The role of business in poverty alleviation and sustainable economic development

1. The role of business in poverty alleviation and sustainable economic development Michael Rowland Chief Executive Officer – Pacific, ANZ

2. Financial services has a role to play in supporting Pacific Island countries work towards the MDGs • ANZ is a leading bank in the Pacific - 12 countries, 130 year history, 2000+ employees • Despite progress, Pacific countries are unlikely to achieve the MDGs by 2015 • Progress towards reducing poverty is the slowest. One-third of the Pacific’s population live below national poverty lines • Poverty and vulnerability to poverty are caused by: • unemployment • under-employment • natural disasters • economic shocks • conflict • A well developed financial system is essentialfor growth and MDG progress

3. Large segments of the population in the Pacific remain ‘unbanked’ • ANZ contributes to development through: • Employment of local staff • Support to communities in times of natural disasters, conflict and economic shocks through donations and community involvement • The products and services it provides: a safe place to store money, access to personal and business credit, remittances • The way we conduct business: group-wide CR framework, services in rural areas, financial literacy initiatives to develop and improve financial confidence, new technologies and banking models to improve access • Approx 70% of Pacific islanders are ‘unbanked’ or do not have regular access to financial services • Financial competence is becoming increasingly important for rural households • Households lacking financial competence are vulnerable to ‘scams’

4. ANZ’s contribution through rural banking in the Pacific • Only commercial bank offering rural banking services in the Pacific. • Fiji, Solomon Islands, Samoa and Vanuatu • Face-to-face banking services to 85,000 customers. • Purpose-built trucks that travel between remote villages. • Everyday bank accounts, savings accounts and micro-loans • United Nations report found that the program in Fiji: • Improved financial inclusion and household wellbeing • More than 50% put surplus money in bank and were more likely to reinvest in farms to generate more income

5. Financial education leads to financial competence and household wellbeing • Financial literacy program, Money Minded Pacific • Supports corporate responsibility priority to build financial capability and builds on work with Indigenous communities in Australia through Money Business • Aims to improve financial skills, knowledge and confidence and make a tangible, long-term difference to financial wellbeing of staff and communities • Uses real life examples: making money last until payday, being able to say ‘no’ • Educating staff first, will expand program to Pacific communities in 2011

6. New technology presents opportunities to increase financial inclusion • WING in Cambodia – successful mobile phone banking service: • More than 100,000 customers • More than half of WING customers were previously unbanked • 60% of customers live on less than USD3 per day • Investigating how a similar offering might work in the Pacific. • Challenges involved, including sanction requirements • Strong annual growth for mobile phone uptake in the Pacific • Would reduce the cost to provide banking services for customers