NCUA Chair Rodney Hood cites World Council Project in Africa as example of the industry expanding financial inclusion
MADISON, WI (July 8, 2020) — The chair of the national agency that regulates United States’ credit unions cited the work World Council is doing to expand financial inclusion in Africa during a July 8 webinar presentation to the Institute of International Bankers (IIB).
In his keynote address for the IIB’s “Virtual Summit on Diversity, Equality, and Inclusion,” National Credit Union Administration (NCUA) Chair Rodney Hood said the financial services industry must use technology in ways that will result in greater financial inclusion across the globe—especially in light of COVID-19.
“I recognize that all of your institutions are looking at how fintech can be used to improve efficiency or customer service, especially as the pandemic has driven increasing numbers of banking customers into a digital world,” said Hood.
But Hood added that even after the COVID-19 pandemic passes, fintech tools can also enable the industry to connect with minority communities, rural communities and other underserved populations.
“For example, in West Africa, the World Council of Credit Unions, through its Technology and Innovation for Financial Inclusion (TIFI) Project, is working with the Confederation of Financial Institutions (CIF) of West Africa to create a digital credit union,” said Hood. “By exploring opportunities for partnership with technology and business development providers, the project’s goal is to improve small- and medium-enterprise lending strategies in developing countries.”.
Beyond strengthening its relationship with CIF to see that digital credit union through to its completion, the TIFI project is also continuing discussions with Burkina Faso’s national credit union association, Réseau des Caisses Populaires du Burkina (RCPB), as it seeks to strengthen operations there and work through the RCPB’s network of credit unions.
The TIFI project has also begun initial landscaping of the Senegalese market and established a partnership with the national credit union association, PAMECAS, while working to achieve USAID Mission concurrency to begin operations in that country.
Hood noted the industry needs continued innovations that promote greater financial inclusion like the TIFI Project has demonstrated.
“The financial services industry has shown great creativity in developing new types of products, but we haven’t always directed those creative energies toward helping the people and communities who need help the most. That seems to be changing for the better, and social impact investing is an excellent example of that change.”
NCUA Chair Rodney Hood giving his keynote address to the Institute of International Bankers
About World Council of Credit Unions
World Council of Credit Unions is the global trade association and development platform for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.
World Council has implemented 300+ technical assistance programs in 90 countries. Worldwide, 87,914 credit unions in 118 countries serve 393 million people. Learn more about World Council's impact around the world at www.woccu.org.