Banking the Unbanked in Fiji: The ANZ Bank and UNDP Partnership Model

This paper focuses on the experiences of the ‘Fiji Rural Banking service which the United Nations Development Program (UNDP) launched in October 2004 in partnership with the ANZ bank.The paper states that:

• Financial empowerment is important for the inclusive development of the financial sector,
• Financial insecurity, a factor of inadequate income, is exacerbated by poor money management and lack of financial education,
• Increasing the number of people with access to unsubsidized financial services requires an approach centred around the solidarity group model and village banks,
• UNDPs partnership with ANZ Bank in Fiji aims to devise commercially viable business models for delivering banking services to the under-served population in the rural areas of the Pacific,
• The partnership works as follows:
  • ANZ Bank funds the investment to set up and operate this rural banking service,
  • UNDP assists by sharing experience on microfinance schemes, providing information on the rural economy and validating that the poor are bankable.

The paper states that the rural banking service was a success and demonstrated the need for:

• Continual monitoring and creative thinking,
• Finding the right people,
• Financial literacy,
• A people-focused approach,
• Partnerships between microfinance institutions (MFIs) and banks,
• Developing a model for regional and international replication.

It concludes by charting a path for accelerating the deepening of financial services in the Pacific.