Financial Inclusion and Exclusion Risks in American Samoa: A Growing Concern
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American Samoa has made significant strides towards financial inclusion with the launch of its second National Financial Inclusion Strategy (NFIS 2) and the first Digital & Financial Literacy Survey Report. The initiatives, unveiled by the Central Bank of American Samoa in partnership with the UN Capital Development Fund (UNCDF), aim to strengthen financial inclusion, promote digital literacy, and empower citizens and businesses across the nation.
Current State of Financial Inclusion
According to the report, a significant number of adults in American Samoa remain excluded from formal financial services, with women being disproportionately affected. The NFIS 2 outlines a comprehensive roadmap to enhance financial inclusion, with targets to increase access to formal financial services by 40,000 individuals by 2025/2026, with at least 50% targeted towards women.
Digital and Financial Literacy Survey Report
The Digital and Financial Literacy Survey Report sheds light on the current state of digital and financial literacy in American Samoa, revealing moderate levels of literacy but significant room for growth. The report highlights the need for comprehensive digital and financial literacy programs to support financial inclusion efforts and bridge the digital divide.
Consequences of Financial Exclusion
Experts warn that the lack of financial inclusion can have severe consequences, including limiting economic opportunities and exacerbating poverty. “Financial exclusion is a significant concern in American Samoa, particularly for vulnerable populations,” said Junior Lodge, Assistant Secretary General of the Organisation of African, Caribbean and Pacific States (OACPS). “The launch of the NFIS 2 and the Digital & Financial Literacy Survey report are crucial steps towards enhancing financial literacy and digital empowerment.”
International Partnerships
International partners have welcomed the initiative, with Australia’s Acting High Commissioner to American Samoa, Greg Furness, stating that the project will enhance the country’s state capabilities and support vulnerable populations to access essential services.
Roadmap for Implementation
The launch of NFIS 2 and the Digital & Financial Literacy Survey Report marks a pivotal moment in American Samoa’s pursuit of inclusive economic growth, digital transformation, and financial empowerment. The Central Bank of American Samoa and UNCDF are working together to implement the strategy and report recommendations, which include:
- Increasing financial inclusion
- Promoting digital literacy
- Enhancing financial regulation
Success of the Initiative
The success of this initiative has significant implications for American Samoa’s economy and development. As Trevor Matheson, New Zealand High Commissioner to American Samoa, noted, “This project aligns perfectly with our goals of achieving an economically resilient, inclusive, and secure American Samoa.”
About the Central Bank of American Samoa
The Central Bank of American Samoa is the nation’s reserve bank and operates main functions including:
- Regulating the issue, supply, availability and international exchange of money
- Advising the government on banking and monetary matters
- Promoting internal and external monetary stability
- Promoting a sound financial structure
- Promote credit and exchange conditions conducive to the orderly and balanced economic development of American Samoa
About UNCDF
The UN Capital Development Fund (UNCDF) is the United Nations’ flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development.