National Financial Inclusion and Financial Literacy Strategy 2014-2015
National Financial Inclusion and Financial Literacy Strategy 2014-2015
Hon. Don Polye, Minister for Treasury and Member for Kandep (centre right) launched the “National Strategy for Financial Inclusion and Financial Literacy 2014 – 2015” and Mr. Loi M. Bakani, Governor of Bank of Papua New Guinea (centre left) launched a National Youth Savings Campaign where 13 financial institutions made commitment to participate.
National Financial Inclusion and Financial Literacy Strategy 2014-2015
National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Bank of Papua New Guinea
Financial inclusion is emerging as a priority for policymakers and regulators in financial sector development, with an increasing number of countries introducing comprehensive measures to improve access to and usage of tailored financial services, informed by a fast-growing body of experience and knowledge on its role in promoting inclusive growth. The growing priority placed on financial inclusion is illustrated by the commitments made by financial regulators from 35 developing countries to financial inclusion and to financial education under the Maya Declaration. Papua New Guinea, through the Bank of Papua New Guinea, also joined the league by making our commitments under the Maya Declaration at the Alliance for Financial Inclusion’s annual Global Policy Forum in 2013. The basis for this commitment is the National Financial Inclusion and Financial Literacy Strategy 2014-2015, developed in consultation with a diverse range of stakeholders, including representatives from various government departments, to support the achievement of the financial inclusion aspirations articulated in the National Informal Economy Policy 2011-2015. Research supports the notion that improved financial tools will give people greater ability to capture opportunities and move out of poverty at faster rates, while slowing the rate at which they are knocked back into poverty due to adverse shocks. Impacts will occur at three levels: i) reducing transaction costs; ii) managing health, lifecycle and agricultural shocks; and iii) economy-wide efficiencies. But just 15 percent of Papua New Guineans have access to any type of formal financial services and if you go out to the rural areas, and if you go out to women and the youth of our country, the numbers drop even quite a bit below that. One of the most promising ways to deliver these financial services to the poor – profitably and at scale – is by using digital payment platforms. As people adapt to new technologies, as they are lifting themselves out, one of the things that hold them back is the lack of financial services. Their only choice option is cash and cash is a bit of a trap; it can be stolen, you can’t submit yourself to discipline policies, you don’t get interest on it, you don’t have insurance or credit and so in a lot of ways, it is the most limiting way to hold assets. Today, we have five electronic money providers, who are increasing the pace at which people are offered financial services through innovative use of local trade stores to increase outreach. The launch of the automated National Payments System, supported by the passage of the National Payments Act 2013, will support interoperability and accelerate transactions. I believe that the combined effect of the interventions articulated in the Action Plan of the National Financial Inclusion and Financial Literacy Strategy 2014-2015 will create new opportunities to develop innovative partnerships to enable access for Papua New Guineas to partake in growing an inclusive and sustainable Papua New Guinea.
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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I thank Prime Minister Peter O’Neil for his guiding leadership and Treasurer Don Polye for his unrelenting support. I also thank our donor friends and the numerous stakeholders who have stepped up to help achieve an inclusive financial sector in our country. In particular, I thank the Pacific Financial Inclusion Programme for their technical and coordination support through the Working Group on Financial Inclusion and Financial Literacy Strategy 2014-2015. Loi M. Bakani GOVERNOR, Bank of PNG Chairman, Centre for Excellence in Financial Inclusion December 5, 2013
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Contents
A. Introduction ......................................................................................................................... 5
B. Current Status of Financial Inclusion in PNG ...................................................................... 7
C. Key Principles ....................................................................................................................11
D. Implementation Management ............................................................................................13
E. Action Plan 2014-2015 .......................................................................................................16
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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A. Introduction The National Financial Inclusion and Financial Literacy Strategy 2014-2015 is the outcome of a series of consultations led by the Working Group on Financial Inclusion and Financial Literacy1 and the national stakeholders workshops held in August 2013. The Bank of Papua New Guinea (BPNG) hosted the workshops with technical and financial assistance from the UN Capital Development Fund (UNCDF) implemented Pacific Financial Inclusion Programme2 (PFIP) supported by United Nations Development Programme (UNDP), the Australian Aid Agency and the European Union (EU), and the Center for Excellence in Financial Inclusion (CEFI). Stakeholders convened to build on the priorities for financial inclusion in the National Informal Economy Policy 2011-20153, and established targets for 2014 and 2015 in the country’s first ever national strategy on financial inclusion and financial literacy. The 2-day national stakeholders workshop was attended by senior representatives from the private sector, financial service providers, development partners, rural producers and micro entrepreneurs and government agencies including Department of Community Development, Religion and Youth; Department of Trade, Commerce and Industry; Department of Education; and Department of National Planning and Monitoring. Preceding the national workshop, a workshop to address the financial exclusion of women was also held.
1 The Working Group membership consists of BPNG, CIMC Sub-committee on Financial Inclusion, CEFI, PFIP, IFC, ADB, and the Microfinance Expansion Project, Australian Aid and the Department of Community Development. The Working Group is led by the BPNG. 2 The Pacific Financial Inclusion Programme (PFIP) is a joint programme of the UN Capital Development Fund (UNCDF) and United Nations Development Programme (UNDP) with additional funding support from Australian Aid and the European Union/Africa, Caribbean and Pacific Microfinance Framework Programme (EU/ACP). 3 The National Informal Economy Policy 2011-2015 recognizes financial inclusion as a priority action area as well as the intrinsic role of BPNG, the formal financial sector and the telecommunications sector.
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Responsibilities for the implementation of the National Financial Inclusion and Financial Literacy Strategy are delineated in Section E. Action Plan 2014-2015. Implementation will be coordinated and monitored by CEFI which was endorsed by the National Executive Council (NEC) in 2013 as the coordinating entity for all initiatives relating to financial inclusion. CEFI will
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Responsibilities for the implementation of the National Financial Inclusion and Financial Literacy Strategy are delineated in Section E. Action Plan 2014-2015. Implementation will be coordinated and monitored by CEFI which was endorsed by the National Executive Council (NEC) in 2013 as the coordinating entity for all initiatives relating to financial inclusion. CEFI will
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Financial Service Providers at a Glance, July 2013 4 commercial banks with 111
branches More than 390 ATMs and over 13,000
EFTPOS 4 microbanks with 27 branches 771 commercial bank, microbank and
Post PNG agents 21 savings and loan associations (few
actively operating) 6-8 NGO-MFIs 4 superannuation funds 2 Investment Managers; and 3 Fund
Administrators 4 life insurers and 18 general insurers
work closely with the Sub-committee on Financial Inclusion of the multi-stakeholder Consultative Implementation and Monitoring Council (CIMC) responsible for overseeing the implementation of the National Informal Economy Policy.
B. Current Status of Financial Inclusion in PNG Financial inclusion in Papua New Guinea (PNG) has received active support from the national government, resulting in a diverse range of service providers, financial products and delivery channels. Together, the five mobile money providers claim over 300,000 registered users since the opening of the mobile money market in 2011. Growing at an annual rate of 202 percent since 2008, the number of financial services agents now surpasses bank branches in the country. In PNG several significant barriers restrict the number of low-income households that participate in the formal financial sector. The high costs of serving poor customers relative to the revenues generated by small transactions and balances, the high costs of building a distribution system to acquire and serve low-income customers, and a lack of products and services tailored to the needs of low-income customers deprive individuals, families and communities of the socio-economic benefits associated with financial inclusion.
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Financial Service Providers at a Glance, July 2013 4 commercial banks with 111
branches More than 390 ATMs and over 13,000
EFTPOS 4 microbanks with 27 branches 771 commercial bank, microbank and
Post PNG agents 21 savings and loan associations (few
actively operating) 6-8 NGO-MFIs 4 superannuation funds 2 Investment Managers; and 3 Fund
Administrators 4 life insurers and 18 general insurers
work closely with the Sub-committee on Financial Inclusion of the multi-stakeholder Consultative Implementation and Monitoring Council (CIMC) responsible for overseeing the implementation of the National Informal Economy Policy.
B. Current Status of Financial Inclusion in PNG Financial inclusion in Papua New Guinea (PNG) has received active support from the national government, resulting in a diverse range of service providers, financial products and delivery channels. Together, the five mobile money providers claim over 300,000 registered users since the opening of the mobile money market in 2011. Growing at an annual rate of 202 percent since 2008, the number of financial services agents now surpasses bank branches in the country. In PNG several significant barriers restrict the number of low-income households that participate in the formal financial sector. The high costs of serving poor customers relative to the revenues generated by small transactions and balances, the high costs of building a distribution system to acquire and serve low-income customers, and a lack of products and services tailored to the needs of low-income customers deprive individuals, families and communities of the socio-economic benefits associated with financial inclusion.
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Table 1 below shows usage and access in PNG using the G20 Financial Inclusion Indicators for which data is available. Table 1 – PNG Financial Inclusion Indicators
Category Indicator Indicator
Calculation4 Measures
Formally banked adults
% of adults5 with an account at a formal financial
institution (June 2013
National 14.63%
Usage
Southern 21.05% Highlands 8.33% Momase 17.82% Islands 20.75%
Number of deposit accounts per 1,000 adults
(June 2013)
National 439
Southern 632 Highlands 250 Momase 535 Islands 623
Adults with credit at regulated institutions
% of adults with at least one loan outstanding from a
regulated financial institution (December 2012)
National 6.98%
Usage Number of borrowers per
1,000 adults (December 2012)
National 70
Point of Service & E-money accounts
Number of branches per 100,000 adults
(June 2013)
National 3
Access
Southern 6 Highlands 2 Momase 4 Islands 5
Number of ATMs per 100,000 adults
(June 2013) National 10
Number of POS terminals per 100,000 inhabitants
(June 2013) National 330
E-money accounts
Number of e-money accounts for mobile
payments (July 2013)
National 386,000 Access
The unbanked segment currently stands at 85.62 percent of the total population with the Highland Region having the highest percentage at 91.92 percent, followed by the Momase Region at 82.30 percent. Notably, both regions also have correspondingly low levels of human
4 Calculated by using raw data collected for the PNG Financial Services Sector Assessment 2013 (Report being finalized) 5 Adults defined as age 15 and above as per international criteria
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Table 1 below shows usage and access in PNG using the G20 Financial Inclusion Indicators for which data is available. Table 1 – PNG Financial Inclusion Indicators
Category Indicator Indicator
Calculation4 Measures
Formally banked adults
% of adults5 with an account at a formal financial
institution (June 2013
National 14.63%
Usage
Southern 21.05% Highlands 8.33% Momase 17.82% Islands 20.75%
Number of deposit accounts per 1,000 adults
(June 2013)
National 439
Southern 632 Highlands 250 Momase 535 Islands 623
Adults with credit at regulated institutions
% of adults with at least one loan outstanding from a
regulated financial institution (December 2012)
National 6.98%
Usage Number of borrowers per
1,000 adults (December 2012)
National 70
Point of Service & E-money accounts
Number of branches per 100,000 adults
(June 2013)
National 3
Access
Southern 6 Highlands 2 Momase 4 Islands 5
Number of ATMs per 100,000 adults
(June 2013) National 10
Number of POS terminals per 100,000 inhabitants
(June 2013) National 330
E-money accounts
Number of e-money accounts for mobile
payments (July 2013)
National 386,000 Access
The unbanked segment currently stands at 85.62 percent of the total population with the Highland Region having the highest percentage at 91.92 percent, followed by the Momase Region at 82.30 percent. Notably, both regions also have correspondingly low levels of human
4 Calculated by using raw data collected for the PNG Financial Services Sector Assessment 2013 (Report being finalized) 5 Adults defined as age 15 and above as per international criteria
National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Table 1 below shows usage and access in PNG using the G20 Financial Inclusion Indicators for which data is available. Table 1 – PNG Financial Inclusion Indicators
Category Indicator Indicator
Calculation4 Measures
Formally banked adults
% of adults5 with an account at a formal financial
institution (June 2013
National 14.63%
Usage
Southern 21.05% Highlands 8.33% Momase 17.82% Islands 20.75%
Number of deposit accounts per 1,000 adults
(June 2013)
National 439
Southern 632 Highlands 250 Momase 535 Islands 623
Adults with credit at regulated institutions
% of adults with at least one loan outstanding from a
regulated financial institution (December 2012)
National 6.98%
Usage Number of borrowers per
1,000 adults (December 2012)
National 70
Point of Service & E-money accounts
Number of branches per 100,000 adults
(June 2013)
National 3
Access
Southern 6 Highlands 2 Momase 4 Islands 5
Number of ATMs per 100,000 adults
(June 2013) National 10
Number of POS terminals per 100,000 inhabitants
(June 2013) National 330
E-money accounts
Number of e-money accounts for mobile
payments (July 2013)
National 386,000 Access
The unbanked segment currently stands at 85.62 percent of the total population with the Highland Region having the highest percentage at 91.92 percent, followed by the Momase Region at 82.30 percent. Notably, both regions also have correspondingly low levels of human
4 Calculated by using raw data collected for the PNG Financial Services Sector Assessment 2013 (Report being finalized) 5 Adults defined as age 15 and above as per international criteria
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development indicators, including the lowest literacy rates at 39.2 percent and 53.9 percent respectively.6 Figure 1 – Total Banked and Unbanked Adults by Region
Financial access points - defined here as bank branches and agents - are also disproportionally distributed. In the Southern and Island Regions, one branch/agent services 3,004 and 3,350 adults on average respectively. In the Highlands region, where 42 percent of the country’s population resides, there is only one branch/agent serving 8,427 adults. Table 2 – Ratio of Branches/Agents and Economically Active Population
Total No. of Branches and Agents
Adult Population Adult Population Served Per Branch/Agent
Southern Region 252 756,977 3,004 Highlands Region 218 1,836,978 8,427 Momase Region 198 1,007,261 5,087 Islands Region 158 529,254 3,350 National 826 4,142,514 5,015
Financial Competency of Low-income Population According to the 2013 survey results measuring financial competency of low-income households in PNG7, the overall level of adult financial competence is low and low-moderate (see Table 3 below). Table 3 – Levels of Financial Competence by Competency Area
6 HIES 2009-2010 7 PFIP and BPNG, 2013, Papua New Guinea Financial Competency Survey Report
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development indicators, including the lowest literacy rates at 39.2 percent and 53.9 percent respectively.6 Figure 1 – Total Banked and Unbanked Adults by Region
Financial access points - defined here as bank branches and agents - are also disproportionally distributed. In the Southern and Island Regions, one branch/agent services 3,004 and 3,350 adults on average respectively. In the Highlands region, where 42 percent of the country’s population resides, there is only one branch/agent serving 8,427 adults. Table 2 – Ratio of Branches/Agents and Economically Active Population
Total No. of Branches and Agents
Adult Population Adult Population Served Per Branch/Agent
Southern Region 252 756,977 3,004 Highlands Region 218 1,836,978 8,427 Momase Region 198 1,007,261 5,087 Islands Region 158 529,254 3,350 National 826 4,142,514 5,015
Financial Competency of Low-income Population According to the 2013 survey results measuring financial competency of low-income households in PNG7, the overall level of adult financial competence is low and low-moderate (see Table 3 below). Table 3 – Levels of Financial Competence by Competency Area
6 HIES 2009-2010 7 PFIP and BPNG, 2013, Papua New Guinea Financial Competency Survey Report
National Financial Inclusion and Financial Literacy Strategy 2014-2015
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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development indicators, including the lowest literacy rates at 39.2 percent and 53.9 percent respectively.6 Figure 1 – Total Banked and Unbanked Adults by Region
Financial access points - defined here as bank branches and agents - are also disproportionally distributed. In the Southern and Island Regions, one branch/agent services 3,004 and 3,350 adults on average respectively. In the Highlands region, where 42 percent of the country’s population resides, there is only one branch/agent serving 8,427 adults. Table 2 – Ratio of Branches/Agents and Economically Active Population
Total No. of Branches and Agents
Adult Population Adult Population Served Per Branch/Agent
Southern Region 252 756,977 3,004 Highlands Region 218 1,836,978 8,427 Momase Region 198 1,007,261 5,087 Islands Region 158 529,254 3,350 National 826 4,142,514 5,015
Financial Competency of Low-income Population According to the 2013 survey results measuring financial competency of low-income households in PNG7, the overall level of adult financial competence is low and low-moderate (see Table 3 below). Table 3 – Levels of Financial Competence by Competency Area
6 HIES 2009-2010 7 PFIP and BPNG, 2013, Papua New Guinea Financial Competency Survey Report
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development indicators, including the lowest literacy rates at 39.2 percent and 53.9 percent respectively.6 Figure 1 – Total Banked and Unbanked Adults by Region
Financial access points - defined here as bank branches and agents - are also disproportionally distributed. In the Southern and Island Regions, one branch/agent services 3,004 and 3,350 adults on average respectively. In the Highlands region, where 42 percent of the country’s population resides, there is only one branch/agent serving 8,427 adults. Table 2 – Ratio of Branches/Agents and Economically Active Population
Total No. of Branches and Agents
Adult Population Adult Population Served Per Branch/Agent
Southern Region 252 756,977 3,004 Highlands Region 218 1,836,978 8,427 Momase Region 198 1,007,261 5,087 Islands Region 158 529,254 3,350 National 826 4,142,514 5,015
Financial Competency of Low-income Population According to the 2013 survey results measuring financial competency of low-income households in PNG7, the overall level of adult financial competence is low and low-moderate (see Table 3 below). Table 3 – Levels of Financial Competence by Competency Area
6 HIES 2009-2010 7 PFIP and BPNG, 2013, Papua New Guinea Financial Competency Survey Report
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development indicators, including the lowest literacy rates at 39.2 percent and 53.9 percent respectively.6 Figure 1 – Total Banked and Unbanked Adults by Region
Financial access points - defined here as bank branches and agents - are also disproportionally distributed. In the Southern and Island Regions, one branch/agent services 3,004 and 3,350 adults on average respectively. In the Highlands region, where 42 percent of the country’s population resides, there is only one branch/agent serving 8,427 adults. Table 2 – Ratio of Branches/Agents and Economically Active Population
Total No. of Branches and Agents
Adult Population Adult Population Served Per Branch/Agent
Southern Region 252 756,977 3,004 Highlands Region 218 1,836,978 8,427 Momase Region 198 1,007,261 5,087 Islands Region 158 529,254 3,350 National 826 4,142,514 5,015
Financial Competency of Low-income Population According to the 2013 survey results measuring financial competency of low-income households in PNG7, the overall level of adult financial competence is low and low-moderate (see Table 3 below). Table 3 – Levels of Financial Competence by Competency Area
6 HIES 2009-2010 7 PFIP and BPNG, 2013, Papua New Guinea Financial Competency Survey Report
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Competency Score Competency Area High None of the Competency Areas were scored as High Moderate – High Competence with managing regular and one-off expenditures
Low-Moderate
Competence with managing essential expenditures Competence with setting household goals and plans Competence with managing household income Competence with identifying and recording household expenditures Competence with managing requests for financial assistance Competence with managing savings Competence with managing borrowing Competence with managing long term savings
Low
Competence with keeping household records Competence with household budgeting Competence with non-cash transactions Competence with managing cost of money
Other key findings of the survey include: Rural households appear to face constraints to financial competence due to lack of access
to financial services (in particular, transaction services), Men in urban communities are more likely to identify themselves as financially competent.
This may be due to higher English language ability and easier access to financial services (in particular through employment). Women appear to be less involved in the management of the household’s finances,
Cash continues to be the dominant mode of payment across both urban and rural
households, Households identified as most competent at managing immediate activities and less
competent at managing more sophisticated activities, in particular planned activities and non-cash transactions,
Low competence in managing cost of money make low-income people especially vulnerable
to predator lending and other scams Women’s Financial Inclusion Women constitute approximately 50 percent of the country’s seven million population but make up less than 30 percent of the total financial services accounts in the country. They represent an untapped population of economically active, low-income micro entrepreneurs and rural producers. The financial disempowerment of women in low-income households in PNG is pervasive. Irrespective of where they live, women in low-income households are:
less likely to be able to communicate in English less likely to own and be able to use a mobile phone less likely to own financial products less likely to be involved in household financial management likely to work, but in occupations that have a lower requirement for a bank account
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National Financial Inclusion and Financial Literacy Strategy 2014-2015
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Competency Score Competency Area High None of the Competency Areas were scored as High Moderate – High Competence with managing regular and one-off expenditures
Low-Moderate
Competence with managing essential expenditures Competence with setting household goals and plans Competence with managing household income Competence with identifying and recording household expenditures Competence with managing requests for financial assistance Competence with managing savings Competence with managing borrowing Competence with managing long term savings
Low
Competence with keeping household records Competence with household budgeting Competence with non-cash transactions Competence with managing cost of money
Other key findings of the survey include: Rural households appear to face constraints to financial competence due to lack of access
to financial services (in particular, transaction services), Men in urban communities are more likely to identify themselves as financially competent.
This may be due to higher English language ability and easier access to financial services (in particular through employment). Women appear to be less involved in the management of the household’s finances,
Cash continues to be the dominant mode of payment across both urban and rural
households, Households identified as most competent at managing immediate activities and less
competent at managing more sophisticated activities, in particular planned activities and non-cash transactions,
Low competence in managing cost of money make low-income people especially vulnerable
to predator lending and other scams Women’s Financial Inclusion Women constitute approximately 50 percent of the country’s seven million population but make up less than 30 percent of the total financial services accounts in the country. They represent an untapped population of economically active, low-income micro entrepreneurs and rural producers. The financial disempowerment of women in low-income households in PNG is pervasive. Irrespective of where they live, women in low-income households are:
less likely to be able to communicate in English less likely to own and be able to use a mobile phone less likely to own financial products less likely to be involved in household financial management likely to work, but in occupations that have a lower requirement for a bank account
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more likely to not know how they will support themselves when they are no longer able to earn
Recent research by Women’s World Banking (WWB)8 revealed that domestic conflicts that result in violence are often struggles over control of money. In such struggles women’s personal money is highly vulnerable.
C. Key Principles
The following principles, adopted from the G20 Principles for Innovative Financial Inclusion, aim to help create an enabling policy and regulatory environment for innovative financial inclusion. The enabling environment can critically increase the speed at which the financial services access gap will close for the unbanked population. These principles for innovative financial inclusion derive from the experiences and lessons learned by policymakers worldwide, especially those from developing countries. In the planning, implementation and results measurement of the National Strategy, BPNG and key stakeholders will take into consideration the G20 Principles for Innovative Financial Inclusion. These are: 1. Leadership: Cultivate a broad-based government commitment to financial inclusion to help
alleviate poverty and drive inclusive economic growth, 2. Diversity: Implement policy approaches that promote competition and provide market-
based incentives for delivery of sustainable financial access and usage of a broad range of affordable services (savings, credit, payments and transfers, insurance) as well as a diversity of service providers,
3. Innovation: Promote technological and institutional innovation as a means to expand
financial system access and usage, including by addressing infrastructure weaknesses, 4. Protection: Encourage a comprehensive approach to consumer protection that recognizes
the roles of government, providers and consumers, 5. Empowerment: Develop financial literacy and financial capability, 8 WWB, 2013, Deepening Financial Inclusion for Women in the Pacific Islands: An assessment of the gender issues surrounding women’s ability to access and control financial resources in Papua New Guinea and Samoa
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more likely to not know how they will support themselves when they are no longer able to earn
Recent research by Women’s World Banking (WWB)8 revealed that domestic conflicts that result in violence are often struggles over control of money. In such struggles women’s personal money is highly vulnerable.
C. Key Principles
The following principles, adopted from the G20 Principles for Innovative Financial Inclusion, aim to help create an enabling policy and regulatory environment for innovative financial inclusion. The enabling environment can critically increase the speed at which the financial services access gap will close for the unbanked population. These principles for innovative financial inclusion derive from the experiences and lessons learned by policymakers worldwide, especially those from developing countries. In the planning, implementation and results measurement of the National Strategy, BPNG and key stakeholders will take into consideration the G20 Principles for Innovative Financial Inclusion. These are: 1. Leadership: Cultivate a broad-based government commitment to financial inclusion to help
alleviate poverty and drive inclusive economic growth, 2. Diversity: Implement policy approaches that promote competition and provide market-
based incentives for delivery of sustainable financial access and usage of a broad range of affordable services (savings, credit, payments and transfers, insurance) as well as a diversity of service providers,
3. Innovation: Promote technological and institutional innovation as a means to expand
financial system access and usage, including by addressing infrastructure weaknesses, 4. Protection: Encourage a comprehensive approach to consumer protection that recognizes
the roles of government, providers and consumers, 5. Empowerment: Develop financial literacy and financial capability, 8 WWB, 2013, Deepening Financial Inclusion for Women in the Pacific Islands: An assessment of the gender issues surrounding women’s ability to access and control financial resources in Papua New Guinea and Samoa
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more likely to not know how they will support themselves when they are no longer able to earn
Recent research by Women’s World Banking (WWB)8 revealed that domestic conflicts that result in violence are often struggles over control of money. In such struggles women’s personal money is highly vulnerable.
C. Key Principles
The following principles, adopted from the G20 Principles for Innovative Financial Inclusion, aim to help create an enabling policy and regulatory environment for innovative financial inclusion. The enabling environment can critically increase the speed at which the financial services access gap will close for the unbanked population. These principles for innovative financial inclusion derive from the experiences and lessons learned by policymakers worldwide, especially those from developing countries. In the planning, implementation and results measurement of the National Strategy, BPNG and key stakeholders will take into consideration the G20 Principles for Innovative Financial Inclusion. These are: 1. Leadership: Cultivate a broad-based government commitment to financial inclusion to help
alleviate poverty and drive inclusive economic growth, 2. Diversity: Implement policy approaches that promote competition and provide market-
based incentives for delivery of sustainable financial access and usage of a broad range of affordable services (savings, credit, payments and transfers, insurance) as well as a diversity of service providers,
3. Innovation: Promote technological and institutional innovation as a means to expand
financial system access and usage, including by addressing infrastructure weaknesses, 4. Protection: Encourage a comprehensive approach to consumer protection that recognizes
the roles of government, providers and consumers, 5. Empowerment: Develop financial literacy and financial capability, 8 WWB, 2013, Deepening Financial Inclusion for Women in the Pacific Islands: An assessment of the gender issues surrounding women’s ability to access and control financial resources in Papua New Guinea and Samoa
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6. Cooperation: Create an institutional environment with clear lines of accountability and co-
ordination within government; and also encourage partnerships and direct consultation across government, business and other stakeholders,
7. Knowledge: Utilize improved data to make evidence based policy, measure progress, and
consider an incremental “test and learn” approach acceptable to both regulator and service provider,
8. Proportionality: Build a policy and regulatory framework that is proportionate with the risks
and benefits involved in such innovative products and services and is based on an understanding of the gaps and barriers in existing regulation;, and,
9. Framework: Consider the following in the regulatory framework, international standards,
national circumstances and support for a competitive landscape: an appropriate, flexible, risk-based Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime; conditions for the use of agents as a customer interface; a clear regulatory regime reflecting for electronically stored value; and market-based incentives to achieve the long-term goal of broad interoperability and interconnection.
These principles are a reflection of the conditions conducive to spurring innovation for financial inclusion while protecting financial stability and consumers.
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D. Implementation Management
The Financial Inclusion Policy contained in National Informal Economy Policy 2011-2015 provides the national development policy framework for the Financial Inclusion and Financial Literacy Strategy 2014-2015. CEFI, endorsed by the NEC to coordinate all financial inclusion initiatives in PNG, will have the primary role of coordinating and monitoring the implementation of the strategy. CEFI will work closely with the CIMC Financial Inclusion Sub-Committee, currently chaired by the Governor of BPNG, to coordinate, monitor and report on the implementation of the targets set out in the strategy’s action plan.
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CEFI aims to build an inclusive partnership mechanism and will build on the competency areas of key stakeholders in order to maximize impact from a wide range of financial inclusion efforts. Figure 2 – CEFI’s Approach
Coordination CEFI will, as appropriate, set up a number of working groups to help address key priorities identified in the strategy. The membership of the working groups will be drawn from the CIMC Informal Economy Committee’s (IEC) Sub-committee on Financial Inclusion. CEFI will also leverage the existing consultative mechanism within CIMC. The working groups will include key stakeholders working in the respective areas and will meet quarterly to measure progress against the key areas of the strategy that fall within their ambit. The proposed working groups will include: Working Group on Consumer Protection
This working group will serve as the coordinating body for consumer protection and market conduct initiatives. It will work with industry standard bodies such as the ICCC and other regulators to appropriately protect vulnerable users of financial services. In addition, the working group will promote globally accepted best practices in empowering clients and protecting their interests.
Working Group on Financial Education and Financial Literacy This working group will oversee the implementation of the financial literacy activities in the strategy and will harness the capacities of its member organizations to support timely implementation. It will have a specific focus on facilitating actions to introduce financial education into the school curricula. This working group will also actively promote standards for the delivery of financial literacy training in PNG.
Working Group on Electronic Banking This working group will focus on innovative ways to expand access and encourage markets using ICT. It will facilitate the development of payment systems that serve the low-income population sustainably in order to reduce the time and money that low income-earning people spend to conduct financial transactions. This working group will also identify
National Financial Inclusion and Financial Literacy Strategy 2014-2015
14
National Financial Inclusion and Financial Literacy Strategy 2014-2015
15
pertinent research that will enable service providers to better serve low-income and remote communities.
Working Group on Data and Measurement
This working group will encourage and promote the importance of collecting and sharing relevant data to measure progress in financial inclusion. It will work closely with the National Statistics Office, CEFI and BPNG to help institutionalize a standard set of indicators that will be collected on a regular basis. The working group is expected to also actively promote the sharing of data and to highlight gaps in outreach and services through digital mapping and other effective mediums of data presentation.
Working Group on Inclusive Insurance
This working group will actively promote the development of a conducive policy and regulatory environment for the growth of the inclusive insurance market. It will facilitate partnership between government and private sector for offering relevant products to the poor; including the use of alternate channels for distribution.
Working Group on Government Coordination on Financial Inclusion
This working group will ensure that the various government departments’ activities related to financial inclusion are coordinated and complimentary, with the overall goal of decentralizing delivery of financial services, financial education, and financial awareness for low-income consumers and MSMEs.
Gender will be mainstreamed across all working groups, with focused attention on women’s access to financial services, greater gender balance in inclusive financial sector intermediaries (i.e. governance, management and staffing), and creating an enabling policy, regulatory and legislative environment that promotes and enhances the development of women-centric financial services. Advocacy & Knowledge CEFI will also undertake advocacy and knowledge-sharing/dissemination as part of its core function. CEFI’s advocacy will focus on the importance of financial inclusion to economic growth with provincial governments. CEFI will create a platform for provincial governments to commit to the goals of financial inclusion and financial literacy and help create tangible interventions through provincial allocation of (District Service Improvement Program (DSIP) and Provincial Service Improvement Program (PSIP) funds to financial education. Most importantly, CEFI’s advocacy is critical to ensuring that the government-funded credit schemes conform to best-practices and do not distort the ultimate goal of creating an inclusive financial sector in PNG.
CEFI will also generate knowledge products to harness the inherent value of its data collection efforts, such as quarterly trends analyses of financial inclusion in PNG. CEFI will also enable its website to feature and disseminate all knowledge and research products emerging out of partners’ work in the sector.
For its important role in gender balance and equity, CEFI will have a gender desk. This desk will support the significance and importance gender has in achieving the vision, mission and objectives of financial inclusion.
National Financial Inclusion and Financial Literacy Strategy 2014-2015
15
National Financial Inclusion and Financial Literacy Strategy 2014-2015
16
E. Action Plan 2014-2015 The National Financial Inclusion and Financial Literacy Strategy has identified financial inclusion (for individuals as well as micro and small enterprises) as a key driver of economic growth, reduced economic vulnerability for individual household, poverty alleviation, promotion of gender equity and balance, and improved quality of life for people around the country. Guided by the G20’s Innovative financial inclusion9 principles, Papua New Guinea will create an enabling policy and regulatory environment that will accelerate financial inclusion. The goal of a financial inclusion strategy and action plan is to bring together initiatives from the public sector, financial and non-financial institutions, and other stakeholders to expand and improve financial inclusion while maintaining sufficient focus on financial stability, integrity, market conduct, and consumer protection. PNG’s Commitments for 2014-2015 to the Maya Declaration on Financial Inclusion made at the September 2013 Alliance for Financial Inclusion Global Policy Forum will form the framework of the action plan. These commitments are:
i. To reach one million more unbanked low-income people in PNG and micro and small enterprises, with a diverse range of financial services. Fifty percent of people reached will be women;
ii. To lead efforts to create a financially competent generation of Papua New Guineans
through financial education and youth-focused financial products and financial literacy; iii. To actively support innovative use of technology for scaling-up access to financial
services and financial literacy; iv. To strengthen consumer protection by issuing prudential guidelines and creating a
platform for various national regulators and industry networks to monitor consumer protection;
v. To begin the process of integrating financial inclusion in local and national government; vi. To promote regular collection and use of financial access data to inform policy making
and help identify key dimensions of financial inclusion in PNG; and vii. To optimize these results through knowledge sharing and effective coordination of
stakeholders, including development partners, by the newly established CEFI chaired by the Bank of PNG.
9 Innovative Financial Inclusion means improving access to financial services for poor people through the safe and sound spread of new approaches.
National Financial Inclusion and Financial Literacy Strategy 2014-2015
16
Nat
iona
l Fin
anci
al In
clus
ion
and
Fina
ncia
l Lite
racy
Str
ateg
y 20
14-2
015
17
A
ctio
n
Lead
O
rgan
izat
ions
St
art D
ate
En
d D
ate
M
easu
reab
le In
dica
tors
1 ST
RAT
EGIC
OB
JEC
TIVE
1: T
O R
EAC
H O
NE
MIL
LIO
N M
OR
E U
NB
AN
KED
LO
W-IN
CO
ME
PEO
PLE
IN P
APU
A N
EW G
UIN
EA A
ND
MIC
RO
A
ND
SM
ALL
EN
TER
PRIS
ES, W
ITH
A D
IVER
SE R
AN
GE
OF
FIN
AN
CIA
L SE
RVI
CES
. FIF
TY P
ERC
ENT
OF
PEO
PLE
REA
CH
ED W
ILL
BE
WO
MEN
1.1
Mea
sure
qua
rter
ly p
rogr
ess
of b
anki
ng o
ne m
illio
n m
ore
unba
nked
(lin
ked
to 6
.1.2
)
BPN
G w
ith a
ssis
tanc
e fro
m d
onor
s an
d th
e W
orki
ng G
roup
on
Dat
a &
Mon
itorin
g
Qua
rter 1
20
14
Ong
oing
1)
Rep
ort o
n pr
ogre
ss
(link
ed to
6.1
.2)
1.2
Mea
sure
qua
rter
ly p
rogr
ess
of e
nsur
ing
that
50%
of
the
1 m
illio
n m
ore
unba
nked
are
wom
en (l
inke
d to
6.
1.2)
BPN
G w
ith a
ssis
tanc
e fro
m d
onor
s an
d th
e W
orki
ng G
roup
on
Dat
a &
Mon
itorin
g
Qua
rter 1
20
14
Ong
oing
1)
R
epor
t on
num
ber o
f w
omen
ban
ked
(link
ed to
6.1
.2)
1.3
Dev
elop
SM
E R
isk
Shar
e Fa
cilit
y to
ena
ble
acce
ss
to fo
rmal
, sm
all a
nd m
ediu
m e
nter
pris
es (S
ME)
Dep
artm
ent o
f Tra
de,
Com
mer
ce, a
nd
Indu
stry
with
as
sist
ance
from
IFC
Ong
oing
Q
uarte
r 4 2
015
1)
Ris
k-sh
are
faci
litie
s op
erat
iona
l; 2)
Rep
ort
on n
umbe
r of S
MEs
ac
cess
ing
finan
cial
se
rvic
es (l
inke
d to
6.
1.2)
1.4
Dev
elop
Mic
ro E
nter
pris
e R
isk
Shar
e Fa
cilit
y to
en
able
acc
ess
to lo
ans
for i
nfor
mal
sec
tor m
icro
en
terp
rises
, inc
ludi
ng w
omen
-ow
ned
mic
ro
ente
rpris
es
Dep
artm
ent o
f Tr
easu
ry w
ith
assi
stan
ce fr
om
Mic
rofin
ance
Ex
pans
ion
Proj
ect
(MEP
)
Qua
rter 2
, 20
14
TBD
1)
Ris
k-sh
are
faci
litie
s op
erat
iona
l; 2)
Rep
ort
on n
umbe
r of m
icro
en
terp
rises
acc
essi
ng
finan
cial
ser
vice
s (li
nked
to 6
.1.2
)
1.5
Impl
emen
t sec
ured
tran
sact
ions
fram
ewor
k w
ith
onlin
e re
gist
ry to
sup
port
the
Pers
onal
Pro
pert
y Se
curit
y A
ct
Trea
sury
with
as
sist
ance
from
AD
B
Ong
oing
Q
uarte
r 3 2
014
1)
Onl
ine
regi
stry
fu
nctio
ning
; 2)
Tr
ack
the
num
ber o
f fil
ings
1.6
Prov
ide
finan
cial
and
tech
nica
l ass
ista
nce
to s
cale
-up
acc
ess
to m
obile
mon
ey (M
M) a
nd b
ranc
hles
s ba
nkin
g (li
nked
to 3
.1.4
) IF
C, P
FIP
, AD
B, M
EP
Ong
oing
Q
uarte
r 4 2
015
1)
Trac
k nu
mbe
r of M
M
acco
unts
the
coun
try
(from
bas
elin
e of
38
6,00
0 in
Jul
y 20
13)
1.7
Prov
ide
finan
cial
and
tech
nica
l ass
ista
nce
to c
reat
e vi
able
incl
usiv
e in
sura
nce
prod
ucts
for t
he lo
w-
inco
me
popu
latio
n
ME
P, P
FIP
O
ngoi
ng
Qua
rter 4
, 201
5
1)
Viab
le in
clus
ive
insu
ranc
e pr
oduc
t of
fere
d by
at l
east
on
e fin
anci
al
inst
itutio
n
National Financial Inclusion and Financial Literacy Strategy 2014-2015
17
Nat
iona
l Fin
anci
al In
clus
ion
and
Fina
ncia
l Lite
racy
Str
ateg
y 20
14-2
015
18
2 ST
RA
TEG
IC O
BJE
CTI
VE 2
: TO
LEA
D E
FFO
RTS
TO
CR
EATE
A F
INAN
CIA
LLY
CO
MPE
TEN
T G
ENER
ATIO
N O
F PA
PUA
NEW
GU
INEA
NS
THR
OU
GH
FIN
ANC
IAL
EDU
CAT
ION
AN
D Y
OU
TH-F
OC
USE
D F
INAN
CIA
L PR
OD
UC
TS A
ND
FIN
ANC
IAL
LITE
RAC
Y
2.1
Stre
ngth
en a
nd E
nhan
ce th
e C
oord
inat
ion
of a
nd D
evel
opm
ent o
f Effe
ctiv
e Fi
nanc
ial L
itera
cy P
rogr
ams
for L
ow-In
com
e Po
pula
tion
2.1.
1 Es
tabl
ish
Wor
king
Gro
up o
n Fi
nanc
ial E
duca
tion
and
finan
cial
lite
racy
and
hol
d qu
arte
rly m
eetin
gs
CEF
I and
CIM
C IE
C
Sub-
com
mitt
ee o
n FI
, with
sup
port
from
M
EP
Qua
rter 1
20
14
Ong
oing
1) M
inut
es o
f Sub
-gr
oup
mee
tings
; 2)
Annu
al w
ork
plan
of
the
wor
king
gro
up
2.1.
2 C
ompi
le a
nd u
pdat
e co
nsol
idat
ed li
st o
f fin
anci
al
liter
acy
prov
ider
s - t
heir
loca
tion,
con
tent
and
ta
rget
gro
up o
f tra
inin
g C
EFI
Qua
rter 1
20
14
Qua
rter 1
20
14, O
ngoi
ng
1) U
pdat
ed li
st o
f pr
ovid
ers
and
cove
rage
of t
rain
ing
circ
ulat
ed q
uarte
rly
2.1.
3
Iden
tify
min
imum
key
lear
ning
out
com
es th
at
finan
cial
lite
racy
pro
vide
rs s
houl
d m
easu
re,
diss
emin
ate
to p
rovi
ders
and
mon
itor
effe
ctiv
enes
s
CEF
I, PF
IP
Qua
rter 2
20
14
Qua
rter 2
201
4
1) K
ey le
arni
ng
outc
omes
issu
ed to
pr
ovid
ers
and
advo
cate
d; 2
) ac
hiev
emen
t of
outc
omes
mea
sure
d 2.
2 In
crea
se F
ocus
on
Fina
ncia
l Edu
catio
n fo
r You
th
2.2.
1 Si
gn M
oU w
ith D
epar
tmen
t of E
duca
tion
to
intro
duce
fina
ncia
l edu
catio
n in
sch
ool c
urric
ulum
D
epar
tmen
t of
Educ
atio
n, B
PNG
O
ngoi
ng
Qua
rter 1
20
14
1) M
oU s
igne
d an
d im
plem
enta
tion
stra
tegy
agr
eed
upon
2.2.
2 Fi
nanc
ial e
duca
tion
prog
ram
mes
cus
tom
ized
to
suit
stud
ents
at s
choo
ls a
nd o
ther
lear
ning
in
stitu
tions
Dep
artm
ent o
f Ed
ucat
ion
with
as
sist
ance
from
IF
C a
nd P
FIP
Qua
rter 1
20
14
Qua
rter 4
20
15
1) N
umbe
r of m
odul
es
that
sui
t sch
ool c
hild
ren
& st
uden
ts o
f oth
er
train
ing
inst
itutio
ns; 2
) N
umbe
r of s
choo
l ch
ildre
n a
nd s
tude
nts
prov
ided
with
FL
train
ing
2.2.
3 Be
gin
impl
emen
tatio
n of
fina
ncia
l edu
catio
n in
sc
hool
s (p
rimar
y, s
econ
dary
) and
/or v
ocat
iona
l an
d te
chni
cal i
nstit
utio
n fro
m 2
015
Dep
artm
ent o
f Ed
ucat
ion
with
as
sist
ance
from
Qua
rter 1
20
15
Ong
oing
1)
Sco
ping
exe
rcis
e by
ex
perts
com
plet
ed, 2
) Im
plem
enta
tion
plan
National Financial Inclusion and Financial Literacy Strategy 2014-2015
18
Nat
iona
l Fin
anci
al In
clus
ion
and
Fina
ncia
l Lite
racy
Str
ateg
y 20
14-2
015
19
IFC
, PFI
P an
d bu
dget
app
rove
d
2.3
Incr
ease
Und
erst
andi
ng o
f Low
-Inco
me
Cus
tom
ers
2.3.
1 In
crea
sing
und
erst
andi
ng o
f the
beh
avio
r of l
ow-
inco
me
cust
omer
s IF
C, P
FIP
Ong
oing
Q
1 20
14
1) P
ublis
hed
repo
rt on
be
havi
or s
tudy
by
IFC
2)
Wor
ksho
p to
di
ssem
inat
e pr
ofile
s an
d se
gmen
tatio
n of
lo
w-in
com
e cl
ient
s
2.3.
2 N
atio
nal F
inan
cial
Cap
abilit
y Su
rvey
BP
NG
, WB
Ong
oing
Q
4 20
14
1) P
ublis
h re
port
on
Nat
iona
l Fin
anci
al
Cap
abilit
y Su
rvey
3 ST
RA
TEG
IC O
BJE
CTI
VE 3
: TO
AC
TIVE
LY S
UPP
OR
T IN
NO
VATI
VE U
SE O
F TE
CH
NO
LOG
Y FO
R S
CAL
ING
-UP
AC
CES
S TO
FIN
ANC
IAL
SER
VIC
ES A
ND
FIN
ANC
IAL
LITE
RAC
Y
3.1
To S
tren
gthe
n C
oord
inat
ion
and
Col
labo
ratio
n B
etw
een
Stak
ehol
ders
for B
uild
ing
the
Ecos
yste
m to
Sup
port
Cos
t-Ef
fect
ive
Elec
tron
ic a
nd M
obile
Ban
king
3.1.
1 Es
tabl
ish
Wor
king
Gro
up o
n El
ectro
nic
Bank
ing,
an
d ho
ld q
uarte
rly m
eetin
gs
CEF
I, C
IMC
IEC
Su
b-co
mm
ittee
on
FI
Qua
rter 1
20
14
Ong
oing
1)
Min
utes
of S
ub-
grou
p m
eetin
gs;
2)
Annu
al w
ork
plan
of
the
wor
king
gro
up
3.1.
2 R
evie
w o
f the
dra
ft N
ICTA
Reg
ulat
ion
on S
IM
Car
d R
egis
tratio
ns a
nd th
e U
nive
rsal
ID p
ropo
sal
BPN
G w
ith
assi
stan
ce fr
om
dono
rs
Qua
rter 1
20
14
1)
Uni
fied
resp
onse
to
the
draf
t by
the
PNG
Fin
anci
al
Incl
usio
n Se
ctor
3.1.
3
Advo
cacy
and
regu
lato
ry g
uida
nce
for p
aym
ent
syst
ems
inte
rope
rabi
lity
incl
udin
g lo
wer
ing
barr
iers
of
ent
ry fo
r oth
er fi
nanc
ial i
nstit
utio
ns s
uch
as
Mic
ro B
anks
Wor
king
Gro
up o
n El
ectro
nic
Bank
ing
Qua
rter 1
20
15
Qua
rter 4
20
15
1)
Low
ered
bar
riers
of
entry
for o
ther
fin
anci
al in
stitu
tions
in
the
Nat
iona
l Pa
ymen
t sys
tem
3.1.
4 Pr
ovid
e fin
anci
al a
nd te
chni
cal a
ssis
tanc
e to
sc
ale-
up a
cces
s to
mob
ile a
nd b
ranc
hles
s ba
nkin
g
(link
ed to
1.6
)
IFC
, PFI
P, A
DB,
M
EP
Ong
oing
Q
uarte
r 4
2015
1)
Trac
k nu
mbe
r of
mob
ile m
oney
ac
coun
ts in
the
coun
try (f
rom
ba
selin
e of
320
,000
National Financial Inclusion and Financial Literacy Strategy 2014-2015
19
Nat
iona
l Fin
anci
al In
clus
ion
and
Fina
ncia
l Lite
racy
Str
ateg
y 20
14-2
015
20
in J
uly
2013
)
3.2
Tran
sitio
n ca
sh to
ele
ctro
nic
paym
ents
to d
rive
up tr
ansa
ctio
n vo
lum
e, lo
wer
cos
ts a
nd b
uild
inte
rcon
nect
ed e
cosy
stem
su
ppor
ting
elec
tron
ic b
anki
ng
3.2.
1 Sc
opin
g st
udy
to m
ap a
nd q
uant
ify G
2P p
aym
ents
(s
ocia
l tra
nsfe
rs, r
oyal
ties,
wag
es, a
nd p
ensi
on
paym
ents
) in
PN
G
PFIP
, IFC
Q
uarte
r 1
2014
Q
uarte
r 4
2014
1)
Publ
icat
ion
on
land
scap
e of
G2P
pa
ymen
ts in
PN
G,
and
cost
-ben
efit
anal
ysis
of
trans
ition
ing
to
elec
troni
c pa
ymen
ts
3.3
Fina
ncia
l lite
racy
ove
r mob
ile p
hone
s an
d ot
her I
TC
3.3.
1 Pi
lot m
obile
pho
ne fi
nanc
ial l
itera
cy p
rogr
amm
es (l
inke
d to
4.1
.4)
PFIP
, IFC
Q
uarte
r 4
2014
O
ngoi
ng
1)
Less
ons
Lear
nt;
2)
Rec
omm
enda
tions
fo
r sca
ling-
up
4 ST
RA
TEG
IC O
BJE
CTI
VE 4
: TO
STR
ENG
THEN
CO
NSU
MER
PR
OTE
CTI
ON
BY
ISSU
ING
PR
UD
ENTI
AL G
UID
ELIN
ES A
ND
C
REA
TIN
G
A PL
ATFO
RM
FO
R
VAR
IOU
S N
ATIO
NAL
R
EGU
LATO
RS
AND
IN
DU
STR
Y N
ETW
OR
KS
TO
MO
NIT
OR
C
ON
SUM
ER P
RO
TEC
TIO
N
4.1
To S
tren
gthe
n C
oord
inat
ion
and
Col
labo
ratio
n B
etw
een
Stak
ehol
ders
for P
rote
ctin
g C
onsu
mer
s an
d G
uidi
ng M
arke
t C
ondu
ct
4.1.
1 Es
tabl
ish
Wor
king
Gro
up o
n C
onsu
mer
Pro
tect
ion,
and
ho
ld q
uarte
rly m
eetin
gs
CEF
I, C
IMC
IE
C S
ub-
com
mitt
ee o
n FI
Qua
rter 1
20
14
Ong
oing
1)
Min
utes
of S
ub-
grou
p m
eetin
gs;
2)
Annu
al w
ork
plan
of
the
wor
king
gro
up
4.1.
2
ICC
C s
treng
then
syn
ergi
es b
etw
een
finan
cial
incl
usio
n an
d th
eir o
wn
man
date
to p
rovi
de s
tand
ards
/cod
e of
co
nduc
t bas
ed o
n in
tern
atio
nal b
est p
ract
ices
on
cons
umer
pro
tect
ion
in c
onse
nsus
with
regu
lato
r
ICC
C, o
ther
st
anda
rd
setti
ng
bodi
es, B
PNG
Qua
rter 2
20
14
Qua
rter 3
20
14
1)
Cod
e of
Con
duct
4.1.
3 Pr
epar
atio
n of
pru
dent
ial g
uide
lines
to li
cens
ed fi
nanc
ial
inst
itutio
ns o
n co
nsum
er p
rote
ctio
n
BPN
G w
ith
assi
stan
ce
from
MEP
O
ngoi
ng
Qua
rter 4
20
14
1)
Prud
entia
l G
uide
lines
de
velo
ped
and
issu
ed
4.1.
4 Pi
lot c
onsu
mer
aw
aren
ess
notic
es v
ia m
obile
pho
nes
(link
ed w
ith 3
.3.1
) PF
IP
Qua
rter 4
20
14
Ong
oing
1)
Le
sson
s Le
arnt
2)
Im
plem
enta
tion
National Financial Inclusion and Financial Literacy Strategy 2014-2015
20
Nat
iona
l Fin
anci
al In
clus
ion
and
Fina
ncia
l Lite
racy
Str
ateg
y 20
14-2
015
21
reco
mm
enda
tions
fo
r sca
ling-
up
5 ST
RA
TEG
IC O
BJE
CTI
VE 5
: TO
BEG
IN T
HE
PRO
CES
S O
F IN
TEG
RAT
ING
FIN
ANC
IAL
INC
LUSI
ON
IN
LO
CAL
AN
D
NAT
ION
AL G
OVE
RN
MEN
T
5.1
Inte
grat
ing
finan
cial
incl
usio
n in
loca
l and
nat
iona
l gov
ernm
ent t
hrou
gh fa
cilit
atin
g ef
ficie
nt a
nd e
ffect
ive
coor
dina
tion
to
supp
ort v
ario
us o
n-go
ing
finan
cial
incl
usio
n ef
fort
s; m
onito
r pro
gres
s ov
er ti
me;
and
ens
ure
cont
inui
ty o
n fin
anci
al
incl
usio
n in
nat
iona
l and
sub
-nat
iona
l pla
nnin
g
5.1.
1 Es
tabl
ish
Wor
king
Gro
up o
n G
over
nmen
t Coo
rdin
atio
n fo
r Fin
anci
al In
clus
ion
and
hold
qua
rterly
mee
tings
CEF
I, C
IMC
IE
C S
ub-
com
mitt
ee o
n FI
Qua
rter 1
20
14
Ong
oing
1)
Min
utes
of S
ub-
grou
p m
eetin
gs;
2)
Annu
al w
ork
plan
of
the
wor
king
gro
up
5.1.
2 D
SIP
Annu
al B
udge
t mak
es p
rovi
sion
for f
inan
cial
lit
erac
y an
d fin
anci
al e
duca
tion
for
rura
l-bas
ed in
form
al
wor
kers
acr
oss
at le
ast 5
0% o
f all
dist
ricts
Offi
ce o
f R
ural
D
evel
opm
ent
thro
ugh
advo
cacy
by
Dep
artm
ent o
f C
omm
unity
D
evel
opm
ent,
Rel
igio
n an
d Yo
uth
supp
orte
d by
C
EFI
Qua
rter 4
20
14
Ong
oing
1)
D
SIP
annu
al
expe
nditu
re re
ports
5.2
Stan
dard
izin
g de
finiti
on o
f Mic
ro, S
mal
l and
Med
ium
Ent
erpr
ises
5.2.
1 As
sist
Dep
artm
ent o
f Tra
de, C
omm
erce
and
Indu
stry
to
esta
blis
h na
tiona
l def
initi
on o
f MS
ME
Wor
king
G
roup
on
Gov
ernm
ent
Coo
rdin
atio
n fo
r Fin
anci
al
Incl
usio
n
Qua
rter 1
20
14
Qua
rter 4
20
15
1)
Nat
iona
l def
initi
on
for M
SM
Es
National Financial Inclusion and Financial Literacy Strategy 2014-2015N
atio
nal F
inan
cial
Incl
usio
n an
d Fi
nanc
ial L
itera
cy S
trat
egy
2014
-201
5
22
6 ST
RA
TEG
IC O
BJE
CTI
VE 6
: TO
PR
OM
OTE
REG
ULA
R C
OLL
ECTI
ON
AN
D U
SE O
F FI
NAN
CIA
L AC
CES
S D
ATA
TO
INFO
RM
PO
LIC
Y M
AKIN
G A
ND
HEL
P ID
ENTI
FY K
EY D
IMEN
SIO
NS
OF
FIN
ANC
IAL
INC
LUSI
ON
IN P
APU
A N
EW G
UIN
EA
6.1
Har
mon
izin
g de
finiti
ons
and
appr
oach
es fo
r dat
a co
llect
ion
usin
g gl
obal
gui
delin
es s
uch
as fr
om G
20/A
FI-P
IWG
dat
aset
, an
d ex
pand
ing
the
scop
e of
col
lect
ion
to in
clud
e al
l dim
ensi
ons
of in
clus
ion
6.1.
1 Es
tabl
ish
Wor
king
Gro
up o
n D
ata
& M
easu
rem
ent,
and
hold
qua
rterly
mee
tings
.
CEF
I, C
IMC
IE
C S
ub-
com
mitt
ee o
n FI
Qua
rter 1
20
14
Ong
oing
1)
Min
utes
of S
ub-
grou
p m
eetin
gs;
2)
Annu
al w
ork
plan
of
the
Wor
king
Gro
up
6.1.
2
Qua
rterly
repo
rting
on
the
PN
G F
inan
cial
Incl
usio
n In
dica
tors
plu
s th
e sp
ecifi
c in
dica
tors
rela
ted
to s
peci
fic
activ
ities
in th
e N
atio
nal F
inan
cial
Incl
usio
n an
d Fi
nanc
ial L
itera
cy S
trate
gy
BPN
G, C
EFI
Qua
rter 1
20
14
Ong
oing
1)
Q
uarte
rly R
epor
ts
6.1.
3 M
aint
ain
regi
stry
of p
rodu
cts
avai
labl
e in
the
mar
ket a
nd
thei
r per
form
ance
aga
inst
con
sum
er p
rote
ctio
n st
anda
rds
C
EFI
Qua
rter 2
20
14
Ong
oing
1)
Annu
ally
upd
ated
re
gist
ry o
f pro
duct
s in
the
mar
ketp
lace
an
d sc
orin
g of
th
ese
prod
ucts
ag
ains
t ind
ustry
co
nsum
er
prot
ectio
n st
anda
rds
7 ST
RA
TEG
IC O
BJE
CTI
VE 7
: TO
OPT
IMIZ
E TH
ESE
RES
ULT
S TH
RO
UG
H K
NO
WLE
DG
E SH
ARIN
G
AND
EFF
ECTI
VE
CO
OR
DIN
ATIO
N O
F ST
AKEH
OLD
ERS,
INC
LUD
ING
DEV
ELO
PMEN
T PA
RTN
ERS,
BY
THE
NEW
LY E
STAB
LISH
ED C
ENTR
E O
F EX
CEL
LEN
CE
FOR
FIN
ANC
IAL
INC
LUSI
ON
CH
AIR
ED B
Y TH
E B
ANK
OF
PAPU
A N
EW G
UIN
EA.
7.1
Adv
ocat
e fo
r kn
owle
dge
shar
ing,
inc
ludi
ng i
mpa
ct
asse
ssm
ents
, les
sons
lear
nt e
tc. t
hrou
gh c
reat
ing
a ce
ntra
l kn
owle
dge
plat
form
whe
re i
nfor
mat
ion
can
be a
cces
sed
and
diss
emin
ated
C
EFI
Qua
rter 1
20
14
Ong
oing
1)
Web
pla
tform
of
know
ledg
e fro
m
PNG
's F
I & F
L st
akeh
olde
rs;
2)
Reg
ular
di
ssem
inat
ion
of
mat
eria
ls a
cros
s pr
ovin
ces
and
depa
rtmen
ts
21
National Financial Inclusion and Financial Literacy Strategy 2014-2015
National Financial Inclusion and Financial Literacy Strategy 2014-2015
PAPUA NEW GUINEA NATIONAL FINANCIAL INCLUSION AND FINANCIAL LITERACY STRATEGY
2014-2015