Nasfund signs PNG Empower Finance Code to combat financial abuse

The National Superannuation Fund (Nasfund) has joined 14 other financial institutions in co-signing the PNG Empower Finance Code, a landmark initiative spearheaded by the Bank of Papua New Guinea (BPNG). This voluntary industry code is designed specifically to address and combat financial abuse, marking a significant step in safeguarding consumers within Papua New Guinea's financial sector.

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With modernization and digitalization, two things come by, One is the ease of doing things and second is risk of abuse.

Rajeev Sharma, Nasfund's Chief Executive Officer, highlighted the dual nature of modernization and digitalization, noting that while they bring ease of use, they also increase the risk of abuse. He contrasted the past, when in-person banking made impersonation difficult, with the current digital age characterized by faceless interactions via email and phone calls. "So abuse is mounting and abuse could be several," Sharma stated, emphasizing the timeliness of the educational initiative.

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So I think it is very unfortunate at the right time that such education is provided so that everyone knows what exactly they are doing and no one is left behind and I think it is a great initiative. So congratulations BPNG Governor, very well done and we are all ready to go.

Nambawan Super Limited (NSL), another co-signatory, acknowledged the code's importance for its members, whose superannuation often represents their largest asset. NSL expressed its commitment to working with the BPNG to ensure members fully utilize their funds and are not exploited. "As you know the systems here, people know you got money, and you attract more families and all that. So people don’t realise what actual financial abuse is," an NSL representative commented, underscoring the need for greater awareness.

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As everyone’s aware, our members, their Superannuation is the largest asset for most of them, and we are privileged to work with the Governor and the Central Bank to ensure that our members make full use of their funds, and they are not taken for granted.

Both Nasfund and NSL have pledged to dedicate efforts towards educating their members about the various forms of financial abuse. The PNG Empower Finance Code represents a collaborative effort to foster a more secure financial environment, particularly as digital transactions become increasingly prevalent, making consumers more vulnerable to sophisticated forms of exploitation.

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And as you know the systems here, people know you got money, and you attract more families and all that. So people don’t realise what actual financial abuse is.