[Photo: Litia Cava]

Pacific families need more than cheaper digital money transfers to improve their financial security.

They must also be able to trust the services, protect their personal information and access financial tools that help them manage their money.

UNDP and UNCDF Resident Representative Munkhtuya Altangerel said access to digital financial services must go beyond opening accounts and receiving payments.

Families also need practical ways to save, access insurance and manage unexpected financial shocks.

“Launching a new technology or new transaction pathways was also not the end goal. Success was when people trusted and used these services in a much more longer-term way, so not just, you know, it’s one transaction, because if we have that support ecosystem, if you will, they can actually resolve and have the capability to resolve real-life situations and problems in their lives. So that is really, really essential.”

Speaking at the Pacific regional conference on cross-border remittances, Altangerel points out that remittance costs across the Pacific range from 13 to 15 per cent, while money sent home supports essential needs such as education, healthcare and disaster recovery.

She said the real measure of success was not how much money enters a country, but what families can achieve with it.

New Zealand Deputy High Commissioner to Fiji Sam Cox points out that the average cost of sending US$200 from New Zealand to Fiji is about 6.5 per cent, despite some digital services offering fees of around two percent.

Cox states that greater transparency, consumer choice and cooperation between sending and receiving countries are needed to make transfers more affordable and reliable.

European Union Ambassador to the Pacific Barbara Plinkert warns that digital finance also brings risks, including cybercrime and threats to personal data.

She says stronger cybersecurity, consumer protection and financial literacy are essential to ensure people can use these services safely.

Through the Pacific Digital Economy Program, UNDP and UNCDF have helped onboard more than 375,000 new users in Fiji, Samoa, Solomon Islands, Tonga and Vanuatu since 2021.

The conference, themed Connecting the Pacific: Towards Cheaper, Faster, Safer and More Inclusive Cross-Border Payments, highlighted the need to make digital financial services affordable, secure and accessible to vulnerable communities across the region.