Over 110 million individuals are displaced due to violence and climate change. Traditional financial institutions often perceive refugees as high-risk clients despite evidence of their creditworthiness. Innovative financial solutions have begun showing that refugees can contribute significantly to economic stability. Programs like Kiva.org's pilot initiative have recorded repayment rates of over 96%. The use of impact-first capital by financial service providers in refugee-hosting countries helps in offering loans, thus enhancing financial inclusion for these populations and benefiting host communities.
Over 110 million people are displaced due to violence, persecution, and climate change, and access to financial services is often the key to rebuilding lives.
Research and pilot programs consistently show that refugees can, and do, repay loans at rates comparable to non-refugee populations.
A 2016 Kiva.org pilot initiative provided risk-tolerant, crowdfunding-based loans to refugees, with a 96.39% repayment rate.
By channeling impact-first institutional capital to financial service providers, organizations can offer loans to refugees who would otherwise be excluded from formal financial systems.
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