Pacific Microfinance Week2013

Origins: Microfinance Pasifika Network (MFPN) Initiated following the success of the Banking with the Poor Network in Asia

8 organisations with a shared vision formed MFPN in 2006

MFPN’s mission is to improve the quality of life of disadvantaged people in the Pacific through enabling their access to sustainable financial services

Now, MFPN has 25 members from 7 Pacific Island countries

The Network comprises a diverse membership of commercial banks, MFIs, credit organisations, central banks, service providers, and NGOs

Managed by a seven member executive committee (secretariat by FDC)

Activities include member information exchanges, capacity building, & advocacy

MFPN’s most notable activity is Pacific Microfinance Week

About Pacific Microfinance Week

Pacific Microfinance Week is a 4 day, biennial event convened by MFPN and regional microfinance and financial inclusion stakeholders

Purpose: to enable stakeholders and decision-makers to share knowledge, network and engage in technical exchanges to enable better delivery of financial services to the disadvantaged within the unique circumstances of the Pacific

Elements: workshops, field visits, seminars, plenary and panel sessions

Timeline: PMW 2007 – in PNG, 100 participants PMW 2009 – in Fiji, 150 participants PMW 2011 – in Vanuatu, 150-200 participants PMW 2013 – in Fiji (Nadi). Aiming for 200+ participants

PMW’s distinguishing features

Now part of the fabric of financial inclusion initiatives in the region

Enables a sharing of sub-regional and cross-cultural perspectives

Includes all sectors and decision-makers involved in microfinance and financial inclusion

Has an emphasis on practitioner-focused, solution-based presentations and engagement

Most speakers are from the region, work in the Pacific, and concentrate on Pacific issues

Is the main event in the Pacific drawing attention to microfinance and financial inclusion

Its inclusive approach enables a large variety of stakeholders to participate

Is aligned with the main regional initiatives: Pacific Financial Inclusion Programme Access to Finance/Pacific Microfinance Initiative PNG Microfinance Expansion Project

The evolving microfinance landscape in the Pacific . . . Significant development in policy, regulation and the legal framework (AFI PIWG)

Convergence of products, services, distribution and technology via banks, MNOs & MFIs

Emergence of mobile money – M-PAISA, MiCash, Isi Mani, Mobile Money

Development of financial education products and integration with school curricula

Coordinated progress via National Financial Inclusion Taskforces

Increasing financial inclusion of women

Professionalism of MFIs

Increasing innovation and diversity in financial products and services

But . . .

Reduction in poverty across the Pacific is not uniform (and may be increasing in places)

Data is limited (where is the Pacific in Asia-Pacific collections of international agencies?)

Having a bank account is one thing, whether and how it is used is another

Is access to financial education keeping up with access to finance and services?

MFI balance sheets – is the proportion of deposits (savings) to loans (credit) right in the Pacific?

Is the balance of access and safety right?

Are MFIs shouldering the burden of financial inclusion for the poorest or most excluded?

The challenges of distance and diseconomies of scale continue

Future opportunities . . .

Partnerships between financial service providers (i.e., banks), MNOs (digital distribution providers), and institutions active in communities (MFIs, cooperatives, savings groups, etc.) to extend reach, product and service diversity, and lower risk and transaction costs

Continuing to increase access to financial services for the majority of the underserved (i.e., wage earners and self employed), with increasing attention to microentrepreneurs who have the potential to grow income and jobs in the broader community

For the Pacific to emerge from being an unnoticed part of the world, to become recognised as a leader in policy and regulation, digital convergence, product and service innovation, economic empowerment of women, and best practice MFIs.

PMW 2013 – possible structure

1 day of pre-conference workshops

1-2 days of plenary & panel sessions

2 days action learning workshops

½ day field visit(s)

PMW 2013 – prospective program

Key enduring themes: Global trends and recent developments Policy, regulation and governance Capacity building Distribution Financial inclusion and women Financial literacy and education Innovation in products and services Technological developments Risk assessment

Plus: Lessons, experiences, insights and suggestions

drawn from these last two days in Auckland An opportunity to further share and translate the

substantial global WWB experience into the Pacific context

Possible topics that may be explored at PMW . . . Social performance management

Effective financial education – what works?

Reaching the most financially excluded

Targeting youth in financial inclusion

Innovation in agency, branchless & mobile banking, and microfinance business models generally

Self or soft regulation – is experimentation worth the risk?

MFIs – the best option for addressing financial market failure?

Collateral alternatives - pooled community assets, moveable assets, etc.

Options for MFI institutional capacity building: management & governance technical - MIS & ICT service skills in the field

Capturing and reporting quality data

Is over-indebtedness a problem in the Pacific?

Savings as the cornerstone of sustainability

Better linking microfinance with the agricultural and markets sectors, and informal economy generally

Transitioning microentrepreneurs to SMEs

Financial identify & credit information system options

Leveraging the potential of remittances

Consumer protection

Microfinance Pasifika Network (MFPN)

C/ Foundation for Development Cooperation‐

6 Macgregor Road, Suva, Fiji Islands

Email: shawnhunter@fdc.org.au

Website: http://www.microfinance pasifika.org/‐