This report provides an overview of the status of the financial sector in Vanuatu, with regard to serving low income and rural populations. It updates findings of the 2007 Financial Services Sector Assessment as a requirement of the Pacific Financial Inclusion Programme.
Financial services in Vanuatu are highly concentrated in two urban areas and dominated by commercial banks, a superannuation fund, and domestically licensed general insurers. Only the National Bank of Vanuatu provides services to low income clients. Since 2007, Vanuatu has progressed towards developing an inclusive financial sector in the country, with the number of people accessing financial services increasing by an average rate of 19 percent a year. The enabling environment for financial services is now more flexible and transparent. New projects promise greater access and improved services to low income and rural people. Yet, there is significant room for further improvement within the sector. Recommendations include:
Developing and implementing appropriate products, marketing and education campaigns;
Better monitoring of the outreach and quality of services being provided by suppliers;
Exploring further linkages between service providers with greater outreach to those with efficient management systems;
Coordination among financial literacy training providers.