sada reddy : development of e - money in fiji statement by mr sada reddy, governor of the reserve bank of fiji, at the launch of the digicel mobile money transfer services, suva, 15 july 2010. * * * executive management & staffs of the digicel fiji limited, members of the media, distinguished guests, ladies and gentlemen. today marks another achievement towards the development of e - money in fiji. i congratulate digicel and its partner flex pacific ( fiji ) for this remarkable achievement, having only entering fiji ’ s cellular phone market in late 2008. the launch of digicel money today is a testament to the people of fiji that digicel is committed to providing competitive services. today we have become a leading country in the pacific region to offer mobile money services, an achievement that the people of fiji should be proud of. mobile money is a quicker, easier and cheaper way of transferring money using mobile phone technology and network and customers will be able to use this service right away. however mobile money also has the capabilities to pay for bills and other goods and services and even has the potential to connect with banks and provide banking services to the unbanked. i believe that digicel has phased its mobile money project and this will become possible in the near future. mobile money service is important for fiji because it is estimated that about 50 percent of fiji ’ s population does not have easy access to financial services. the launching of digicel mobile money service would ensure bringing this number down to an acceptable level given its extensive network coverage. most of you may be aware that the reserve bank launched the “ e - money fiji project ” on 9th of june this year to support the development of mobile money in fiji. we have worked in close consultation and collaboration with the mobile network operators for the orderly and sustainable development of mobile money in fiji. following a provisional licence provided by the rbf early this year, digicel undertook their pilot test phase on mobile money services, which was assessed as successful. i am happy to say that digicel has met all the reserve bank requirements to gain approval for the full launch of digicel mobile money. having said this, i wish to emphasize that the product will only be as useful as its ability to have great penetration in fiji, particularly to the remote and maritime areas. likewise, that the people of fiji are able to witness and experience a reduction in costs for remitting funds domestically through this

. given this scenario, our monetary policy stance remains accommodative. i am glad to say that the financial system continues to be sound. developments in this all important sector have been clearly evident in the growth in total assets of our financial institutions. the key prudential indicators of our banking system remain favorable. the satisfactory performance of the banking system has been characterised by : • strong levels of capital ; bis central bankers ’ speeches • adequate liquidity ; indeed liquidity levels have been at all time highs in recent years ; • higher profitability ; and • revived lending trends which in the recent past were assessed to be on slow growth. there is also in my view a rapid development of innovation in the domestic financial sector. we are seeing a faster transfer of technology from abroad to fiji in the areas of microfinance, mobile banking, microinsurance, and bancassurance. lici fiji provides a classic example on bancassurance through its joint initiative taken with anz to roll out its insurance services using the bank ’ s network. performance of the insurance industry we all understand the critical role played by the insurance sector in ensuring our risks are covered. to any economy, insurance provides the safety net against possible risks that could cost the country millions of dollars. insurance, therefore, assists in the building block of a country by providing financial security in the event of a financial loss. on a more personal basis, it provides comfort and relief to businesses, individuals and families from hardship. our local insurance companies have generally performed well in terms of asset growth, profitability, adequacy of capital and solvency. let me mention a few statistics from our latest quarterly assessment : • total assets of the life insurance industry recorded a growth of around 8 percent over the year, to reach $ 780 million ; • net profit grew over the second quarter of this year to reach $ 25 million ; • net premium income grew by 25 percent over the year to june 2012 ; and • there has been a remarkable increase in the aggregate solvency surplus of assets over the required solvency margin for the insurance industry with the two life companies making up 50 percent of the overall solvency surplus. lici fiji lici fiji is one of the two companies licensed to conduct life insurance business in fiji. we have witnessed the continued expansion of lici ’ s operations in fiji, over the years, especially in the last five years with increased capital and solvency surplus, expanded market share in terms of premiums