IFC and National Bank of Samoa Partner to Develop New Banking Products, Expand Financial Inclusion in Samoa
Business
The new products include tailored financial offerings for women entrepreneurs and a remittance product designed specifically for the needs of both overseas Samoans looking to send money home and their family and friends who are recipients of these remittances.
As part of nbs' commitment to serving the unique needs of its community, the new pioneering remittance product will be designed and developed specifically for Samoans.
Currently, about half of adult Samoans don't have access to formal financial services while the remittance landscape in the Pacific predominantly features cash-to-cash transfers, which have higher costs by global standards. nbs' new, innovative digital remittance platform, tailored for Samoa, is designed to be economical and convenient, ensuring that Samoans can send and receive money with ease, fostering greater financial empowerment.
IFC's work with nbs will build on the successful introduction of a remittance product in 2017 which resulted in 2,000 Tongans opening new bank accounts and encouraged more Tongans to save.
The digital shift requires users to have bank accounts, paving the way for enhanced financial inclusion. The new system is expected to encourage a broader demographic to engage with banking, thereby facilitating better savings habits and financial security.
In addition to the remittance service, IFC is also providing advisory support to nbs to enhance its risk management systems and gender finance services. This collaboration will further enable the development of innovative financial products, especially for women entrepreneurs in Samoa, empowering them to grow their businesses and contribute to the local economy.
Research undertaken shows that women-owned SME businesses in Samoa face greater difficulties in accessing finance – by addressing this need it will also help nbs further diversify its loan portfolio whilst helping the broader Samoan economy. The research also shows there are opportunities to increase financial inclusion among women in Samoa.
The initiatives announced today mark a deepening of the strategic partnership between nbs and IFC, building on a previous IFC investment in the form of an eight-year unfunded risk-sharing facility in nbs in June 2023 to boost financing for small and medium-sized businesses and will help to introduce services that anticipate future demands, ensuring long-term resilience and prosperity.