Question 1

What is Solomon Finance Limited?

Accepted Answer

Solomon Finance Limited (SFL) is a non-bank financial institution and credit institution operating in the Solomon Islands. It is the newest financial institution in the country, wholly owned by the Solomon Islands National Provident Fund (SINPF). SFL was established to provide accessible loans and related financial services to active SINPF members, helping them build wealth for their future and that of their families.

The institution operates under a full credit institution license from the Central Bank of Solomon Islands (CBSI) and focuses on expanding financial inclusion for underserved populations in the Solomon Islands.

Question 2

When was Solomon Finance Limited founded?

Accepted Answer

Solomon Finance Limited was incorporated on November 1, 2019, as a wholly-owned subsidiary of the Solomon Islands National Provident Fund. The institution initially received an interim credit institution license from the Central Bank of Solomon Islands in November 2019.

After meeting all regulatory requirements stipulated in the interim license, Solomon Finance Limited's license was converted to a full credit institution license by the CBSI Board at its meeting on November 17, 2021. The institution officially opened for business in the first quarter of 2022.

The establishment of SFL represented the culmination of more than 12 years of work by SINPF Boards and management, with technical support from the Pacific Sector Development Initiative (PSDI) of the Asian Development Bank.

Question 3

Where is Solomon Finance Limited headquartered?

Accepted Answer

Solomon Finance Limited is headquartered in Honiara, the capital of the Solomon Islands. The institution's office is located on the ground floor of the Anthony Saru Building (ASB) on Hibiscus Avenue in Honiara.

Question 4

Where does Solomon Finance Limited operate?

Accepted Answer

Solomon Finance Limited operates throughout the Solomon Islands, serving SINPF members across the archipelago. The institution leverages digital channels and mobile money platforms to reach clients across the country's dispersed population living on hundreds of islands.

SFL's services are accessible through both digital channels and physical presence in Honiara, with the institution working to extend financial services to urban, peri-urban, and rural areas throughout the Solomon Islands.

Question 5

What services does Solomon Finance Limited offer?

Accepted Answer

Solomon Finance Limited provides member credit facilities to eligible SINPF members, leveraging their provident fund savings. The institution's primary products include personal loans of up to SBD $100,000 with repayment terms up to three years at an interest rate of 9.5% per annum, and education loans ranging from SBD $2,000 to $20,000 with one-year terms, also at 9.5% per annum interest.

SFL also facilitates nano-loans through the YouSave MobileFund platform, which uses USSD technology (*673#) to provide instant loan applications and approvals. These nano-loans are assessed using AI technology based on users' savings history with YouSave, allowing borrowers without traditional credit histories to access financing.

Loan disbursements are made through direct bank transfers or mobile money accounts (M-Selen), with funds accessible through registered mobile money agents across the country. The institution's application process is designed for accessibility, with nano-loans approved within 60 seconds and funds immediately available on mobile phones.

Question 6

What makes Solomon Finance Limited unique?

Accepted Answer

Solomon Finance Limited is unique in its focus on using alternative data for credit scoring, specifically leveraging members' savings behavioral patterns with SINPF's YouSave scheme. This innovative approach allows the institution to extend credit to populations traditionally excluded from formal banking, including women, youth, people with disabilities, and micro, small, and medium enterprises (MSMEs).

The institution is specifically designed to serve underserved segments including low-income households, micro-entrepreneurs, and individuals in rural areas. By being wholly owned by SINPF, SFL provides SINPF members with the ability to access credit against their retirement savings while still actively employed.

SFL's integration with digital and mobile money platforms represents a significant advancement in financial inclusion for the Solomon Islands. The institution is supported by Australia's economic partnership with the Solomon Islands Government and implemented through the UN Capital Development Fund's Pacific Digital Economic Programme.

Question 7

What type of financial institution is Solomon Finance Limited?

Accepted Answer

Solomon Finance Limited is a non-bank financial institution classified as a credit institution under the Solomon Islands regulatory framework. It operates under the Financial Institutions Act 1998 (as amended) with a full credit institution license granted by the Central Bank of Solomon Islands.

As a credit institution, SFL is distinct from commercial banks but is subject to CBSI's prudential supervision and oversight. The institution is wholly owned by a statutory body (SINPF) and functions as a specialized lending institution focused exclusively on providing credit facilities to SINPF members.

SFL represents a hybrid model that combines elements of a credit union (member-focused lending) with specialized development finance (targeting financial inclusion objectives) while maintaining regulatory compliance as a licensed credit institution in the Solomon Islands financial system.

Solomon Finance Limited

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About Solomon Finance Limited in the Solomon Islands