It may, of course, bring many potential benefits. Using big data, BigTechs can assess the riskiness of borrowers, reducing the need for collateral4. Hence, their low-cost structure business can easily be scaled up to provide basic financial services to the unbanked population. 14. These developments pose a challenge to banks as well as banking regulators.
The rugged terrain, remoteness of many communities and the fragmented characteristics of the PNG economy suggest that mobile money or electronic banking is the way forward to provide financial services to the mass in the rural areas. The rapid economic growth in the last five years has created opportunities for bank expansion.