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NATIONAL, DILI

Sixty-four percent of the Timorese adult population uses financial services

Sixty-four percent of the Timorese adult population uses financial services

The Financial Inclusion Report 2022 (Photo Tatoli/Antonio Daciparu)

DILI,  19 june 2023 (TATOLI) – The Financial Inclusion Report 2022 of the Banco Central de Timor-Leste (BCTL) revealed that 64% of the Timorese adult population used financial services in 2022. 

At the launching ceremony of the report, held at the Novo Turismo hotel, BCTL Governor Abrão Vasconcelos said that Timorese adults are using more financial services in 2022 than in 2020.

The report showed that in terms of gender perspective, women tend to use more financial services than men, with 65% of women using banks compared to 62% of men.

Meanwhile, 10% of women also tend to use other deposit-taking institutions (ODTIs), compared to only 2% of their male counterparts.

On the other hand, the report demonstrated that men are more likely to use E-wallets (27%) than female (18%). 

The report indicates that 603 commercial bank access points were established last year, concentrated in populated areas. In addition, with the number of 1534 ODTIs established in the country, making them more widespread than the banks. Furthermore, the 4199 e-wallet access points cover all administrative posts and most villages in the country.

According to the report, Dili and Atauro have the highest percentage of adults who use banking services (94%). Meanwhile, Ermera and Lautém are the municipalities with the lowest percentage of adults using banking services, with (44%) and (34%), respectively.

The report also detailed information on the number of villages covered by access points for financial services. The report shows that Dili, Atauro, and Liquiça have 100% coverage of access points for financial services. In contrast, Ermera and Manufahi have the highest number of villages without any access points. In Ermera, nine out of 52 villages have no access points for financial services and also five out of 29 villages in Manufahi have no access points for financial services. 

Vasconcelos informed that every two years since 2006, the Central Bank collects and analyzes information to measure and monitor financial inclusion’s evolution in Timor-Leste: “This is the fourth edition of the financial Inclusion Report Produced by BCTL.” 

The report’s theme: “Getting Ready for the Next Digital Breakthrough,” highlights the transformative impact of the digital revolution on the financial services providers and even the Central Bank must reimagine its processes, systems, and ways of working to keep pace with this rapid transformation. 

The report shows the continuous improvement of the main financial inclusion indicators, despite the persistent barrier of lack of financial and digital literacy. Low financial literacy levels lead to low uptake of financial services, even when available, as many people may not understand the benefits of financial services or how to use them effectively. 

BCTL is fully committed to promoting financial inclusion as a critical tool for fostering economic development. 

 

Journalist: Filomeno Martins 

Editor: Nelia Borges

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