To support financial institutions in addressing financial abuse, IFC today launched 'Empower Finance', an 18-month program implemented with support from the Government of Australia. Through this initiative, IFC will convene nine financial institutions across five countries collectively serving more than 30 million customers in Asia and the Pacific and global experts in financial-abuse prevention to share information and best practice and introduce the tools and solutions to better protect customers and financial institutions.
Financial abuse involves the misuse of financial products such as bank accounts, loans, consumer credit and debt to financially harm another individual. It particularly affects women and marginalized groups and its economic implications are profound, undermining financial inclusion efforts, resulting in financial losses and negative impacts on credit ratings, reputational damage and a loss of trust in financial institutions.
"Financial abuse directly opposes efforts to enhance women's access to and control over finance and financial services," said Nathalie Akon Gabala, Global Director for Gender and Economic Inclusion at IFC. "The prevalence and cost of such abuse are only now being understood. Through Empower Finance, we are providing financial institutions with the necessary tools and knowledge to recognize, prevent, and create a safe environment for financial activities."
'Empower Finance' – which comprises financial institutions from Nepal, Papua New Guinea, Sri Lanka, Vanuatu and Viet Nam – will promote universal principles to guide the development of safe banking products and services, which will help to minimize potential risks from financial abuse.
"Financial abuse is a global challenge that requires a collaborative and proactive approach," said Allen Forlemu, Regional Industry Director, Financial Institutions Group, Asia Pacific at IFC. "Through 'Empower Finance,' we aim to strengthen the integrity of banking products and the banking sector in Asia and the Pacific. We hope that this unique program will help financial institutions create a resilient and secure financial ecosystem that protects the interests of individuals and businesses, specifically for underserved groups such as women."
"Gender equality is essential for security, stability, and sustainable development," said Stephanie Copus Campbell, Australia's Ambassador for Gender Equality. "This initiative recognizes the critical role that financial institutions can play in mitigating the risk of financial abuse to women and other marginalized groups, which not only compromises their security but also impedes the advancement of financial inclusion."