Banks: Improve financial services in rural areas

 THE World Bank and the Bank of Papua New Guinea have called for an improvement in the expansion of financial services in rural areas.

A joint report by the two banks revealed the differences between how rural and urban people managed their money and how they accessed financial services. 

They called on the improvement of banking and insurance services, and the need to develop education programmes.

A survey in Morobe and Madang showed how families in urban and rural areas used formal and informal financial services, how they managed and planned their financial resources, and how they selected financial products.

The report, undertaken with the Institute of National Affairs, found that up to 80 per cent of rural respondents and 90 per cent of rural women had no bank account or loan.

“Most rural communities had no readily accessible financial services and villagers often had to travel to access a bank or an automatic teller machine,” the report stated.

Central Bank Governor Loi Bakani said for many Papua New Guineans, “the use of financial services is rather new”.

Bakani said the report would provide a detailed picture of how our population managed their finds and assess these financial services so that we could develop policies, financial products and services to enhance financial inclusion and improve financial capability.