The Ministry of Finance of Ukraine and state-owned PrivatBank have signed a memorandum of cooperation enabling to use the Bank’s IT capabilities to create an integrated verification system for social payments in Ukraine.

According to the Minister of Finance Oleksandr Danyliuk, the budget annually loses billions of hryvnia due to the lack of a system of monitoring how funds such as payment of social benefits, subventions for the provision of benefits and subsidies are used. This deficiency is caused by inconsistencies of existing databases of various state bodies. And most importantly, the state cannot ensure high-quality provision of benefits and other services without creating a verification system of budgetary payments.

"Our main goal is to increase the efficiency of the verification system of social payments, which will significantly save budget funds. Therefore, cooperation with PrivatBank on this matter is important and necessary for the entire country," - said Oleksandr Danyliuk.

As Chairman of the PrivatBank Board Oleksandr Shlapak commented during the signing of the memorandum that the Bank is ready to share effective solutions and IT architectures for building a verification system of social payments and other nationwide databases.

"One of the main strategic directions of the Bank's work is "Privat.Share", which provides integration of advanced technologies into systems of public administration and public finance,” explained Oleksandr Shlapak. “Today, PrivatBank’s customer database is the best example of creating and administering a database in Ukraine, and our experience and inventions will allow the state not to need to reinvent the wheel in building a verification system for social payments in the shortest time."

When developing an integrated verification system of social payments, the Ministry of Finance will only not use PrivatBank's existing solutions, but will also utilize the Bank’s qualified specialists to create new capabilities. According to Oleksandr Shlapak the new system, which requires half a year to develop, will allow innumerable fragmented databases to be integrated into a single manageable system.