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27 May 2010 The role of business in poverty alleviation and sustainable economic development Michael Rowland Chief Executive Officer – Pacific, ANZ.

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Presentation on theme: "27 May 2010 The role of business in poverty alleviation and sustainable economic development Michael Rowland Chief Executive Officer – Pacific, ANZ."— Presentation transcript:

1 27 May 2010 The role of business in poverty alleviation and sustainable economic development Michael Rowland Chief Executive Officer – Pacific, ANZ

2 Financial services has a role to play in supporting Pacific Island countries work towards the MDGs ANZ is a leading bank in the Pacific - 12 countries, 130 year history, employees Despite progress, Pacific countries are unlikely to achieve the MDGs by 2015 Progress towards reducing poverty is the slowest. One-third of the Pacific’s population live below national poverty lines Poverty and vulnerability to poverty are caused by: –unemployment –under-employment –natural disasters –economic shocks –conflict A well developed financial system is essential for growth and MDG progress

3 Large segments of the population in the Pacific remain ‘unbanked’ ANZ contributes to development through: –Employment of local staff –Support to communities in times of natural disasters, conflict and economic shocks through donations and community involvement –The products and services it provides: a safe place to store money, access to personal and business credit, remittances –The way we conduct business: group-wide CR framework, services in rural areas, financial literacy initiatives to develop and improve financial confidence, new technologies and banking models to improve access Approx 70% of Pacific islanders are ‘unbanked’ or do not have regular access to financial services Financial competence is becoming increasingly important for rural households Households lacking financial competence are vulnerable to ‘scams’

4 ANZ’s contribution through rural banking in the Pacific Only commercial bank offering rural banking services in the Pacific. –Fiji, Solomon Islands, Samoa and Vanuatu Face-to-face banking services to 85,000 customers. –Purpose-built trucks that travel between remote villages. –Everyday bank accounts, savings accounts and micro-loans United Nations report found that the program in Fiji: –Improved financial inclusion and household wellbeing –More than 50% put surplus money in bank and were more likely to reinvest in farms to generate more income

5 Financial education leads to financial competence and household wellbeing Financial literacy program, Money Minded Pacific Supports corporate responsibility priority to build financial capability and builds on work with Indigenous communities in Australia through Money Business Aims to improve financial skills, knowledge and confidence and make a tangible, long-term difference to financial wellbeing of staff and communities Uses real life examples: making money last until payday, being able to say ‘no’ Educating staff first, will expand program to Pacific communities in 2011

6 New technology presents opportunities to increase financial inclusion WING in Cambodia – successful mobile phone banking service: –More than 100,000 customers –More than half of WING customers were previously unbanked –60% of customers live on less than USD3 per day Investigating how a similar offering might work in the Pacific. –Challenges involved, including sanction requirements –Strong annual growth for mobile phone uptake in the Pacific –Would reduce the cost to provide banking services for customers


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