A recent survey conducted by the Reserve Bank of Fiji (RBF) reveals that only a small fraction of Fijians have savings accounts at commercial banks, highlighting significant challenges in achieving financial inclusivity across the nation. The Gender Inclusive Finance Report reveals that just 3.4 percent of Fijians hold savings accounts, with figures showing a mere 1.5 percent of adult women and 1.7 percent of men participating in formal savings. Young women and men fare slightly better, at 2.8 and 3.1 percent, respectively. Interestingly, the highest savings account ownership is seen among those under 15, standing at 7.7 percent.
The findings point to various reasons behind this low savings account ownership. Many Fijians indicate that after fulfilling daily expenses, they are left with no disposable income to save. Additionally, the perceived unattractiveness of low-interest rates offered by commercial banks discourages formal savings. International banks’ regulations, requiring them to maintain high liquidity, contribute to these low interest rates, while substantial remittance flows into the country provide ample liquidity without the banks needing to attract domestic savings.
The report further highlights gender disparities, with men holding more substantial savings compared to women. Although men and women have an equal number of savings accounts, men save, on average, 25 percent more. This trend continues in fixed deposit accounts, where men again have a higher value of savings despite women holding a comparable number of accounts. Among the youth, the gender gap is reversed, with young women having higher average savings in term deposits compared to their male counterparts.
This report aligns with previous findings by the Reserve Bank of Fiji and other financial bodies, which have consistently highlighted gender disparities in access to financial services. Although considerable efforts have been made towards financial inclusivity—such as initiatives led by the Women Entrepreneurs Finance Initiative (WE-Fi) Code—there is an urgent need for sustained strategies to bridge the financial access gap, especially for women and women-led businesses.
Given the documented barriers and the existing efforts, Fiji is laying the groundwork towards a more inclusive financial future. The continued focus on reducing the gender financial gap alongside expanding access to financial literacy can foster broader economic empowerment, enabling all Fijians, particularly women, to contribute meaningfully to their communities and the economy.