By Micol Pistelli, UNHCR Senior Financial Inclusion Officer
Financial inclusion is not a privilege – it is a cornerstone of recovery. That message resonated strongly during a recent UNHCR and DLA Piper International event in London, which focused on expanding access to finance for forcibly displaced persons (FDPs). When people are forced to flee their homes, they lose far more than shelter and safety. Jobs are left behind, savings disappear, and support networks vanish. Rebuilding a life requires more than shelter – it demands access to tools that foster stability, independence, and opportunity.
Identifying the roadblocks: a global legal review
The event opened with early findings from a first-of-its-kind legal review by DLA Piper International and UNHCR, examining the regulatory and practical barriers that prevent displaced people from accessing basic financial services. Covering more than 80 jurisdictions, the review looked at challenges to opening bank accounts, registering SIM cards, and accessing mobile money or digital wallets.
Insights from 52 countries were used to classify jurisdictions into three categories: enabling, moderately enabling, and developing, based on the strength of their legal frameworks. The research also put forward initial policy and market-level recommendations to help close the inclusion gap.
A comprehensive report, including detailed country profiles and documentation requirements for refugees, asylum seekers, and internally displaced persons, is planned for publication in September, alongside an interactive map developed by UNHCR to visualize the findings.
Inclusion as strategy: the business case
A panel moderated by Joe Huxley (The Impact Dividend) explored why financial inclusion for refugees is not only the right thing to do, but also makes good business sense. Key takeaways included:
- Lev Plaves (KIVA) noted that since 2016, refugee clients on Kiva’s platform have maintained a 96% loan repayment rate, on par with traditional microfinance clients. Kiva’s risk-tolerant model enabled microfinance institutions to pilot refugee-focused products, eventually leading to the creation of the KIVA Refugees Investment Fund. “There is a business case for serving refugees,” he said. You’re growing your business and expanding your clientele. Different refugees have different needs; access to financial services is a part of these needs.
- Philippe Guichandut (Grameen Crédit Agricole Foundation) highlighted a blended finance programme implemented with Sida and UNHCR that has reached over 100,000 refugee and host community clients in Uganda. He highlighted partnerships with VisionFund Uganda and Ugafode, where access to finance was paired with training and tailored business support.
- Justin Sykes (Innovest Advisory)pointed to a fundamental mismatch in capital availability. “There’s a disconnect between what’s available and what’s needed on the ground,” he said, noting that short-term debt models with high minimum investment thresholds are ill-suited for refugee-serving institutions. Sykes called for more flexible capital structures, streamlined Know Your Client (KYC) processes, and emphasized the catalytic role of de-risking mechanisms, such as first-loss structures, to unlock financing opportunities.
- Ricardo Garcia Tafur (IFC-UNHCR Joint Initiative) stressed the need to design financial products around the diverse profiles of refugee clients. He outlined IFC’s structured approach: mapping refugee personas and assessing institutions (as done in Brazil and other countries in Latin America and Europe), followed by co-designing pilot programmes and scaling solutions.
Resilience, dance and hats: stories of refugee entrepreneurs
In a fireside chat moderated by UNHCR’s Dominique Hyde, two refugee entrepreneurs shared how financial access helped turn their ideas into thriving businesses:
- Maysa Ismael, originally from Syria, launched Shik Shak Shok in London in 2016 – a dance initiative to promote mental wellbeing during the COVID-19 pandemic. Along the way, she overcame significant challenges related to visa status, credit access, and legal identity.
- Anil Qasemi founded Hatopia UK after arriving in the UK from Afghanistan in 2021. He was inspired by a theatre trip to see Life of Pi – a story that resonated with his journey, where he noticed many in the audience wearing hats. That sparked the idea for a hat retail business. Today, Hatopia exports handmade hats to over 30 countries and has won the eBay Start-Up Award.
Both entrepreneurs benefited from early support from TERN (The Entrepreneurial Refugee Network) and interest-free loans from Skylight Ventures, which help refugees build credit histories. Their journeys illustrate what is possible when legal recognition, supportive institutions, and tailored finance come together. While policy frameworks are improving globally, the real test lies in making inclusion tangible through on-the-ground implementation, private-sector engagement, and sustained investment.
From policy to practice: lessons from the field
A second panel, moderated by Edward Fraser (Financial Inclusion Forum), brought together insights from regulators and financial service providers:
- Mariam Zahari (Alliance for Financial Inclusion) described how central banks – once disengaged – are now leading efforts to integrate refugees into national financial systems. “Eight years ago, they wouldn’t even consider the question,” she said. Today, many are taking the lead – collecting data, shaping inclusive policies, and integrating FDPs into national financial inclusion strategies. However, KYC requirements remain a persistent barrier, and clearer regulations are needed to encourage more financial service providers to engage in refugee finance.
- Rory Bruce (VisionFund International) shared how they adapted products for South Sudanese refugees in Uganda, including the development of the FAST product to address common challenges related to collateral and loan size. Employing refugees directly also helped bridge cultural and language gaps. “None of this works without partnerships,” he emphasized, adding that VisionFund does not treat refugees and internally displaced persons as a separate group, but rather as part of their customer base.
- Lydia Baffour (Opportunity International) echoed the value of long-term presence and trust. Their permanent branch in Uganda’s Nakivale refugee settlement serves both refugee and host community clients. Uganda’s supportive regulatory environment – including the right to work and run a business — made such integration possible, enabling a more inclusive market systems approach.
- Tracey Fuller (BNP Paribas) underscored the importance of non-financial support, from digital skills and language training to technology and entrepreneurship guidance. These foundational tools, she said, are critical enablers for helping refugees access and benefit from financial services.
The path forward: from access to agency
A clear message emerged from the panel discussion: financial inclusion for refugees is not just about opening transactional accounts – it is about unlocking potential and creating the conditions for dignity, resilience, and choice.
It means recognizing displaced people not only as recipients of aid, but also as entrepreneurs, workers, and investors in their futures and local communities. The examples shared point to effective practices that can be scaled and replicated. Moving from intention to impact requires more: legal frameworks must be put into practice, financial products must meet real-world needs, and solutions must be designed with – not just for – the people they aim to serve. Financial systems must evolve to include everyone, especially those who have been forced to start over.