Partner: National Bank of Vanuatu
Date: June 2018 – December 2019
Grant: USD $500,000
Current Reach – 4,278 (Dec 2018)
NBV has 29,700 rural customers served through its 27 branches using a legacy passbook based system. Of these only 13,300 are active customers representing only 44%, reasons for low rates of activity include lack of access, cost of travel and lack of opportunities to transact. The project is being set up primarily to address these issues, migrate in a phased manner all the customers to a digital platform, increase transaction opportunities and add 14,000 new active customers to the NBV base
The project will employ a human-centered design approach to create, test and scale services that inspire enthusiastic adoption and usage of digital financial services by Ni-Vanuatu especially those living in remote rural areas. The project has a specific component to design and test approaches that will financially empower women. The business model of NBV aspires to be commercially viable through offering a bundle of three value propositions to the customers- NBV IsiMobile, financial literacy and electronic banking interchange between all banks in Vanuatu-all components aimed at increasing adoption and usage
The project while offering basic financial services through convenient digital platforms must be viewed in the context of the stage of market development in Vanuatu. NBV is the only commercial bank having presence outside the urban centers of Port Vila and Luganville, there is limited DFS products and services available to clients in the market and the revised National Financial Inclusion strategy is in place only now giving a renewed focus to bank the unbanked in the country.
Using a hub and spoke model, NBV will initially target 5 small branches linked to 5 larger branches in the following locations:
As a support to this project, NBV will also install ATMs at Emua, Port Olry, Lenakel, Lakatoro and Saratamata branches using its own funds.
NBV microfinance officers from the branches travel to the communities covered by their branch regularly to facilitate customer transactions. This will now be migrated to electronic and digital channels and transactions will take place in ‘’real-time’’. There will be no need for the customers to travel long distances to visit NBV branches to get their passbooks updated and instead they will be able to get their account balance and transaction information through mobile phones. The tablet based transaction platform can work in both on-line and off-line modes thereby capable of being deployed in areas that have limited or no network coverage. The tablet is also equipped with a EFTPOS card reader that is used for transactions.
As the project progresses, NBV project team will prepare a national IsiMobile rollout strategy, including:
The National Bank of Vanuatu is the only commercial bank in Vanuatu that also operates outside of Port Vila and Luganville. Through its network of 27 branches and agencies, NBV offers a comprehensive range of services in Business, Retail, Rural, International, Treasury and Investment Banking.
NBV plays a key role in the economic development of the country and its people.
National Bank of Vanuatu has three shareholders – the Government of Vanuatu (70%), Vanuatu National Provident Fund (15%) and the International Finance Corporation of the World Bank (15%).