Financial Exclusion Looms Large in Vanuatu: Report

A recent survey has shed light on the significant gap in access to financial services in Vanuatu, revealing that nearly one-third of Ni-Vanuatu adults are completely excluded from financial services, while another 21% rely on informal instruments to meet their financial needs.

Key Findings

32% of adults are completely excluded from financial services
21% rely on informal instruments such as savings clubs, shop credit, moneylenders, or hire purchases
Only 37% have a bank account

Insights into Financial Needs and Preferences

Launched by Deputy Prime Minister and Minister of Trades, Tourism, Commerce & Ni-Vanuatu Business, Hon. Joe Natuman, the report provides valuable insights into the financial needs and preferences of Ni-Vanuatu adults. The survey found that:

Informal savings and credit are used by 80% of adults
Many save almost half of their total savings informally

Barriers to Financial Inclusion

The findings suggest that formal financial services are not fully meeting the needs of Ni-Vanuatu, particularly in terms of convenience and flexibility of savings. Financial providers are urged to examine how they can meet this demand and improve access to financial services for all citizens.

Gender Gap in Bank Account Ownership

Despite the significant gender gap in bank account ownership, with only 32% of female adults owning a bank account compared to 41% of men:

Women are more likely to save and use their accounts more frequently than men

Importance of Financial Inclusion

The report highlights the importance of financial inclusion as a key factor in sustainable economic growth. The Government is committed to promoting financial inclusion through evidence-based policy solutions that address barriers such as lack of identification, distance to access points, preference for cash, and perceived cost of setting up formal accounts.

Survey Conducted by

The Financial Services Demand Side Survey was conducted by the Reserve Bank of Vanuatu and Vanuatu National Statistics Office with support from:

The New Zealand Government’s Ministry of Foreign Affairs and Trade via the Pacific Financial Inclusion Programme
The Alliance for Financial Inclusion