Start Network, a multinational network focused on humanitarian aid, has announced its partnership with Disberse, a recently-launched distribution platform for foreign aid, in order to test blockchain potential in humanitarian finance.
The project aims to speed up the distribution of aid funding as well as track how it is spent. It seeks to enable the tracking of funds from the original donor to each individual assisted. Importantly, the project aims to enable more money within the international aid system to reach the people it is intended to help, with less lost through the process of currency exchange.
“This exciting partnership could lead to the transformation needed in the way money flows through the humanitarian system. The Start Network is testing innovative solutions to many humanitarian challenges to enable aid agencies to be more efficient and effective. This new project could catalyse a new way of working, one that is transparent, fast and which drives accountability to taxpayers and those affected by crises”, Sean Lowrie, Director of the Start Network said.
Built on blockchain technology, Disberse is a for-profit social enterprise, founded last September as a fund-management and distribution platform that drives the transparent, efficient and effective flow and delivery of development and humanitarian aid. Its platform has already been successfully piloted in a development project in which it enabled the UK-based charity Positive Women to reduce its transfer fees and trace the flow of funds down the chain to a project in Swaziland, resulting in zero losses at the points of delivery.
Start Network said that it will work with the Disberse platform to take this first experiment to scale. It plans on testing the system on a series of small disbursements over the next six months, within its existing programmes.
“Disberse was born from an ambition to preserve and improve the impact of aid finance, for the communities and individuals it serves. We believe in the purpose of aid, but recognise it is constrained by inefficiencies. Using blockchain technology, we digitise and distribute donor funds through the chain to recipient beneficiaries. These transactions are transparent, and can be viewed online, ensuring funds are distributed and delivered as intended”, Ben Joakim, CEO and co-founder of Disberse said.
Start Network is made up of 42 national and international aid agencies from five continents. The network has deployed over £100 million of funds across the globe over the past four years, in response to crises and in its effort to develop innovative humanitarian solutions.
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