How do you reach remote and vulnerable populations with financial services? For the Central Bank of Solomon Islands (CBSI), digitalization provides the answer. In 2022, CBSI launched a Regulatory Sandbox for fintech companies to test innovative new products and services in a safe, controlled environment, before being granted regulatory approval and rolled out.

“We are an island country, scattered geographically, with 70% of the population living in rural areas,” says Daniel Haridi, Chief Manager of CBSI’s Financial Systems Development and Payments Department. “Reaching these populations is difficult, and going digital is the answer.”

“Six companies have gone through our Regulatory Sandbox, testing products related to mobile money services, payment systems and remittances,” says Denson Denni, CBSI Manager of Applied Research, Policy & Regulations. “One mobile money company already exited testing, receiving a restricted classified dealer’s license, while three companies are still testing.”

“Whenever a financial service provider introduces a new product, this needs to be accompanied by financial literacy,” says Junior Faka, CBSI Senior Financial System Development Analyst. “The aim is to inform consumers about the benefits, and also the risks, of using digital financial services.”

Learn more about CBSI’s Regulatory Sandbox.