THE Reserve Bank of Fiji’s (RBF) Financial Inclusion Report 2024 shows that while access to banking remains strong, the number of Fijians actively saving through formal channels continues to decline.
According to the report, 84.2 per cent of adults aged 15 and above in Fiji now have a bank account, a slight decrease from 86.5 per cent in 2023. Despite the drop, financial inclusion remains higher than pre-pandemic levels.
The data shows that 89.3 per cent of men and 79 per cent of women hold bank accounts, maintaining a gender gap of 10.3 percentage points.
Among youths aged 15 to 35, 67.8 per cent have bank accounts, up slightly from 67.2 per cent in 2023.
However, the report highlights a concerning trend — the continued decline in the use of formal savings products. Only 0.2 per cent of adults are currently using formal savings products, compared with 1.6 per cent in 2022 and 6.2 per cent in 2019.
The percentage of dormant accounts also remains high — 30.2 per cent of demand accounts and 29 per cent of savings accounts are inactive, signalling that many account holders are not using their accounts regularly.
The RBF notes that while access to basic banking services is widespread, financial activity and usage remain limited, particularly among women and low-income earners.
The central bank says it will continue to work with financial institutions and community partners to improve financial literacy and promote savings behaviour, aiming to ensure that access translates into meaningful financial participation.
Low uptake of pension products highlighted
FIJI’S national retirement savings scheme is showing strong signs of recovery, with growing membership and improved member activity, according to the Reserve Bank of Fiji’s Financial Inclusion Report 2024.
However, the report also flags a critical weak spot: the extremely low uptake of pension products among retirees.
The data reveals a promising turnaround for the Fiji National Provident Fund (FNPF). After a significant dip to 63.6 per cent in 2022, the percentage of adults with an FNPF membership account was projected to rebound to 67.1 per cent in 2024.
This indicates a recovery in formal retirement savings participation, moving the nation closer to the pre-pandemic peak of 71 per cent recorded in 2019.
Even more encouraging is the surge in active contributors. The report shows that after a concerning drop to 46.1 per cent in 2021, the percentage of active FNPF members had climbed sharply to a projected 61.2 per cent in 2024.
This suggests that a growing majority of account holders are not just enrolled but are consistently contributing, pointing to improved employment formalisation and financial discipline.
A key bright spot highlighted in the report is the steady rise in voluntary FNPF membership. This figure had grown from 3.3 per cent in 2019 to a projected 4.5 per cent in 2024. This trend indicates a small but growing segment of the Fijian population is taking proactive, voluntary steps to supplement their mandatory retirement savings, signaling a positive shift in longterm financial planning.
Despite these gains, the report sounds a strong note of caution regarding retirement outcomes. It reveals that only 5.3 per cent of Fijians aged 55 and over are projected to use a pension product in 2024 – a figure that has seen no meaningful growth in six years.
This critical point suggests that while Fijians are saving for retirement, the mechanism for converting those savings into a stable, regular income in their postworking years is failing for the vast majority.
The report reveals the proportion of adults with any form of insurance — either life or general — has remained largely static and even declined slightly over the past six years. The overall rate has hovered around 17-19 per cent, with the 2024 projection at 17.2 per cent, down from 19.0 per cent in 2019.
A closer look shows that life insurance coverage has seen minimal movement, inching up from 13.0 per cent in 2019 to a projected 13.5 per cent in 2024.
Non-life insurance (such as for cars, homes, or health) has seen a slight decline from 6.0 per cent to a projected 5.6 per cent over the same period, indicating a persistent gap in protection against everyday risks.
Mobile money – Surge in active usage
THE Reserve Bank of Fiji Financial Inclusion Report 2024 reveals a dramatic surge in active mobile money (MM) usage among Fijian adults since 2021, though recent data points to a fluctuating and, in some cases, widening gender gap.
The report, covering the period from 2019 to 2024, shows that the percentage of adult men with an active mobile money account skyrocketed from 25.4per cent in 2019 to a peak of 98.7per cent in 2023, before settling at 73.6per cent in the projected 2024 figures.
A similar, though less volatile, upward trend was seen among women, rising from 22.9per cent in 2019 to a perfect 100per cent in 2021, with a 2024 projection of 64.4per cent.
This growth has fundamentally shifted the landscape of financial access in the country.
A deeper look into the activity levels of those already registered for mobile money services provides further nuance.
The overall activity rate has improved significantly, from 44per cent in 2019 to a projected 64.2per cent in 2024.
When broken down by gender, the data shows that women who are registered have historically been, and are projected to continue being, slightly more active users than their male counterparts.
In 2024, 64.8per cent of registered women are active, compared to 63.6per cent of men.
