Over 800,000 Kyrgyz people —including migrants, their families, returnees, and aspiring migrant workers—will be transforming remittances, the money sent home by migrant workers, into a powerful financial tool that provides life-changing opportunities thanks to the new partnership announced on August 18 by the International Fund for Agricultural Development (IFAD) and Kompanion Bank, one of the largest commercial banks in Kyrgyzstan, the Delegation of the European Union to the Kyrgyz Republic reported.
Under the regional REMIT PRIME Central Asia Programme, which includes co-funding from the European Union, this initiative aims to boost financial inclusion and rural development, equipping people with the tools, services, and knowledge to take greater control of their financial futures.
Remittances are a vital lifeline for many Kyrgyz families, accounting for 14 per cent of the country’s gross domestic product. In rural areas, one in four Kyrgyz people rely on funds sent home by relatives working abroad. These flows not only help cover basic needs but also offer a pathway to invest in education, entrepreneurship, and housing, building more stable lives and financially secure futures.
“We have always treated migrants and their families with special care and respect. With support from the European Union and in partnership with IFAD, we aim to turn remittances into a launchpad for personal, family, and economic growth using accessible, easy-to-use tools, such as the upgraded Kompanion mobile app, tailored to the needs of migrants and their families, and innovative financial products,” said Margarita Cherikbaeva, CEO of Kompanion Bank.
“By partnering with Kompanion Bank, we are ensuring that remittances become a gateway to meaningful financial inclusion,” said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD. “With digital remittance channels, tailored financial products, and targeted financial literacy training, we are helping families turn remittances into long-term security and sustainable rural development.”
According to a spokesperson of the European Union, “the EU is proud to support initiatives that harness the development potential of remittances and promote economic empowerment in rural areas,” and sees “this partnership is an investment in communities, in women, and in future generations.”
A key feature of the programme is the development of new digital remittance corridors from Europe, Türkiye, the Republic of Korea, and the United States. These channels will be integrated into the Kompanion mobile app, making the transfers faster, more convenient and affordable for families.
The app will also be upgraded to include a smart financial assistant—a digital “pocket expert” that provides advice to help users manage household budgets, track spending, and make informed financial decisions in everyday life.
To further support financial inclusion, the initiative will introduce innovative products linked to remittances, such as tailored deposit accounts and loan options designed for families receiving funds from relatives abroad. These services aim to help households move beyond day-to-day spending and start saving, investing, and planning.
In addition, the initiative includes training sessions for migrant families and returnees, focusing on financial resilience, household budgeting, digital safety, effective use of banking products, and sustainable agricultural practices.
By combining resources and expertise, IFAD, the European Union, and Kompanion Bank aim to ensure that remittances become not just a means of survival, but a foundation for lasting opportunity, resilience, and prosperity for Kyrgyz migrants and their families, both at home and abroad.
