Background

Those who previously applied need not apply again.

The Pacific Financial Inclusion Programme (PFIP) is a Pacific-wide programme with the objective to increase the number of Pacific islanders who have on-going access to quality and affordable financial services and financial education. PFIP covers Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu. It is a joint project of UNCDF and UNDP and is funded by the Australian Government and the EU. In the Solomon Islands, PFIP supports the Central Bank of Solomon Islands (CBSI) and National Financial Inclusion Taskforce (NFIT) in achieving national financial inclusion goals. The main areas of work are: I) branchless/mobile banking; ii) financial competence and literacy, iii) community-based savings, and IV) supporting new products and services that are scalable/replicable.

Over 60% of Solomon Islanders do not have access to financial services. There are 13.85 access points (bank branch, ATM, EFTPOS, credit union, MFI) per 10,000 inhabitants and most of those access points are concentrated in the capital Honiara and in the towns of Auki, Gizo and Munda. 

The National Financial Inclusion Task Force (NFIT), chaired by the Governor of Central Bank of Solomon Islands (CBSI), has set a goal to extend access to appropriate and affordable financial services to an additional 70,000 Solomon Islanders by 2015, including at least 30,000 women.

One of the key drivers to achieve this goal is branchless/mobile banking. CBSI and NFIT actively encourage and support innovative products and delivery channels, which enable cost-effective service delivery and outreach to rural areas, and are well suited to the context and geography of the Solomon Islands.

The requirements for client identification and verification (KYC) have been revised with a view to enable opening of bank accounts to wider portion of the population (CBSI Guideline on KYC, 2013).

All the three commercial banks have launched branchless/mobile banking deployments in 2013.

In a growing number of countries, electronic delivery of G2P payments and financial inclusion objectives have emerged as complementary policy agendas. The goal is to increase the number of G2P recipients, who receive payments into financially inclusive bank account. It is a bank account, which enables recipients to store G2P payments and other funds until they wish to access them, make or receive payments and it is accessible, in terms of cost and distance (CGAP, 2009). This is often linked to branchless/mobile banking solutions, whereas G2P payments have a potential to catalyze and encourage the use of new products and increase transactions in branchless/mobile banking deployments.

In Solomon Islands, government salary payments represent the bulk of government to person payments. Government employees – around 16,000 - are part of the formal financial system through a mandatory requirement of having a bank account. A bank account in the employees own name is a pre-condition for receiving salary payment (joint bank accounts are permitted under conditions for husband and wife). The Treasury Division of the Ministry of Finance and Treasury pays salaries fortnightly and directly into employees’ bank accounts. (Financial Instruction – Salaries and Wages, Chapter 6, P6.3. Ministry of Finance and Treasury).

Government employees have an electronic store of value – a regulated bank account, which is seen as an important element of financial inclusion. Since the financial infrastructure (bank branches, ATMs) is largely limited to the capital Honiara and few other urban centers, such as Gizo and Auki, the ease, convenience and cost of access to financial infrastructure such as bank branches, ATMS and agents remains a challenge for government employees outside of urban centers.

The Auditor General’s report on teacher absenteeism (Office of Auditor General, 2011) documented cases of teachers absent from work around the payday and identified lack of access to banking services as one of external factors causing absenteeism. In some cases teachers have to travel long distances (20 kilometers or more) or need to take a boat ride of several hours or days, sometimes on open seas, to access the nearest bank branch, ATM or bank agent. This leads to one or more days of absence. The same report also estimated the cost of lost salaries when teachers travel to access their cash at the level of SBD6million every year.

Branchless and mobile banking has a potential to enable government salary recipients to access their cash and transact in a more affordable, convenient and secure way; as and when they need as well as increase their access to other products, such as saving accounts and loans as desired.

Duties and Responsibilities

• Collect and analyze data on G2P payment types, volume and flows; Collate and document the same; 
• Map G2P payment arrangements, including processes, government departments and agencies involved and costs; current challenges and opportunities; 
• Collect and analyze data about G2P customer segment, such as number, geographical location, gender, age;
• Determine the number of G2P recipients who need to travel more than 2 hours or 5kms to access banking services and estimate the volume of payments to those recipients; 
• Consider the existing financial service access points and determine where new access points would be needed and viable vis-à-vis geographical distribution of G2P customer segment; 
• Determine possible agents, agent networks or aggregators in the identified locations/access points; 
• Estimate the agent cash liquidity requirements with a view to providing consistent service delivery to the G2P customers in order to build and increase transaction volumes; 
• Assess the business case for financial service providers in servicing G2P recipients through the branchless and mobile banking deployments; 
• Analyze G2P customer access to and usage of financial services, customer benefits and preferences. This would include questions, such as, how they access and transact money now, how frequently and for what purposes they use banking services, what financial services they use and need, do they own a mobile phone and how they use it, etc.; network coverage, how they buy airtime…;
• Assess customers’ financial competence training needs, awareness and understanding of the products that they currently use (e.g. conditions and costs);   
• Identify customer attitudes and perceptions with regard to branchless/mobile banking and non-cash transactions.

• To review  and analyze the documents, reports and available data in relevant databases (e.g. G2P, financial inclusion, telecommunications);
• To hold key informant interviews and stakeholder consultation,  including  public sector and private sector - the Ministries of Finance and Treasury, Education, Health, Public Service, Agriculture, Forestry, Commerce, Provincial Government and Police; Accountant General, CBSI, NFIT, financial service providers, mobile network operators, Telecommunication Commission and donors; in coordination with the PFIP country specialist; 
• To design, plan, provide quality assurance and general oversight of the field research, including demand side quantitative survey and agent research.   NB. The data collection will be done by a recruited research firm contracted for that purpose. The consultancy will be required to work closely with such firm, provide leadership and training necessary for that firm to implement high-quality data collection; 
• Analyze all data, prepare report and summary presentation with findings and recommendations.

• Inception report, including initial analysis on the basis of literature review, key informant and stakeholder interviews, data in relevant databases and outline of field research. Arrangements with the research firm (timelines, deliverables, communications, way of working etc.); 
• Field research design and plan, including methodology, tools, questionnaires, field research locations; 
• Draft report including analysis of the G2P payment arrangements, information on the G2P customer segment, proposed access points and agents, recommendation for financial service providers and for public sector; 
• Final report and presentation, incorporating comments from NFIT members and stakeholders; 
• Draft press release & blog post?

Competencies

• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Highest standards of integrity, discretion and loyalty;
• Excellent inter-personal, networking and partnership building skills;
• Well-developed skills to communicate and create partnerships at community level, including in rural remote areas;
• Excellent analytical and written communication skills.

Required Skills and Experience

• Offerors letter confirming interest and availability; 
• Updated CV(s) of proposed consultant(s); 
• Relevant writing sample; 
• Names and contact details of at least 2 referees

Financial Proposal

The consultant is requested to provide a quotation of the fees/cost for the services which will be rendered using the following format.

• Daily consultancy rates: A daily consultancy rate proposed by the consultant for a maximum of 52 working days;
• Air Ticket Estimate (UNDP will reimburse based on actual costs): Return trip from home country to Solomon Islands. In-country travel costs if required ;
• Living Allowance: Based on the number of days spent in the country of assignment;
• Other miscellaneous expense: Please state.
  

Proposal Submission:

• Please upload all documents as one file under “CV”.