This document provides a summary of a research study on financial inclusion, mobile money, and Papua New Guinea's (PNG) resources sector. The study investigated whether strengthening mobile money ecosystems around PNG's resource projects could improve payments to local communities, enhance social acceptance of resource companies, and increase financial inclusion.
Key findings included that payments from resource projects are currently a mix of cash, checks and electronic transfers, and that the distribution of these payments is perceived as unfair and ineffective by some. The study found that greater use of mobile money could improve payment distribution and that financial literacy programs were also needed. Overall, resource projects were seen as having potential to catalyze financial inclusion efforts in remote areas of developing countries.
Financial Inclusion Week - Anthemis Fellowship Brown Bag Lunch - 20th October...Anthemis Group
This document summarizes Diana Biggs' presentation on financial inclusion given at an Anthemis Brown Bag Lunch event during Financial Inclusion Week. The presentation discusses the importance of financial inclusion, barriers to access, and how digital technologies are playing an increasing role in expanding inclusion through lower-cost services. Examples of startups in areas like lending, remittances, and identity are also provided.
Financial inclusion in Indonesia held steady at around 24% between 2014 and 2015. Bank accounts continue to be the primary means of financial access, with 23% of adults having registered bank accounts. Mobile money awareness and use saw slight increases between 2014 and 2015, though mobile money accounts still only represent 0.3% of the population. The majority of financially included adults have digital access to their accounts, with 23% able to access accounts via mobile phones, ATMs, debit/credit cards or the internet.
Presentation will cover: Introduction to AFI and AFI Network’s experience of Financial Inclusion Strategies; What are the global trends in Financial Inclusion Strategy Formulation & Implementation?; What lessons and conclusions can we draw from the current practices?
Working paper 199_-_microcredit_for_the_development_of_the_bottom_of_the_pyra...Dr Lendy Spires
This document summarizes a study that evaluated the impact of microcredit access on residents in Kibera slum in Nairobi, Kenya. The study used non-randomized controlled trials to compare outcomes between a treatment group that received microcredit access and a control group that did not. A baseline survey was conducted before the treatment, and a follow-up survey 18 months later measured impacts on business, household, institutional, and urban sustainability outcomes. The study found small but significant improvements in business and household outcomes, but little evidence of impacts on urban sustainability. A combination of difference-in-differences and propensity score matching techniques was used to estimate treatment effects while addressing selection bias issues.
In order to reduce cash handling cost of banks amongst other objectives, the Central Bank of Nigeria introduced the ‘cashless policy’. The success of this policy hinges on the adoption of alternative payment systems one of which is mobile banking. Thus it is imperative for policy makers and other relevant stakeholders to anticipate and deal with inhibitions surrounding the adoption of mobile banking by bank customers in the country. This study investigates the determinants of mobile banking adoption in Nigeria using a modified version of Technology Acceptance Model (TAM). This incorporates Perceived Risk, Facilitating Conditions and Demographic Characteristics (Age, Gender, Educational Qualification and Income) to Perceived Usefulness and Perceived Ease-of-Use as determinants of Mobile Banking Adoption. We also propose that this relationship is mediated by attitude towards mobile banking adoption. A total of 250 bank customers from the Lagos area were selected and a structured questionnaire was designed and copies distributed to them. Data was analysed using multiple regression and computed using SPSS 20.0 computer application. Results show that Perceived Usefulness, Perceived Ease-of-Use, perceived Risk, Facilitating Conditions, Age, Educational Qualifications and Income significantly determine Mobile Banking Adoption. However, the relationship between gender and Mobile Banking Adoption is not significant. The outcome of this study has some implications to m-banking policy formulation and implementation. It also throws more light into what should be done to improve mbanking adoption rate in Nigeria
Digital Financial Inclusion in Bangladesh: Planning Better, Executing Faster...Anir Chowdhury
Bangladesh is rapidly including people financially: 30 million plus MFS accounts. However, the financial inclusion is limited to P2P only. Comprehensive and aggressive efforts are needed to digitize G2P, P2G, B2P and P2B payments. BTCA's toolkits will be used to plan better, execute faster and move together.
Financial inclusion provides access to formal financial services for disadvantaged groups and small businesses, promoting economic development. Globally, half of all adults lack bank accounts, including 80% of those living on under $2 per day. Without access to financing, small businesses and families must rely on informal mechanisms, hindering investment, employment, and growth. Financial inclusion can be expanded through initiatives like microfinance, mobile banking, and financial education, enabling people to invest, manage cash flow, and build resilience, lifting incomes and reducing poverty. Governments and organizations should promote financial inclusion programs that can generate employment and entrepreneurship.
Rani Singh-Financial Inclusion Issues and ChallengesRani Singh
This document discusses the challenges and issues around financial inclusion in India. It provides statistics that show progress expanding access to banking services, but notes that full inclusion has not been achieved. Key issues discussed include the need to cover all households, not just villages; ensuring technology platforms are robust; improving financial literacy; and overcoming operational challenges in rural areas. The Prime Minister's Jan Dhan Yojana aims to provide universal banking access to all households by 2015 through basic bank accounts with debit cards and insurance, but achieving widespread usage remains a challenge.
Financial Inclusion Week - Anthemis Fellowship Brown Bag Lunch - 20th October...Anthemis Group
This document summarizes Diana Biggs' presentation on financial inclusion given at an Anthemis Brown Bag Lunch event during Financial Inclusion Week. The presentation discusses the importance of financial inclusion, barriers to access, and how digital technologies are playing an increasing role in expanding inclusion through lower-cost services. Examples of startups in areas like lending, remittances, and identity are also provided.
Financial inclusion in Indonesia held steady at around 24% between 2014 and 2015. Bank accounts continue to be the primary means of financial access, with 23% of adults having registered bank accounts. Mobile money awareness and use saw slight increases between 2014 and 2015, though mobile money accounts still only represent 0.3% of the population. The majority of financially included adults have digital access to their accounts, with 23% able to access accounts via mobile phones, ATMs, debit/credit cards or the internet.
Presentation will cover: Introduction to AFI and AFI Network’s experience of Financial Inclusion Strategies; What are the global trends in Financial Inclusion Strategy Formulation & Implementation?; What lessons and conclusions can we draw from the current practices?
Working paper 199_-_microcredit_for_the_development_of_the_bottom_of_the_pyra...Dr Lendy Spires
This document summarizes a study that evaluated the impact of microcredit access on residents in Kibera slum in Nairobi, Kenya. The study used non-randomized controlled trials to compare outcomes between a treatment group that received microcredit access and a control group that did not. A baseline survey was conducted before the treatment, and a follow-up survey 18 months later measured impacts on business, household, institutional, and urban sustainability outcomes. The study found small but significant improvements in business and household outcomes, but little evidence of impacts on urban sustainability. A combination of difference-in-differences and propensity score matching techniques was used to estimate treatment effects while addressing selection bias issues.
In order to reduce cash handling cost of banks amongst other objectives, the Central Bank of Nigeria introduced the ‘cashless policy’. The success of this policy hinges on the adoption of alternative payment systems one of which is mobile banking. Thus it is imperative for policy makers and other relevant stakeholders to anticipate and deal with inhibitions surrounding the adoption of mobile banking by bank customers in the country. This study investigates the determinants of mobile banking adoption in Nigeria using a modified version of Technology Acceptance Model (TAM). This incorporates Perceived Risk, Facilitating Conditions and Demographic Characteristics (Age, Gender, Educational Qualification and Income) to Perceived Usefulness and Perceived Ease-of-Use as determinants of Mobile Banking Adoption. We also propose that this relationship is mediated by attitude towards mobile banking adoption. A total of 250 bank customers from the Lagos area were selected and a structured questionnaire was designed and copies distributed to them. Data was analysed using multiple regression and computed using SPSS 20.0 computer application. Results show that Perceived Usefulness, Perceived Ease-of-Use, perceived Risk, Facilitating Conditions, Age, Educational Qualifications and Income significantly determine Mobile Banking Adoption. However, the relationship between gender and Mobile Banking Adoption is not significant. The outcome of this study has some implications to m-banking policy formulation and implementation. It also throws more light into what should be done to improve mbanking adoption rate in Nigeria
Digital Financial Inclusion in Bangladesh: Planning Better, Executing Faster...Anir Chowdhury
Bangladesh is rapidly including people financially: 30 million plus MFS accounts. However, the financial inclusion is limited to P2P only. Comprehensive and aggressive efforts are needed to digitize G2P, P2G, B2P and P2B payments. BTCA's toolkits will be used to plan better, execute faster and move together.
Financial inclusion provides access to formal financial services for disadvantaged groups and small businesses, promoting economic development. Globally, half of all adults lack bank accounts, including 80% of those living on under $2 per day. Without access to financing, small businesses and families must rely on informal mechanisms, hindering investment, employment, and growth. Financial inclusion can be expanded through initiatives like microfinance, mobile banking, and financial education, enabling people to invest, manage cash flow, and build resilience, lifting incomes and reducing poverty. Governments and organizations should promote financial inclusion programs that can generate employment and entrepreneurship.
Rani Singh-Financial Inclusion Issues and ChallengesRani Singh
This document discusses the challenges and issues around financial inclusion in India. It provides statistics that show progress expanding access to banking services, but notes that full inclusion has not been achieved. Key issues discussed include the need to cover all households, not just villages; ensuring technology platforms are robust; improving financial literacy; and overcoming operational challenges in rural areas. The Prime Minister's Jan Dhan Yojana aims to provide universal banking access to all households by 2015 through basic bank accounts with debit cards and insurance, but achieving widespread usage remains a challenge.
This paper identifies the risks in financial inclusion from the perspective of both the user and provider with a viewing to staying out of the threat curve. The paper was actually delivered at the 1st Annual Financial Inclusion Summit in Nairobi, Kenya on July 1, 2016 at Sarova Hotel.
Moving to the Mainstream - Alternative Financing for MSMEs & Policy ImplicationsJohn Owens
This presentation was provided during the session entitled "Moving Into the Mainstream – Showcase of Alternative Funding Mechanisms for SMMEs " at the ABAC Malaysia - SME Finance Forum
Workshop on Innovative Financing for SMMEs at the
InterContinental Kuala Lumpur, Malaysia on May 21, 2015
International Regulatory Practices for Digital Financial ServicesJohn Owens
The following presentation was shared on April 24, 2015 during an international forum hosed by the National Bank of Belarus entitled "Digital Banking: technology and innovation".
For more information on the event, see http://infobank.by/infolineview/itemid/6800/default.aspx
The document discusses the future of financial inclusion. It notes that 2.5 billion people currently lack access to financial services. Early pioneers in financial inclusion included microfinance institutions like Grameen Bank, which pioneered group lending models. More recently, mobile money has expanded access, with debates around whether bank-led or telco-led models are most effective. Looking ahead, the future of financial inclusion is focused on building ecosystems and pushing services to mobile, with a movement toward cashless societies globally. Financial inclusion efforts must focus on understanding customer needs and local market traits.
Customers Perceived Risk and the Adoption of Electronic Banking in South East...ijtsrd
This research examined the relationship between perceived risk and the adoption of electronic banking in south east Nigeria. Specifically, the study addressed the relationship between the seven dimensions of perceived risk financial risk, performance risk, social risk, physical risk privacy risk, time risk and psychological risk and the adoption of electronic banking in the south eastern region of Nigeria. The study adopted a descriptive survey research design in collecting data questionnaire and personal interviews were used in collecting primary data while documentary sources were used for secondary data. The population of the study was made up of electronic banking users in the five States of the south east region of Nigeria. Since the populate is an infinite population, the Cochran general accepted formula for determining sample size for an infinite population was employed to determine the sample size of four hundred and ninety 490 electronic banking users. Descriptive statistics were employed to check the behaviour of the data and to ready the data for inferential statistics analysis. Some of the statistics were mean and standard deviation minimum, maximum, skewness and kurtosis. The data was analysed and hypotheses tested using the Structural Equation Model SEM and with aid of WarpPLS 6.0 software. Findings from the study showed that perceived risks in its seven dimension studied, has a significant relationship with the adoption of E banking in Nigeria and thus recommended that Managers of financial institutions should to develop workable plans to eliminate the negative effect of perceived risk, by increasing acceptance of risk which could be done by offering training or simulations to customers to facilitate their use of internet banking. Chibike O. Nwuba | Rev. Prof. Anayo Dominic Nkamnebe "Customers Perceived Risk and the Adoption of Electronic Banking in South-East Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31206.pdf Paper Url :https://www.ijtsrd.com/management/marketing/31206/customers-perceived-risk-and-the-adoption-of-electronic-banking-in-southeast-nigeria/chibike-o-nwuba
This document summarizes the State Bank of Pakistan's efforts to promote financial inclusion and consumer protection in Pakistan. It discusses SBP's multi-pronged strategy, which includes requiring banks to offer basic low-cost accounts, expanding branch networks, developing regulations for microfinance and branchless banking, supporting a national financial literacy program, and establishing a legal and regulatory framework for consumer protection. It also describes the Financial Innovation Challenge Fund's second challenge round focusing on innovative rural and agriculture finance to improve financial access for rural communities and small farmers in Pakistan.
This document provides an overview and summary of a research project examining the implications of technology on financial inclusion in India. The project studied various models using technology for financial inclusion, including business correspondent models, mobile wallets, and joint liability group models. Key findings include that while regulations and infrastructure exist, the process of financial inclusion is not accelerating as expected. Sustainability and education are major challenges. The study aims to understand how these technological models work and can be applied in the microfinance sector to increase reach and lower costs of financial services for underserved populations.
Global Financial Development Report 2014 - Financial InclusionWB_Research
As mobile banking and other technological innovations fuel the expansion of financial services in many developing countries, a new World Bank Group report urges policy makers to focus on products that benefit the poor, women and other vulnerable groups the most.
The mobile money industry continues to grow with 219 services available across 84 countries by the end of 2013. While mobile money remains concentrated in Sub-Saharan Africa, services have expanded to other regions in recent years. There are now over 60 million active mobile money accounts globally, with 13 services having over 1 million active users each. However, only 29.9% of registered accounts are active on average, indicating that many services still face challenges in building scale. Mobile money revenues are significant for some large providers, while ecosystem transactions now represent 29% of total mobile money transaction value. The development of mobile insurance, credit and savings is extending financial inclusion, with 123 such services now live across the globe.
FII Ghana 2015: The state of financial inclusion and mobile financial servicesPeter Zetterli
This presentation gives an overview of the findings from CGAP's nationally representative survey of financial inclusion in Ghana 2015, with an emphasis on the role played by mobile financial services.
PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"
As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative (www.unepfi.org/psi) are organizing a webinar series with the theme, “Making inclusive insurance work”. The third webinar had the topic "Health: telemedicine, insurance and Universal Health Coverage" and was held on 28 February 2017.
Speakers: Dr Peter Benjamin (Health Enabled), Jody Delichte (Inclusivity Solutions) and Andrew Smith (Tonic, Telenor’s m-Health service in Bangladesh). Moderator: Lisa Morgan (ILO's Impact Insurance Facility).
Financial inclusion - opportunities and challengesVeth Prasath
Financial inclusion aims to provide affordable banking services to disadvantaged and low-income groups through access to financial products and services like savings, loans, and insurance. It is important for creating savings habits, providing formal credit, and ensuring public subsidies reach the poor. The RBI has taken steps like no-frills accounts, business correspondents, and EBT to support financial inclusion. While opportunities include balanced growth and increased financial strength for banks and individuals, challenges include the spatial distribution of services, overcoming poverty levels, and bankers' aversion to inclusion. Financial inclusion can alleviate poverty and support gradual economic development in India.
Suggested citation: Khaver, A., Ahmed V., and Menon, R. (2021). ‘Using stakeholder dialogues for strengthening evidence use to inform government decision-making during COVID-19’. Learning Brief 4. Strengthening Evidence Use for Development Impact, Oxford.
This document discusses the importance of budget transparency and public participation in budget and procurement processes in Nigerian states. It finds that over half of Nigerian states fail to provide adequate budget information, opportunities for public involvement, or information on procurement. Only a few states, like Cross River, Ekiti, and Lagos, score above 50 on measures of transparency. The document recommends that states improve public access to budget documents, increase public participation in the budget process, and make procurement laws and information more open. Ensuring transparency is an ongoing process that requires commitment from all actors to establish open governance.
Representatives from Sustainable Jersey, NJ OEM, and Stormzero LLC discuss Whole Community Digital Communicatiaons Planning and Reaching Vulnerable Populations, along with why those topics are foundational to sustainable and resilient communities.
The document provides a process evaluation of Adamawa State's MDGs CGS-CCT program, which began in 2013. It aims to encourage vulnerable populations like women and children from poor households to make regular use of educational and health services. Five LGAs were selected for the program. Beneficiary households receive a monthly cash transfer of N5,000 as basic income, and N8,333 is saved monthly into their accounts. Approximately 50% of funds are spent on food, 30% on school, and 20% on health. The program increased school enrollment by 45% and antenatal attendance by 21%. However, targeting accuracy was estimated at 67% and only 39% of funds reached the poorest quintile. Recommend
As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative (www.unepfi.org/psi) are organizing a six-part webinar series with the theme, “Making inclusive insurance work”. The second webinar focused on distribution and technology and was held on 9 February 2017.
Speakers: Susan Walls (South African Insurance Association), Munir Duri (Kifiya Financial Technology, Ethiopia) and MK Balachandran (HDFC Ergo General Insurance, India). Moderator: Pranav Prashad (ILO's Impact Insurance Facility).
1) The document discusses policies that can accelerate financial inclusion in Africa, such as agent banking policies, mobile banking policies, and policies around financial products, no-frills accounts, financial identification, and technology banking.
2) It recommends that cooperatives craft policies to facilitate strategic partnerships through agent banking, enable mobile money offerings, lower barriers for inclusive financial products, provide basic no-fee accounts, address identity issues, and promote accessible technology-based banking.
3) The document also discusses the importance of deposit guarantee, financial literacy, compulsory coverage of intermediaries, and funds policies to further accelerate financial inclusion across the continent.
The majority of the world population is not covered by the mainstream financial sector. As such, mobile money services are seen as a cost effective and efficient way of increasing financial inclusion. However, there remains some factors that impede the development of mobile money services. Therefore, this study sought to analyse these factors with a view to identifying strategies that can be used to accelerate the development of mobile money services.
The document discusses common financial inclusion programs in rural India. It begins by providing an overview of the rural landscape, including the number of districts by state. It then discusses the existing rural footprint of banks like regional rural banks and lead banks in districts. The scope section outlines the goals of creating scalable business models, tailored solutions, and collaboration between stakeholders to revitalize rural areas. It proposes hub and spoke models and disentangaging technology from distribution to strengthen last mile access. The need for a strong technology backbone and reliable last mile distribution is also highlighted.
This paper identifies the risks in financial inclusion from the perspective of both the user and provider with a viewing to staying out of the threat curve. The paper was actually delivered at the 1st Annual Financial Inclusion Summit in Nairobi, Kenya on July 1, 2016 at Sarova Hotel.
Moving to the Mainstream - Alternative Financing for MSMEs & Policy ImplicationsJohn Owens
This presentation was provided during the session entitled "Moving Into the Mainstream – Showcase of Alternative Funding Mechanisms for SMMEs " at the ABAC Malaysia - SME Finance Forum
Workshop on Innovative Financing for SMMEs at the
InterContinental Kuala Lumpur, Malaysia on May 21, 2015
International Regulatory Practices for Digital Financial ServicesJohn Owens
The following presentation was shared on April 24, 2015 during an international forum hosed by the National Bank of Belarus entitled "Digital Banking: technology and innovation".
For more information on the event, see http://infobank.by/infolineview/itemid/6800/default.aspx
The document discusses the future of financial inclusion. It notes that 2.5 billion people currently lack access to financial services. Early pioneers in financial inclusion included microfinance institutions like Grameen Bank, which pioneered group lending models. More recently, mobile money has expanded access, with debates around whether bank-led or telco-led models are most effective. Looking ahead, the future of financial inclusion is focused on building ecosystems and pushing services to mobile, with a movement toward cashless societies globally. Financial inclusion efforts must focus on understanding customer needs and local market traits.
Customers Perceived Risk and the Adoption of Electronic Banking in South East...ijtsrd
This research examined the relationship between perceived risk and the adoption of electronic banking in south east Nigeria. Specifically, the study addressed the relationship between the seven dimensions of perceived risk financial risk, performance risk, social risk, physical risk privacy risk, time risk and psychological risk and the adoption of electronic banking in the south eastern region of Nigeria. The study adopted a descriptive survey research design in collecting data questionnaire and personal interviews were used in collecting primary data while documentary sources were used for secondary data. The population of the study was made up of electronic banking users in the five States of the south east region of Nigeria. Since the populate is an infinite population, the Cochran general accepted formula for determining sample size for an infinite population was employed to determine the sample size of four hundred and ninety 490 electronic banking users. Descriptive statistics were employed to check the behaviour of the data and to ready the data for inferential statistics analysis. Some of the statistics were mean and standard deviation minimum, maximum, skewness and kurtosis. The data was analysed and hypotheses tested using the Structural Equation Model SEM and with aid of WarpPLS 6.0 software. Findings from the study showed that perceived risks in its seven dimension studied, has a significant relationship with the adoption of E banking in Nigeria and thus recommended that Managers of financial institutions should to develop workable plans to eliminate the negative effect of perceived risk, by increasing acceptance of risk which could be done by offering training or simulations to customers to facilitate their use of internet banking. Chibike O. Nwuba | Rev. Prof. Anayo Dominic Nkamnebe "Customers Perceived Risk and the Adoption of Electronic Banking in South-East Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31206.pdf Paper Url :https://www.ijtsrd.com/management/marketing/31206/customers-perceived-risk-and-the-adoption-of-electronic-banking-in-southeast-nigeria/chibike-o-nwuba
This document summarizes the State Bank of Pakistan's efforts to promote financial inclusion and consumer protection in Pakistan. It discusses SBP's multi-pronged strategy, which includes requiring banks to offer basic low-cost accounts, expanding branch networks, developing regulations for microfinance and branchless banking, supporting a national financial literacy program, and establishing a legal and regulatory framework for consumer protection. It also describes the Financial Innovation Challenge Fund's second challenge round focusing on innovative rural and agriculture finance to improve financial access for rural communities and small farmers in Pakistan.
This document provides an overview and summary of a research project examining the implications of technology on financial inclusion in India. The project studied various models using technology for financial inclusion, including business correspondent models, mobile wallets, and joint liability group models. Key findings include that while regulations and infrastructure exist, the process of financial inclusion is not accelerating as expected. Sustainability and education are major challenges. The study aims to understand how these technological models work and can be applied in the microfinance sector to increase reach and lower costs of financial services for underserved populations.
Global Financial Development Report 2014 - Financial InclusionWB_Research
As mobile banking and other technological innovations fuel the expansion of financial services in many developing countries, a new World Bank Group report urges policy makers to focus on products that benefit the poor, women and other vulnerable groups the most.
The mobile money industry continues to grow with 219 services available across 84 countries by the end of 2013. While mobile money remains concentrated in Sub-Saharan Africa, services have expanded to other regions in recent years. There are now over 60 million active mobile money accounts globally, with 13 services having over 1 million active users each. However, only 29.9% of registered accounts are active on average, indicating that many services still face challenges in building scale. Mobile money revenues are significant for some large providers, while ecosystem transactions now represent 29% of total mobile money transaction value. The development of mobile insurance, credit and savings is extending financial inclusion, with 123 such services now live across the globe.
FII Ghana 2015: The state of financial inclusion and mobile financial servicesPeter Zetterli
This presentation gives an overview of the findings from CGAP's nationally representative survey of financial inclusion in Ghana 2015, with an emphasis on the role played by mobile financial services.
PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"
As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative (www.unepfi.org/psi) are organizing a webinar series with the theme, “Making inclusive insurance work”. The third webinar had the topic "Health: telemedicine, insurance and Universal Health Coverage" and was held on 28 February 2017.
Speakers: Dr Peter Benjamin (Health Enabled), Jody Delichte (Inclusivity Solutions) and Andrew Smith (Tonic, Telenor’s m-Health service in Bangladesh). Moderator: Lisa Morgan (ILO's Impact Insurance Facility).
Financial inclusion - opportunities and challengesVeth Prasath
Financial inclusion aims to provide affordable banking services to disadvantaged and low-income groups through access to financial products and services like savings, loans, and insurance. It is important for creating savings habits, providing formal credit, and ensuring public subsidies reach the poor. The RBI has taken steps like no-frills accounts, business correspondents, and EBT to support financial inclusion. While opportunities include balanced growth and increased financial strength for banks and individuals, challenges include the spatial distribution of services, overcoming poverty levels, and bankers' aversion to inclusion. Financial inclusion can alleviate poverty and support gradual economic development in India.
Suggested citation: Khaver, A., Ahmed V., and Menon, R. (2021). ‘Using stakeholder dialogues for strengthening evidence use to inform government decision-making during COVID-19’. Learning Brief 4. Strengthening Evidence Use for Development Impact, Oxford.
This document discusses the importance of budget transparency and public participation in budget and procurement processes in Nigerian states. It finds that over half of Nigerian states fail to provide adequate budget information, opportunities for public involvement, or information on procurement. Only a few states, like Cross River, Ekiti, and Lagos, score above 50 on measures of transparency. The document recommends that states improve public access to budget documents, increase public participation in the budget process, and make procurement laws and information more open. Ensuring transparency is an ongoing process that requires commitment from all actors to establish open governance.
Representatives from Sustainable Jersey, NJ OEM, and Stormzero LLC discuss Whole Community Digital Communicatiaons Planning and Reaching Vulnerable Populations, along with why those topics are foundational to sustainable and resilient communities.
The document provides a process evaluation of Adamawa State's MDGs CGS-CCT program, which began in 2013. It aims to encourage vulnerable populations like women and children from poor households to make regular use of educational and health services. Five LGAs were selected for the program. Beneficiary households receive a monthly cash transfer of N5,000 as basic income, and N8,333 is saved monthly into their accounts. Approximately 50% of funds are spent on food, 30% on school, and 20% on health. The program increased school enrollment by 45% and antenatal attendance by 21%. However, targeting accuracy was estimated at 67% and only 39% of funds reached the poorest quintile. Recommend
As part of the global agenda of insuring for sustainable development, the Impact Insurance Facility (www.impactinsurance.org) and the PSI Initiative (www.unepfi.org/psi) are organizing a six-part webinar series with the theme, “Making inclusive insurance work”. The second webinar focused on distribution and technology and was held on 9 February 2017.
Speakers: Susan Walls (South African Insurance Association), Munir Duri (Kifiya Financial Technology, Ethiopia) and MK Balachandran (HDFC Ergo General Insurance, India). Moderator: Pranav Prashad (ILO's Impact Insurance Facility).
1) The document discusses policies that can accelerate financial inclusion in Africa, such as agent banking policies, mobile banking policies, and policies around financial products, no-frills accounts, financial identification, and technology banking.
2) It recommends that cooperatives craft policies to facilitate strategic partnerships through agent banking, enable mobile money offerings, lower barriers for inclusive financial products, provide basic no-fee accounts, address identity issues, and promote accessible technology-based banking.
3) The document also discusses the importance of deposit guarantee, financial literacy, compulsory coverage of intermediaries, and funds policies to further accelerate financial inclusion across the continent.
The majority of the world population is not covered by the mainstream financial sector. As such, mobile money services are seen as a cost effective and efficient way of increasing financial inclusion. However, there remains some factors that impede the development of mobile money services. Therefore, this study sought to analyse these factors with a view to identifying strategies that can be used to accelerate the development of mobile money services.
The document discusses common financial inclusion programs in rural India. It begins by providing an overview of the rural landscape, including the number of districts by state. It then discusses the existing rural footprint of banks like regional rural banks and lead banks in districts. The scope section outlines the goals of creating scalable business models, tailored solutions, and collaboration between stakeholders to revitalize rural areas. It proposes hub and spoke models and disentangaging technology from distribution to strengthen last mile access. The need for a strong technology backbone and reliable last mile distribution is also highlighted.
Financial inclusion aims to provide affordable financial services to disadvantaged and low-income segments of society in contrast to financial exclusion where services are not available or affordable. In India, financial inclusion was introduced in 2005 and aims to provide over 600 million "no-frills" bank accounts to undeveloped districts. The Reserve Bank of India has initiated several measures to promote financial inclusion, including relaxing KYC norms, engaging business correspondents, using technology, and opening branches in unbanked rural areas. However, some argue that aggressive microcredit policies were introduced without proper regulations or consumer education. Tracking financial inclusion through budget analysis can help assess whether intended benefits are actually reaching communities.
The document discusses financial inclusion in India, which refers to ensuring access to financial services like bank accounts, credit, insurance, and payments at affordable costs for vulnerable groups. It outlines the scope of financial inclusion and who it aims to serve. While steps were initially taken through cooperatives and nationalizing banks, financial inclusion efforts failed due to lack of technology, reach, and a viable business model. Now, with a focus on inclusive growth and new banking technology, financial inclusion has become a priority. The Reserve Bank of India has contributed through no-frills accounts, business correspondent models, and financial literacy programs. Achievements include the opening of millions of accounts and issuing of loans and cards, though challenges remain around scaling up and appropriate
With the help of this presentation you will be able to know the financial inclusion status in india. Stats from RBI and Inclusix index also had been included in presentation.
Financial inclusion is ensuring access to appropriate financial products and services for all sections of society, especially vulnerable groups, at an affordable cost through mainstream institutions. It includes underprivileged groups in rural and urban areas like farmers, laborers, unemployed, women, children, and the elderly. The Reserve Bank of India defines financial inclusion as the process of ensuring access to financial services and credit needed by vulnerable groups at reasonable costs. Initiatives by the RBI and Government of India to promote financial inclusion include no-frills bank accounts, business correspondents, simplified KYC norms, and the National Rural Financial Inclusion Plan to provide access to 50% of financially excluded rural households. Financial inclusion and financial literacy are mutually reinforcing in providing access
Mobile Money for Health Case Study: Pathfinder KenyaHFG Project
This case study is one of 14 case studies profiled in the Mobile Money for Health Case Study Compendium.
In 2012, Pathfinder Kenya launched the mHMtaani project (Swahili for “Mobile Health for my Community”), which aims to promote healthier communities through the use of innovative mobile technologies that track the health of expectant mothers and orphans and vulnerable children.
Sustainable Development Finance, Current Trends and Maximizing ImpactSDGsPlus
The document discusses sustainable development finance and maximizing the impact of investments to achieve the UN Sustainable Development Goals. It covers trends in sustainability, how to finance development through public and private means, implementing goals at the local level through programs in various countries, and using data and technology like blockchain, big data, and competitions to track progress and support women entrepreneurs. The World Bank is working with partners to mobilize trillions needed for development through approaches like blended finance, sustainability indexes, green bonds, and emphasizing the role of both domestic public spending and private sector finance.
Commercial viability of financial inclustion_JPS 9.3Andrew Parker
The document discusses the commercial viability of financial inclusion. It provides background on Andrew Parker and Sunil Sachdev, who have extensive experience in digital banking and payments. It then discusses how mobile phone penetration, regulatory trends, technological advances, and low-value payments infrastructures now make it feasible for financial institutions to offer financial services to more people through approaches like ANZ's goMoney mobile banking platform in the Pacific Islands. The document argues that financial institutions must approach inclusion as a long-term strategic play rather than short-term profits to achieve viability, and that public-private partnerships are essential.
Kingston Business Bulletin Nov 2013 (2) - latest information for Kingston bus...Angela Stubbs
Connect with the latest business information and services with Kingston Council's November issue of the Business Bulletin and visit our new business website at www.kingston.vic.gov.au/business. Our free online Business Directory helps customers and suppliers find what they need, so register on our website.
The document discusses the ieGovern initiative, which aims to conduct rigorous impact evaluations of World Bank governance projects to improve project results and further the evidence base on effective governance reforms. It provides an overview of progress made so far, including 18 additional evaluations launched in 2015 across sectors like civil service reform, justice, and procurement. Current projects are listed for several countries focusing on issues like legal aid, procurement modernization, and decentralization. Opportunities for outside collaboration are highlighted to further strengthen the initiative's evaluation portfolio and governance knowledge.
Sustanability and csr-way forward for HNB- SHANEL PERERA -07445.shanel perera
The document discusses corporate social responsibility (CSR) initiatives of HNB, a large bank in Sri Lanka. It provides details of HNB's CSR programs focused on education, health, environment and entrepreneurship. It also discusses how CSR can increase profits by promoting a company's reputation and enhancing employee loyalty. The document analyzes HNB's strengths, weaknesses, opportunities and threats and proposes recommendations to further enhance the bank's sustainability and CSR strategies, such as expanding its microfinance program and investing in environmental management systems.
At ASK Eco-Capital Services Uganda Limited, we recognize the critical role of community and stakeholder engagements in driving sustainable development across Uganda's diverse sectors. In this article, we delve into our strategies and best practices, informed by regulatory frameworks and international standards, to foster meaningful partnerships and achieve positive impacts.
By embracing transparency, inclusivity, and accountability, we aim to unlock the full potential of sustainable development, driving positive change and leaving a lasting impact on Uganda's communities and environment. Join us on this journey towards a brighter, more sustainable future.
How to write and design a professional company profile without any hare softwarewpjafar
In the competitive realm of business, establishing a strong presence and making a memorable impression is paramount. One powerful tool in achieving this is a meticulously crafted company profile. This document serves as the face of your organization, encapsulating its essence, values, and achievements. Whether you're courting potential clients, attracting investors, or simply solidifying your brand identity, a well-written company profile is indispensable.
The Significance of a Company Profile
A company profile transcends being a mere document; it's a strategic asset for articulating your brand narrative and value proposition. It offers a window into your company's ethos, mission, history, and core offerings. By weaving a captivating story, a company profile can captivate stakeholders and set your business apart from the competition.
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This mid-term evaluation report assesses the progress of the Women Empowerment in Zanzibar (WEZA) project, which aims to empower rural women in Zanzibar through village savings groups, income generation activities, and addressing social and cultural barriers. The evaluation finds that the project has made good progress, reaching over 7,000 women against a target of 6,000 and increasing their savings to over 133,000 Euros. It has also strengthened the capacities of partner organizations like JOCDO and PESACA to better support women's empowerment. Key lessons include the importance of community acceptance and collaboration with local authorities for success. The report concludes the project is on track and should continue its current strategies,
This mid-term evaluation report assesses the progress of the Women Empowerment in Zanzibar (WEZA) project, which aims to empower rural women in Zanzibar through village savings groups, income generation activities, and addressing social and cultural barriers. The evaluation finds that the project has made good progress, reaching over 7,000 women against a target of 6,000 and facilitating savings of over 133,000 euros. Key lessons include the importance of community acceptance, monitoring savings groups, and building the capacity of local partners. The report recommends continuing collaboration with stakeholders, further support for savings organizations, and engaging men to promote women's empowerment.
This document is a project report submitted by Syed Gulam Abbas Abdi for an Executive Post Graduate Diploma in Management from Symbiosis Institute of Management Studies in Pune, India in August 2014. The report studies financial inclusion in Uganda, focusing on four pillars: financial literacy, financial consumer protection, financial innovations, and financial services data and measurement. It provides an overview of each pillar, including the Bank of Uganda's strategy for financial literacy in Uganda and its financial consumer protection guidelines.
UNDP has established an Innovation Facility to fund innovative development initiatives around the world. The Facility aims to test new approaches to development challenges and foster greater impact, resilience, and inclusive societies. It has funded 85 initiatives in 71 countries across sectors like governance, resilience, and data for development. The Facility provides small grants and supports scaling of promising concepts. It is currently focusing on initiatives in transparent governance, adaptive planning, community resilience, and big data.
The document summarizes stakeholders' experiences delivering cash assistance during the first six months of the response to Typhoon Haiyan in the Philippines. It discusses the challenges faced, including significant delays of up to two months when agencies partnered with financial service providers for the first time. It also highlights good practices like agencies with existing relationships launching cash programs more quickly. The document provides recommendations to leverage lessons learned to improve future emergency cash responses, such as anticipating displaced people's loss of identification documents and working more closely with financial service providers and markets.
Science, Technology and Innovation Roadmaps for the SDGsSDGsPlus
The document discusses how Science, Technology and Innovation (STI) Roadmaps can help countries harness technology to achieve the UN Sustainable Development Goals (SDGs). STI Roadmaps serve as a foundational building block to integrate STI into national development plans and budgets. They can provide an action plan for implementing the STI agenda at national and local levels. The World Bank Group is embarking on a partnership-driven journey to leverage STI across sectors and countries to achieve the SDGs.
WaterAid in Mali's 2010-2015 Country Strategy aims to support over 415,000 vulnerable people in 23 local governments to gain access to safe water and adequate sanitation. The strategy focuses on new approaches like Community Led Total Sanitation, equity and inclusion, local governance, and water resource management. It also aims to strengthen sector capacity, promote sector policies, and integrate water and sanitation into other sectors like health and education. WaterAid will work with local partners and governments to implement projects targeting the most marginalized communities and track progress through strengthened monitoring and evaluation.
Effectiveness of Public Private Partnership in Infrastructural DevelopmentAdeboye Tunji
This document discusses a master's project on assessing the effectiveness of public-private partnerships (PPPs) in infrastructure development in Nigeria. It provides background on the need for infrastructure development in Nigeria and introduces PPPs as a method of infrastructure procurement that utilizes private sector resources in partnership with the government. The project aims to determine how PPPs enhance efficient public services and economic activities in Nigeria, identify suitable PPP types, examine challenges to PPPs, and measure their effectiveness. It establishes two hypotheses and discusses the significance of the study and its scope. Key terms related to PPPs are also defined.
Brian Moyo presented on strategies for ICT policy review in Zimbabwe. He has experience in telecoms, renewable energy, and infrastructure. He proposed using a business model canvas to review projects. The key problem is a lack of connectivity and services in rural areas. His solution was a holistic approach combining technologies like VSAT satellites, solar power, and radio networks to connect schools and clinics across provinces. This would provide internet access, e-learning, and telemedicine. Barriers like poor infrastructure could be overcome through innovative solutions. The way forward is to drive unified service delivery in education through consistent programs and technology.
This initiative aims to improve the uptake and usage of financial services by providing guidance to financial institutions on becoming more customer-centric. It will develop a "Guide to the Customer-Centric Business Model" to help institutions implement customer-centric practices such as understanding customer needs, empowering employees, and designing customer experiences. The guide will provide five pillars of a customer-centric model and go through iterations over five years. It will also look to empower customers with information and skills to select and use financial products and services effectively.
The Natural Capital Finance Alliance (NCFA) is a collaboration between financial institutions, convened by the UN Environment Finance Initiative and the Global Canopy Programme, that is working to advance the integration of natural capital considerations into financial products, services, and decision-making. The NCFA recognizes that natural capital underpins economic prosperity but is often not adequately valued, and it is developing tools and methodologies to help the financial sector better understand and manage dependencies and impacts related to natural capital and the risks of its decline. Projects include water risk management tools, forest risk assessment tools, and tools to quantify environmental risks across lending and investment portfolios.
The document summarizes the proceedings of a regional workshop held in Dakar, Senegal from November 8-11, 2010. The workshop, organized by IFAD and the Government of Senegal, brought together 276 participants including project staff, government representatives, farmers' organizations, NGOs, the private sector, and IFAD staff. The main objectives were to improve project implementation performance, discuss promoting growth through value chains, and review progress on objectives set in the Accra Agenda for Action. Key discussions focused on the importance of value chains for smallholder farmers and the need for projects to strengthen monitoring and evaluation. Participants agreed on the importance of value chains and recommended IFAD support farmer organizations to benefit from market opportunities
Similar to Mobile Banking, Financial Inclusion and PNG's Resources Sector Final 2015-05-29 (20)
2. Purpose
This report outlines the results of a research study that was conducted on
financial inclusion, mobile money and the resources sector in Papua New
Guinea (PNG).
The report is intended to promote discussion about the way in which resources
companies, financial regulators, banks, telcos, mobile phone service providers
and civil society can collaborate to strengthen the distribution of compensation
and benefits payments from resource projects; improve social license for
resources companies; and more broadly, enhance financial inclusion efforts
and development outcomes in PNG.
As such the report is written in a way that is designed to be accessible to both
‘non-financial inclusion’ and ‘non-resources sector’ audiences.
Author
Dr Tim Grice, Head of Social Innovation at JKTech and Honorary Senior
Research Fellow at the Sustainable Minerals Institute’s (SMI) Centre for Social
Responsibility in Mining (CSRM), University of Queensland
Acknowledgments
The report author is grateful for the IM4DC grant that enabled this independent
study. A special thanks also goes to the government agencies, industry
bodies, companies, institutions and people who agreed to participate in the
interviews and industry survey that were carried out as part of this research.
Thanks also goes to Mr Phil Clark who assisted wth stakeholder interviews.
Citation
Grice, T. A. (2015). Mobile Transparency? Financial inclusion, mobile money
and Papua New Guinea’s resources sector. The University of Queensland
(CSRM) and the International Mining for Development Centre (IM4DC).
International Mining for Development Centre
In partnership with the Australian Government
through an Australian Aid initiative, The University
of Western Australia and The University of
Queensland have established the International
Mining for Development Centre (IM4DC) to assist
in lifting the quality of life in developing nations
through a more sustainable use of mineral and
energy resources.
Centre for Social Responsibility in Mining
The Centre for Social Responsibility in Mining
(CSRM) is a part of the Sustainable Minerals
Institute (SMI) at the University of Queensland.
SMI has a long track record of working
to understand and apply the principles of
sustainable development within the global
resources industry.
JKTech
As the commercialisation arm of SMI, JKTech
delivers economic and social value to the global
resources industry through empirically-grounded
technology, products and methods. Our work
covers all facets of the life-of-mine from geology
to minerals extraction, minerals processing,
environmental management, workplace health
and safety, mine rehabilitation and social
responsibility.
I. ABOUT THIS REPORT
2 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
ABOUT THIS REPORT
3. 1. Executive Summary 5
2. Financial Inclusion 9
3. Mobile Money 16
4. Resources Sector 20
5. Research Study 24
6. Financial Inclusion Alliances 38
for Resource Regions
7. References 42
8. About Us 43
INSIDE THIS
REPORT
Mobile Transparency? Financial
inclusion, mobile money and Papua New
Guinea’s resources sector.
TABLE OF CONTENTS
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 3
4. THIS STUDY
INVESTIGATED WHETHER
STRENGTHENING
MOBILE
MONEY
ECOSYSTEMS AROUND
PAPUA NEW
GUINEA’S
RESOURCES PROJECTS CAN
•
improve
THE DISTRIBUTION OF
COMPENSATION PAYMENTS
for local communities;
•
enhance
SOCIAL LICENSE for
resources companies; &
•
catalyse
FINANCIAL INCLUSION
in PNG’s resource regions.
4 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
Map of Papua New Guinea, West Papua
and the Northern tip of Australia with
exaggerated topographical elements
5. CONTENT
Mobile Money in Papua New Guinea
Increasing access to ‘mobile money’—services that allow electronic
money transactions over a mobile phone—is a key pillar of the financial
inclusion efforts in PNG.
Since the introduction of competition into the mobile phone industry
in 2007, the access and breadth of PNG’s mobile network coverage
has dramatically improved. PNG now has five mobile money services
including Digicel’s Cellmoni and Mibank’s MiCash. Recent data provided
by CEFI indicates that an additional 441,396 accounts were opened in
2014; 91,436 (35%) of which were opened by women4
. This takes the
total number of bank accounts in PNG to over 1.5 million. Despite these
advances, approximately 80% of PNG’s population remains ‘unbanked’,
without reasonable access to formal banking and financial services5
.
The Resources Sector in Papua New Guinea
Papua New Guinea has significant oil, gas, copper and gold deposits,
as well as a significant number of existing resource projects. Distribution
of payments from resource projects in PNG is a significant challenge
for regulators, companies and communities alike, and often causes
significant local conflict and operational disruption.
This Study
This study investigated whether strengthening mobile money
ecosystems around PNG’s resource regions can:
• Improve the distribution of compensation and benefits payments for
local communities;
• Enhance social license for resources companies; and
• Catalyse financial inclusion efforts in PNG’s resource regions.
Financial Inclusion in Papua New Guinea
Approximately 2 billion adults–more than half of the worldwide adult
population–do not have a registered account at a financial institution
1
.
As a result of this ‘financial exclusion’ from the formal economy, most
people living in poor households live their financial lives exclusively
within the cash economy; restricted in their ability to save and protect
themselves and their families against hunger, crime and natural disaster
2
.
Papua New Guinea (PNG) has some of the highest unbanked rates
in the world owing to a set of interrelated challenges including
geographically dispersed communities; low population density; low
financial literacy; relatively underdeveloped telecommunication and
banking infrastructure; and diverse cultural and language groups
3
.
Yet PNG’s efforts towards financial inclusion are gaining momentum.
In December 2013, PNG launched its National Financial Inclusion and
Financial Literacy Strategy 2014-2015, forming its commitments under
the Maya Declaration—a global and measurable set of commitments by
developing and emerging country governments.
The Centre for Financial Inclusion (CEFI) has been established to
coordinate, advocate and monitor financial inclusion activities in PNG,
including shaping stakeholder dialogue towards responsible finance
and service quality; encouraging innovation; and strengthening industry
development.
Together with a broad range of public and private stakeholder
partners—including regulators, banks, telcos and civil society groups—
CEFI is working to define industry standards for financial inclusion in
PNG; promote client protection; and provide financial institutions with
technical assistance for training, market research and new product
development.
1.0 EXECUTIVE SUMMARY - PROJECT OVERVIEW
1.0 EXECUTIVE SUMMARY
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 5
6. 1.1 EXECUTIVE SUMMARY - RESULTS & IMPLICATIONS
Resource Projects as a Catalyst for Financial Inclusion
To better realise the development promise of resource projects in PNG,
greater collaboration is required between the resources industry and the
broad range of stakeholders working on the financial inclusion agenda.
The results of this study suggest that strengthening mobile money
ecosystems in PNG’s resource regions can improve the distribution
of compensation and benefits payments for local communities;
strengthen social license for resources companies and enhance
financial inclusion efforts in PNG’s resource regions.
Collectively, these development and commercial outcomes can be
realised through a structured financial inclusion program for each of
PNG’s major resource projects. Financial inclusion programs for resource
projects should: be governed by multi-stakeholder working groups with
the roles of resources companies, banks, telcos and regulators clearly
defined; take into account the project’s social context and the results of
the social and economic impact assessment, which itself should adopt
a financial inclusion lens; match broader financial inclusion strategies to
the project size and project life-cycle; adopt a human rights lens with
a particular focus on gender equality; and incorporate financial literacy
programs to better equip local people for the transition from cash to
digital payments over the life of the resource project. With the financial
inclusion programs and mobile money services that are now available in
PNG, there is also an opportunity for resources companies, the Mineral
Resource Authority (MRA) as the regulator, and the Chamber of Mines
as the industry body to work with financial inclusion and mobile money
providers to develop a new ‘payment architecture’ for resource projects
that greatly improves payment transparency and efficiency.
More broadly, the results of this study suggest that resource projects
can be used as a catalyst for global financial inclusion efforts,
particularly in developing countries where geographically remote oil, gas
and mineral deposits often neighbour unbanked communities.
Research Methods
This study used a mix of semi-structured interviews (n=17) and
quantitative surveys (n=88) to examine stakeholder attitudes towards
financial inclusion, mobile money and the resources sector in PNG.
Participants included representatives from government regulators,
industry bodies, banks, telcos, civil society and the resources industry.
Research Findings
The research data collected indicates the following:
• Payments from PNG’s resources companies are a mix of cash, cheque and
electronic funds transfer—with differences across project cycle (cash is more
common in exploration) and project size (larger companies are likely to have more
advanced digital payment systems).
• There was a perception that the distribution of payments from resource projects is
not effective—for some respondents the distributional breakdown of funds was seen
as ‘unfair’ whereas other respondents felt that payment distribution systems are not
effective.
• Respondents felt that ‘grassroots people’ do not receive their fair share of the
benefits from resource projects—the National Government, men, the Provincial
Government and landowners were the groups perceived to benefit the most from
resource projects; whereas youth, the broader community, women and families were
perceived to benefit the least.
• A concern that payments from resource projects are not paid directly to the bank
accounts of ‘rightful recipients’ was also expressed. There was a perception that
local people do not use the payments that they receive from resource projects
‘effectively’ and opinion about whether resources companies encourage local
people to open up bank accounts was relatively mixed.
• However, participants almost unanimously agreed that a greater use of mobile
money can improve the distribution of payments from resource projects and
that greater financial literacy would improve development outcomes for PNG’s
resource regions.
• Overall, the resources industry in PNG received a mixed-scorecard when it came
to general acceptance, support and trust. However, the more respondents felt that
resources companies encouraged local people to open up bank accounts, the
greater their levels of support and acceptance for the resources industry in PNG.
6 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
1.1 EXECUTIVE SUMMARY
7. RESOURCE
PROJECTS
CAN BE USED
AS A CATALYST
FOR GLOBAL
FINANCIAL
INCLUSION
EFFORTS,
particularly in
developing countries
where geophraphically
remote oil, gas and
mineral deposits often
neighbour unbanked
communities.
“
“
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 7PICTURE:
Goroka Tribal Festival
8. “Approximately 2 billion
adults–more than half
of the worldwide adult
population–do not have
a registered account at
a financial institution”
Consultative Group to Assist the Poor, 2015
8 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
PICTURE: Children of an Asmat tribe
in a small forest village in West Papua,
Indonesia, PNG’s closest neighbour
9. Global Financial Inclusion
Significant multi-lateral and cross-sectoral effort is underway to ‘bank
the unbanked1
.
The World Bank has developed ‘Findex’, a global financial inclusion
database that measures the use of financial services worldwide1
. G20
member countries have established the Global Partnership for Financial
Inclusion, and the G20’s Financial Inclusion Experts Group (FIEG) has
released the “Principles for Innovative Financial Inclusion”8
.
The Alliance for Financial Inclusion have developed the ‘Maya
Declaration’, a global and measurable set of commitments by
developing and emerging country governments to “…unlock the
economic and social potential of the 2 billion ‘unbanked’ people
through greater financial inclusion”9
. The Better than Cash Alliance—
founded by the U.N. Capital Development Fund (UNCDF), U.S. Agency
for International Development (USAID), The Bill & Melinda Gates
Foundation, Citi, Ford Foundation, Omidyar Network, and Visa—has
been established to provide expertise on the transition to digital
payments to bring about greater financial empowerment in emerging
economies.
Collectively, these efforts are designed to increase access and lower the
cost of financial services to un- or underserviced markets through fit-
for-purpose legislative regimes; savings and credit products; payment
and money transfer services; and new mobile money technologies.
And recent data from the World Bank’s 2014 Global Findex database
suggests that these multi-stakeholder efforts are working. Three years
ago, 2.5 billion adults were unbanked. Today, 2 billion adults—38% of
the world’s adult population—remain without an account.
What is Financial Inclusion?
There is an emerging consensus that ‘financial inclusion’—increasing
poor households’ access to and use of financial services—is linked
to overcoming poverty, reducing income disparities, and increasing
economic growth6
.
In contrast to wealthy households who live their financial lives
embedded within a digital financial ecosystem, it is both more costly
and riskier for poor households living outside of the formal economy to
perform basic financial activities. To compound the problem, transacting
with poor households whose financial lives are outside of the formal
economy is often prohibitively costly for utility companies, banks,
insurance companies, and other institutions.
Financial inclusion, on the other hand, is ‘...a state in which all people
who can use them have access to a full suite of quality financial
services, provided at affordable prices, in a convenient manner, and with
dignity for the clients’7
.
The Centre for Financial Inclusion offers four core dimensions in their
financial inclusion framework:
• What is provided: a full range of services, including a basic product in
each of the four main areas: savings, credit, insurance, and payments.
• How it is provided: with quality—e.g., convenience, affordability, safety,
and dignity of treatment—and with client protections operating.
• Who receives: everyone who can use the services, including the poor,
rural, informal, and groups who are often discriminated against (women,
ethnic minorities, disabled); and
• Who provides: a range of providers led by mainstream financial
institutions, but also including organisations from the private, social, and
government sectors.
2.0 INTRODUCTION TO FINANCIAL INCLUSION
2.0 INTRODUCTION TO FINANCIAL INCLUSION
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 9
10. Alliance for Financial Inclusion
Global and regional alliances have been formed to coordinate the
significant programs of work that are required from public and private
sector actors to meet financial inclusion targets.
The Alliance for Financial Inclusion (AFI) is one such alliance committed
to building a global knowledge sharing network for financial inclusion
policymakers from developing countries.
AFI was founded in 2008 as a Bill & Melinda Gates Foundation-funded
project with funding also provided by AusAid (now the Australian
Department of Foreign Affairs and Trade) to support the development of
smart financial inclusion policy in developing and emerging countries10
.
Utilising a peer-to-peer learning model, the AFI network enables
financial policymakers to interact and exchange knowledge on policy
initiatives so that they can identify and implement effective policy
solutions in their home countries.
AFI’s regional approach to knowledge exchange among policy makers
has been particularly strong in the Pacific Islands, Africa and Latin
America.
AFI’s investment partners are the Bill & Melinda Gates Foundation
and the German Ministry for Economic Cooperation and Development
(BMZ). AFI’s broader partner network includes CGAP (Consultative
Group to Assist the Poor), G-20 (The Group of Twenty), Global
Partnership for Financial Inclusion (GPFI), International Association of
Deposit Insurers, International Finance Corporation, Omidyar Network,
UNCDF (United Nations Capital Development Fund) and The World
Bank.
2.1 ALLIANCE FOR FINANCIAL INCLUSION
2.1 ALLIANCE FOR FINANCIAL INCLUSION
10 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
11. “The Maya Declaration builds
positive peer pressure to ensure
that at national level, financial-
inclusion initiatives are achieved. It
enables cross-sector identification
of a common national goal. This
enables relevant key stakeholders
to focus on the common goal. It
boosts co-operation and open
dialogue to devise financial
inclusion initiatives to meet the
target.”
The Maya Declaration
Progress towards global financial inclusion has
its foundations in AFI’s Maya Declaration, the
first global and measurable set of commitments
by developing and emerging countries to unlock
the economic and social potential of the 2 billion
‘unbanked’.
Signatories to the Maya Declaration agree to
make measurable commitments in four key
areas, which are also aligned with the G20
Principles for Innovative Financial Inclusion11
:
• Creating an enabling environment to harness
new technology that increases access and lowers
the cost of financial services;
• Implementing a proportional framework that
achieves the complementary goals of financial
inclusion and financial stability;
• Integrating consumer protection and financial
literacy as key pillars of financial inclusion; and
• Collecting and utilising data to promote
evidence-based policymaking and measurable
progress in monitoring and evaluation.
In 2013 the AFI network adopted the Sasana
Accord, where AFI members committed to
setting quantifiable national goals as well as
measuring and reporting progress based on the
core set of indicators identified by AFI’s Financial
Inclusion Data Working Group (FIDWG)12
.
Benno Ndulu, Governor of Bank of
Tanzania (BOT) on financial inclusion
progress in Tanzania, April 2014
2.2 THE MAYA DECLARATION
2.2 MAYA DECLARATION
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 11
12. Key Achievements in Phase 1 include16
:
• Providing financial access to nearly 600,000 previously unbanked people,
including 250,000 women and 360,000 people who have opened bank
accounts with regulated institutions;
• National financial inclusion and financial literacy strategies developed for
PNG, Fiji, Solomon Islands and Vanuatu and a national financial literacy
strategy developed for Samoa;
• Establishing national finance inclusion task force in PNG, Solomon Islands,
Vanuatu and Fiji;
• Established financial competency baselines for PNG, Fiji, Samoa, Solomon
Islands;
• Mainstreaming financial education program into the core curriculum in
schools (Fiji and Samoa); and
• Effective dissemination of information to scale through training, workshops
and publications.
Phase 2 Expected Outcomes16
:
• Additional 500,000 people, including at least 50% women gain access to
an appropriate, affordable financial service;
• Additional 150,000 previously unbanked people with at least 50% women
gain access to a formal savings account;
• 15 per cent of PFIP supported branchless banking clients are active;
• An average savings balance of USD10 in active savings accounts/mobile
accounts;
• 4 additional PICs have national financial inclusion strategies; and
• 3 additional PICs offer financial education through core curricula in schools.
Pacific Financial Inclusion Program
The Pacific is one of the least-banked regions in the world; in some
Pacific countries, fewer than ten percent of the population is estimated
to have access to basic financial services13
.
Barriers to financial inclusion in the Pacific include challenging
geography, poor infrastructure, natural disasters, persistent
poverty, subsistence livelihoods and relatively low levels of financial
competency14
.
The Pacific Financial Inclusion Program is a Pacific-wide program
helping low-income households gain access to quality and affordable
financial services and financial education15
. Managed by the UN Capital
Development Fund (UNCDF) and the United Nations Development
Programme (UNDP)—with funding from the Australian Government,
the European Union and the New Zealand Government—PFIP currently
covers Fiji, Papua New Guinea (PNG), Samoa, Solomon Islands (SOI),
Tonga and Vanuatu, with Kiribati and Tuvalu potentially covered before
the end of July 2019.
By 2019 PFIP aims to have one million low-income people in the
Pacific—with at least 50% women—gain access to appropriate and
affordable financial services (687,000 achieved by 2014).
2.3 FINANCIAL INCLUSION IN THE PACIFIC
12 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
2.3 FINANCIAL INCLUSION IN THE PACIFIC
13. THE PACIFIC IS ONE OF THE LEAST-
BANKED REGIONS IN THE WORLD.
Barriers to financial inclusion in the Pacific include
challenging geography, poor infrastructure, natural
disasters, persistent poverty, subsistence livelihoods and
relatively low levels of financial competency.
PICTURE:PanasiaIsland,LouisiadeArchipel-
ago, Papua New Guinea
“
“
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 13
14. 14 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
PICTURE:
Melanesian people of Papua New Guinea
15. 2.4 FINANCIAL INCLUSION IN
PAPUA NEW GUINEA
PNG’s Progress Towards Financial Inclusion
PNG’s multi-stakeholder financial inclusion efforts have resulted in much
tangible progress towards improving financial inclusion in the country20
:
• Together, the five mobile money providers claim over 300,000 registered
users since the opening of the mobile money market in 2011. Growing at
an annual rate of 202 percent since 2008, the number of financial services
agents now surpasses bank branches in the country;
• Established financial inclusion and financial literacy working groups
on Inclusive Insurance, Electronic Banking, FinEd & Financial Literacy,
Consumer Protection, Data & Measurement, and Government Coordination
in 2014;
• Member of the Alliance for Financial Inclusion’s Pacific Island Working
Group;
• Mainstreamed financial inclusion in GoPNG priorities, resulting in the launch
of the informal Economy Policy 2011-2015 in which access to finance is one
of the two pillars for those in the informal economy;
• Facilitated Government to People (G2P) learning visit for GoPNG, including
from Department of Treasury, Department of Finance and Department of
Planning & Monitoring on digitising G2P payments; and
• Financial Diaries research study showed that respondents typically travelled
large distances to interact with banks and deposited and withdrew large
sums of money.
PNG’s progress towards financial inclusion is gaining momentum. Recent
data provided by CEFI indicates that an additional 441,396 accounts
were opened in 2014; 91,436 (35%) of which were opened by women,
taking the total number of bank accounts in PNG to over 1.5 million4
.
However there is much work to be done for a country whose citizens still
live in some of the highest unbanked regions in the world.
Barriers to Financial Inclusion in PNG
Papua New Guinea (PNG) has a population of approximately 7 million
people, most of whom live in rural areas. It is estimated that 85% of
PNG’s total population do not have bank accounts17
.
Barriers to financial inclusion in PNG are similar to the barriers
experienced in other Pacific nations. Additional challenges that are
unique to PNG—or at least experienced to a greater degree than other
Pacific nations—include PNG’s cultural and language diversity18
and
the high costs of building a distribution system in a country that is
geographically diverse with under-developed infrastrucutre19
.
PNG Financial Inclusion Strategy 2014-2015
To advance the objectives of wealth creation and poverty reduction in its
2050 Vision, PNG has recently launched its National Financial Inclusion
Strategy 2014-2015. The objectives of the Strategy form the basis of
PNG’s commitments to financial inclusion, constituted in PNG’s Maya
Declaration.
Centre for Financial Inclusion
The Centre for Financial Inclusion was launched in 2013 to promote
PNG’s financial inclusion agenda; to facilitate improvement of financial
services delivery; to establish mechanisms for enhanced information
exchange; and to promote gender equity in financial services and
financial education.
CEFI is endorsed by PNG’s National Executive Council (NEC) as the
industry apex organisation for coordinating, advocating and monitoring
all financial inclusion activities in PNG..
2.4 FINANCIAL INCLUSION IN PAPUA NEW GUINEA
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 15
16. Figure 1. GSMA’s Mobile Money Ecosystem
Mobile Money
Mobile money services are perhaps the most promising way to deliver
financial services profitably and at scale to the poor21
.
The definition of mobile money varies across the industry as it covers a
wide scope of overlapping products, applications and services22
. Mobile
money is used in this report as an overarching term that describes any
service in which a mobile phone is used to access financial services23
.
This includes ‘mobile financial services’, ‘mobile banking’, ‘e-money’,
‘mobile wallet’ and ‘mobile payments’.
With 255 mobile money services in operation across 89 countries,
mobile money services are now available in over 60% of developing
markets24
.
Mobile money provides significant potential advantages to the world’s
poor including25
:
• Increased access to basic financial services leading to enhanced economic
activity;
• Reduced risk of money theft and increased personal control over financial
resources;
• Increased speed of payments both to and from consumers, businesses,
and government;
• Improved convenience and reducing the cash in the economy;
• Lower transaction costs and improved transparency and auditability; and
• Improved competition through reduced barriers to entry for fee-for-service
business models.
Mobile Money Ecosystems
Although mobile money is often described as a product or service, the
broader network of actors, infrastructure and services required to deliver
mobile money services at scale is more akin to an ecosystem.
As illustrated in Figure 1 below produced by GSMA (Groupe
Speciale Mobile Association)26
, mobile money is “...in fact a network
infrastructure for storing and moving money that facilitates the
exchange of cash and electronic value between various actors including
clients, businesses, the government, and financial service providers”27
.
3.0 INTRODUCTION TO MOBILE MONEY
3.0 INTRODUCTION TO MOBILE MONEY
Diagram Source: GSMA web site.16 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
17. 3.1 MOBILEMONEYINTHEDEVELOPINGWORLD.
Diagram Source: GSMA’s State of the Industry
2014.
3.1 MOBILE MONEY IN THE DEVELOPING WORLD
Figure 2. GSMA’s Map of Accounts
299 Million
REGISTERED
MOBILE MONEY
ACCOUNTS
GLOBALLY
AT END
OF DECEMBER
2014
GSMA, STATE OF THE
INDUSTRY 2014:
MOBILE FINANCIAL
SERVICES FOR
THE UNBANKED
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 17
18. As identified by Watson30
and shown in the table below, there are two
mobile money service models in PNG: the bank-led model and the non-
bank-led model.
Bank-led Non-Bank-led
Providers &
Products
BSP (Wantok Moni), ANZ
(goMoney), Westpac and MiBank
(MiCash)
Digicel (Cellmoni),
Post PNG (Salim
Moni Kwik)
Focus Improving banking efficiency,
including moving customers
from branches to mobile money
and increasing mobile money
transaction volumes in order to
increase economies of scale,
thereby driving down costs
Domestic
remittances and
increasing the
volume of mobile
transactions
Services across
carriers
View balance, transaction history, mobile top-ups,
transfer funds, utility bill payments, text message (SMS)
alerts and account management, cash-in and cash-out
services at agents, and cash-out at Automatic Teller
Machines (ATMs) and Electronic Funds Transfer at Point
of Sale (EFTPOS) terminals
Post’s Mobile SMK, Nationwide Microbank’s MiCash and Digicel’s
Cellmoni are all on the same Telepin DMM platform35
. All mobile money
service providers offer an Unstructured Supplementary Service Data
(USSD)30
, a protocol used by Global System for Mobiles (GSM) phones
to communicate with the network operator’s computer. Interoperability
for provision of mobile money services has not yet been regulated
through the central bank30
, however all mobile money provides operate
under PNG’s Prudential Standard for Mobile Money and Mobile
Payment Services. Legislation and planning is also in place for a
National Payment Switch that will be overseen by the Bank of PNG36
.
Mobile Phones in PNG
In the early 2000’s, telecommunication services in PNG were limited
to urban centres under the then monopoly operator, Telikom PNG28
. At
that time, Bemobile, a Telikom subsidiary, had 160,000 mobile phone
subscribers, mostly based in the capital, Port Moresby29
.
PNG’s mobile phone landscape dramatically changed in 2007 when the
Independent Consumer and Competition Commission (ICCC) opened
up the market to additional providers30
. Following Digicel’s entry to
the PNG market, signal coverage was rapidly extended across the
country—particularly to towns and rural areas.
There are now three mobile phone operators in PNG—Digicel PNG,
Bemobile and Citifon (Telikom PNG subsidiaries)—resulting in an
increase of mobile phone subscribers to 1,800,000 subscribers in
201231
. Average prices for mobile phone calls have also dropped by 60
percent32
. As of 2014, the mobile penetration rate in PNG was reported
as 41%33
representing a dramatic increase in usage rates, although still
relatively low by world standards.
Most Papua New Guinean’s in rural areas use basic mobile phone
handsets which are easy to use and have a long battery life, although
the availability of smartphones with Internet access is increasing34
.
Mobile Money in PNG
PNG has four formal banks which service major centres within the
country. However, with approximately 80% of the total population
unbanked or without reasonable access to formal banking and financial
services34
, and with mobile penetration increasing, mobile money
represents a strong opportunity to increase financial inclusion in Papua
New Guinea.
3.2 MOBILE MONEY IN PNG
3.2 MOBILE MONEY IN PNG
18 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
19. C
Enterprise Services
Cellmoni provides salary disbursements for a number of
organisations that employ casual staff and have traditionally
paid their employees in cash. Other enterprise services
include cash disbursements, bill payment collections, supplier
payments and transfers.
Users
2012 2013 2014
Registered subscribers 4,461 60,000 95,000
Transaction value 8,856,703 12,592,820 83,436.00
Transaction count 67,898 96,334 NA
Agent Network
What is it?
In August 2011, Digicel PNG launched Cellmoni, a domestic
mobile money services to support financial inclusion efforts for the
unbanked in PNG. Cellmoni’s product portfolio includes cash-in
and cash-out, selected bill payments, domestic money transfers
and top-up services. Cellmoni is regulated by the Bank of PNG and
managed by Digicel Financial Services Ltd.
Coverage
Since launching Cellmoni, Digicel has built an agent network of 100
mobile money agents in select population centers, giving Digicel
the widest coverage of financial service agents across PNG.
2G Digicel network coverage is now at 94.5% of PNG’s population
with 68.2% geographic coverage; 3G network is in 22 provinces
covering 35.7% of PNG’s population with 18.6% geographic
coverage.
Customer Services
Customer services include deposits, withdrawals, buying and
sending top-up credits, paying for prepaid and post-power, Digicel
Mobile bills, person-to-person transfers and bill payments (PNG
Power EasiPay, Online South Pacific, Digicel Post-paid Bill Pay).
3.3 CASE STUDY: DIGICEL’S CELLMONI
3.3 CASE STUDY: DIGICEL’s CELLMONI
Figure 3. Digicel Agent Network
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 19
20. 4.0 FINANCIAL INCLUSION & THE RESOURCES SECTOR
local communities and landowners are often
significant and diverse, including compensation
for land, royalties, resettlement and community
investment funds. Payments from resource
projects have the potential to penetrate deeply
into local economies, often resulting in an in-flux
of cash and electronic payments in resource
regions.
Moreover, although the global resources industry
still has significant social and environmental
performance challenges37
, there is an increasing
emphasis on social and environmental
performance across the sector38
. The increased
emphasis on social performance in particular
means that, in many cases, resources
companies and those working on the global
financial inclusion agenda will have shared
Resources Sector and the Unbanked
Resource projects are often in geographically
isolated regions—so are many of the world’s
unbanked. Moreover, the unbanked poor and
the world’s undeveloped oil, gas and mineral
deposits have a number of things in common:
they are often in the same locale; and they are
often ‘unreached’ by mobile money service
providers and resources companies for similar
reasons—including geographical isolation and
geopolitical sovereign risks.
Yet there is a distinct lack of research on the
role that resource projects can play as a catalyst
for improving financial inclusion within resource
regions. This is particularly surprising given that
payments made from resources companies to
objectives in a resource region.
However, little is known about the specific
contextual issues that influence financial
inclusion in the resources sector (such as
land rights, the ‘politics of distribution’ and
legislative regimes); the extent to which
resources companies promote financial
inclusion through the use of digital payment
systems (branch and mobile); the legislative,
institutional, organisational, attitudinal
and cultural barriers and enablers for
strengthening mobile money ecosystems
in resource regions; or the extent to which
mobile money can improve the distribution of
company payments and therefore enhance
social license and development outcomes.
20 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
4.0 FINANCIAL INCLUSION
&THERESOURCESSECTOR
21. PNG’s Resources Sector
Papua New Guinea is a developing country with
substantial oil, copper and gold deposits—as
well as a significant number of existing resource
projects. PNG’s minerals revenue (mining and
petroleum tax and dividends) is a significant
contributor to the national economy. As shown in
Figure 4, PNG’s resources revenue peaked in 2008
when global commodity prices were historically
high, but plunged in 2009 when commodity prices
dropped.
2014 saw the completion of ExxonMobil’s 6.9
million tonne per annum Liquefied Natural Gas
(LNG) project, with an initial investment of US19
million for the first phase of the project. The PNG
LNG project includes the Hides, Angore and Juha
gas fields and the Kutubu, Agogo, Moran and
Gobe Main oil fields.
Gold, copper and silver are the main mineral
resources in PNG, which hosts some of the largest
copper-gold ore bodies in the world. Existing
projects include Lihir (Newcrest Mining Limited),
Porgera (Barrick Gold), Ok Tedi (State Owned
Enterprise), Hidden Valley (Newcrest-Harmony JV),
Ramu Nickel (Highlands Pacific), and Simberi (St
Barbara). Proposed future projects of significance
include Freida River (PanAust), Wafi-Golpu
(Newcrest-Harmony), the possible reopening of the
Bougainville Mine (Rio Tinto), and the proposed
Solwara project (Nautilus), the world’s first deep-
sea mining project.
The Social Context of Resource Projects in PNG
The social context of resource projects in PNG
has been well documented39
. PNG has had more
than its fair share of social and environmental
flashpoints, including closure of the Panguna
Mine in Bougainville due to civil war and the
exit of BHP Billiton from Ok Tedi due to the
environmental damage caused to the Fly River.
What is perhaps less understood by those
outside of the industry—although universally
understood within PNG—is the day-to-day
influence that landowners exert over resource
projects. The vast majority of land in PNG is
owned through traditional land tenure systems,
which means that as the customary owners
of the land and resources being developed,
“landowners’’ wield significant influence over the
daily operation of resource projects, including
the distribution of economic benefits40
. Or,
as described by Filer41
, there appears to be
a ‘Melanesian Way of Menacing the Mining
Industry’. If the PNG State has historically
lacked sufficient capacity to closely regulate
the activities of multinational companies40
,
the power of local landowners has in many
ways counterbalanced relations between
multi-national mining companies and local
communities42
.
For these and other reasons, distribution of
payments from PNG’s resource projects is a
significant challenge for regulators, companies
and communities alike.
4.1 PNG’S RESOURCES SECTOR
Figure 4.
Source: Andrew Mako. http://devpolicy.org/pngs-experience-with-rapid-rev-
enue-growth-lessons-for-the-future20120831/
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 214.1 PNG’s RESOURCES
SECTOR
22. 4.2 PNG CADASTRAL MAP
Figure 5. PNG Cadastral Map
22 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
4.2 PNG CADASTRAL MAP
Source: MRA Public Portal
23. 4.3 PNG MINING PROJECTS
Figure 6. PNG’s Mining Projects
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 234.3 PNG’s MINING PROJECTS
Source: Chamber of Mines and
Petroleum, 2006
24. Research Questions
The primary research question of this study was whether strengthening
mobile money ecosystems around PNG’s resource regions can:
• Improve the distribution of compensation and benefits payments for local
communities;
• Enhance social license for resources companies; and
• Catalyse inclusion efforts in PNG’s resource regions.
Secondary Research Questions
Secondary research questions included:
• What payment methods do resources companies currently use to
make compensation and benefits payments to local landowners and
community members?
• What are the perceptions around current payments from resources
companies to local, provincial and national stakeholders?
• What are the broader perceptions around the resources industry in PNG?
5.0 RESEARCH QUESTIONS
24 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.0 RESEARCH QUESTIONS
25. This study used a mixed-method research design including an online
survey, company surveys and semi-structured interviews.
Online Survey
A quantitative survey (n=88) was conducted to examine stakeholder
attitudes towards financial inclusion, mobile money and the resources
sector in PNG. The survey was hosted online and measured
participants’ responses to a range of questions measuring perceptions
about financial inclusion, mobile money and the resources industry.
Company Survey
A company survey (n=9) was also conducted to assess the payment
methods used by resources companies to make payments to local
communities and landowners.
Interviews
Finally, semi-structured interviews (n=17) were conducted to explore
stakeholder views towards financial inclusion, mobile money and Papua
New Guiena’s resources sector in more depth. Participants included
representatives from government regulators, industry bodies, banks,
telcos, civil society and the resources industry.
Online Survey Sample
Male (75%) Female (75%)
Method
From
Mining
Communities
(25%)
Demographic information of respondents who participated in the online
survey:
PNG (75%) Non-PNG (5%)
5.1 RESEARCH METHODS
5.1 RESEARCH METHODS
Not from
Mining
Communities
(75%)
Graph 1. Gender Graph 2. Community Status
Graph 3. Stakeholder Group Graph 4. Nationality
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 25
26. Finding 1. Payments from PNG’s resources companies are a mix of cash, cheque and electronic funds transfer—with
differences across project cycle (cash is more common in exploration) and project size (larger companies are more likely to have more advanced digital payment systems)
Graph 5. Do you sometimes
make cash payments?
Graph 6. For what reasons
do you use cash payments?
Graph 7. Payment Methods by Payment Type
Payment Methods
• As seen in Graph 7, the three payment methods used by resources companies
to make payments to local communities and landowners were cash, cheque and
electronic funds transfer (companies used multiple payment methods and not all
companies made certain payment types); and
• Companies who were in the exploration stage of the project and smaller
companies were more likely to use cash than larger companies with developed
projects.
Cash—When and Why
• Cash was used for land use payments, compensation payments, investment
funds and meeting sitting fees (see Graphs 5 and 6);
• The reasons given for using cash was that the recipient didn’t have a bank
account (57%); the recipient asks for cash (29%); and convenience (14%); and
• Respondents also reported that trust was an issue for community members and
landowners—trust in the financial system (specifically opening bank accounts)
and trust that they would receive payments ‘indirectly’ from their community and
landowner representatives.
Financial Inclusion
• None of the companies surveyed reported having a Financial Inclusion Strategy
for their project impact area (or being part of a shared stakeholder strategy for
the region or province in which they operated);
• None of the companies surveyed were partnering with mobile money providers
to provide mobile phone notifications of payments received and only two of the
companies surveyed reported that they ‘actively promoted mobile money as a
way for community members to access payments from the company’; however
• 50% of companies surveyed reported partnering with financial institutions to
provide financial literacy programs.
5.2 RESULTS: COMPANY PAYMENT METHODS
26 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.2 RESULTS -
COMPANY PAYMENT
METHODS
27. ONE OF THE GREATEST ISSUES THAT
REMAINS IS WOMEN’S ACCESS TO FUNDS,
where men are the signatories to accounts for landowner groups (including
women and youth).
Sustainable Development Manager of Mining Company
IT IS HARD TO GET PEOPLE HERE TO ACCEPT
BANK ACCOUNTS, LET ALONE MOBILE
MONEY. They are very distrustful of others handling their money. This is
because they see the clan leaders setting a bad example (not giving them
money, spending it himself).
Community Relations Manager for an Oil and Gas Company
WITH THE CURRENT DEVELOPMENT IN THE
TECHNOLOGY AND WITH THE RESOURCES
INDUSTRY IN OUR COUNTRY, THE COMMUNITY
LIAISON OFFICER must teach the communities more about the
financial benefit and how they can improve the lives of people living around
that community. Meaning getting them to participate in the mobile money
industry. This should be one of the CR profession’s core functions.
Community Relations Officer, Mining Company
“
“
“
“
“
“
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 27Photo: PNG ladies at a market.
28. Figure 6. PNG’s Mining Projects
Figure 7. Wester Province Regional Map
Ok Tedi Mining Limited Overview
Ok Tedi Mining Limited (OTML) is a state owned company
that operates an open pit copper, gold and silver mine
located in the Star Mountains of the Western Province,
PNG. Since the start of operations in 1981, OTML has
produced 4.5 million tonnes of copper, 13.9 million ounces
of gold and 28.8 million ounces of silver. In 2014 OTML
reported a profit of PGK360M (USD 135 MILLION) and a
dividend of PGK 123.8 million (USD 50 million)43
.
Over the last 34 years, OTML has made a significant
contribution to development in the Western Province
through direct and indirect employment, royalties,
compensation payments and business opportunities. It is
also well documented that OTML has been responsible
for deleterious environmental and social impacts including
sediment aggradation in the Ok Tedi and Fly River
systems44 45
—and that in 2002 these impacts resulted
in the then majority owner and operator, BHP Billiton,
handing majority ownership to the PNG Sustainable
Development Program (PNGSDP). In 2013, the PNG
Government legislated to directly assume the shareholding
of PNGSDP.
As an independent and commercially operated State
Owned Enterprise (SOE), OTML’s efforts are now directed
towards increasing its contribution to the economic and
social development of PNG, particularly the Western
Province. Environmental impacts are monitored and
reported to the communities and the State43
. OTML’s
continued operation is dependent upon consent by the
local communities and the PNG Government.
5.3 OK TEDI CASE STUDY
28 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.3 OK TEDI CASE STUDY
PICTURE: Western Province Regional Map with OTML Impact Areas
SOURCE: OTML 2014 Annual Report
29. Global Findex Database 2014
Measuring Financial Inclusion around the World
5.4 OK TEDI PAYMENTS
Figure 8. 2014 Ok Tedi Payments
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 29OTML 2014 Annual Payments
SOURCE: OTML 2014 Annual Report
5.4 OK TEDI PAYMENTS
PICTURE: Woman at a
market in Tabubil
30. C
Compensation and Benefits Payments
Compensation and benefits from OTML are directed as dividend streams to Western Province communities, specifically the Community
Mine Continuation Agreement (CMCA) communities, the Fly River Provincial Government (FRPG) and the State of PNG.
OTML’s impact area includes 57 villages with a population of 134,083. There are 14,076 families with 12,992 bank accounts.
Region Access Number of
Villages
Population Families Family Accounts
Mine Village Land 6 3,293 800 1,038
North Ok Tedi Land 18 4,766 1,001 952
Lower Ok Tedi Land 20 11,334 1,600 1,451
Highway Land 29 15, 628 2,490 2,193
Middle Fly River 18 15,048 2,399 2,014
Suki Fly Gogo River 16 14, 518 2,107 1, 933
Manawete River 20 26, 173 3,408 2,441
Kiwaba River 14 18,864 2,265 1,207
Dudi River 16 24, 459 3,014 1,696
Total 157 134,083 14,076 12,992
5.5 OK TEDI IMPACT AREA POPULATION & ACCOUNTS
30 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.5 Ok Tedi Population
& Bank Accounts
31. Challenges
Challenges of the initial phase of the program included network coverage,
weather and travelling the long distances from the vessel to the villages.
Areas for Future Collaboration
Areas identified for possible future collaboration between BSP and OTML
include:
• BSP agent training and refresher training for both existing and new
mobile money agents;
• ‘Smart Business’ banking awareness programs for existing and
potential business owners;
• BSP Capital to run investment programs conducted by professional
stock brokers, stock researchers, and financial advisors;
• Follow-up on over 500 participants whose parents showed interest in
opening a savings account for their children;
• Future investments collaborations via future CMCA payments; and
• Control and improve financial lifestyles through financial literacy
programs.
OTML Partnership with Bank South Pacific
OTML have entered into a partnership with Bank South Pacific to provide
banking education awareness to impact communities surrounding the
mine and along the Fly River.
The objectives of the program include:
• Providing banking education awareness to OTML communities;
• Opening bank accounts at villages via branchless banking; and
• Visiting and conducting refresher training for BSP agents and selected
BSP Merchants.
Results
The reported results of the initial phase of the program include:
• Over 10,000 participants attended the accumulated banking education
presentations;
• Over 4,000 new accounts opened; and
• Increase in access points including BSP Agents and EFTPOS Merchants.
5.6 OTML–BSP BANKING AWARENESS
PROGRAM
PICTURE: Van traveling down a road near
5.6 OTML–BSP BANKING AWARENESS PROGRAM
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 31
32. Interviews & Open Questions
“The money is felt at a broader economic
level but not always at an individual
household level and there is not always
a fair distribution of royalties to all
stakeholders”.
“More percentage in ownership and
compensation benefits to landowners
and affected communities as opposed
to Government having most of the share/
ownership”.
“Resources sector in PNG has boosted
over the years but funds and benefits are
unevenly distributed. The Rich become
Richer and the Poor become Poorer!”
“The resources sector must make sure
every recipient receive funds into their
account. And everyone to have some
form of financial literacy and signed up for
mobile money”.
“I think the processes and procedures
put in place are not followed to ensure
the benefits from the extractive industries
drip down and impact on the lives of the
people”.
“Be mindful in signing any-kinds of
agreements because distributions of
benefits is totally unfair for those who are
in the areas classified as ‘not affected’”.
Survey QuestionsFinding 2. Overall, there was a
perception that the distribution of
payments from resources companies
is not effective—for some respondents the
distributional breakdown of funds was seen
as ‘unfair’ whereas other respondents felt that
payment distribution systems are not effective.
As seen in Graph 8, only 11% of respondents
agreed that compensation and benefits are
distributed fairly, while 63% of respondents
strongly disagreed or disagreed with this
statement. When asked specifically about
economic benefits a similar pattern was
observed: 75% of respondents strongly
disagreed or disagreed that the economic
benefits from resource projects are distributed
fairly (see Graph 9).
Thematic analysis of open questions and
interviews also highlighted a perception that
payment distribution systems are not effective
for various institutional and socio-cultural
reasons, including corruption; politics; incorrect
or incomplete identification of rightful recipients;
and intra- and inter-clan conflict.
Graph 8. The distribution of compensation and
benefits from resource projects in PNG is fair
Graph 9. Generally speaking, the economic benefits
from resource projects are distributed fairly
5.7 RESULTS: DISTRIBUTIONAL FAIRNESS & EFFECTIVENESS
32 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.7 RESULTS - DISTRIBUTIONAL
FAIRNESS & EFFECTIVENESS
33. Interviews & Open Questions
“One of the greatest issues that remains
is women’s access to funds, where
men are the signatories to accounts for
landowner groups (including women and
youth)”.
Women and youth are the biggest
group that have not been a recipient,
for instance if you go up to Southern
Highlands where the big LNG project
is happening, the women are mainly
households items – they just look after
the homes – the men are the ones are
running around in POM with thousands
of Kina. Women have generally not been
given the right recognition. And that
applies to youths as well”.
“In PNG we always have this ‘big men’
attitude, especially in the resource areas.
Big men get their millions of Kina and
often come and squander it in POM”.
“Resources sector in PNG must divert
its attention to increasing household
income generating activities. Funding
supposedly given to Government must
be tied in to infrastructure development
of communities such as building roads,
bridges, schools and health facilities.
Government should not be made recipient
of these funds as track record suggests
abuse of funds which are also diverted
to non-infrastructure development
purposes”.
Survey Questions Finding 3. There was also a perception
that ‘grassroots people’ do not
receive their fair share of the benefits
from resource projects—the National
Government, men, the Provincial Government
and landowners were the groups perceived to
benefit the most from resource projects; whereas
youth, the broader community, women and
families were perceived to benefit the least.
As seen in Graph 10, 76% of people either
strongly disagreed or agreed that grassroots
people receive a fair share of the benefits from
resource projects, whereas 14% of respondents
were neutral and 10% of respondents agreed
with this statement (no respondents strongly
agreed).
Graph 11 ranks the responses of participants
when asked to asses the extent to which various
groups receive compensation and benefits
payments from resources companies.
Graph 10. Grassroots people receive a fair
share of the benefits from resource projects
National
Government
Men
Provincial
Government Landowners
Local Government
Clans
Businesses
Families
Women
CommunityYouth
5.8 RESULTS: TRICKLE DOWN TO THE ‘GRASSROOTS’?
Graph 11. To what extent do compensation
and benefits payments from resources
companies in PNG go to:
5.8 RESULTS - TRICKLE DOWN TO THE GRASS ROOTS?
PICTURE: Melanesian child transporting bananas on
head. Bwagaoia, Misima
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 33
34. Survey Questions
Graph 15. To what extent do local people use
the payments that they receive from resources
companies ‘effectively’ (i.e., in a way that
improves their lives)?
Graph 12. Compensation payments from resources
companies are paid directly to the bank accounts
of the rightful recipients.
Graph 14. To what extent do resources companies
encourage local people to open up bank accounts?
Graph 13. Do resources companies educate local
people about ‘financial literacy’?
5.9 RESULTS: RESOURCES COMPANIES AND PAYMENTS
Finding 4. There was a perception
that compensation payments from
resources companies are not paid
directly to the bank accounts of the
rightful recipients—respondents did not
feel that local people use the payments that they
receive from resource projects ‘effectively’ (in a
way that improves their lives) and opinion about
whether resources companies encourage local
people to open up bank accounts was relatively
mixed.
75% of respondents disagreed that compensation
payments from resources companies are paid
directly to the bank accounts of the rightful
recipients (see Graph 12).
Respondents were somewhat mixed or negative
about whether resources companies encourage
local people to open up bank accounts (Graph
14) and educate people about financial literacy
(Graph 13). There was also a perception that local
people (landowners and community members) do
not use payments that they receive from resources
companies ‘effectively’ (Graph 15).
34 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.9 RESULTS—
RESOURCES COMPANIES &
PAYMENTS
35. Interviews & Open Questions
“Financial inclusion and mobile money will
greatly improve the transparency and visibility in
the distribution of royalties, compensations, etc
to beneficiaries and reduce the mistrust there
is among the beneficiaries themselves and the
resources industry”.
“It has not adequately supported the community
in terms of financial literacy advice among the
so called (mining communities) and it should
come up with a solution that really identifies
and fixes these financial and social problems
we are currently facing such as ...the improper
disbursements of royalties to landowner groups
across the country“.
“Mobile money is an important area, especially
for remote communities such as around Frieda.
But requires partnering with mobile companies”.
“Going cashless would be the way going
forward for PNG but this in itself would be a
challenge as the majority of PNGuineans are
illiterate and most of the extracting projects are
in villages/communities that are remote with a
few to nil schools. Mobile money in itself would
be a challenge for our people in this areas. It
would in my personal opinion take some years
to master this but for our old people the feeling
of security would be better suited to having an
account in the bank. Although mobile money
would be a better and convenient approach to
benefit and compensation payments it is still
an alien approach in some of the extracting
projects in PNG”.
Finding 5. Participants agreed that
greater financial literacy would improve
development outcomes in resource
communities and a greater use of mobile
money would improve the distribution of
payments from resources companies.
Participants almost unanimously agreed that greater
financial literacy would improve development
outcomes in resource communities in PNG and that
a greater use of mobile money would improve the
distribution of payments from resource projects
Responses from the interviews and open questions
were mixed about ‘readiness to adopt’ mobile money
technology in mining communities. For some, literacy
and education levels—together with concerns about
security and ability to adopt new technologies—were
a significant concern. Others, on the other hand,
viewed the active use of mobile money technologies
as a current reality and well within the capability of
their impacted communities.
Graph 16. Greater financial literacy would
improve development outcomes in resource
communities in PNG
Graph 17. A greater use of ‘mobile
money’ (using a phone or mobile device
to perform banking transactions) would
improve the distribution of payments
from resources companies
5.10 RESULTS: IMPROVING OUTCOMES
Survey Questions
5.10 RESULTS–IMPROVING
OUTCOMES
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 35
36. Survey Questions
Graph 18. To what extent do you accept the
resources industry in Papua New Guinea?
Graph 20. To what extent do you support the
resources industry in Papua New Guinea?
Graph 19. To what extent do you trust the
resources industry in PNG to act in the best
interests of society?
Graph 21. To what extent do you trust the
resources industry in PNG to act responsibly?
Finding 6. Overall, the resources
industry in PNG received a mixed-
scorecard when it came to general
acceptance, support and trust.
However, the more respondents
felt that resources companies
encouraged local people to open up
bank accounts, the greater their levels
of support and acceptance for the
resources industry in PNG.
As illustrated in Graphs 18-21, when asked
about the extent to which they accepted
and trusted the resources industry in PNG,
respondents gave mixed responses. Thematic
analysis of interviews revealed that for many
respondents the sector is viewed as a ‘mixed
blessing’—with an acute understanding of
the social and economic impacts of resource
projects, both positive and negative.
Multiple regression analyses were conducted
to assess whether perceptions about financial
inclusion behaviours from resources companies
predicted acceptance and support for the
industry46
. The results revealed that—above
and beyond the variance that can be accounted
for by general perceptions about development
effectiveness—perceptions about whether
resources companies encourage local people to
open up bank accounts were positively related
to acceptance of and support for the resources
industry in PNG.
5.11 RESULTS: VIEWS ABOUT THE RESOURCES SECTOR
36 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
5.11 RESULTS - VIEWS ABOUT THE
RESOURCES SECTOR
37. AMIXED BLESSING... WITH MOST OF
THE BENEFITS AT THE TOP AND
INEQUITABLY DISTRIBUTED, opportunism rules
the distribution and family benefits are generally poor. Transportation,
education and healthcare are the exceptions).
LANDOWNERS, COMMUNITIES, LOCAL
LEVEL GOVERNMENTS AND CLANS
NEED TO BE EDUCATED ABOUT THE
HIGHS AND LOWS OF THE RESOURCES
SECTOR, benefits and risks for an extractive company to set
up on their land must be made aware to everyone in the community,
whether or not you are a landowner. Sudden engagement of this sector
has left people hungry for more money, causing social disorder (family
ties and traditional values) and many other problems in the community
most of them avoidable but people just have a lot of money to throw
around.
IT APPEARS.. THE RESOURCES SECTOR
IS ASKED AGAIN, and again for more and more
compensation because the landowners have blown it - greedy people
just won’t give the sector a chance - resources sector should pull out
and let the people have their land for agricultural crops and let them
fight amongst themselves over whose vegetables they are.
THE RESOURCES SECTOR IN PNG... HAS
HAD A TREMENDOUS DEVELOPMENT
IMPACT, ESPECIALLY IN THE REMOTE
AREAS, however, corruption by our politicians and top executives who
control the finance of PNG had misused a lot of monies which could have
brought PNG to another level of development at this time
OBVIOUSLY... THEY COME TO MAKE
MONEY, but do they have the heart to give something back to
the place where they make money?
EXTRACTIVE SECTOR IN PNG.. MUST
DIVERT ITS ATTENTION TO INCREASING
HOUSEHOLD INCOME GENERATING
ACTIVITIES, funding supposedly given to Government must be tied
in to infrastructure development of communities such as building roads,
bridges, schools and health facilities. Government should not be made
recipient of these funds as track record suggests abuse of funds which are
also diverted to non-infrastructure development purposes.
“
“
“
“
“
“
“
“
“
“
“
“
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 37ABOVE QUOTES: Stakeholder Responses to
the Resources industry in PNG
38. Greater Collaboration
Collectively, the results of this study suggest
that greater collaboration between resources
companies, financial regulators, banks,
telcos, mobile phone service providers and
civil society can strengthen the distribution of
compensation and benefits payments from
resource projects; improve social license
for resources companies; and more broadly
enhance financial inclusion efforts and
development outcomes in PNG.
Alliances involving the resources industry in
financial inclusion efforts can be structured
at both the national level as well as around
specific resource projects.
National-level Alliances for Financial Inclusion
Existing financial inclusion efforts at the
national level led by the Centre for Financial
Inclusion and the Bank of PNG can be
strengthened by enhancing links to the
resources industry.
For instance, a strategic working group for the
resources sector could be considered in the
program roll-out of PNG’s National Financial
Inclusion Strategy 2014-2015. Stakeholders
already working on financial inclusion programs
could also usefully integrate into relevant
programs underway in the resources sector,
including the Extractive Industries Transparency
Initiative and Chamber of Mines led initiatives
such as Community Relations conferences
and resource guides.
Project-level Alliances for Financial Inclusion
At a project level it is suggested that financial
inclusion working groups are established for
all major resource projects. Working groups
should include representatives from the
resources company; local stakeholders; and
those representing financial inclusion and
mobile money efforts (including telcos and
banks with commercial interests).
For new projects, working groups should be
established during the early stages of the
project life-cycle so that financial inclusion
strategies can be developed as part of the
compensation and benefits agreements
required by the PNG Mining Act.
For existing projects, working groups should
be established to collate and share data to
assess the state of play for financial inclusion
in the impact area. Strategies can then be
developed to improve financial inclusion and
the distribution of company payments.
Project working groups could report back to
the Mineral Resource Authority through the
quarterly reporting process and to CEFI as
part of the planning and monitoring meetings
for the National Financial Inclusion Strategy.
6.0 ALLIANCES FOR RESOURCE REGIONS
38 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
6.0 ALLIANCES FOR
RESOURCE REGIONS
39. • Comprehensively map the different types
of project benefits and compensation
payments at the local level including
royalties, land use payments, other
compensation, trust funds, investment and
business development grants;
• Select payment methods based on
existing infrastructure and an informed
understanding of the social and cultural
context of the project;
• Match broader financial inclusion
strategies to the project size and project
life-cycle, with a plan to equip local people
for the transition from cash to digital
payments;
• Incorporate a human rights lens with a
particular focus on gender equality;
• Implement stakeholder-led financial
literacy programs that manage
expectations—the objective is not
merely to open bank accounts but to
educate local people about the financial
opportunities and risks that the resource
project will bring and the financial tools
and support that is available to them; and
• Articulate clear project management,
governance and reporting structures.
Financial Inclusion Strategies for Resource
Projects
This study found that none of the resource
projects in PNG had a financial inclusion strategy
(or were part of a shared stakeholder strategy for
the region or province in which they operated).
This is not particularly surprising, given that the
financial inclusion and mobile money sector is
still relatively new (particularly in PNG).
For major resource projects, a structured
financial inclusion strategy can help to improve
the distribution of company payments over the
life of the project thereby reducing social risk
and improving social performance.
Financial inclusion strategies for resource
projects should:
• Be governed by a multi-stakeholder working
group with the roles of resources companies,
banks, telcos and regulators clearly defined;
• Take into account the project’s social context
and the results of the social and economic
impact assessment, which itself should
adopt a financial inclusion lens;
• Map banking and mobile money
infrastructure and agents—and identify
commercial partners who may seek to invest
in additional infrastructure;
6.1 FINANCIAL INCLUSION FOR RESOURCE PROJECTS
6.1 FINANCIAL INCLUSION
STRATEGY FOR RESOURCE
PROJECTS
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 39
40. 6.2 A NEW PAYMENT ARCHITECTURE
These direct, efficient and low-cost payment
mechanisms can be established not only for
‘primary payments’ direct from resources
companies, but also for ‘secondary payments’
from trust funds, business dividends and
investments.
Let People Make Their Own Choices
Mobile money brings new possibilities to
develop more transparent payment processes
with landowners and community members.
However, clearly no technology solution is a
panacea for the social issues and development
challenges that come with a resource project in
a developing context. The design of payment
disbursement architecture begins with the social
context in which the resource project finds itself.
This includes conducting detailed landowner
identification as is currently standard practice in
PNG.
The key principle is that landowners and
community members are given the opportunity
to choose the level within the social structure
to which resource-derived payments are made.
Technology or convenience should not be a
limiter but rather—with the support given by
landowner associations, MRA representatives
and financial institutions—people can make their
own financial choices about how they wish to
manage compensation and benefits funds.
A New Architecture for Payments
Finally, the study found much discontent
regarding the distribution and payment of
monies from resource projects. With the financial
inclusion programs and mobile money services
that are now available in PNG, there is an
opportunity for resources companies, the MRA
as the regulator, and the Chamber of Mines
as the industry body to work with the financial
inclusion and mobile money industry to develop
a new ‘payment architecture’ for resource
projects.
Benefits of Mobile Money for Resource
Company Payments
Mobile money technology offers new
possibilities for payment transparency:
• Once landowner groups are identified, payments
can be made to the lowest level of the social
structure with minimal transaction costs;
• Payment receipt notifications can be received on
mobile phones in the village so that the recipient
doesn’t have to travel to town;
• Cash in the economy is minimised, which brings
security benefits and potentially increases
peoples’ ability to save;
• There are transparent records of all payments;
• Mobile money can be a vehicle for greater
financial literacy for landowners and community
members who are impacted by resource projects.
40 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
6.2 A NEW PAYMENT
ARCHITECTURE
Picture: Man from the Highlands
41. Limitations of Study and Future Research
This study was limited to stakeholder interviews and online survey
methodology. It was not possible to make site visits or to conduct
in-depth assessments of financial inclusion and mobile money
ecosystems at resource project sites. Case study methodologies
would serve to better identify the project-level issues that influence
financial inclusion and mobile money in the resources context.
Longitudinal research would also help to inform understanding on
the impact of financial inclusion and mobile money in the resources
context over time.
Furthermore, the study took a broad brush approach to the
intersection of financial inclusion, mobile money and the resources
sector in PNG. There is a rich anthropological literature on money
in PNG48
and an equally rich literature on the social context of the
resources industry49
. These approaches could usefully be applied
to examine the positive and negative social impacts of mobile
money in PNG—where commercial interests are intertwined with the
development agenda.
It is also important to acknowledge the broader cultural and national
context in which the study was conducted: Papua New Guinea.
Future research in other developing countries with resource projects
would help to create a better understanding of the potentially
mutually beneficial alliances that can be formed between resources
companies and mobile money providers.
Finally, a more practically oriented toolkit for financial inclusion and
mobile money in the resources sector would help practitioners in
resources companies and mobile money providers alike.
6.3 LIMITATIONS AND FUTURE RESEARCH
6.3 LIMITATIONS AND FUTURE RESEARCH
Picture: Traditional costume, Tufi, PNG
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 41
42. 1. Demirguc-Kunt, Asli; Klapper, Leora; Singer, Dorothe; Van Oudheusden,
Peter. (2015). The Global Findex Database 2014 : measuring financial
inclusion around the world. Policy Research working paper; no. WPS 7255.
Washington, D.C.: World Bank Group.
2. Radcliffe, D., & Voorhies, R. (2012). A Digital Pathway to Financial Inclusion.
Available at SSRN: http://ssrn.com/abstract=2186926
3. Tillman, B., & Janine, F. (2009). Building a mobile money distribution
network in Papua New Guinea. The Pacific Financial Inclusion Programme:
The International Financial Corporation.
4. Data provided to the author by the Centre for Financial Inclusion in PNG.
5. Pacific Financial Inclusion Program. Source: http://www.pfip.org/media-
centre/in-news/2013-1/80-of-png-unbanked-post-courier-png.html
6. For instance see Banerjee, A. V. (2013). Microcredit Under the Microscope:
What Have We Learned in the Past Two Decades, and What Do We
Need to Know? Annual Review of Economics, 5(1), 487-519. doi: 10.1146/
annurev-economics-082912-110220 and Karlan, D., & Zinman, J. (2011).
Microcredit in theory and practice: using randomized credit scoring for
impact evaluation. Science (New York, N.Y.), 332(6035), 1278-1284. doi:
10.1126/science.1200138.
7. Centre for Financial Inclusion. Source: https://
centerforfinancialinclusionblog.files.wordpress.com/2011/12/financial-
inclusion-whats-the-vision.pdf
8. Alliance for Financial Inclusion. G20 Principles for Innovative Financial
Inclusion. Source: http://www.afi-global.org/sites/default/files/afi%20
g20%20principles.pdf
9. Alliance for Financial Inclusion. (2013). Putting Financial Inclusion on the
Global Map. The 2013 Maya Declaration Progress Report.
10. Alliance for Financial Inclusion. Source: http://www.afi-global.org
11. The Maya Declaration, 2011. Launched at GPF 2011 Riviera Maya, Mexico.
12. Alliance for Financial Inclusion. (2014) Measurable Goals with Optimal
Impact. 2014 Maya Declaration Progress Report.
13. UNCDF. Source: http://www.uncdf.org/en/pfip
14. Summerlin, R. (2014). Reaching the Unbanked in the Pacific Islands.
Newsletter #10 | Summer 2014.
15. Pacific Financial Inclusion Program. Source: http://www.pfip.org/support/
grants/
16. Some bullet points used directly from Department of Foreign Affairs and
Trade. Source: http://dfat.gov.au/geo/pacific/development-assistance/
Pages/economic-growth-and-private-sector-development-pacific-
regional.aspx
17. Pacific Financial Inclusion Program. Source: http://www.pfip.org/media-
centre/in-news/2013-1/80-of-png-unbanked-post-courier-png.html
18. May, R. J. (2003). Harmonizing linguistic diversity in Papua New Guinea,
in M.E. Brown and S. Ganguly (eds.), Fighting words: Language policy and
ethnic relations in Asia, pp. 291–317. Cambridge, Massachusetts: MIT Press.
19. Reilly, B. (2008). Ethnic conflict in Papua New Guinea. Asia Pacific
Viewpoint, Vol. 49 (1).
20. Some bullet points used directly from Pacific Financial Inclusion Program.
Source: http://www.pfip.org/about/where-we-work-1/png/
21. Gates Foundation Financial Services for the Poor. (2013). Fighting poverty,
profitably: Transforming the economics of payments to build sustainable,
inclusive financial systems.
22. Ernst & Young. (2009). Mobile money: An overview for Global
Telecommunications operators.
23. GSMA. (2010). Mobile Money for the Unbanked. Source: http://www.
gsma.com/mobilefordevelopment/wp-content/uploads/2012/06/
mobilemoneydefinitionsnomarks56.pdf
24. GSMA. (2014). State of the Industry Mobile Financial Services for the
Unbanked. Source: http://www.gsma.com/mobilefordevelopment/new-
2014-state-of-the-industry-report-on-mobile-financial-services-for-the-
unbanked
25. See for instance Radcliffe, D., & Voorhies, R. (2012). A Digital Pathway to
Financial Inclusion. Available at SSRN: http://ssrn.com/abstract=2186926
or http://dx.doi.org/10.2139/ssrn.2186926.
26. GSMA. Source: http://www.gsma.com/mobilefordevelopment/
understanding-the-potential-of-the-mobile-money-ecosystem
27. Kendall, J., Machoka, P., & Veniard, C. (2014). An Emerging Platform: From
Money Transfer System to Mobile Money Ecosystem. Bill Maurer Legal
Studies Research Paper Series No. 2011-14
28. Suwamaru, J. K. (2014). Impact of Mobile Phone Usage in Papua New
Guinea. In Brief Publication date: 2014
29. World Bank. Source: http://www.worldbank.org/en/news/
feature/2012/09/11/papua-new-guinea-connecting-people-in-one-of-the-
most-isolated-places-on-earth
30. van der Vlies, M., & Watson, A. (2014). Can mobile phones help reduce
teacher absenteeism in Papua New Guinea? Paper submitted for
publication in the proceedings of the Australian and New Zealand
Communication Association Annual Conference, Swinburne University,
Victoria 9-11 July,
31. The Economist. (2014). Government has ambitious plans
for telecoms sector Available: http://country.eiu.com/article.
aspx?articleid=1641419148&Country=Papua%20New%20
Guinea&topic=Economy. Cited in 30.
32. World Bank. (2014). Source: http://www.worldbank.org/en/news/
feature/2012/09/11/papua-new-guinea-connecting-people-in-one-of-the-
most-isolated-places-on-earth
33. ITU (International Telecommunication Union) 2014. The World in 2014: ICT
Facts and Figures. Geneva: ITU
34. Pacific Financial Inclusion Program. Source: http://www.pfip.org/media-
centre/in-news/2013-1/80-of-png-unbanked-post-courier-png.html
35. Consultative Group to Assist the Poor. Source: http://www.cgap.org/blog/
unlocking-potential-mobile-money-new-guinea
36. Lyon, T. (2015). National Payments System Development Programme.
Presentation presented to NFIFL EBBBWG Meeting.
37. Urkidi, Leire. (2010). A global environmental movement against gold
mining: Pascua-Lama in Chile. Ecological economics, 2010, Volume 70,
Issue 2
38. See for instance the body of work sponsored by the International Council of
Mining and Metals.
39. For instance, Filer, C 2012, ‘The Development Forum in Papua New
Guinea: Evaluating Outcomes for Local Communities’, in M. Langton and
J. Longbottom (eds), Community Futures, Legal Architecture: Foundations
for Indigenous Peoples in the Global Mining Boom, Routledge, Taylor &
Francis Group, Abingdon, pp. 147-162.
40. Bainton, N., A. & Macintyre, M. (2013), “My Land, My Work”: Business
Development and Large-Scale Mining in Papua New Guinea, in Fiona
Mccormack, Kate Barclay (ed.) Engaging with Capitalism: Cases from
Oceania (Research in Economic Anthropology, Volume 33) Emerald Group
Publishing Limited, pp.139 - 165
41. Filer, C., 1997. ‘The Melanesian Way of Menacing the Mining Industry.’
In B. Burt and C. Clerk (eds), Environment and Development in the Pacific
Islands, pp. 91-122. Canberra: Australian National University, National
Centre for Development Studies (Pacific Policy Paper 25). Reprinted (1998)
in L. Zimmer-Tamakoshi (ed.), Modern Papua New Guinea, pp. 143-173.
Kirksville (MO): Thomas Jefferson University Press.
42. Gilberthorpe, E., & Banks, G. (2011). Development on whose terms? CSR
discourse and social realities in Papua New Guinea’s extractive industries.
ResourcesPolicy37(2012)185–193.
43. OTML Annual Report 2014. Source: http://www.oktedi.com/
44. Banks, G. (1997). The Ok Tedi settlement: issues, outcomes and
implications. Chris Pacific policy paper.
45. Smith, R. (1990). Investigations of the impact of effluent from the Ok Tedi
copper mine on the fisheries resource in the Fly River, papua new guinea.
Environmental monitoring and assessment. 14(2-3):315-3
46. Perceptions about development were significantly positively related to
acceptance of the resources industry R2
adj
=.09, F(1,69) = 5.29, p < .01;
β=.30 and support for the industry R2
adj
=.14, F(6,108) = 10.99, p < .01;
β=.37. In the subsequent regressions, when perceptions about whether
resources companies encourage local people to open up bank accounts
and run financial literacy programs were entered into the equation, bank
accounts remained positively related to both acceptance of the industry R2
adj
=.30, F(1,68) = 6.20, p < .01; β=.28 and support for the industry R2
adj
=.21,
F(2,67) = 8.86, p < .05; β=.29.
47. Multiple regression analyses were conducted to assess whether perceptions
about financial inclusion behaviours from resources companies predicted
acceptance and support for the industry45. The results revealed that—
above and beyond the variance that can be accounted for by general
perceptions about development effectiveness—perceptions about whether
resources companies encourage local people to open up bank accounts
were positively related to acceptance of and support for the resources
industry in PNG. A similar multiple regression analyses was also conducted
with Financial Literacy as the mediating variable however in this case
Financial Literacy did not predict variance in the dependent variables above
and beyond the variance accounted for by the independent variable of
development effectiveness.
48. See for instance Gilberthorpe, E. (2006). ‘It’s Raining Money’: Anthropology,
Film and Resource Extraction in Papua New Guinea. Anthropology in
Action, 13, 3 (2006): 13–21
49. See for instance Filer, C 2004, ‘The knowledge of indigenous desire:
Disintegrating conservation and development in Papua New Guinea’, in A.
Bicker, P. Sillitoe, J. Pottier (ed.), Development and Local Knowledge: New
approaches to issues in natural resources management, conservation and
agriculture, Routledge, Taylor & Francis Group, London, USA, Canada, pp.
64-93. Also: Bainton, N. A. (2010). The Lihir Destiny: Cultural Responses to
Mining in Melanesia. ANU E Press: Canberra
7.0 FOOTNOTES
42 Financial Inclusion, Mobile Money and
PNG’s Resources Sector
Centre for Social Responsibility in Mining,
Sustainable Minerals Institute,
University of Queensland
7.0 REFERENCES
43. International Mining for Development Centre. In partnership with the Australian Government through an Australian Aid initiative, The University of Western Australia and
The University of Queensland have established the International Mining for Development Centre (IM4DC) to assist in lifting the quality of life in developing nations through
a more sustainable use of mineral and energy resources.
Centre for Social Responsibility in Mining
The Centre for Social Responsibility in Mining
(CSRM) is a part of the Sustainable Minerals
Institute (SMI) at the University of Queensland.
SMI has a long track record of working
to understand and apply the principles of
sustainable development within the global
resources industry.
JKTech
As the commercialisation arm of SMI, JKTech
delivers economic and social value to the global
resources industry through empirically-grounded
technology, products and methods. Our work
covers all facets of the life-of-mine from geology
to minerals extraction, minerals processing,
environmental management, workplace health
and safety, mine rehabilitation and social
responsibility.
The Sustainable Minerals Institute
The Sustainable Minerals Institute at The
University of Queensland (UQ) is a world
leading research institute dedicated to finding
knowledge-based solutions to the sustainability
challenges of the global minerals industry.
8.0 ABOUT US
Financial Inclusion, Mobile Money and
PNG’s Resources Sector 438.0 ABOUT US