Financial Crime World

Regulators Must Play Key Role in Bridging Financial Inclusion Gaps for Women in Solomon Islands

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The Solomon Islands face significant financial inclusion gender gaps, with women facing numerous barriers to accessing formal financial services. A recent study by the Alliance for Financial Inclusion (AFI) and the Pacific Financial Inclusion Programme (PFIP) highlights the need for regulators to play a key role in promoting access to formal financial services for women.

Financial Inclusion Gaps in Solomon Islands

The study found that only 28,890 individuals had taken up formal credit in the country as of March 2020. Commercial bank loans accounted for a mere 83% of these loans. The findings also revealed that women are extremely unlikely to take out loans, with 88% reporting that they will not borrow money.

Reasons for Non-Borrowing

Lack of Desire or Need

  • 60% of women reported no desire or need to borrow money

Concerns about Repaying the Loan

  • 58% of women expressed concerns about repaying the loan

Informal Savings Groups in Rural Areas

Women in rural areas often rely on informal savings groups, which provide a community-based approach to saving and borrowing. However, these groups are at risk due to their informal nature.

Remittances and Transfers

  • 68% of remittances are received through informal channels
  • 72% of remittances are sent through informal channels

Recommendations for Regulators

To address financial inclusion gender gaps, regulators must play a key role in promoting access to formal financial services for women. This can be achieved by implementing policies and regulations that support the development of inclusive financial systems.

Inclusive Financial Systems

  • Mobile banking and e-wallets are examples of inclusive financial systems

Increased Financial Literacy Needed

The study also highlighted the need for increased financial literacy among women, particularly in rural areas. This can be achieved through targeted financial education campaigns and programs that promote financial inclusion and empowerment.

Quote from Central Bank of Solomon Islands

“The regulator’s role is crucial in promoting financial inclusion and bridging the gender gaps that exist in the Solomon Islands. We are committed to implementing policies and regulations that support the development of inclusive financial systems and promote access to formal financial services for all citizens, including women.” - Central Bank of Solomon Islands

Conclusion

The study emphasizes the need for a collaborative approach between regulators, financial institutions, and civil society organizations to address financial inclusion gender gaps in the Solomon Islands.

Sources

  • Alliance for Financial Inclusion (AFI)
  • Pacific Financial Inclusion Programme (PFIP)
  • Central Bank of Solomon Islands