After the World Bank disburses funds for a project, tracking how those funds are used is of utmost importance. Countries use a wide variety of financial management systems and processes, which are not standardized and seldom share information across platforms. To address these issues, the World Bank is rolling out FundsChain.
This proprietary platform uses blockchain technology to track every dollar on a secure, immutable digital ledger that can be accessed by all project stakeholders. By offering broader access to up-to-date transaction records, FundsChain is greatly enhancing efficiency, transparency, and accountability.
As the first multilateral development institution to implement blockchain for project oversight, the World Bank is leading the way in future-ready financial management.
Impact on financial management and communities
The use of FundsChain to track project funds is part of a broader effort to make World Bank Group (WBG) operations more efficient and streamlined, ultimately better serving clients and communities.
“FundsChain is a one-stop shop for financial reporting and transparent tracking. It quickly shows payments, contracts, and expenses, notifying suppliers the moment payments are ready, empowering teams to make timely, informed decisions and streamline project management,” said Lovella Tolentino-Morada, finance management specialist at the Metro Manila Development Authority.
The Philippines was one of the early adopters of FundsChain, which was rolled out to the Metro Manila Flood Management Project, a $500 million initiative funded by the World Bank and the Asian Infrastructure Investment Bank. The project aims to reduce Manila’s vulnerability to floods by upgrading water infrastructure.
In Bangladesh, FundsChain is being used in the Bangladesh Resilience, Entrepreneurship and Livelihood Improvement Project. This initiative targets 3,200 villages to help women launch entrepreneurial ventures, cover pregnancy-related expenses, improve sanitation, and provide wider support for the community. Since the $600 million project began in 2021, it has helped lift more than 115,000 people out of poverty.
“We are implementing FundsChain in 350 villages as a pilot. We are also implementing our Loan Management System (LMS) in all 3,200 villages of the project, providing laptops, and women leaders have been trained to use it. When FundsChain is linked with the LMS, they will be able to use it directly, and every village organization will become part of the process and can track funds transparently,” explained Mahbubul Alam, director of the project at the Social Development Foundation, an autonomous organization under the Financial Institutions Division of the Ministry of Finance.
Alam underscored that FundsChain is also benefiting his finance management team by simplifying transaction records and digitalizing all project-related information, something especially important in a project with many suppliers and beneficiaries.
