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A combination of new technology and banking has the potential to increase access to finance for the under-banked in the Pacific, including Fiji.
This is a view being discussed at the Pacific Microfinance Week 2009, currently underway in Fiji.
“In the Pacific region, many people live in rural areas, leaving them isolated and unable to participate in the formal banking sector.
“Travelling to deposit or collect money can be an expensive and hazardous exercise, often taking days to complete.
“During the journey, money may be spent, lost or stolen with the possibility of the customer returning home more in debt than when he left,” said Robert Simms, Access to Finance Program Manager at the International Finance Corporation, a major sponsor of the event.
“For banking institutions, high service delivery costs leave them with little incentives to offer competitive prices to their customers.
“With the availability and use of mobile phones rapidly increasing across the Pacific region, mobile banking holds great promise for addressing these obstacles,” Simms said.
The Pacific Microfinance Week 2009 is being attended by delegates from across the Pacific region who will discuss issues relating to the development of microfinance in the region.
