Page 20 - IB April 2021

OPINION

Pacific Islands need technology

more than travel bubbles

Paula ter Brake in the Pacific overcome the disadvantages thirds of our new business originates
Managing Director – Pacific of distance… Continuing to harness the through on-line channels. We have now
Tower Insurance power of technology and innovation can taken this tech to the Pacific, investing over
deliver more opportunity for more $1.3m to launch it into Fiji, with other
people.” Pacific countries progressively following
A pathway to reopening Pacific Island over the coming year.
tourism in parallel with the roll out of NZs Yet capacity and cost constraints remain.
COVID-19 vaccination programme in 2021 Submarine data cables now snake across This means, for the first time ever, our
would be a significant economic boost for the region, with the notable Manatua cable motor customers in Fiji can get a quote
the region. While NZ tourism operators spreading some 3800km. This is expected and buy a policy online. All customers
enjoyed a buoyant domestic holiday to improve connectivity and decrease data across the region can already make a
season the same can’t be said for tourism costs. Even tiny islands are now connected claim online and while this might sound
hot spots such as Fiji, Vanuatu and the to the internet. Whether there hasn’t been basic, this is a major step forward and a
Cook Islands. enough infrastructure investment or first for the Pacific Islands. They can now
whether industry hasn’t come to the table use the one common piece of technology
Yet tourism is not a silver bullet for these with sufficient demand, it is clear that the that they all have access to – a mobile
economies, and nor does it solve the opportunity that De Silva was talking about phone – to do everything they need to
deeper challenges facing the Pacific needs to be borne out of public-private keep themselves safe, regardless of their
Islands. partnership. location.

During the three years ending 2021, MFAT The region’s digital deficiency costs it At present, our 10 branches cover the
will have invested over NZ$1.3 billion in the dearly. entire Pacific region and while plenty of
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Pacific region and there are plenty of people and businesses email and call us,
other global donor organisations investing Just one example of this cost is the plenty of people still make long trips to our
in Pacific economic development and region’s relationship with cash. Whereas branch once a year. Addressing the
disaster recovery. globally cash has been falling as a share of accessibility issue of island nations can
the money supply, in Pacific island only be achieved through a digital
To build sustainable, self-reliant countries it has remained at a constant proposition and Tower’s digital innovations
economies, diversification that reaches level since the early 2000s. In NZ we are will make a difference to people in the
beyond tourism, into new sectors is what is phasing our cheques, but in the Pacific it’s region.
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needed. still the go-to for large payments .
We have a team of over 100 people in the
Technology can and should play a pivotal In 2019 the International Monetary Fund Pacific who are highly engaged and
role in unlocking new opportunities, as it wrote: “The provision of digital retail, passionate about being part of our
has the power to mitigate the tyranny of interbank, and international payments business, and we are actively looking to
distance the Islands have to navigate. would reduce transaction costs for grow this number. The benefits of having
Technology is the foundation for new households, businesses, and the multiple locations, all operating from the
weightless industries which are resilient to government, particularly the substantial same technology platform means we can
the shock impacts of global pandemics, costs associated with traveling between access new talent pools, share work
extreme weather conditions and the islands to physically make payments.” during peak periods and provide support
subsequent interruption to the supply when we respond to natural disasters and
chain as experienced in tangible The payments industry, banks, cards pandemic stay-at-home orders.
economies. Business process outsourcing, companies, fintechs along with
fintech and other intangible industries are government stakeholders must work In order to prosper, the Pacific needs what
obvious opportunities for Island locations together to bring payment technology to other global businesses take for granted.
such as Fiji which boast well educated, the region. If cracked, this would enable It’s not about reinventing the wheel. It’s
English speaking, service orientated Pacific Island businesses to prosper in the about taking what we know works for
people. coming years. digital businesses and implementing them
in partnership with Pacific nations in a way
The International Finance Corporation is a Despite the challenges the region that works for Pacific peoples. This
member of the World Bank Group and the presents, Tower is forging ahead with includes plans to have community based
largest global development institution plans to help island economies get the digital animators to raise awareness and
focused on the private sector in same efficiencies and opportunities from facilitate a values-based design process.
developing countries. digital technology that we enjoy in New
Zealand. We get a sense of what’s possible So yes, let’s enjoy being able to fly once
In October 2019, IFC’s representative for in the region when we give the Pacific more to island beaches, but save the real
Fiji, Kiribati, Samoa, Tonga and Tuvalu, Islands the same business tools we have in celebration for when economies are back
Deva De Silva said, “From mobile money, NZ. on the path towards sustainability and self-
to sending remittances and bringing in reliance.
electronic payment systems, we’ve seen In New Zealand we utilise world-leading
the use of digital technology help people technology, and as a result, around two-

1. https://www.mfat.govt.nz/en/countries-and-regions/pacific/
2. Strategy for Fintech Applications in the Pacific Island Countries,
International Monetary Fund, 2019

20 Islands Business, April 2021