Financial Crime World

Solomon Islands: Men Outnumber Women in Bank Account Ownership

Study Reveals Alarming Gap in Financial Inclusion

A recent study by the United Nations Capital Development Fund (UNCDF) and the Pacific Financial Inclusion Programme (PFIP) has revealed a disturbing trend in the Solomon Islands: men outnumber women when it comes to bank account ownership.

The Numbers

  • As of 2020, 43% of men had a bank account compared to just 27% of women.
  • Only 28,890 individuals in the Solomon Islands have taken up formal credit, with 83% of these being commercial bank loans.
  • Women’s limited access to financial services is a major concern, with only 28% having ever borrowed from a formal institution, compared to 54% of men.

The Impact

The lack of access to credit can limit women’s ability to start or grow their own businesses, making them more reliant on informal economies. This can have long-term consequences for economic development and poverty reduction.

Limited Use of Digital Payments

While mobile banking is available through banks and e-wallet providers, many people, particularly women, prefer to rely on cash for everyday transactions. This can make it difficult for financial institutions to reach these individuals with their services.

Addressing the Issues

Regulators are calling for increased efforts to promote financial inclusion and reduce gender gaps in access to financial services. The Central Bank of Solomon Islands has identified improving financial literacy and increasing access to affordable insurance products as key priorities.

Recommendations

To address these issues, targeted interventions are needed to improve women’s access to financial services. This can be achieved by:

  • Increasing awareness and understanding of formal financial services
  • Promoting digital payments
  • Providing affordable insurance options

By taking these steps, regulators can help reduce gender gaps and promote greater financial inclusion in the Solomon Islands.

Conclusion

The study highlights the need for targeted interventions to improve women’s access to financial services in the Solomon Islands. By working together to address these issues, we can create a more inclusive and equitable financial system that benefits everyone.