AFI’s Pacific Islands Working Group (PIWG) has been particularly successful in the promotion of financial inclusion policy within its region during the last five years. So much so that for the first time the working group hosted another AFI Network member institution, the Central Bank of Nigeria (CBN), as an observer during last week’s 12th PIWG Meeting held 24-26 March 2014 in Nadi, Fiji.

“As a region we have established and achieved a number of outcomes, and we must take pride in our achievements to date … some of us took bold steps and established specific departments or units within our Central Banks to drive financial inclusion related matters,” said Barry Whiteside, Governor at the Reserve Bank of Fiji. “We have set policies and guidelines to enable other stakeholders in our countries to contribute and be a part of the financial inclusion cause. Some of us have set up a National Financial Inclusion Taskforce to guide and spearhead the development work and initiatives in this area.”

During the two-day meeting attended by more than 30 participants, PIWG members discussed a variety of priority topics including financial inclusion strategy, mobile financial services (MFS), financial identity, formalizing savings, consumer protection, data measurement, financial literacy and education and microinsurance. Additionally, the group presented on issues concerning trends and opportunities, unlocking collateral and credit, and an update on remittances.

Regarding the MFS landscape in the Pacific, members deliberated on how to avoid the sub-scale trap and the issue around agents’ liquidity. In terms of remittances, participants had in-depth dialogue about money transfer operators (MTOs) and the problem being faced globally regarding the corresponding relationship considering that the Pacific is quite dependent on remittances.

At the conclusion of the meeting, PIWG members agreed to prioritize and develop a work plan in regard to access to credit, access to broader financial services, and consumer protection, each of which represent policy areas of main concern. The event also featured a joint session with the Financial Inclusion Strategy Peer Learning Group (FISPLG) that enabled PIWG members to share their lessons and experiences with another working group, followed by a field trip to the MFI called Foundation for Rural Integrated Enterprises and Development (FRIENDS).

PIWG is one of the original working groups in the AFI Network and was formed in 2009 to address the high unbanked rates in the Pacific region that result from factors which include geographically dispersed islands with low density populations, and challenges related to physical and banking infrastructure. Its key objectives are to remove policy barriers to improve access, utilize technology for financial service provision and access, as well as utilize data for smart policymaking and monitoring. The group will next meet at the 2014 Global Policy Forum (GPF) set to be held 9-11 September 2014 in Trinidad and Tobago.