Majority of population unbanked, research shows

The National National

A RECENT research by the Papua New Guinea National Research Institute shows that the majority of the people in the country are not banking their money.
The research titled Enhancing financial inclusion of informal economy through mobile money in PNG spotlight volume 16 issue 2 of February 2023, discusses the struggles of money management in the informal sector.
Author Joe Barak said many people in the informal sector believed banking was only for the employed and therefore, did not participate in the monetised economy.
Baraks said financial inclusion was a key enabler for meaningful participation in the modern economy.
However, according to the Department of Treasury, almost 75 per cent of the population did not have access to bank facilities.
“Access to financial services are restricted by several barriers, including illiteracy, facilities and convenient services considering location and geography of places around the country,” Barak said.
It was noted that the paper also outlined strategies that could be used to expand financial inclusion in the country through services such as:

  • PUBLIC and private partnership;
  • MOBILEmoney agents;
  • INTRODUCTION of mobile money technology;
  • DONOR assistance; and,
  • FINANCIAL literacy training.

“There are inadequate financial services in rural areas where the majority of population live which is a major barrier to financial inclusion in the country,” Barak said.
“Adoption and sustained growth of mobile money accounts delivered through the application of mobile technology under public and private partnership arrangements is necessary to reach unbanked population that operate in the informal economy and in the rural areas.”