By Hezron Kising
Copyright postcourier
United Nations Capital Development Fund (UNCDF), Bank of Papua New Guinea, Credit Guarantee Corporations Limited (CGC) and commercial banks in the country are working together to improve access for Micro Small and Medium Enterprise (SMEs, MSMEs) and business to have easy access to financial institutions without challenges to obtain loans.
This was made possible with CGC launching the use of General Financial Insight (GFI) Psychometric Credit Decisioning System, a useful tool designed to support financial institutions with fast, reliable and data driven loan decisioning.
The system was initiated last week to help businesses especially SMEs in PNG access financial support from licensed banks, bridging the gap between businesses and financial institutions.
UNCDF country head Wycliffe Ngwabe said at the workshop that; “when it comes to access of finance, the lack of collateral most especially for SMEs, it is extremely very difficult for the Small and Medium Enterprises to get money.
“Not just money, but enough money to for them to power their businesses,” MrNgwabe said .
“There are quite a number of initiatives that have been drawn up by professionals and experts in Papua New Guinea.
“But most of the time SMEs do not have all the requirements, so in such instances, we try to improve how SMEs can have access to financial services.
“Also, we been trying to find technologies as the world gets to have different insights in technologies within the financial sector” he said.
“When UNCDF reach out to BPNG, BPNG revealed that there it is a challenge for SMEs in PNG to access financial support from financial institutions.
Mr Ngwabe said UNCDF is excited to work with Bank of Papua New Guinea and Credit Guarantee Corporation to launched General Financial Insight Psychometric Credit Decisioning System Workshop that will address this challenge.
This program could be transformative for Papua New Guinea and the Pacific region. Launched of the AI (artificial intelligent) powered alternative psychometric credit decisioning system in partnership with UNDCF and CGC.
He said unveiling of this new tool, represents a bold step forward in our shared journey to expand access to finance and create a more inclusive financial system in PNG.
He said for too long many small holder farmers, women owned entrepreneurs and micro small businesses have been locked out of formal financial services. Because traditional credits scoring methods rely heavily on collateral and conventional financial histories.
“This has left many of the hard-working members of our society unserved or underserved.
“With this alternative system we are breaking down those barriers by using advance technology combined with psychometric, the tool can assess credit work more fairly and inclusively,” he said.
