A recent survey conducted by the Reserve Bank of Fiji (RBF) has unveiled concerning statistics about financial inclusivity in the nation, particularly regarding savings account ownership. The Gender Inclusive Finance Report outlines that only a small percentage of Fijians hold savings accounts in commercial banks. Specifically, the report found that a mere 3.4 percent of the population engages in formal savings. When broken down by gender, only 1.5 percent of adult women and 1.7 percent of men have savings accounts. Young individuals fare marginally better, with 2.8 percent of young women and 3.1 percent of young men holding accounts. Interestingly, the largest demographic with savings accounts are those under the age of 15, at 7.7 percent.
Several factors contribute to this low savings account ownership. A predominant reason is the lack of disposable income after daily expenditures, leaving many Fijians without the means to save. Furthermore, the low-interest rates offered by commercial banks deter individuals from formal savings, as these rates are considered unattractive. This situation is exacerbated by international banks’ regulatory obligations to maintain high liquidity. Additionally, significant remittance flows into Fiji provide sufficient liquidity for banks, diminishing their need to attract domestic savings.
The report also sheds light on gender disparities within the savings landscape. While men and women own a similar number of savings accounts, the average savings amount is higher among men by 25 percent. This trend persists with fixed deposit accounts where men again surpass women in savings values. The youth segment, however, presents a contrasting scenario; young women have higher average savings in term deposits than young men.
These findings are consistent with earlier reports by the Reserve Bank of Fiji and other financial institutions, pointing to ongoing gender disparities in access to financial services. Efforts for financial inclusivity, such as initiatives by the Women Entrepreneurs Finance Initiative (WE-Fi) Code, are in place, but there remains an urgent need for long-term strategies to close the financial access gap, particularly for women and women-led enterprises.
Despite these challenges, Fiji is actively working towards a more inclusive financial future. By continuing to address gender financial disparities and expanding financial literacy, the country can enhance economic empowerment. Such progress would enable all Fijians, especially women, to play active and meaningful roles in their communities and contribute significantly to the economy.