Highlands tops list of unbanked

 MORE than 90 per cent of the population in the Highlands region is yet to access financial services, according to a publication by the Bank of Papua New Guinea (BPNG). 

The Papua New Guinea National Financial Inclusion and Financial Literacy Strategy 2014-2014 showed that the region has the highest unbanked segment of 91.92 per cent.

This was followed by the Momase region at 82.30 per cent.

Notably, both regions have correspondingly the lowest literacy rates at 39.2 per cent and 53.9 per cent respectively.

BPNG and six working groups met during a workshop in Port Moresby last Friday to discuss how they can work together to address the issue of financial exclusion in PNG.

Governor Loi Bakani said of the seven key objectives, one was to reach one million more unbanked people in a one year (2014-2015) period.

He said based on data gathered a total of over 440,000 unbanked opened bank accounts by end 2014, of which 32 per cent were women.

“I encourage all banks and financial institutions to continue the efforts of ensuring more of the unbanked population get to open banked accounts and have access to banking services.

“We have to reach one million more unbanked low-income people in PNG and micro and small enterprises, with a diverse range of financial services. Fifty per cent of people reached will be women;

“To actively support innovative use of technology for scaling-up access to financial services and financial literacy;

“To strengthen consumer protection by issuing prudential guidelines and creating a platform for various national regulators and industry networks to monitor consumer protection, etc,” he said.

Bakani highlighted other BPNG’s initiatives relevant to Financial Inclusion Efforts

“This included the implementation of the Kina Automated Transfer System,” he said. 

“The BPNG, in collaboration with commercial banks and other key stakeholders, to improve efficiency in the payments and settlements (or clearing) of transactions.”