Port Vila, Vanuatu, September 11, 2023- People in Vanuatu are set to benefit from a new national digital payment platform, part of an ongoing transformation of the nation's financial infrastructure to build a modern, resilient financial system, which can support the digital economy and drive inclusive economic development.
Launched today by the Reserve Bank of Vanuatu, the VANKLIA system is expected to increase access to banking and financial services and encourage more people to open a bank account. The VANKLIA system has two main components: a Real-Time Gross Settlement component which carries out high value and high priority payments and settlement in real time; and an Automated Clearing House component which facilitates the clearing of low value, high volume electronic fund transfers for batch payments such as salary payments and instant fund transfers for retail payments.
"We are delighted to unveil this historic development for Vanuatu's financial system which will enable safe, rapid and efficient transfer of money and financial instruments. The nation's new electronic payment platform will do so much to support financial transactions and the broader economy," said Reserve Bank of Vanuatu Governor Simeon Athy. This is a crucial step on our path to growing our digital economy. It will also enable our banks and financial services companies to create new digital services, offering more choice for consumers and driving inclusive economic development."
The launch of the new system addresses inefficiencies in Vanuatu's payment system which had been negatively impacting everyday business and economic activity. Transfers between banks relied on the manual clearance of cheques, which often led to significant delays. This new digital platform will enhance Vanuatu's financial stability and efficiency, bringing new capabilities which will make transactions quicker and safer. It will also enable new innovative financial services to be added into the future.
"This new payment system will enhance the safety and stability of Vanuatu's financial system, supporting the growth of digital financial services across the economy. This new platform can help expand financial inclusion, foster economic development and activity, and support promoting financial stability," said Judith Green, IFC Country Manager for Australia, New Zealand, Papua New Guinea and the Pacific Islands. "We are proud to support the Reserve Bank of Vanuatu, and other central banks and partners across the Pacific, to help develop this new generation of safe, reliable and efficient national payment systems. These innovations are crucial to help reduce poverty and boost people's prosperity."
With the support of the governments of Australia and New Zealand as well as the World Bank, IFC has provided technical expertise to the Reserve Bank of Vanuatu in relation to reforming the nation's payments landscape, including updates to the regulatory environment and national payment system infrastructure.
"This new payment system is a critical step forward for Vanuatu's banking sector. Real-time and low-cost transactions make banking safer, quicker and enable better business outcomes," said Australian High Commissioner to Vanuatu Heidi Bootle. "Inclusive banking drives economic growth and social development, both key objectives in Australia's partnership with Vanuatu and our collaboration with the IFC."
New Zealand High Commissioner to Vanuatu Nicci Simmonds said: "This new electronic payment system is practical and impactful, and we look forward to seeing the difference it makes for individuals, businesses and the economy. We are pleased to have been able to support the partnership between the Reserve Bank and IFC to deliver this meaningful work."
This latest development in Vanuatu comes after similar initiatives in Samoa, Papua New Guinea and Fiji by IFC to help facilitate responsible and inclusive digital financial services in the Pacific.
About the Reserve Bank of Vanuatu
As the nation's central bank, the role of the Reserve Bank of Vanuatu is to regulate the issue, supply availability and international exchange of money; supervise and regulate banking business and the extension of credit; advise the Government on banking and monetary matters; promote monetary stability; promote a sound financial structure; foster financial conditions conducive to the orderly and balanced economic development of Vanuatu, and regulate and supervise domestic and international (offshore) banks.
About IFC
IFC — a member of the World Bank— is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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