National Bank of Samoa Launches New Financial Products to Improve Remittances with IFC and NZ Support

"Our goal is to offer a low-cost, sustainable, and reliable financial service that resonates with the Samoan way of life," said Sam Swann, CEO of nbs.

The National Bank of Samoa (nbs) is developing a suite of new banking products designed to benefit women entrepreneurs and improve remittance services in Samoa, with support from the International Finance Corporation (IFC) and the New Zealand Government.

These new products include tailored financial offerings specifically for women entrepreneurs and a remittance product aimed at meeting the needs of both overseas Samoans sending money home and their families and friends receiving these remittances.

As part of nbs' commitment to serving the unique needs of its community, the pioneering remittance product will be developed with a focus on Samoan requirements.

"Our goal is to offer a low-cost, sustainable, and reliable financial service that resonates with the Samoan way of life," said Sam Swann, CEO of nbs. "This initiative is not just about remittances; it's about fostering financial inclusion, enabling more Samoans to embrace banking, save effectively, and access opportunities that enhance their economic well-being."

Currently, about half of adult Samoans lack access to formal financial services, while the remittance landscape in the Pacific predominantly involves cash-to-cash transfers, which are costly by global standards. The new digital remittance platform from nbs, tailored for Samoa, aims to be economical and convenient, ensuring that Samoans can send and receive money easily, thereby fostering greater financial empowerment.

"We are delighted to support nbs in creating a broader suite of products for Samoans. It signals a deepening of our partnership with the bank," said Judith Green, IFC Country Manager for Australia, New Zealand, Papua New Guinea, and the Pacific Islands. "Our support in Samoa leverages lessons learned from setting up a similar product in Tonga. We plan to work with partners elsewhere in the Pacific to replicate digital payment systems, which help increase financial inclusion and support economic prosperity and growth."

IFC's collaboration with nbs will build on the successful introduction of a remittance product in 2017, which resulted in 2,000 Tongans opening new bank accounts and encouraged more Tongans to save.

"Enabling easier participation in the formal financial system leads to increased economic opportunities. The Government of Samoa is exploring the development of a digital remittance system for Samoa, which will enable better education, healthcare, housing, and other household needs. New Zealand is proud to support the National Bank of Samoa on this work, which we hope will contribute to greater financial well-being for the people of Samoa," said New Zealand High Commissioner to Samoa, Her Excellency Si'alei van Toor.

The digital shift requires users to have bank accounts, paving the way for enhanced financial inclusion. The new system is expected to encourage a broader demographic to engage with banking, facilitating better savings habits and financial security.

In addition to the remittance service, IFC is providing advisory support to nbs to enhance its risk management systems and gender finance services. This collaboration aims to develop innovative financial products, particularly for women entrepreneurs in Samoa, empowering them to grow their businesses and contribute to the local economy.

Research shows that women-owned SME businesses in Samoa face greater difficulties in accessing finance. Addressing this need will help nbs diversify its loan portfolio while supporting the broader Samoan economy. The research also indicates opportunities to increase financial inclusion among women in Samoa.

The initiatives announced today mark a deepening of the strategic partnership between nbs and IFC, building on a previous IFC investment in the form of an eight-year unfunded risk-sharing facility in nbs in June 2023 to boost financing for small and medium-sized businesses. These efforts will help introduce services that anticipate future demands, ensuring long-term resilience and prosperity.