Pacific Financial Inclusion Programme (PFIP)
The Pacific Financial Inclusion Programme (PFIP) is a Pacific-wide programme funded by the United Nations Capital Development Fund (UNCDF), European Union and the United Nations Development Programme (UNDP) and operates from the UNDP Pacific Centre. PFIP is helping provide sustainable financial services to 80% of Pacific islanders mainly rural people and low income earners, who have limited access to banking services and are consequently unable to achieve their full economic potential or attain a productive and dignified living.
Publications
Mobile Money Gets Coverage in Vanuatu
Over 30 representatives from a broad range of organizations recently met in Port Vila to learn more about mobile money solutions and share ideas on how it could be set up in Vanuatu. This information exchange was organized by the Pacific Financial Inclusion Programme (PFIP) in Partnership with the Reserve Bank of Vanuatu. The meeting was attended by the Governor of the Reserve Bank, Mr. Odo Tedi, as well as representatives from commercial banks, Microfinance institutions, telecos, civil society organizations, government officials and donor agencies all of whom can play a role on setting up mobile money solutions.
Tillman Bruett, PFIP Project Advisor, presented on the prospects for mobile money in Vanuatu. “From our exchanges with stakeholders, it is clear that a mobile money system has great potential in Vanuatu and could help the estimated 70% of ni-Vanuatu that have no access to the formal financial system. There is also great interest among the necessary partners to get mobile money started.” said Mr. Bruett.
The PFIP team has committed to facilitating a total of five information exchanges in Fiji, Vanuatu, Samoa, Solomon Islands, and Papua New Guinea. The next and last information exchange will take place in Fiji in the coming months. The information exchanges begin with a short presentation on a topic of interest followed by some informal discussion on this topic as well as the promotion of financial inclusion in general with interested counterparts.
Access the Prospects for Mobile Money in the Pacific: Focus on Vanuatu presentation by Tillman Bruett, Pacific Financial Inclusion Programme (PFIP) here.
PFIP has provided funding to the National Bank of Vanuatu to support improved communications between its rural branches to allow for transactions to take place in rural areas in real time. PFIP is supporting a number of new developments in microfinance throughout the Pacific. PFIP is a Pacific-wide programme helping provide sustainable financial services to low income households. It is funded by the United Nations Capital Development Fund (UNCDF), European Union, AusAID and the United Nations Development Programme (UNDP) and operates from the UNDP Pacific Centre.
For further information, please contact: Mike McCaffrey Michael.Mccaffrey@undp.org
Is the Pacific ready for mobile money?
A joint research team from the Pacific Financial Inclusion Programme and the International Finance Corporation took a close look at how a mobile money system might take hold in Papua New Guinea. Despite all of the challenges in providing financial services, there is a great opportunity for mobile phone based financial services to increase people's financial and physical security in PNG. This paper outlines how a mobile money system might develop in PNG, what existing networks it might use for "cash in" and "cash out" services, and how mobile money might help individuals, companies and government alike to lower cost, increase security, and reduce corruption linked to the movement of money. More...
Does training women in financial literacy influence wellbeing in rural fijian households?
FACT 1: The wellbeing of a rural household can be quantifiably improved if only one person in that household attends financial literacy training and have a savings account.
FACT 2: A significantly higher level of wellbeing is achieved when that person is a woman.
Conclusion from Financial Capability, Financial Competence and Wellbeing in Rural Fijian Households (release early 2010)
Image: Participants at the Financial Literacy Training in Tailevu 
These are examples of the many findings from a quantitative research carried out in rural Fiji by Jonathan Sibley from Massey Universitytogether with the UNDP Pacific Centre and the Pacific Financial Inclusion Programme. The full report “Financial Capability, Financial Competence and Wellbeing in Rural Fijian Households” will be published in early 2010.
A technical brief that focuses on the significant impact that women make in influencing household wellbeing and how this can be further enhanced is available here. A series of short technical briefs highlighting key findings will be shared with you leading up to the report release. The results of the study can form the basis for policy and strategy interventions aimed at enhancing financial security for rural communities in the Pacific and elsewhere.
The full study has sought to develop our understanding of rural householders’ ability to use current income to enhance future income sustainability through re-investment in income generating activity; to endure income shocks through savings; and to enhance the wellbeing of members of the household, whether by enabling children to continue in formal education beyond primary school, or by enabling the purchase of household assets, including household durables. The study determines whether appropriately structured interventions to increase financial literacy and to provide villagers with access to a safe, reliable and well regulated banking service can result in an increase in the financial competence of those who make decisions on behalf of the household and whether there is a relationship between financial competence and household wellbeing.
The PFIP Notes Series aims to provide an easy to read technical brief that can share Pacific experience globally. Your feedback on this publication helps us keep our programme responsive to demand. Please click here to complete a One Minute Feedback Survey.
Want to find out more about this report or Financial Inclusion in the Pacific, contact Mereseini Senikau from the Pacific Financial Inclusion Programme on mereseini.senikau@undp.org.
The PFIP Note can be found at http://www.undppc.org.fj/pages.cfm/publications/pfip-reports/
Presentations
Microfinance and Financial Inclusion: Evolution and What it Could Mean for Timor Timor-Leste, Till Bruett, Pacific Financial Inclusion Advisor, 2010
On Tuesday, March 16th 2010, the Inclusive Finance for the Under-served Economy (INFUSE) Programme and the Pacific Financial Inclusion Programme (PFIP) hosted an informal information exchange on the topic of Inclusive Finance at the Discovery Inn in Dili. Tillman Bruett, Pacific Financial Inclusion Programme (PFIP) Advisor opened the event by giving a presentation on “Microfinance and Inclusive Finance: Evolution and What it Could Mean for Timor-Leste” and Marcella Willis, INFUSE Advisor, then gave a brief presentation on the INFUSE Programme. Please find the presentation here.
Mobile Phone Banking To Take Off In Samoa, Till Bruett, Pacific Financial Inclusion Advisor, 2010.
On January 22, 2010, commercial banks, microfinance institutions, telecoms, civil society organizations, government officials and donor agencies gathered in Apia, Samoa, to learn more about what mobile banking can offer to the island nation. The information exchange was co-sponsored by the Central Bank of Samoa (CBS) and the Pacific Financial Inclusion programme (PFIP) and was hosted at CBS. 53 representatives with interest in the topic attended a presentation on mobile money and remittances by Tillman Bruett, the PFIP Project Advisor, and then stayed for a discussion on how best to progress in Samoa.
The PFIP team will facilitate a total of five information exchanges in Fiji, Vanuatu, Samoa, Solomon Islands, and Papua New Guinea in the coming months. The next information exchange is scheduled for Vanuatu at the end of February. The information exchanges begin with a short presentation on a topic of interest followed by some informal discussion on this topic as well as the promotion of financial inclusion in general with interested counterparts. Around July this year, the PFIP will announce a call for grant proposals from those with ideas on how financial inclusion in Samoa can be further improved.
Access the Prospects for Mobile Money in the Pacific: Focus on Samoa presentation by Tillman Bruett, Pacific Financial Inclusion Programme (PFIP) here.
For further information, please contact: Mike McCaffrey Michael.Mccaffrey@undp.org.
Microinsurance Information Exchange (PNG), PFIP, 2009.
On Tuesday November 17th, The Pacific Financial Inclusion Programme (PFIP) in partnership with the Asian Development Bank (ADB), and the PNG Institute of National Affairs (INA), hosted an information exchange focused on microinsurance at the Holiday Inn in Port Moresby. The Pacific Financial Inclusion Programme recently finished a brief assessment on the Prospects for Microinsurance in PNG. Microinsurance is arguably the fastest growing product line in microfinance. Starting with credit life insurance in the early 1990s, a wide range of insurance products are now available to millions of very low-income households around the world, protecting them against death of a family member, sickness, and even crop failure. Many different models and distribution channels have emerged ranging from small community based associations to large insurers such as Allianz. To date, there has been very little done in the way of microinsurance in the Pacific.
The purpose of this informal information exchange was to evaluate the greatest impediments to and opportunities for Microinsurance in Papua New Guinea. The Insurance Commissioner, Salamo Elema, opened the event by giving a speech on the need for microinsurance products in PNG, and Tillman Bruett, PFIP Project Advisor, then gave the presentation on microinsurance. The event was attended by 34 representatives from the insurance commission, government officials, commercial banks, donor agencies, telecoms and civil society organizations.
The PFIP team is committed to doing a total of five information exchanges before September 2010 in Fiji, Vanuatu, Samoa, Solomon Islands, and Papua New Guinea. These exchanges begin with a short presentation on a topic of interest followed by some informal discussion on this topic as well as the promotion of financial inclusion in general with counterparts from financial institutions, microfinance institutions, donor organizations, the central bank and other professionals. Please find a link to the presentation here.
Prospects of Mobile Money in the Pacific, PFIP, 2009.
On Tuesday December 1st, The Pacific Financial Inclusion Programme (PFIP) in coordination with Central Bank of Solomon Islands (CBSI) hosted an information exchange focused on mobile money at the Heritage Hotel in Honiara. Mobile money is broad term that refers to a range of financial services that can be offered across the mobile phone. The Pacific Financial Inclusion Programme recently launched a report titled, “Building a mobile money distribution network in Papua New Guinea” and around the Pacific different project developers are testing both hardware and software to support mobile money. With the entrance of new players in the telecom sector, the price of airtime has decreased by as much as 60% in Pacific nations, coverage has greatly improved, and the amount of users has grown tremendously. Currently, Our Telekom is erecting cell phone towers around Solomon Islands, and by the end of the year, there may be another telecom provider with a license to operate in country.
The purpose of this informal information exchange was to gather those that have the potential to catalyze the development of mobile money in Solomon Islands. CBSI Governor Denton Rarawa opened the event with a speech on the importance of financial inclusion in Solomon Islands, and Tillman Bruett, PFIP Project Advisor, then gave the presentation on mobile money. The event was attended by representatives from CBSI, commercial banks, donor agencies, and civil society organizations.
The PFIP team is committed to doing a total of five information exchanges before September 2010 in Fiji, Vanuatu, Samoa, Solomon Islands, and Papua New Guinea. These exchanges begin with a short presentation on a topic of interest followed by some informal discussion on this topic as well as the promotion of financial inclusion in general with counterparts from financial institutions, microfinance institutions, donor organizations, the central bank and other professionals. Please find the presentation here.