The Impact of Mobile Banking in Papua New Guinea

Papua New Guinea (PNG) has some of the highest unbanked rates in the world. With geographically dispersed communities, low population density, low financial literacy, relatively underdeveloped telecommunications and banking infrastructure, and diverse cultural and language groups, it is estimated that two-thirds of PNG’s population do not have reasonable access to financial services.

Despite these challenges, both mobile banking users and non-users were generally positive about the benefits mobile banking offers to PNG and its citizens, particularly for those living in rural areas. While a range of obstacles continue to limit the effective delivery of mobile banking services in PNG, there is widespread support for expanding these services to improve financial inclusion across the country.

Square Circle, in partnership with Tanorama Limited, conducted an evaluation of mobile banking in Papua New Guinea for the International Finance Corporation (IFC). The project involved case studies in Port Moresby, Kwikila, Lae, and Mount Hagen, using a mixed-methods research approach to assess user profiles, financial behaviours, user experiences, service impacts, and barriers to mobile banking adoption among both banked and unbanked populations. The research findings informed the development of a final project report and video, providing evidence-based insights to support the expansion of mobile banking services across Papua New Guinea.

The project report and video report have helped to improve financial inclusion and financial services delivery in PNG, a key priority area for both short- and long-term development plans.