Four million people in the country have bank accounts says Center for Excellence in Financial Inclusion [CEFI]
The long walk by the Center for Excellence in Financial Inclusion [CEFI] to get more Papua New Guineans open back accounts with one of the many registered financial institutions in the country is gaining results.
CEFI Executive Director Saliya Ranasinghe revealed that “as of 31st December 2023, there are four-million bank accounts in the country, that is a very important milestone, despite millions still unbanked.”
Draw back 10 years ago, 75 percent of the country's population did not own or have access to a bank account in any of the registered financial institutions.
In 2016, Bank of PNG, in partnership with the Australian Government’s Department of Foreign Affairs and Trade, established CEFI with the main objective to promote financial education and advocate for policies that enable financial inclusion, after a national executive council decision.
Mr Ranasinghe highlighted CEFI’s two objectives in its Financial Literacy Strategy for the next five years, that aims to bring millions of unbanked Papua New Guineans into the formal banking system.
“We will be developing various modes of financial literacy. At the moment we are developing a financial literacy application [for mobile phones, which] people will use the application to plan their finances.
“Second important aspect, digitalization in the banking sector. Central Bank [BPNG] have already issued notice that cheque will be taped off [stopped], people have to do banking transaction online.”
Majority of the unbanked people in the country, are in rural PNG, and partnership with different stakeholders will be the key for CEFI to meet its objective.
In Port Moresby on Tuesday, a Memorandum of Understanding signed with Ok Tedi Development Foundation [OTDF], now paves way for CEFI to be a lead agency to get more females in Western Province into the banking system and be financially literate.
Andrew Balele Mari, OTDF acting chief executive officer said the agreement signing now paves way for “financial literacy training to empower women to be financially equipped [and also] facilitating opening of bank accounts.”
Under the M-O-U, CEFI will provide training for financial trainers, and the trainers will carry out financial education to women in all the districts of the province.