THE newly launched Our Telekom mobile money services-M-selen is compatible with the country’s National Financial Inclusion Strategy 3 (NFIS3).
NFIS3 runs from 2021 to 2025.
Governor of the Central Bank (CBSI), Dr Luke Forau said the mission of NFIS3 is to increase access points from 825 to 1115 and to increase the number of Solomon Islanders with a formal financial account from 283,000 to 400,000 and 50 percent of whom must be women.
He said the NFIS3 provides Solomon Islands with valuable insights into the state of its financial inclusion.
“According to the strategy, an estimated 26% of adults in Solomon Islands currently have access to formal financial services.
“This highlights the urgent need to bridge this gap and ensure that every citizen has access to the tools and services necessary for their financial well-being,” Dr Forau said.
The launch of the mobile money services on Monday presents a game-changing solution to this challenge.
“With the ubiquitous presence of mobile phones across the nation, we have a unique opportunity to leverage technology and bring financial services directly to the palm of every individual.
“Mobile money will act as a powerful tool to expand access to financial services, reaching even the most remote areas where traditional banks have been unable to establish a physical presence given the fact that the country is made of 300 habitable islands and setting brick and mortar branches in each of these areas may not be viable,” he added.
The CBSI Governor said one of the key benefits of mobile money is its potential to significantly reduce transaction costs.
As outlined in the NFIS3 2021-2025, the cost of accessing formal financial services has been the major barrier for the unbanked and underserved population.
However, Dr Forau added that with mobile money, individuals will be able to conduct a wide range of financial transactions at a fraction of the cost compared to traditional banking methods.
“To put into perspective, on average, it costs a Solomon Islander 10 USD to access a financial services point, whilst in pacific countries like Fiji and Samoa which have mobile money services, it costs about 2 USD.
“This reduction in costs will not only enhance the affordability of financial services but also enable individuals to allocate their resources more effectively, fostering economic growth and stability,” the CBSI Governor further added.
By LACHLAN EDDIE HOE
Solomon Star, Honiara
