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Solomon Islands Aims to Boost Financial Inclusion with Ambitious 2025 Strategy

The Central Bank of Solomon Islands (CBSI) has launched a comprehensive National Financial Inclusion Strategy 2021-2025 to increase access to and usage of financial services among the country’s underserved populations.

Defining Financial Inclusion

Financial inclusion is defined as “a state where all Solomon Islanders have access to and informed usage of a range of quality and affordable digital financial products and services responsive to their needs.” The CBSI has set two national goals:

  • Increase active users of financial accounts from 283,954 to 400,000 by 2025
    • At least 50% of these users should be women
  • Expand the number of access points from 825 to 1155

Challenges and Opportunities

Despite progress made in increasing financial access points, formal financial inclusion remains low at 34%, with a significant gender gap. Women face multiple challenges in accessing financial services, including:

  • Lack of literacy
  • Time constraints
  • Limited funds
  • Low self-esteem
  • Difficulty providing identification documents

The CBSI has identified key priority areas to achieve the vision, including:

  • Amplifying the reach and quality of digital financial services
  • Improving and promoting MSME finance
  • Building financial resilience in households and communities
  • Developing and implementing a data and measurement framework to track progress

Disparities in Access

According to provisional census data, 18% of Solomon Islands’ population resides in Honiara, while the remaining people are dispersed across nine provinces. Despite this, 68% of access points are concentrated in Honiara, leaving rural areas underserved.

The CBSI is committed to addressing these disparities and has made commitments under the Denarau Action Plan to champion women’s financial inclusion.

Benefits of Financial Inclusion

“Financial inclusion is critical for Solomon Islanders to save, borrow money, make and receive payments, and build economic resilience,” said a CBSI spokesperson. “Our strategy aims to ensure that all citizens have access to quality and affordable financial services that meet their needs.”

The National Financial Inclusion Strategy 2021-2025 is expected to drive meaningful change in the country’s financial landscape, promoting greater inclusivity, accessibility, and financial empowerment for all Solomon Islanders.

Quotes

  • “Our strategy aims to ensure that all citizens have access to quality and affordable financial services that meet their needs.” - CBSI spokesperson