Third National Financial Inclusion Strategy launched

The third National Financial Inclusion Strategy 2023-2027 was launched at the Hilton Hotel on Tuesday 25th April, 2023 by the Chief Secretary, Ivan Pomaleu.

He was honoured to launch the 3rd National Financial Inclusion Strategy 2023-2027 at this great event, stating the importance of Financial Inclusion in the country.

“We (the government) believe that financial inclusion is key to integrating the unbanked into the formal economy, which helps to alleviate poverty, make the poor less vulnerable to financial shocks, reduces economic inequality and raises living standards for all,” said the Chief Secretary.

Pomaleu emphasized specifically on how the NFIS is receptive to global trends, emerging issues, digital financial services and gender.

The Chief Secretary also highlighted the importance of the financial inclusion strategy in embracing the green finance policy and contribution of financial inclusion in financial stability for the unbanked and underbanked individuals and small businesses.

He said financial inclusion is the development priority for the government due to increase in income inequality between the lower and higher-class societies.

“Financial inclusion is one of the key enablers of many of the Sustainable Development Goals by the United Nations and serves as a powerful element for progress in education, health and other basic public needs, as well as contributing even to climate change and sustainable development,” he said.

Meantime, Bank of Papua New Guinea Acting Governor, Elizabeth Genia, in presenting the NFIS stated that the Bank recognizes that expanding financial services can encourage the participation of more Papua New Guineans.

Especially those in rural areas and urban settlements, in development activities in both the formal and informal sectors of the economy, and that the benefits of growth and technology need to be widely shared. 

“Many Papua New Guineans find themselves on the fringes of the monetary economy with little understanding of, or access to financial services. Improvement in the proportion of the banked population and the financial literacy of this population will empower them to improve outcomes in savings, investment and sharing of the benefits of economic growth,” said the Acting Governor.

Genia stated that the overall objective of Third National Financial Inclusion Strategy (NFIS3) is to reach 2 million unbanked population by 2027 and 50 percent of whom will be women.

“It’s also important that the strategy focus on reaching our women and youth. Access to financial services for women and youth will remain a challenge,” she stated.

As indicated in the strategy, Genia highlighted that the use of new technology and innovative business models will overcome barriers to access and improve inclusion for women and youth.

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