Policy and Strategy Implementation

KEY ENABLERS

Key enablers to the strategy are the critical participants who have control and authority over outcomes that build an enabling environment for financial inclusion. The role of the enablers is to set policy goals, provide enabling regulatory environment, effectively supervise, adequately resource and aid financial infrastructure.

The Key enablers identified are; 

• Government

Government leadership and commitment is an essential requirement for the success of NFIS3. The role of the Government is to set the policy goals, develop the required infrastructure, address market failures and provide incentives to achieve financial inclusion. With limited funding CEFI is unable to fully capitalize and carry out its mandated functions and there is a question of its sustainability into the future. The Government as a key enabler should seriously look into making annual budget appropriations for CEFI to sustain its operations. Government departments shall ensure that the vision and mission of the NFIP and this strategy to be reflected as and where relevant in the department’s activities.

Key Government Departments such as the Department of

Treasury, Department of National Planning and Monitoring, Department of Finance, Department of Education, Department of Community Development and Religion, Department of Provincial and Local Government Affairs, Department of Commerce and Industries and Department of Agriculture and Livestock play an enablers role in achieving the NFIS3. Provincial and Local Level Governments also play an important role for extending formal financial services to the last mile by integrating financial inclusion goals into their planning process.

• Regulators

A progressive regulatory environment is essential to expand financial inclusion. The regulatory environment shall facilitate innovation, competition and protection. The lead enabler is the Central Bank mandated to ensure financial system stability. National Payment System (KATS and REPS) and customer due diligence requirements shall be conducive to reach more unbanked/underserved population. For promoting digital financial services, the active involvement from National Information and Communication Authority (NICTA), which regulate the telecommunications sector is important. The availability of affordable means of communication is the backbone for DFS. Other regulators such as The Insurance Commission, Investment Promotion Authority (IPA) and ICCC plays crucial role under their respective mandates for actively promoting financial inclusion. 

• Sectoral Agencies

The presence and engagement of resource companies in the remote rural communities can be leveraged for expanding financial inclusion. Along with the large resource development projects these companies are also involved in associated “enclave developments” which employ significant numbers of low-income men and women. The companies and agencies working in this sector can be utilized to improve the uptake of formal financial services especially DFS and to offer financial literacy. Mineral Resources Authority has significantly contributed to the previous strategy and is a key enabler for NFIS3.

Commodity boards can also be utilized through active coordination for financial inclusion.

SME Corporation is mandated to facilitate the growth and development of Micro, Small & Medium Enterprises in PNG creating a vibrant economy and thereby contribute to financial inclusion. 

• Industry Bodies

The industry bodies’ role is to bring in affordable and accessible financial products and services to a wider population and set in standards for service delivery.

• Development Partners

Development partners are the catalyst to implement the financial inclusion strategy. The development partners are capable of providing financial and technical resources for the successful implementation of the strategy.