WFP Report Reveals Major Banking Gaps in Belize

A mere 36 percent of the population in the Toledo District are holders of a bank account.  This is one of several findings in a recent report from the World Food Programme (WFP).  The document reveals significant progress and persistent challenges in Belize’s push toward a digital economy, highlighting a stark divide in financial inclusion across the country. The study found a wide gap in formal bank account ownership, which stands at 82% in the Belize District but plummets to just 36% in the Toledo District. This geographical disparity is a major obstacle to the government’s National Financial Inclusion Strategy (NFIS), which aimed to increase account ownership to 80% by 2022 but only reached 69.9% as of April 2023.  In addition to geography, the report highlights a notable gender gap, with 76% of men holding a formal account compared to only 64% of women. These disparities are compounded by the fact that cash remains the primary mode of payment for many households, underscoring the need to address barriers such as digital literacy and trust in financial services.  Despite these challenges, the report points to several successful initiatives. A key achievement is the integration of credit unions into the national payments system, which provides a critical entry point to formal financial services for many individuals. The report notes that 96% of beneficiaries in the BOOST program, a major social assistance scheme, receive their monthly payments through credit union accounts. This success demonstrates the vital role credit unions play in promoting financial access, especially for the vulnerable.  The WFP also successfully used digital wallets to distribute emergency cash transfers following Hurricane Lisa, showcasing the potential for faster, more secure, and less stigmatizing aid delivery than traditional cash handouts.  To build on this momentum, the report provides several recommendations that would improve Digital Connect Centres and government offices to serve as local hubs for digital public services, especially in rural areas; promote financial literacy not only for social assistance beneficiaries but also for other vulnerable groups to help them better manage their finances; and develop campaigns aimed at underserved populations, including those in rural and indigenous communities and women, to address misinformation and build trust.  The 62-page report, dubbed, “Maximizing Digital Payments for Social Protection in Belize,” also found that while digital payments have proven effective for social assistance, a substantial portion of the population remains underserved, particularly in rural areas.  We will have more on this report in tomorrow’s newscast.