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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. Refugees and displaced populations face systemic barriers to financial inclusion, with traditional financial institutions often perceiving them as high-risk clients. But what if refugees are not only creditworthy but also vital contributors to economic stability? Over the past several years, innovative financial solutions have begun challenging this perception, proving that refugees can be a powerful force for local economic development. By overcoming biases and demonstrating the business case for refugee lending, organizations have shown that financial inclusion not only benefits refugees, but also host communities and broader economies. Prove the viability of refugee lending It is a widespread misconception that refugees are too risky to serve. Historically, refugees have been viewed as liabilities due to their lack of credit history, residency uncertainty, and perceived flight risk. Yet, research and pilot programs consistently show that refugees can, and do, repay loans at rates comparable to nonrefugee populations. For example, a 2016 Kiva.org pilot initiative provided risk-tolerant, crowdfunding-based loans to refugees, with a 96.39% repayment rate. This pilot demonstrated that refugees are viable candidates for financial services and set the stage for scaling such efforts with institutional support to meet the these demands in refugee populations. Impact-first capital: A new model for financial inclusion Building on early successes, institutional capital has proven effective in scaling refugee lending globally. By channeling impact-first institutional capital to financial service providers (FSPs) in refugee-hosting countries, these organizations can offer loans to refugees who would otherwise be excluded from formal financial systems. One such initiative, Kivas Refugee Investment Fund (KRIF), invests in FSPs serving refugees, internally displaced people, impacted host communities, and populations at high risk of forced displacement. This model encourages a shift in perception; refugees are no longer liabilities, but valuable contributors to the local economy. Earlier this year, KRIF concluded a four-year investment period, reaching over $60 million in total investments to and for refugees and displaced populations around the world. KRIF deployed impact-first capital across 14 countries in the Middle East, East Africa, the Caucasus, and Latin America and has thus far directly supported 76,000 refugees (of which, 70% identify as women) with the funding they needed to rebuild their lives. Lessons learned: What works in refugee financial inclusion The success of refugee lending initiatives has provided valuable lessons. First, it is crucial to recognize refugees adaptability. Contrary to assumptions, refugees are often highly resourceful and resilient. With the right financial tools, they can rebuild their lives and contribute significantly to local economies. Another key takeaway is the importance of flexible financial products and a supportive regulatory environment. Refugees may not have traditional credit histories, but they often have strong social networks, market knowledge, and a willingness to repay loans. Many of Kivas partners have found that adjusting existing products offered by FSPs, rather than creating entirely new ones, can make a significant difference in serving refugees. Flexible repayment terms or microloans for small businesses are particularly effective. Hiring local staff from refugee communities has also been cited as integral to the success of FSPs refugee lending programs. One partner in Chile noted that they quickly saw that the level of empathy, as a result of knowing exactly the situation our potential [refugee] clients found themselves in, was crucial to being successful. This approach helps navigate cultural barriers, ranging from language to mindset, and strengthens relationships with clients. Finally, institutional investors play a crucial role in driving systemic change. Traditionally, private investors have overlooked refugees as a viable market. However, impact-first capital is proving that there is both social and financial value in serving these populations. By demonstrating refugees creditworthiness, these funds are helping to build a new market for refugee lending and inspiring other investors to consider the potential of displaced populations. The importance of capacity building in refugee lending While institutional capital is essential, its not the only ingredient needed for successful refugee lending. For FSPs to effectively serve refugees, they must have the right tools, training, and infrastructure in place. Capacity-building efforts, such as support for developing tailored loan products and improving outreach and services, are crucial for the success of refugee lending programs. A notable example comes from Uganda, where refugees in the Kyangwali settlement faced significant challenges accessing financial services due to the distance to the nearest branch office. With the support of an impact-first investment, UGAFODE Microfinance established a local sales center within the settlement, drastically improving accessibility. This investment also enabled UGAFODE to scale its operations and serve a growing refugee population. This partnership illustrates how building the capacity of local financial institutions creates long-term solutions to financial exclusion. A vision for the future The journey toward financial inclusion for refugees is not just about providing loans, its about transforming the narrative around displaced populations. By proving that refugees are economically viable and valuable contributors to their local economies, innovative financial models are challenging long-held biases and opening new opportunities for both refugees and the communities that host them. If initiatives like KRIF become more widespread, refugee lending could help redefine global lending practices and create a more inclusive global financial system. Refugees would gain access to the services they need to rebuild their lives with dignity, and host communities would benefit from the economic growth driven by refugee entrepreneurship. As the world faces unprecedented levels of displacement due to conflict, persecution, and climate change, the need for innovative financial solutions is urgent. The lessons learned from early refugee lending programs provide a roadmap for creating lasting, meaningful change and a future where financial inclusion is a right for all. Vishal Ghotge is CEO of Kiva.
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E-Commerce
Clothing tech entrepreneur and CaaStle founder Christine Hunsicker is out on $1 million bail after she was charged on six counts of cheating customers out of more than $300 million over the past six years in a complex fraud scheme that inlcuded wire fraud, securities fraud, money laundering, making false statements to a financial institution, and aggravated identity theft. Hunsicker pleaded not guilty in a Manhattan federal court on Friday, after she turned herself in to authorities, and could face decades in prison if convicted, according to CNBC, who reported that the Securities and Exchange Commission (SEC) filed a related civil lawsuit. Here’s what to know about the indictment. Why was Hunsicker indicted? Jay Clayton, the U.S. attorney for the Southern District of New York, who was working with the FBI, announced on Friday that Hunsicker is charged with forging documents, fabricating audits, and making material misrepresentations about her company’s financial condition in an alleged scheme to defraud investors in her clothing technology companies CaaStle Inc. and P180. The documents allege she continued to solicit millions of dollars in investments for both companies and “persisted in her scheme” even after law enforcement agents approached her about the fraud. The promise of pre-IPO technology companies can be fertile ground for fraudsters who play on investor euphoria,” Clayton said in a statement. According to the statement, the fashion tech entrepreneur and founder of CaaStle, a clothing-as-a-service business that enabled clothing brands to rent inventory to consumers, promoted the company “as a rapidly growing business valued at more than $1.4 billion, [although she] knew that CaaStle was in financial distress with limited cash and significant expenses.” To raise the capital for CaaStles operations, she “provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStles operating profit, revenue, and available cash.” Surprising details in Hunsicker’s indictment The indictment alleges, among other things, that Hunsicker provided two fabricated audits to investors and conducted internet searches for the terms “fraud,” “created an audit firm fake,” and “JP morgan 4m records faked,” an apparent reference to fraud charges related to JPMorgan Chase’s acquisition of the college financial aid startup called Frank, which resulted in the federal prosecution of its founder Charlie Javice. (Javice was convicted in March of defrauding JPMorgan Chase of $175 million by exaggerating her customer base tenfold, according to National Public Radio.) It also accuses Hunsicker of fabricating the existence of CaaStle shareholders, falsely claiming that the shareholders needed money for a “family health emergency” or due to the FTX cryptocurrency exchange collapse. She allegedly then used investors’ money to raise new capital for CaaStle, while concealing that the company needed cash. And to “maintain the fiction,” she issued fake capitalization tables to the investors in order to demonstrate that they had purchased existing CaaStle shares. According to the documents, Hunsicker’s scheme also allegedly involved providing an investor with a fake screenshot of CaaStle’s bank accounts showing nearly $200 million in available cash, although the company had less than $200,000 in available cash at the time, in or around September 2024.
Category:
E-Commerce
Da dum. Da dum. Theres something in the water this weekor, more accurately, on your television screen. Discovery’s Shark Week 2025 began yesterday (Sunday, July 20) and runs though Saturday, July 26. Let’s take a look at the history of this scale-filled event, its enduring legacy, and whats new this year. Then we will do a deep dive on how to tune in. A brief history of Shark Week The Discovery Channels “fin-tastic” fanchise first commenced on July 17, 1988, when the program Caged in Fear tested new motorized cages designed to resist shark attacks. The goal of this program, and the nine others that premiered that week, was to educate the public about these misunderstood sea creatures. The event was so successful that it almost doubled the network’s prime-time average, and so a tradition was born. This year marks 37 years of Shark Week. How does Shark Week maintain the hype? In a world of endless streaming options, it is impressive that a traditional cable networks event can endure and still attract fans. Part of the allure is the subject matter itself. People are fascinated and frankly terrified of the mysterious shark. This primal awe will always remain a satisfying itch to scratch. The lack of appointment viewing television creates a void that Shark Week gladly fills. The fins and sea water create anticipation, a sense of urgency, and satisfaction that is hard to get anywhere else. It also creates community as those you watch it with undergo a shared experience. Plus its long history is nostalgic for many. Shark Week has evolved over the years by embracing streaming, social media, and celebrity culture. Beyond cable, you can catch in on HBO Max and Discovery+. Big moments are shared on platforms such as TikTok and Instagram and quickly go viral. Celebs such as Dwayne The Rock Johnson, Jason Momoa, and Shaquille ONeal have hosted the event. An ability to adapt has cemented this weeks legacy. What’s new with Shark Week this year? This year there was much hype around Dancing with the Sharks, hosted by former Dancing with the Stars MC Tom Bergeron. This kicked the week off, airing yesterday at 8 p.m. local time. If you missed the scuba diving handlers using bait to dance with their finned friends, dont worry: You can watch catch it on HBO Max. Another program to look forward to this year is How to Survive a Shark Attack, which is hosted by real-life shark attack survivor Paul de Gelder. In 2009, he was attacked by a bull shark in Sydney Harbor, and as a result lost his right arm and leg, but still managed to survive. His tips and tricks just might help save a life or two. This program airs on Tuesday, July 22, at 9 p.m. For a full look at the programming schedule, click here. How can I stream or watch Shark Week live? Traditional cable subscribers can catch all the splashes on the Discovery Channel. Cord-cutters can use a live-TV streaming service that carries Discovery content. Those include: Hulu + Live TV YouTube TV Sling TVs Blue or Orange + Blue streaming services If you prefer to stream the action on your own schedule, check out Discovery+ and HBO Max. The former is offering free trials for new subscribers.
Category:
E-Commerce
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