Development Cooperation and Humanitarian Affairs, and which is jointly organised by the Ministry, e-MFP, and the Inclusive Finance Network Luxembourg , in cooperation with the European Investment Bank.
In the sixth of e-MFP’s annual series of guest blogs on this topic, Justin Archer, Sonja Kelly, and Megan Dwyer Baumann from Women’s World Banking present selected insights from WWB’s longitudinal research on the financial activities, needs and resilience of Ukrainian women refugees displaced after Russia’s invasion of Ukraine.
When Ukrainian women were unexpectedly forced from their homes late in the winter of 2022 during the expanded Russian invasion of Ukraine, the only certainty they had was the direction in which they were headed. Most were carrying their children with them and were without the accompanying support of their spouses. They had amassed what fungible money and documentation they could without knowing what would be needed wherever their eventual destination may be. Now, two years in and with many still living in displacement, Women’s World Banking asks the question of how resilient they are—and what financial and social services they needed – and still need – in response. This blog summarises some of the answers to these questions published in a research report from the Women’s World Banking team: Displacement, Financial Inclusion, and Financial Resilience.
As of November 2023, there were still 6.2 million Ukrainian refugees globally (UNHCR 2023). Many had crossed into the neighbouring countries of Moldova, Romania, and Poland, where at their initial emigration our team of well-trained researchers recruited women to participate in our study on their displacement and resettlement journeys. This crisis was uniquely gendered, given UN’s estimate that 90% of border crossings were women and their dependents. The significant support given by the international community to these women also distinguishes this group of forcibly displaced persons from other displacement contexts.
The study that forms the basis of the following insights was a mixed methods longitudinal study, deploying 1,287 surveys over three rounds and 22 in-depth interviews over two rounds spanning 18 months. The surveys gathered data on women’s use of formal financial services in Ukraine, their financial needs and goals, financial resilience, use of financial services, and ability to open accounts in the receiving country. The surveys were conducted by a team fluent in Ukrainian and Russian, including some recently displaced Ukrainian women who were vetted and trained.
Our research questions were as follows:
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How do externally displaced women’s financial strategies change over time, starting with the women’s initial departure from Ukraine following the war up until 18 months later?
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How do externally displaced women’s economic strategies change throughout that same time frame?
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How does the financial resilience of women and their families change from the point when they leave Ukraine and throughout the first 18 months of their resettlement journeys?
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What learnings can the policy and humanitarian response spheres take from the experiences of externally displaced Ukrainian women that may be instructive for supporting other groups of displaced persons?
The following are some insights that emerged from this research:
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Insight 1: Uncertainty drives women’s financial choices in displacement
Ukrainian women refugees employ a diverse mix of financial and economic strategies driven by the need to navigate uncertain circumstances. These strategies include maintaining multiple bank accounts across borders, using host country accounts for essential needs and receiving payments, and using Ukrainian accounts for remittances and expenses in Ukraine. The financial worries and stresses experienced by displaced women persisted long after their journeys, leading to changes in income sources and decision-making dynamics within households.
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Insight 2: Dependent care cannot be ignored in providing financial and social support services to displaced women
Dependent care is a crucial aspect of women’s expenses and time obligations that cannot be overlooked when providing financial and social support services to displaced women. Dependent care should be a central component in designing and implementing support services for displaced women, recognising that their financial and social needs are intertwined with those of their families. The research reveals that women experiencing displacement undertake ongoing negotiations to manage the financial realities and economic choices not only for themselves but also for the welfare of their dependents.
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Insight 3: Financial inclusion tied to a wider range of services is critical to ensure value of financial services access for displaced women
Financial inclusion alone is necessary but not sufficient for displaced women’s resilience. The most successful financial services providers to these women work with a wider range of actors to integrate financial services with other support services such as social programs, healthcare, housing support, and educational opportunities. By linking financial inclusion with these essential services, displaced women can benefit from a more comprehensive and holistic approach to their financial well-being.
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Insight 4: Financial institutions—both from money transfer sending and receiving countries—must establish trust with displaced people
When they left their homes, Ukrainian women withdrew all of the cash they had access to, not knowing if their banking services would be available to them in the receiving countries they were entering. In their new countries, they relied primarily on cash until necessity drove them to seek local financial services. Financial institutions, whether from money transfer sending or receiving countries, play a crucial role in establishing trust with displaced people. They can build trust by providing accessible and inclusive services, offering tailored products and services, ensuring transparency and fairness, collaborating with local and international organisations, and providing financial education and literacy programs.
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Insight 5: Policies to allow displaced Ukrainians to open accounts were tremendously successful
In the spring of 2022, the European Central Bank and the European Banking Authority (EBA) adjusted financial regulations to ensure that Ukrainian refugees could open basic bank accounts and access other financial services. As a result, most women who tried to open a bank account in the host country were successful in doing so. In the first round of surveys, 83% of those who attempted to open an account were successful, and by the second round one year later, the success rate increased to 95%. Women in Romania and Poland were nearly universally successful in their efforts to open accounts. Policies and efforts to facilitate account opening for displaced Ukrainians have been effective in enabling them to access financial services in their host countries.
The insights from this research show that, as the number of refugees and other displaced people continues to hit historic highs each year, attention on the financial inclusion and economic empowerment of displaced women should be one of our community’s top priorities. Coordination among financial services providers and social support organisations; enabling policy to ensure access to financial services; attention to the social and economic challenges women face; and a focus on the goal of resilience all drive our collective success (or failure) as financial services professionals. Financial inclusion can be a tool for women’s resilience if we work toward this goal together.
Justin Archer is the Lead for Global Quantitative Research at Women’s World Banking. Prior to joining the organization, he worked as a research consultant for the World Bank, Population Services International, Marie Stopes International, and many other international development organizations. Before consulting, he lived in Ghana for 2 years while managing micro-savings RCT projects for Innovations for Poverty Action. He received a Master’s of Science in Public Policy and Management from the Heinz College at Carnegie Mellon University and a Bachelor of Arts in Economics from Gettysburg College.
Dr. Sonja Kelly is the global lead for Women’s World Banking research. Through research on the financial sector, policy trends, financial services providers, and end users, Sonja and her team advocate for women’s financial inclusion. Before joining Women’s World Banking, she advised the U.S. Department of State on strategy for U.S. Embassy engagement in digital finance around the world. She has served as the director of research at the Center for Financial Inclusion at Accion, has held consulting roles at the World Bank and the Consultative Group to Assist the Poor (CGAP), and has worked in microfinance at Opportunity International. Sonja holds a PhD in International Relations from American University where she researched financial inclusion policy and regulation.
Dr. Megan Dwyer Baumann is an ORISE Research Fellow with the Environmental Protection Agency. She previously contributed to Women’s World Banking research as the Global Qualitative Research Lead. Megan has designed and led research projects on women’s equitable access to and use of environmental and economic resources. Her work draws on experiences working as a legal representative to asylum seekers. Megan received a Doctorate of Geography and a Master’s of Science in Geography from Penn State University, and a Bachelor’s of Arts from Loyola University Chicago.
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