Financial Diaries

Financial Diaries photoThe Bank of Papua New Guinea partnered with PFIP to present a picture of the financial lives of the poor in order to better understand their financial behavior with regards to indebtedness, the use of social grants, savings, their response to unexpected events and the management of micro businesses.

There is a lack of information on the estimated 90% of Papua New Guinea who are unbanked. Poor roads and physical infrastructure makes the collection of accurate market data costly. As a result, it has been difficult to understand how to design products that meet the low income populations’ needs.

The Financial Diaries in PNG will inform the central bank, financial services providers, and donors on how to develop appropriate products and initiate an enabling environment with suitable market conduct norms that support projects that are grounded in the needs of the market. Gathered data will enable financial institutions to take relevant steps to intervene and ensure that appropriate initiatives are empower the majority of the underserved population to participate in the development process.

Key Findings

  • Respondents typically travelled large distances to interact with banks and deposited and withdrew large sums of money.
  • There is a strong correlation between account ownership and education, suggesting that banks face a challenge in reaching the less educated segments of society.