ANZ, an Australian commercial bank, launched a mobile rural banking scheme in 2004 in an effort to offer financial services to new clients in a different nation, Fiji [1,2]. The program was launched in conjunction with the United Nations Development Programme (UNDP), the United Nation’s “global development network,” with the intention of providing credit to low-income Fijian households [1,3]. Since the program’s inception, ANZ has amassed 10 million Fijian Dollars in deposits from Fijian clients, the equivalent of over USD 5.3 million [1]. Microcapital reported on this rural banking scheme in July of 2009 [4]. Microcapital has also reported extensively on mobile banking [5,6,7].
ANZ launched its Rural Banking program in Fiji as part of the UNDP’s goal for “financial literacy” in the Pacific region [3,8]. It reached 40,00 new customers in the first year with deposits totaling 2.3 million Fijian Dollars, the equivalent of over USD 1.2 million [9]. The program has served to set up mobile banking units for people to create bank accounts in remote and rural communities of Fiji [8]. ANZ also provides “financial training” to Fijian clients on topics such as savings, budgeting, and investment [8].
According to Norman Wilson, ANZ chief executive officer, the program “has reached 12 provinces [and] 303 villages” in its 5 year existence [1]. Over 73,000 rural residents have opened new bank accounts in this time period, the highest number being in the eastern provinces of Tailevu and Naitasiri [1]. Loans worth 2 million Fijian Dollars , the equivalent of over USD 1 million, have been provided to rural households through this program [1]. ANZ plans to extend their reach to other regions, including islands away from the mainland of Fiji such as Yasawas, Lomaiviti, Lau and Rotuma, within the next five years [1].
ANZ was incorporated in 1977 [2]. According to its website, it has “more than six million personal, private banking, small business, corporate, institutional, and asset finance customers” in areas such as “the Pacific, Europe, Dubai, USA and Asia” [2]. It has assets valued at 471.02 billion Australian Dollars, the equivalent of over USD 437.6 billion [2]. Its shares are listed on the Australian and New Zealand exchanges and it has 376,813 shareholders [2]. ANZ does not report to the MIX Market, the microfinance information clearinghouse [9].
The United Nations Development Programme operates in 166 countries to help these countries find their “own solutions to global and national development challenges” [3]. Specifically, the UNDP works to achieve the Millennium Development Goals (MDGs), a list of aims with the “overarching goal of cutting poverty in half by 2015” [3,10]. The UNDP sets the broad goals of promoting “democratic governance, poverty reduction, crisis prevention and recovery, environment and energy [initiatives], and [the reduction of] HIV/AIDS” [3]. Annually, it publishes the Human Development Report to provide findings and recommendations regarding quality of life issues [3].
by Christopher Maggio, Research Assistant
Bibliography:
[1] Fiji Times Online article entitled ‘$10m rural deposits’: http://www.fijitimes.com/story.aspx?ref=archive&id=133115
[2] ANZ Bank: http://www.anz.com/about-us/our-company/profile/
[3] UNDP: http://www.undp.org/
[4] MICROCAPITAL.ORG STORY: The Reserve Bank of Fiji (RBF) Will Review its Regulatory Framework for Microfinance in Fiji: https://www.microcapital.org/microcapitalorg-story-the-reserve-bank-of-fi…
[5] MICROCAPITAL.ORG STORY: Communications Company Telenor Pakistan Launch Mobile Banking Service with Tameer Microfinance Bank: https://www.microcapital.org/microcapitalorg-story-communications-company…
[6] MICROCAPITAL.ORG STORY: International Banking Systems Online Journal Publishes Supplement On The Role of Technology In Microfinance And Highlights Importance Of Risk Management Systems: https://www.microcapital.org/microcapitalorg-story-international-banking-…
[7] MICROCAPITAL STORY: Nokia and SKS Microfinance to Introduce New Mobile Phone Features for Rural Poor: https://www.microcapital.org/microcapital-story-nokia-and-sks-microfinanc…
[8] ANZ Fiji Rural Banking: http://www.anz.com/fiji/en/personal/ways-bank/rural-banking/rural-bankin…
[9] The MIX Market: http://www.mixmarket.org/
[10] MDGs: http://www.undp.org/mdg/
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