Pacific Central Bank Financial Inclusion Working Group

Submitted by katharina on 28 October 2011 - 12:13pm

In December 2009, The South Pacific Central Bank Governors Meeting endorsed the creation of a central bank working group focused on increasing financial inclusion in the Pacific. With the Alliance for Financial Inclusion as the facilitator and PFIP as the secretariat, the group considered evidence from other countries and put forward a one-year joint work plan to develop and implement policies that have been proven to increase financial inclusion.

Key Information
28 October 2011
Timeframe: 
Ongoing since December 2009
Case Study
Background: 

The Pacific Financial Inclusion Programme (PFIP) was developed to bring new energy and ideas on financial inclusion and financial literacy to the Pacific. Its strategy is to seek out and introduce new ways of serving hard-to-reach populations, and to foster greater commitment and cooperation among regional stakeholders to building inclusive financial systems throughout the Pacific.

Results Achieved: 

Within one year from the establishment of the financial inclusion working group, the following results have been achieved:
• Through effective advocacy the Forum Economic Ministers and the Central Banks have adopted the 2020 Money Pacific Goals, to achieve greater financial inclusion and financial competency in all PICs (achieved)
• Mobile Banking Guidelines for Pacific Central Banks to engage with mobile network operators (release Sept 2010)
• More supportive enabling environment for mobile network operators to establish services that will benefit low income and rural communities (ongoing)

Main Activities: 

A study tour to the Bangkok Semarang Philippines was carried out in July 2010 to exchange ideas on the best policies related to branchless banking, mobile money, and non-bank deposit mobilization.

Future Replicability
Lessons Learned: 

Regional policy support is critical in driving national actions. This was facilitated through:
• The endorsement from Ministers of Finance and Central Bank Governors to the formation of the working group.
• The identification of clear objectives based on consultation.
• The drawing of central bank working group members together in a structured environment conducive to distilling clear objectives and facilitating the development of a work plan.
• The identification of adequate resources to support the working group objectives, in order to ensure momentum of group sustained and results could be achieved.

Key to Success for Future Replicability: 

Taking this regional approach to engaging Central Banks in addressing common regulatory matters is being considered by other AFI members, to adapt to other regions such as Africa.

Contacts: 

Focal point(s) in lead country/organization
Jeff Liew, Pacific Financial Inclusion Programme, (operating from UNDP Pacific Centre)

Focal point(s) in other participating countries
Alyson Slater, Alliance of Financial Inclusion, Bangkok, Thailand

Supporting UN agency focal point
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 visit: www.pfip.org