fiji demand side survey presentation - reserve bank of fiji national financial inclusion task force...
TRANSCRIPT
Financial Services Demand-side Survey of FijiLiz Larson, Results Measurement Advisor, Pacific Financial Inclusion Program (PFIP)
National Financial Inclusion Strategy Consultation Workshop of Fiji
Holiday Inn, Suva, Fiji, Nov 2015
Structure of the Session
Intro to the report High-level data on Financial Inclusion
Who are the unbanked and why are they unbanked?
Geography Rural / Urban Divide Gender Mobile Money and other services Insurance Remittances Savings Credit
Demand Side Surveys (DSS) of Fiji
Understand citizens’ needs
Explore barriers for access
Establish baseline
GOAL
Methodology
Random selection Geographically and ethnically proportional Respondents over 15 years old Equal balance of men and women
1,28715
Respondents
Provinces
Percentage of Fijians with a formal bank account
60%
Percentage of Fijians without a formal bank
account
27%
Percentage of Fijians using other formal financial services
4%
9%Percentage of Fijians using informal
financial services
Example of blank slideFiji
Solomon Islands
Samoa
60%
26%
39%
4%
8%
12%
9%
35%
15%
27%
31%
34%Financial inclusion strands
Banked Other Formal Informal Only Excluded
Fiji has highest number of unbanked Margin between excluded sector is not high
Mor
e hi
gh le
vel
stat
s1,1274212
Deposit accountsper 1,000 people
ATMs per 100,000 people
Bank branchesPer 100,000
Higher than peers
Higher than peers (ex.
Samoa)
Higher than peers (ex.
Samoa)
More likely to be:RuralWomenDerive income from agriculture or casual labor
Not formally employedAge range 15-20 or 61-70Live in Eastern or Western Divisions iTaukei (Informal only is much higher for iTaukei)
1/4 of them used to have a formal account, but now don’t
Who are the “excluded” in Fiji?
Why aren’t people using services?Not enough money1 50
%Someone else has account2 23
%
Lacks documents4 17%
Bank is too far3 20%
Banks are too expensive5 13%
Highest “Excluded” % in Eastern Division (41%), lowest in North (21%)
Highest “Informal Only” % in Northern and Eastern Divisions (25%, 16%)
Highest numbers of banked in Central and Western
Geography
Associated with higher levels of formal employment in cities
Distance is great in rural areas
Rural / Urban Divide
74% 46%Urban residentshave formal account
Rural residentshave formal account
Large gender disparity (16%) Higher than other other middle income countries More women than men have left formal banking
Account ownership by gender 16%
CASH is KING! Despite high awareness, mobile money usage is low
Usage of other non-basic products also low
Mobile moneyAnd other services76%
80%11%
Fijians own Mobile phone
Have heard ofmobile money
Have mobileMoney account*
* Of the 80% who have heard of mobile money
Use of insurance minimal Higher in urban areas, formally employed and higher economic groups
Insurance
12%
Fijians have insurance
Don’t need1 40%
Don’t know what it is3 25
%
Too expensive2 30%
People receive from either domestic or international – not both
Delivery channels for domestic: Post Office (43%), informal (31%)
Delivery channels for international: Western Union (72%)
Recipients tend to be women, urban, in “other” category, or iTaukei
Remittances
23% 1/3Fijians received Remittance last year
Of all urban women received a remittance last year
Savings rates are higher than peer countries Savings rates are similar across income levels Savings type differ between financial inclusion strands
Savings
71.2%
Fijians saved money in the past 12 months
More common in urban areas (36%) where salaried workers are more prevalent
70% of users are salaried: 12% have no formal salary
Use of FNPF or Superannuation Fund
Much lower than peer countries Semi formal credit sources play a significant role Mostly consumer credit Higher for iTaukei population Possible untapped market
Credit
32% 6.9%Loan from any sourcein past year
Loan from financialInstitution in past year
Questions?
THANK YOU!